To buy property in Turkey and be sure that everything is done correctly from a legal perspective, it is better to hire an appropriate professional. We will tell you how to choose the right lawyer who will help you purchase a residential property in Northern Cyprus.
Content:
- At what stages you can’t do without a lawyer
- How to choose the right lawyer
- Approximate cost of a lawyer in Northern Cyprus
At what stages you can’t do without a lawyer
Having a lawyer is necessary at different stages of the purchase and sale transaction.
Stage 1. Choosing a property and signing a contract
You can choose a house or apartment in Turkey without a lawyer, but you do need a licensed lawyer to check paperwork, draw up a sales contract, register a contract with the Land Registry, and interact with the tax service.
The buyer can fully trust the lawyer, since this professional will not deviate from the law and risk their licence.
The sales contract is concluded in English and Turkish. If necessary, the contract is also written in the language spoken by the property buyer. Each page must be signed by the buyer or their representative, the seller and two witnesses.
Stage 2. Registering the contract with the Land Registry
Once signed, the contract is submitted for registration to the Land Registry. At this point, the buyer must transfer at least 35% of the cost of the purchased apartment or house in Turkey to the seller’s account.
The lawyer must take a copy of the title deed, which is in the name of the seller, and make a formal request to the Land Registry of the district where the property is located to find out if the property is mortgaged. The answer will come in two to three days. A special form will provide information about loans received on the security of the property, if any, and information about the seller.
The sales contract must be submitted for registration no later than three weeks from the date of its signing. Upon registering the contract, the buyer becomes the owner of the property.
At the stage of obtaining the title deed, the new owner can resell the acquired property. They can also complete the registration of the residential property and transfer the title deed to their name. This document establishes your ownership of the property, which means you can make any transactions with it, regardless of the management company or real estate developer.
By the time the property is accepted, the paperwork is not always fully completed and land allotment has been made, which gives the new owner the right to transfer part of the land plot to their name. Many developers need about two years to divide the land among all the apartment owners and complete the land allotment.
Stage 3. Obtaining permission to transfer a title deed
The procedure for getting a title deed is simple; however, in order for a foreign national to become eligible to transfer it to their name, they must obtain permission from the Council of Ministers to transfer a piece of land.
Currently, a foreign national has the right to own only one plot of land in Northern Cyprus. The area of such a plot cannot exceed 13 acres.
You can apply for permission to transfer a title deed at any stage of the purchase and sale transaction. Lawyers recommend doing this immediately after signing the sales contract, since it will take 3 to 12 months to review the application.
You cannot obtain permission to transfer an abstract land plot, but rather only a specific plot. For this reason, you can submit an application only after signing the contract. If the buyer cancels the transaction, then they cannot transfer the obtained permission.
Both the owner of a villa and the owner of an apartment in a residential building can transfer the title deed to their name. In case of apartments, the owner will be issued an individual title deed for a share in a common land plot.
Stage 4. Paying taxes
After signing the contract, the investor must pay stamp duty, which is 0.5% of the value of a villa or apartment.
After obtaining permission to transfer a title deed, it is necessary to pay VAT of 5% of the property value. Also, the buyer must pay title deed transfer tax of 3% of the transaction amount and a transformer fee of $1,250 to $3,700. This is the last stage where the buyer may need a professional’s assistance.
How to choose the right lawyer
Your choice of a lawyer determines whether the sales contract will be drawn up correctly and how carefully the compliance of paperwork will be checked.
It is better to choose a professional from a large legal organisation that employs at least ten lawyers. Experts advise against hiring a lawyer whose office is one room, which can be rented inexpensively for several days or weeks.
A notary will not help the buyer in drawing up a sales contract and checking the compliance of paperwork, so an investor needs to first work with a lawyer who is qualified to deal with sales transactions and has relevant work experience.
As a rule, legal support is provided by lawyers of a real estate agency; therefore, by choosing the right real estate company, you can count on receiving competent legal services. Before starting working with a real estate company, it is necessary to check whether it has the appropriate licence.
Make sure you give your lawyer clear instructions about what services you need. If the buyer leaves the matter to chance, they can charge them for full package services, while only doing checks and paperwork halfway.
Approximate cost of a lawyer in Northern Cyprus
The cost of a full package of legal services is approximately $2,500. The package includes:
- Drawing up a contract – $500.
- Drawing up an additional contract if necessary – $370.
- Registering a contract – $250.
- Translating a contract – $190.
- Applying for a Permission to Purchase – $500.
- Checking a property for encumbrances – $250.
- Drawing up a will – $370.