Cyprus, Nicosia

What you need to know when buying a resale property in Northern Cyprus?

Updated: 3 days ago
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Installment arrears

When buying a resale property in Northern Cyprus, it is important to check whether the seller has any outstanding debts to the developer. These may include early repayment obligations or partial debt balances.

The most risky situation occurs if the seller has penalties or the contract has been sent for cancellation. In that case, the property may revert to the developer’s balance, and the deal will collapse. Losses can reach 30–40% of the property’s value.

Additional expenses and taxes

Buyers often find that, in addition to the main apartment price, they must pay extra fees and taxes:

  • VAT and stoppage tax
  • Transformer fee
  • Complex maintenance fee
  • Account opening charge
  • Mandatory air-conditioning payment

Sometimes it’s just a few charges, but in some cases, there can be dozens. In total, they may increase the purchase cost by 5–10%. That’s why it’s crucial to determine in advance which party will bear these costs. The agent should warn about the additional expenses, and the lawyer should formalize them legally.

According to statistics, up to 20% of resale transactions fail due to disagreements over expense distribution between the buyer and seller.
Assignment and the developer’s role

Assignment refers to the payment made to the developer for reissuing the sales contract from the seller to the buyer. Even if the seller has paid the full amount, the developer remains the legal holder of the rights until the title transfer is complete.

Therefore, when buying an apartment through assignment, the buyer almost always covers certain debts and fees on behalf of the seller. Urgent or forced sales are typically cheaper precisely because the owner cannot settle these obligations.

How to secure the deal

To minimize risks when buying a resale property without title, there are several reliable methods:

  1. Sign an agreement through a lawyer specifying all payments and deadlines.
  2. Involve the developer as a guarantor for the transfer of funds and documents.
  3. Sign a reservation agreement through a notary or licensed agency.

These mechanisms do not replace full legal due diligence but help protect your investment and avoid common pitfalls when purchasing resale property.

As with all real estate transactions, the devil is in the details — especially when the title has not yet been issued.
Vadim Chernyakov
Vadim Chernyakov
Real Estate Specialist

I have been working in the real estate market of Northern Cyprus since 2012. During this time, I have built one of the largest databases of secondary properties on the island. My experience and deep expertise allow me to find optimal solutions for clients, support transactions at every stage, and ensure transparency and security throughout the process.

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