By representing the construction sector, KTİMB gives priority to protecting the interests of its members and the people of the TRNC. So, the importance of the following issues is emphasized so that our citizens won’t become a victim while buying a house or plot, or agreeing to contract with a contractor.
Recommendations related to the general rules;
- The ownership status of the goods to be purchased must be learned and it should be known in advance whether the immovable property is self-contained or joint share.
- The issues such as whether there is a restriction on the immovable property like mortgage, levy etc. or whether there is any personal statement or circumstance obstructing the sale of the immovable should be checked from the relevant Deed and Cadastral Office.
- It is not recommended to work with people who are not reliable or specialist or companies that are not registered in related sector they are affiliated with. The buildings built by the contractors registered in the KTİMB and the Construction Committee should be preferred and it should be known that it is a crime according to the TRNC laws to work as an unregistered contractor or have an unregistered contractor build a construction work, and it must be known that there is a penal sanction for both parties.
- It is suggested that the contract should be approved in a registered Notary office and legal opinion should be obtained from a lawyer office in order to protect the legal rights of the persons involved in the contract between the property owner and the buyer.
- It is recommended that all technical specifications and details of the project related to the immovable property to be purchased first be learned and then the contract is signed. It should be noted that the contract is binding on both sides after the contract is signed.
- If the immovable property to be purchased is a house, the contractor should have the construction license permits for the project.
- If the immovable property to be purchased is a ‘completed land’ property, it should be learned whether the property is a self-contained property and the transfer conditions should be learned. If the immovable property is still a ‘parceling project’, it should be ensured that the contracting firm has the permission of the construction license for the project.
- It should not be forgotten that in case of disputes between the parties regarding the immovable property, only if a contract is made in an accurate, comprehensive and legal manner, the situation can be transferred to the judicial authorities on the legal and healthy conditions and the buyer cannot be a victim.
- It should be understood clearly what the total sale price of the immovable to be purchased is included, and all applications and figures should be clearly stated in the agreement to be made between the parties. Everything promised to the buyer must be included in the contract and all fees related to the contract must be paid and the registration must be made within 30 days to the Deed and Cadaster Office.
When buying ready and buy-and-sell housing;
- The company to be built must have received all the necessary visas from K.T.M.M.O.B. for the projects related to the constructions that they are selling.
- It should be noted that the “Planning Approval” of the Urban Planning Department should be obtained and the Environmental Impact Assessment (EIA) report should be taken if necessary, in areas where the Development Plan Law No.55/89 is applicable.
- Permission for Construction Permit must be obtained in the area (Municipality or District Governor’s Office) where the project will be implemented.
- The projects of the house to be purchased must be thoroughly examined. It is suggested that projects should be understood and agreed in terms of architectural, static, transportation, infrastructure, sewerage, water, electricity, telephone, parking, green area applications.
- It is recommended to investigate from the Deed and Cadaster Office whether there is any problem regarding the ownership status of the land where the project is to be implemented or about the deed procedure.
- Whether the building contractor is registered to the Turkish Cypriot Contractors’ Association and the Construction Committee, and whether the licenses they have are qualified to do that project legally, as well as the work done before, the quality and timeliness of these works should be investigated by the buyer.
- It is not recommended to work with people who are not reliable or specialist or companies that are not registered in related sector they are affiliated with. In accordance with the Building Construction and Technical Contractors’ Registration and Supervision Act numbered 19/98 (1st and 2nd paragraphs of Article 8), to engage in unregistered contracting and to have an unregistered contractor build a construction is a criminal offense and there are penal sanctions, with a minimum wage of 20 (twenty) and prison sentence up to 5 (five) years.
- It is suggested that the contract should be approved in a registered Notary office and legal opinion should be obtained from a lawyer office in order to protect the legal rights of the persons involved in the contract between the property owner and the buyer.
- It should be known that the details of the architectural project and the specification are binding for the construction company and it should absolutely be emphasized that the details of the project implementation are essential to the contract to be drawn up between the parties.
- In order to be sure of the sales value of the immovable, the buyer is advised to first make a comparison by obtaining information on comparative prices in the regions to which the project will be applied.
- It is recommended to know what is included in the sale/purchase price, to know the fees to be paid to the Dept. of Land Registry and Cadaster, KIB-TEK, Municipality and Telephone Office, and all details should be clearly stated in the contract.
- In order for the agreement to be valid, the buyer must register the contract signed with the contractor within 30 days by the Department of Land Registry and Cadaster.
When contracting with the contractor to build a house;
- Whether the building contractor is registered to the Turkish Cypriot Contractors’ Association and the Construction Committee, and whether the licenses they have are qualified to do that project legally, as well as the work done before, the quality and timeliness of these works should be investigated.
- In accordance with the Building construction and technical contractors’ registration and supervision act numbered 19/98 (1st and 2nd paragraphs of article 8), to engage in unregistered contracting and to get an unregistered contractor build a construction is a criminal offense and it shouldn’t be forgotten that there are penal sanctions, with a minimum wage of 20 (twenty) and prison sentence up to 5 (five) years. It is not recommended to work with people who are not reliable or specialist or companies that are not registered in related sector they are affiliated with.
- It is suggested that the contract should be approved in a registered Notary office and legal opinion should be obtained from a lawyer office in order to protect the legal rights of the persons involved in the contract between the property owner and the buyer.
- It should be known that the details of the architectural project and the specification are binding for the construction company and it should absolutely be emphasized that the details of the project implementation are essential to the contract to be drawn up between the parties.
Taxes and Fees
- 0.5% stamp cost according to the sales contract. (Paid by the buyer).
- 6% Immovable Goods Transfer Fee according to immovable property value. However, just for the first time, TRNC citizens have the right to pay this fee at 3%. (Paid by the buyer).
- 5% VAT according to the immovable property value. (If the seller is a professional, VAT is paid by the buyer. VAT is not paid if the seller is not a professional).
- 4% Stoppage according to the immovable property value. (Paid by the seller).
- There are different applications in transfers with shares and donations.
- For granting between parents and descents, a 0.2% stoppage tax is paid. For granting between spouses, a 0.4% stoppage tax is paid. For granting between family elder and grandchild, a 0.4% stoppage tax is paid.
The above suggestions, conditions and practices are indicative information and there is no binding on behalf of KTİMB. Please contact the TRNC Ministry of Interior and/or the Deed and Cadastral Office for detailed information.
