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| What is Acceptable Title? |
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Land and buildings under categories 1.) and 2). in the Land Title section usually command a premium in price for obvious reasons. However, some new properties are being built on categories 3.) and 4.) land with correspondingly lower asking prices. This would be paid by the TRNC, under current arrangements (see below).
The degree in risk to incoming purchasers is generally regarded as low. If a settlement between the Turkish & Greek Cypriots is ever reached, it is widely accepted that only a nominal compensation payment of about a third of the land value - about 10% of the property's value - would be due. This would be paid by the TRNC, under current arrangements (see below).
Meanwhile, the property's value would probably increase by about one third, as north/south prices equalize, either on re-unification of the island or, (more likely), outright recognition of the TRNC by the international community.
The most significant development in recent years, in the context of land title in NC, has been the setting up of the 'Immovable Property Commission' (IPC) by the TRNC government, specifically at the request of the European Court of Human Rights (ECHR). Following Cyprus joining the EU in May 2004, the ECHR had received over 1400 applications from Greek Cypriots wanting 'their land' back or at least compensation. The ECHR however refused to consider these claims. Instead it formally requested that the TRNC government set up its own claims procedure and mechanism by which such claims could be dealt with. This the TRNC did, submitting its proposals to the ECHR who asked for certain aspects to be enhanced and improved upon. The Commission is now operational and has received approximately 150 applications and has already dealt with about 30 of them. The level of compensation is approximately 115% of the current market value of the land or buildings which were left behind in 1974 (but any structures added since 1974 are ignored when a valuation is made). Unsurprisingly, the Greek Cypriot government do not approve of their citizens applying for compensation in this way, and in fact make it very uncomfortable for anyone who does so and at one point they were thinking of making it illegal. For this reason the Commission and the TRNC government guarantee totally anonymity is anyone applying, both in terms of identity and the amount awarded to them.
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Any decision to invest should not be based upon the above information and should only be made after taking independent financial and legal advice.
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