Is Buying A Property With An Equivalent Title Deed Risky?

“Equivalent title deed? Don’t buy it at all” — you may have heard this sentence on some real estate forums, or even from some consultants. This advice, dating back ten years, has largely lost its validity today. So, what is the truth?

An equivalent title deed is a type of title deed given by the state to Turkish Cypriots who left their properties in South Cyprus in 1974. These title deeds were also recognized during the Annan Plan negotiations and were among the categories expected to be guaranteed in a possible Cyprus settlement scenario. In other words, the issue is not an “uncertain legal loophole” as it is often assumed to be.

What Was the Source of the Risk, and What Is the Situation Today?

In the past, there was an official difference in value between equivalent title deeds and Turkish title deeds, and some financial institutions were more cautious when accepting properties with equivalent title deeds as collateral. This distinction has been removed; today, the two types of title deeds have equal status under TRNC law. In our comprehensive guide comparing all title deed types, we discussed these three types side by side.

Today, the real risk factor discussed in the sector is different: some analysts note that, regardless of title deed type, the property’s ownership history before 1974 — that is, who owned the land — could come back into question, potentially narrowing the buyer pool in certain specific cases. This is not specific to equivalent title deeds; it is more pronounced with allocation title deeds.

Do Not Confuse Equivalent Title Deeds with Allocation Title Deeds

A common mistake in the market is to put equivalent title deeds and allocation title deeds (a category also commonly referred to as “Greek Cypriot property”) in the same category. The two have completely different legal histories:

• Equivalent title deed: An allocation received by Turkish Cypriots in exchange for the property they left behind.

• Allocation title deed: Land that belonged to Greek Cypriots before 1974, passed to the state, and was later transferred to third parties.

While the latter has a “break in the chain of ownership,” there is no such break with an equivalent title deed — the state allocates a property equivalent to the property its citizen left behind. This difference is decisive in risk assessment.

What Should You Do in Practice?

If you are seriously considering a property with an equivalent title deed, the following steps can largely ease your concerns:

• Obtain an official record search from the Land Registry Department to confirm that there are no mortgages, liens or lawsuit records on the property.

• Verify that the seller’s title deed matches their identity and that the property is actually registered in the seller’s name.

• Review the ownership history with an independent lawyer (one you choose yourself, not one recommended by the seller).

• If you plan to use a bank loan, learn the relevant bank’s current policy on properties with equivalent title deeds in advance — these policies may vary slightly from bank to bank.

Many established developments around Girne have been built on equivalent title deeds and have been bought and sold without problems for years. In the projects in our portfolio, title deed information is shared clearly, making your decision-making process easier.

In Conclusion

As of today, an equivalent title deed does not deserve to be described as “risky” — this is a remnant of a misconception. The real point to pay attention to is that the legal history of each property should be examined separately, regardless of title deed type. This applies to both equivalent title deeds and Turkish title deeds.