One concern of foreign buyers of land and property in North Cyprus is the safety of buying property with TRNC title deeds. These are deeds where prior to 1974 the land was owned by a Greek Cypriot, and then appropriated by the authorities in North Cyprus following the civil unrest that culminated in the separation of the Turkish Cypriot and Greek Cypriot communities into Northern and Southern Cyprus respectively.
A purchaser must consider which type of title deed the land or property has and what impact any possible settlements of the land issues between North and South Cyprus may have on their purchase. Any such settlements made will be based on the Annan Plan devised in 2002 by UN Secretary General Kofi Annan.

The Annan Plan was rejected by the Greek Cypriots following a national referendum in 2004. The United Nations have clearly stated that any future settlements will be based on the The Annan Plan. The Annan plan aims to create two federally governed states in which each respective community forms the overwhelming majority of the population.  These Bi-zones will be achieved by restricting the number of people from each community settling in the North and South parts of the island. This would mean that Greek Cypriots who previously owned TRNC title deed land pre’74 would not generally be entitled to return of such land.

There are two types of TRNC title deeds ‘Eşdeğer’ and ‘Tahsis’.

‘Eşdeğer’ (Exchange)
Eşdeğer title deed is land that prior to 1974 was owned by a Greek Cypriot.  Title deeds were issued by the TRNC government after 1974 to a Turkish Cypriot refugee from the south on a ‘points’ basis in compensation for land that they had to abondon in the south. Eşdeğer is more commonly known as exchange land.
This is based on the fact that the Turkish Cypriot refugee has effectively swapped land left in the south because of the civil conflict, for land of equivalent value abandoned by a Greek Cypriot in the North.

Under the Annan plan there is almost complete protection for the owner of Eşdeğer title land.  Any purchaser of Eşdeğer land is considered to be in the same position as the original Turkish Cypriot refugee who ‘swapped’ his land after 1974. The current owner of the Eşdeğer land (that includes non-TRNC citizens) is protected in two ways. The first being that the current owner cannot lose the land to the pre 1974 Greek Cypriot owner, if its value does not exceed that of the land abandoned in the south in 1974 by more than 50%. The second way states that the current owner cannot lose the land if it has undergone ‘substantial improvement’ since 1974.  This includes construction of any building. Therefore the purchase of a property built on this type of title deed land is automatically protected.

‘Tahsis’ (TMD)
More commonly known as TMD land, Tahsis land was owned pre 1974 by a Greek Cypriot. Post 1974 the title deeds were issued by the TRNC government to a turkish mainland settler as opposed to a Turkish Cypriot refugee.  Some of the most beautiful areas of Northern Cyprus are often TMD land.
Under the Annan plan, TMD land owners are greatly protected. The current owner cannot lose the land to the pre 1974 Greek Cypriot owner if the land has been ‘substantially improved’ since 1974. TMD land does not benefit from the comparative land value protection. However construction of a property is considered as a ‘substantially improvement’ so purchasing property on TMD land is protected under the Annan plan just as those purchasing exchange land.

Only those wishing to purchase just land should take the difference between the two title deed types into consideration.

Cyprus Views Ltd are more than happy to advise clients on which title deed a property has.  Cyprus Views Ltd would like to take this opportunity to point out to clients that there is a very remote risk of the current owner losing a property built on TRNC title deed land.  However in the event of a settlement, compensation may be payable to the former property/land owner. This aspect is covered under the Annan plan and compensation is likely to be modest and based upon the value of the land in 1974 with an index-linked enhancement. As a guide compensation is likely to be approximately 8% - 15% of the typical villa or apartment.  In June 2003 the TRNC government set up a property compensation commision that will deal with any claims made by pre 1974 Greek Cypriot owners of TRNC title land.
If any compensation claims are met, it is done on the condition that the Pre 1974 Greek Cypriot owner waives any future claims he may have in relation to the land.