Contract with a Developer in Northern Cyprus: Which Clauses Should Be Modified

• Funds Retention by the Developer
• Compensation for Delayed Handover
• Assignment and Resale
• Title Division and Registration

Funds Retention by the Developer

When signing a contract, it is important to pay attention to the developer's retention percentage in case the buyer fails to pay the remaining amount. Failure to comply with the terms may result in the loss of all investments.

Compensation for Delayed Handover

You should clarify how much the developer will pay if the property is delivered late. Compensation is usually calculated based on the long-term rental value of a similar property. Many developers undervalue this amount, so it is recommended to set it above the market rate.

Assignment and Resale

Assignment terms and costs should be specified in advance at the contract stage. Otherwise, the buyer may be required to pay up to £5,000 for the right to resell the property.

Title Division and Registration

It is important to secure the developer's obligation for dividing and re-registering titles for each buyer. Previously, this clause in contracts had no time limits, and division could occur “once.” The new law changes this practice, making process control particularly relevant.

Properly documenting these points in the contract helps minimize risks and protect the buyer’s investment in Northern Cyprus.