DECREE WITH THE FORCE OF LAW ON THE REGULATION OF THE STATUS OF EXISTING SALES CONTRACTS

DECREE WITH THE FORCE OF LAW
ON THE REGULATION OF THE STATUS OF EXISTING SALES CONTRACTS UNDER THE TEMPORARY ARTICLE 1 OF THE LAW ON ACQUISITION OF IMMOVABLE PROPERTY AND LONG-TERM LEASING (FOREIGNERS) (AMENDMENT)

General Justification

It has become necessary to introduce new regulations in the rules under Temporary Article 1 of Law No. 39/2024 on Acquisition of Immovable Property and Long-Term Leasing (Foreigners), which governs the status of existing sales contracts. Delays in transfer procedures, caused by factors such as “foreign natural or legal persons being abroad” and “difficulties in communication between buyers and sellers,” have resulted in the state being deprived of income as foreigners could not pay the taxes and fees required for these transactions.

In order to prevent further revenue loss for the state and to contribute to the economy, it has become essential to immediately ensure the collection of fees and to facilitate urgent state expenditures. In light of the above reasons and pursuant to Article 112 of the Constitution, this Decree with the Force of Law has been prepared.

Articles of the Decree

Article 1.
Short Title
This Decree with the Force of Law shall be referred to as the "Decree with the Force of Law on the Regulation of the Status of Existing Sales Contracts under Temporary Article 1 of the Law on Acquisition of Immovable Property and Long-Term Leasing (Foreigners) (Amendment)."

Article 2.
Purpose
The purpose of this Decree is to prevent revenue loss for the state from sales contracts exceeding the acquisition rights granted to foreigners and to ensure the collection of fees, thereby contributing to the economy.

Article 3.
Formation of Build-and-Sell Partnerships
Under Article 8 of Law No. 39/2024, individuals or entities registered with the Turkish Cypriot Building Contractors Association and holding a valid annual contractor classification license may form build-and-sell partnerships with foreign natural or legal persons, provided that the foreign share does not exceed 49%.

Article 4.
Regulation of the Status of Existing Sales Contracts
(1) Sales contracts concluded before the enforcement of this Decree concerning residential properties (excluding land sales) may be registered at the relevant District Land Registry Office for the purpose of obtaining a "Certificate of Use" valid for 7 years.

• The certificate does not confer ownership rights and cannot be revoked without the request of the holder.
• Restrictions under the "Regulation on Limitations for Foreigners’ Acquisition of Immovable Property" and "Military Prohibited Zones Decree" shall apply.

(2) The certificate grants the right of use but does not include the right to transfer the property to third parties, except for the usage rights. During the registration process, the applicable title deed fees for foreigners, as stipulated in the Fees and Charges Regulations, must be paid.

(3) After the 7-year certificate period ends, the provisions of the main Law shall apply. However, the buyer has the right to benefit from Article 5 of the Temporary Provision if they so wish.

Article 5.
Execution
This Decree with the Force of Law shall be executed by the Ministry of Interior.

Article 6.
Entry into Force
This Decree with the Force of Law shall enter into force on the date of its publication in the Official Gazette.

Council of Ministers Decision No. Ü(K-I)2392-2024 dated 14 December 2024
The Council of Ministers of the TRNC, pursuant to the powers granted under Article 112 of the Constitution, has approved this Decree with the Force of Law and has decided to publish it in the Official Gazette and submit it to the Parliament of the Turkish Republic of Northern Cyprus.