TRNC TITLE DEEDS
A concern of foreign buyers of real estate in North Cyprus is the safety of purchasing property built on land with TRNC title deeds. These are deeds for land that was owned by Greek Cypriots prior to 1974, but which was appropriated by the North Cyprus authorities after civil unrest led to the movement and subsequent separation of the Turkish Cypriot and Greek Cypriot communities into northern and southern Cyprus respectively.
When considering the consequences of purchasing property built on TRNC title, a purchaser has to consider firstly the type of TRNC title in question and secondly how a likely settlement of the land issue in Cyprus is likely to impact on such title. A settlement of the land question will be based upon the Annan Plan.
Although the Greek Cypriot community rejected the plan on 24th April 2004, it was accepted by the Turkish Cypriot community and unanimously approved by the international community. The United Nations has made clear that any future settlement must be based upon the Annan Plan. Its central tenets cannot be renegotiated.
The Annan Plan provides for solution of the land issue with the aim of creating two federal constituent states in Cyprus in which each respective community forms the overwhelming majority of the population (the principle of 'bi-zonality'). Bi-zonality is achieved by restricting the number of people from the opposite community settling in north and south Cyprus respectively. This means Greek Cypriots who owned TRNC title land pre-1974 would not generally be entitled to return of such land. There are two types of TRNC deeds - 'Esdeger' and 'Tahsis'.
Esdeger
' Esdeger' title is land originally owned by a Greek Cypriot prior to 1974, with title deeds issued by the North Cyprus government post-1974 to a Turkish Cypriot refugee from the south on a 'points' basis in compensation for land he/she abandoned in the south. It is widely known as 'exchange land'. This is to reflect the fact the Turkish Cypriot refugee had effectively swapped land he/she left in the south because of civil strife for equivalent value land a Greek Cypriot abandoned in the north as a result of similar civil strife.
Under the Annan Plan there is almost complete protection for an owner of Esdeger title. A person purchasing such land now is considered to be in exactly the same position as the original Turkish Cypriot refugee who swapped his land post-1974. Therefore the Annan Plan expressly acknowledges there can be legitimate dealings in such title.
The first protection is that a current owner, including a foreigner, cannot lose Esdeger land to the Greek Cypriot who owned it pre-1974 if its value does not exceed the value of the land the Turkish Cypriot left in the south in 1974 by more than 50%. The second protection is that a current owner cannot lose Esdeger land if it has been "substantially improved" since 1974. This includes the construction of a building. The purchase of a house built on such land since 1974 is therefore automatically protected.
Tahsis
'Tahsis' title land is more popularly called 'TMD land'. It is land originally owned by a Greek Cypriot prior to 1974, with title deeds issued by the North Cyprus government to a Turkish mainland settler post-1974 rather than a Turkish Cypriot refugee. Such land is generally situated in the most beautiful parts of North Cyprus.
Under the Annan Plan there is substantial protection for an owner of Tahsis title, albeit not as comprehensive as for an owner of Esdeger title. This is because only the second protection applies. In other words, a current owner is protected from losing the land to the Greek Cypriot who owned it pre-1974 only if it has been "substantially improved" since 1974. It does not enjoy the comparative value protection.
Nevertheless, because substantial improvement of land includes the construction of a dwelling thereon, the purchase of a house or apartment built on Tahsis land since 1974 is as much protected under the Annan Plan as those on Esdeger title. The difference in the two types of TRNC titles should therefore only concern those who are looking to purchase barren land as opposed to a dwelling. Compensation
Cyprus Island Homes wish to point out to potential purchasers that even if there is only a very remote risk of a current owner losing property built on TRNC land, compensation might still need to be paid if there is ever a settlement. This is envisaged in the Annan Plan. It is something unscrupulous estate agents in North Cyprus fail to inform purchasers.
Compensation is likely to be modest. It will be based upon the value of the land in 1974 with index-linked enhancement. The compensation is likely to be approximately 8% to 15% of the value of a typical villa or apartment. This represents little more than a year's rental income. A purchaser could therefore buy a property and save a year's rent to provide a contingency fund in case compensation is payable in the long-term.
Moreover, there is a very strong chance compensation will be paid by the Government rather than a private owner. On 30 th June 2003 the Government in North Cyprus set up the Compensation Commission for Immovable Property to meet the claims of pre-1974 Greek Cypriot owners of TRNC title.
If the Government meets a compensation claim it is done on condition the pre-1974 Greek Cypriot owner waives any future claims he might have in relation to the land.
Buyer's Guide 
The Turkish Republic of Northern Cyprus enjoys a typical Eastern Mediterranean climate with long hot summers and short mild winters. The northern coastline which borders the Girne (Kyrenia) mountain range is accepted as being one of the most beautiful areas in the world in which to live. The natural beauty of the island, the lovely climate, the warmth and generosity of the Turkish Cypriot people and the abundance of fresh foods make Northern Cyprus an un spoilt and un commercial haven.
Buying a property in North Cyprus is a relatively easy practice, for further information on the procedure involved in purchasing North Cyprus property please click on the "Buyers Guide " link.
Services
Cyprus Island Homes estate agents provide their clients with a comprehensive range of services relevant to buying property in North Cyprus . From advice on purchasing the right home in North Cyprus to after sales care, property maintenance, project management to advice on relocating to North Cyprus, finding schools and even help on eating out in North Cyprus !
To find out more on any of these services offered by Cyprus Island Homes estate agents simply click on the "Services" link above or better still come an experience for your self some Cypriot hospitality and visit our office for a coffee and a chat!
Useful Information
Click to learn useful information about North Cyprus.
Buying a property in North Cyprus is for many overseas buyers a big step and often the beginnings of a new start in life. Cyprus Island Homes estate agents understand this and aim to give their clients total piece of mind by keeping them up to date with the building process of their new North Cyprus Property. Regular updates are sent via email, fax or post along with photographs showing the various stages of construction of their property in North Cyprus .
If the information you require on North Cyprus property cannot be found on our web sitewww.cyprusislandhomes.com please do not hesitate to contact us at info@cyprusislandhomes.com or by telephone on 0090 392 822 2661, by mobile phone on 0090 533 864 1392 or alternatively by fax on 0090 392 822 3460.
We look forward to hearing from you soon.
Contact Us
You can contact us with any question about Properties for sale in North Cyprus or related services. You can contact us directly by phone, fax or email.
info@cyprusislandhomes.com
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