Anyone who considers the obvious benefits of the property market in North Cyprus will always come to the point where they ask themselves “is it safe to buy property in Northern Cyprus?” And the answer to this question is a simple one - “yes!"

There has been a lot of misleading information in the media lately that would have you believe all land and property in Northern Cyprus is potentially subject to a legal claim and that is quite simply NOT the case - this article explains the situation fully.

When considering property in Northern Cyprus most people are struck by the affordability, choice and investment potential offered.  And these are all facts which are undeniable.  The majority of these people then travel to the island to view houses and they can see for themselves the definite potential here, furthermore they can see the intrinsic beauty of this Mediterranean island gem and they quickly realise that they could very easily feel at home with the friendly Cypriots and international expatriates. 

For these people it is important that they take a little time to understand the political situation on the island before they buy and they should make sure they understand the nature of the title deed on the property they’re interested in and then they would be wise to appoint an independent solicitor to conduct the required land registry searches for them.

Following the years of troubles that divided Cyprus in 1974 and that finally led to a peaceful situation on the island, the houses abandoned by the Turkish Cypriots on the South of the island were ‘nationalised’ by the Greek Cypriot government, and houses abandoned by the Greek Cypriots on the North of the island were ‘nationalised’ by the Turkish Cypriot government.

The amount of property nationalised in the North only ever amounted to 17% of the total property on the North of the island and the acquisition on both sides was compulsory and done in exchange for compensation.  Only around 2% of those Greek Cypriots who were entitled to compensation took a financial settlement and it is thought few if any Turkish Cypriots took their compensation and so a settlement relating to the remainder of the land and properties that were nationalised on both sides of the island is still awaited. 

It is common for the title deeds associated with this type of nationalised land and property in TRNC to be referred to as ‘exchange’ and many of the new build and off plan properties for sale in North Cyprus carry this title deed as do the majority of properties available for lease from the TRNC government.

All other properties and parcels of land come with variations of one of the following four types of title deed: two of them are safe to buy and two of them would be considered unsafe.  You should always seek legal counsel before proceeding with a formal offer to purchase or the signing of any contract for a property or land in North Cyprus.

1) Land or property that was foreign owned pre 1974 is internationally accepted as 100% safe to buy.  Obviously you have to have your solicitor conduct all the usual searches associated with checking that the vendor actually has the legal ownership of the title and that there are no mortgages, other outstanding debts or legal claims against the title - but assuming all this is in order it is internationally accepted that property or land with this type of title deed is legal and safe to buy and it is actually the easiest to buy as well in terms of permissions and approval from the Council of Ministers.

2) Land or property that was owned by Turkish Cypriots pre 1974 is also internationally accepted as both legal and safe to purchase.  As in the above case it is of course necessary to have a solicitor conduct the usual searches though.

3) Houses or land that still retain their ‘Greek Cypriot owned pre 1974’ title and that have not been nationalised or claimed back are not safe to purchase.  Whoever is selling such property may not have legal permission to do so.

4) There are a few pieces of land and some properties that are pending cases that slipped through the nationalisation net after 1974 but which are now before the TRNC government awaiting official title.  Property in this state is possibly unsafe and you would probably be unwise to buy it.

The media reports about legal issues surrounding all property in Northern Cyprus are frankly misleading and in some cases biased.  Luckily many people understand this and are used to re-reading the same incorrect facts on a regular basis and this point has been highlighted this year as the numbers of those buying property in Northern Cyprus has again increased on the previous year’s figures and the market is stronger and supporting solid percentage price increases across the board.