North Cyprus Property - Is it Safe to Buy

[MaryPrudence]

One of the attractive things about North Cyprus Property is that it the market has'nt collapsed as has Spain and the Republic of Cyprus. There are some bargain resale properties on the market.

[WellingtonEstates]

@MaryPrudence

Yes, the North Cyprus Property market has not collapsed, as it has in the Greek Republic of Cyprus, Spain and elsewhere. This is mainly because there has never been a widespread availability of mortgages or easy credit to fund the purchase of a North Cyprus property. Therefore, there has never been a property bubble. Wellington Estates do provide mortgages, but this is not commonplace among builders or property developers.

[kibris4ever]

I think this is a balanced video about North Cyprus Property. Sure, there are dangers and there are rogue operators who will take you to the cleaners. These scumbags operate in property all over the world and North Cyprus is no worse than anywhere else. And as Leslie Hardy says, there is no legal bar to a foreigner holding property title deeds in North Cyprus.

[MaryPrudence]

The main fear is that of memoranda or court judgements which are attached to the North Cyprus Property. These are due to the registered landowner reneging on his obligations and becoming a delinquent debtor. What happens is then uncertain.

[WellingtonEstates]

@MaryPrudence

Creditors can register a judgement against the assets of a Debtor, including his land assets. As there is a time lag between purchase of a North Cyprus property by a foreigner and the issue of a Title Deed, then any judgements registered by Creditors against the landowner will impinge on any Title Deed which remains in the Landowner's name. What happens next is uncertain, but the Order of Precedence of debts and obligations comes into play.

[WellingtonEstates]

@MaryPrudence - continued

If a registered Contract of Sale, in favour of a foreign purchaser, predates all or any debts incurred by the Landowner, then a Court will be reluctant to allow the Creditor an opportunity to force a sale of the land and property comprised in the Title Deed. So, for example, if a Title Deed is for 3 donums of land, and there are 4 houses built on that land, all of which are sold, completed and occupied, and the 4 Contracts of Sale were registered and predate the Debt .

[WellingtonEstates]

@MaryPrudence - continued

then the Purchasers of these 4 houses are likely to be safe. If however, only 1 house is on the land, then the Title Deed will comprise a high proportion of unfettered land. This land has a value, and the Creditor may be able to persuade a Judge to force a sale. In this case, the Title Deed will be auctioned and this will include the completed property.It is unclear whether the Purchaser will be allowed to remain in the property or ........

[WellingtonEstates]

@MaryPrudence - continued

may be required to vacate the property. If the latter, then the Purchaser will have precedence over the Creditor for the price as stated in the registered Contract of Sale. In other words, the Purchaser will get his/her money back, including all taxes paid.

Please note that this is not intended to be a definitive legal opinion.

[MaryPrudence]

I agree that you are right in correcting the false impression that the prospect of a dispossessed Greek Cypriot is the main threat to property purchase in North Cyprus. Apart from the Orams case, no-one else has been forced to vacate their property by court action from a Greek Cypriot.

[WellingtonEstates]

@MaryPrudence

Yes, the main threat lies elsewhere. In the video, I refer to the time lag betwwen payment for a property and receipt of the Title Deeds. During this time, there is an element of risk. The safeguard of paying Stamp Duty and registering the Contract of Sale at the Land Office will prevent an unscrupulous Vendor from 'double selling' the property. Prior to this safeguard, there were isolated cases of this unlawful practice, but this is no longer a problem.

[ynot4755]

Yes I would say just about right