Like in the UK there are two main types of deeds in TRNC – Freehold and Leasehold deeds. However, there are some significant differences the UK buyer should be aware of when he comes to buy a porperty in Northern Cyprus.
Leasehold property or land is, as a rule, restored buildings which are leased to foreign nationals by the Government for a period of up to 49 years. The ground rent is negligible. A typical example of such properties could be found in the well established Karmi village near Kyrenia (Girne), where originally all foreign nationals settled. Most of them are English, but also other European nationals, like Germans, Swiss and Dutch live there.
There are three types of deeds for Freehold property, which differ significantly, but all of them are absolutely legel.
The first one is the Freehold property that belonged to a foreign owner (pre-1974), which are rarely found on the market these days, as the owners consider it a good investment and do not feel like parting with it while property prices are going up.
Second type is the deeds that belonged to Turkish Cypriots before 1974, which are also internationally recognised title deeds.
Third type is the TRNC absolute possession document, which was issued to Turkish Cypriots by TRNC Government in compensation of their lost property in Southern part of the island. The land or property before the conflict belonged to Greek Cypriots. Turkish Cypriots signed over their property left in Southern part of the island in favour of TRNC, who issued full possession title in return. It is also often referred to as a basis points land. However, the buyers should be aware that some plots of land or property located close to military sites cannot be completed (e.g. your name will not appear on the title deeds). It is a common belief that TRNC title deeds issued to military serviceman for their service on the island carry a high risk of repossession as they were issued, not on a basis points system, but as a reward for services.
Land and property with no title deeds issued (that belonged to Gree Cypriots pre-1974 and not reclaimed by Turkish Cypriots) as well as “pending ownership” (the purchase that did not complete pre-1974) are illegal and are not considered safe. Your new home could be at risk if you complete your purchase without confirmation of the title deeds by a solicitor.