Although relatively quiet in comparison to the Republic of Cyprus, its more commercialised neighbour, holidays to Northern Cyprus have been popular for some while. As well as being home to a thriving, British ex-pat community, in recent years the north has seen a marked increase in property purchase by overseas investors, keen to take advantage of the relatively low prices. As with any overseas purchase, there are potential pitfalls for the unwary, but buying in Northern Cyprus need not be the potential nightmare it is made out to be by some. As well as being a potentially excellent long-term investment, travel is no problem, as flights to Northern Cyprus are relatively cheap and easy to arrange.
Following a military coup by Greek Cypriots, the island was invaded by Turkish troops in the mid 1970s, following which the island was effectively divided into two parts; the south governed by Greek Cypriots and the North by Turkish Cypriots with a border between, controlled by the UN and which for years could not be crossed. Recent easing of the political gap between the two parts has seen the border effectively opened, and EC citizens, as well as Cypriot nationals, can freely cross and stay unrestricted in either country. Currently the government in the south remains the only one generally internationally recognised and as both Turkish and Green Cypriots ‘lost’ land in the 70s, this remains a point of contention.
There have been many attempts at finalising the political situation in Cyprus, the most recent and comprehensive being the Anan plan. Proposed by the UN, this would have involved a complex scheme of land restitution and compensation, followed by a constitutional settlement. The plan was put to a vote in both parts of the island, but whilst accepted by the Turkish Cypriot population, it was rejected by their Greek counterparts.
Currently therefore, land in Northern Cyprus falls into different categories. Land which was held in Turkish Cypriot title prior to the 70s is under no dispute. Though comparatively costly, there is effectively no fear of loss in the future. The vast majority of property and development, however, is built on land granted title after 1974. Turkish Cypriots who had lost property in the south and who fled to the North, were allocated land under a points system. Such land and property was formally Greek Cypriot owned and title was granted by the Turkish Cypriot authorities. Be cautious of land that has buildings on it which existed prior to 1974. But most properties have been built on formally undeveloped land. It is unlikely in the extreme that any final plan would include an element of restitution of such land, and neither the Anan plan, nor any other, has proposed such an idea. There may be a possibility that in the event of a final resolution of the ‘Cyprus Problem’ a degree of compensation might be payable. In all truth, this would be most unlikely to be substantial and is anyway reflected in relatively lower purchase prices today.
Any prospective purchasers will find the legal system in Northern Cyprus bears strong resemblance to that in Britain. Any decent solicitor will be able to give proper advice and it goes without saying that this is essential. More importantly for prospective buyers, the recent rush of buying has tailed off, so this may be a good time to bag a bargain. As for building and renovating, that’s a different story, and be warned that the biggest problem of all in Northern Cyprus is the relatively laid-back attitude of the work force!
With this article we do not wish to provide you with a biased opinion on buying property in northern Cyprus, instead we aim to provide clear information of how the title deeds are provided in the TRNC and the risk involved. As you must be aware Cyprus used to be a unified country until 1974, date when the country was first invaded by Turkey. The Turks succeed taking possession of the northern side of Cyprus and the Greek Cypriots that used to own land and property in that side of the island were forced to move south. The northern Cyprus became the Turkish Republic of Northern Cyprus recognized only as an independent state by Turkey. As a result, the majority of title deeds issued in the TRNC over the last three decades remain doubtful.
There are 3 types of title deeds issued in the TRNC:
- Pre 1974 Turkish (or foreign) title ? relative to land that was already legally owned by non Greek Cypriots before 1974. This is the safest title deed that can be obtained in northern Cyprus and also properties with this title are the most expensive, however, they are nearly impossible to find nowadays. - TRNC Esdeger (Exchange) title ? Relative to land owned by Greek Cypriots by the time of the invasion which they have agreed to exchange with the Turks for an equivalent piece of land that Turkish owned in Southern Cyprus. This type of land is increasingly hard to find, especially close to the sea. - TRNC TMD Title ? In this case, no exchange or compensation to the original land Greek Cypriot owner has taken place. This is the most common land title you will be able to get (92% of the land in the north remains with Greek Cypriot original owners) and the cheapest properties have this title. In this case, the risk of losing your entire investment and even pay compensation to the rightful owner if and when there is a political settlement to the Cyprus issue is very high.
Cases relative to the land ownership of Northern Cyprus have already been filed in both the Republic of Cyprus courts and the European Court of Human Rights where property buyers have been involved in a legal battle with the Greek Cypriot rightful land owners. As a result, it is very important to consider carefully if it is really worth the risk.
If you are looking to invest you also need to consider how easy it will be either to rent or to resale the property. Taking in consideration the issues involved with the land ownership it is not easy to sell new properties in northern Cyprus and the resale market is nearly inexistent. Also, if you are looking to recover your investment by renting out the property please take in consideration that there are no direct flights to Northern Cyprus from any destination apart from Turkey, and that situation may always influence holiday makers to travel to Southern Cyprus instead in order to avoid delays.
Last but not least it is important to question yourselves on the moral and ethical issues involved in buying property in the northern side of the island. Think about this situation as if it had happened to you ? someone had invaded your family home and took possession of your land and property while you had to seek refugee somewhere else to save your life and when, years later, you return, you find that land had been sold to someone else. What would you do?
With this article we aim to alert and make aware any possible Northern Cyprus property buyers of the risks and issues involved at all levels in the purchase. With this information in place we leave at everyone's good judgment the decision on buying or not property in this area.
Both Richard Bowles & Ana Jesus are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Richard Bowles has sinced written about articles on various topics from Legal Matters. Cyprus Paradise are experts in Northern Cyprus holidays and travel. Richard Bowles's top article generates over 1600 views. to your Favourites.
Ana Jesus has sinced written about articles on various topics from Holidays, Vacation and Legal Matters. Ana Jesus is a Marketing Executive for Elian-Developers Company. For further information please click on:. Ana Jesus's top article generates over 1600 views. to your Favourites.