Guide to Applying to the Immovable Property Commission (IPC)
Background
The Immovable Property Commission (IPC) was established under Law 67/2005, "The Law for Compensation, Exchange, and Restitution of Immovable Properties," in response to legal cases brought by Greek Cypriots to the European Court of Human Rights (ECHR) against Turkey. These cases stemmed from claims that Turkey violated the applicants' right to respect for their private life under Article 8 of the European Convention on Human Rights. The Greek Cypriots had been forced to abandon their homes and properties in Northern Cyprus following the 1974 military intervention, losing access and use of their properties.
The landmark case, Loizidou v. Turkey, filed in 1989, resulted in a 1996 ECHR ruling in favor of Mrs. Loizidou, ordering Turkey to pay compensation while preserving her property rights. This case set a precedent for future claims. Applicants to the ECHR must prove they have exhausted all local legal remedies before filing their case. However, since Greek Cypriots had no local remedies in Northern Cyprus, they were able to take their claims directly to the ECHR.
In the Xenides-Arestis v. Turkey ruling of 2005, the ECHR identified this as a "widespread problem" and called on Turkey to create a local legal remedy. In response, the Turkish Republic of Northern Cyprus (TRNC) established the IPC to handle property claims by Greek Cypriots. The IPC, a semi-judicial body, consists of 5-7 members authorized to issue binding decisions on property restitution, exchange, or compensation.
In 2010, the ECHR ruled in the Demopoulos v. Turkey case that the IPC is an effective local remedy for Greek Cypriots' property claims. As a result, applicants must now apply to the IPC before pursuing further legal action against Turkey in the ECHR. Since this decision, there has been a notable increase in Greek Cypriots applying to the IPC, with many viewing it as the only viable option for resolving property claims.
The mandate for the Immovable Property Commission (IPC) has been extended. All natural or legal persons claiming rights to movable or immovable properties covered under the scope of this law may now file a claim with the IPC until December 21, 2025.
Procedure to Apply
Applications to the IPC can be submitted in person or through a representative, typically a TRNC advocate. The application must follow the format prescribed in the legislation and include an affidavit, either sworn by the applicant or a representative holding a special power of attorney.
The following documents must be attached to the application:
- Certified photocopy of the property's title deed
- Certified copy of the applicant’s passport or ID
- If the applicant is a company, certified copies of the incorporation certificate, list of directors, shareholders, and registered address
- For properties owned by a deceased person, a declaration of legal heirs from the local village chief (muhtar)
- Power of attorney if an affidavit is sworn by a representative
- A retainer form if the application is submitted by an advocate
Applicants must prove beyond a reasonable doubt that:
- The property in question matches the one in the application
- The property was registered in the applicant’s name before 20th July 1974, or that they are the legal heir of the registered owner
- No other parties have a claim on the property
- The property was not subject to mortgage or seizure before 20th July 1974
After submission, the application is served to the Ministry of Housing Affairs, which must respond within 30 working days. The IPC may then hold meetings to review further documents, conduct site inspections, or hear witnesses. Decisions are made by a simple majority with at least two-thirds of members present.
Once a decision is made, the Ministry issues an offer of a "Friendly Settlement." If the offer is accepted, a settlement is executed; if rejected, the applicant may appeal to the High Administrative Court or the ECHR.
Remedies
The Immovable Property Commission (IPC) has the authority to decide on one of three options for resolving property claims:
Restitution (returning the property to the applicant)
Exchange (offering a different property to the applicant)
Compensation (paying the applicant for the value of the property)
The IPC can also award compensation for loss of use and emotional damages, especially if the property was a home.
Restitution (returning the property to the applicant) is only possible if:
The property has not been transferred to someone else, except the state, and giving it back does not threaten public safety or fall within a military zone.
If the property has been transferred to another person under TRNC law, restitution can only happen if: a. No major improvements were made to the property, or b. Any improvements made are worth less than the property’s original value when it was abandoned, or c. No government projects have been issued for the property, or d. The property was not given in exchange for property left in the southern part of Cyprus.
If restitution is granted, the current owner or user under TRNC law will receive compensation from the TRNC. However, restitution will only take effect after a political settlement to the Cyprus issue. Until then, the current owner or user cannot sell or make changes to the property.
If restitution is not possible, the IPC can offer an exchange (another property) or compensation (a financial settlement).
Exchange
If an exchange is offered to an applicant the current market value of the property in question will be accepted as basis.
If the value of the new property that is being offered is higher than the one being claimed, the applicant must pay the difference. If the new property is worth less, the applicant will receive compensation to make up the difference. In addition to the exchange, the applicant can still claim compensation for loss of use and emotional damages.
Compensation
The proposals for compensation made at the IPC take into account the current market value of the property, its market value in 1974, and the investments surrounding the property in question.
Compensation relating to loss of use is provided together with value of the land as opposed to being separately proposed.
In our experience as an office, most applications lead to amicable settlements for compensation. Currently, remedies like exchange or restitution are not common. It is important to note that once a settlement is reached, the applicant cannot make any further claims on that property in the future.
FREQUENTLY ASKED QUESTIONS
1. Who can apply to the Immovable Property Commission?
- Anyone who has property in the northern part of Cyprus. As of 18 October 2024, 7,781 applications have been submitted to the Commission.
2. Why was the Immovable Property Commission established?
- The IPC/Compensation Commission was established following a decision from the European Court of Human Rights and is internationally recognized.
3. Do I need to present the original title deed?
- The process can begin with a certified copy of the title deed or a search document from the land registry.
4. What documents do I need to provide?
- Title deed or a search document from the land registry
- Applicant's ID or passport
5. Can your law firm assist with the property valuation?
- We can provide a preliminary valuation free of charge for those who will proceed with the application. We can also arrange for you to obtain an official valuation.
6. Is it possible for your law firm to handle my application alongside a Greek Cypriot lawyer?
- In the past, we have collaborated with many lawyers, including the law firm Stylianos N. Christoforou and Associates (www.snclaw.eu) as well as lawyer Mr. Andreas Plastiras, effectively and successfully.
7. Do I need to appear multiple times before the Immovable Property Commission during the hearing of my application?
- The applicant needs to be present when submitting the application and when receiving the compensation.
8. If my property is mortgaged, can I apply to the Immovable Property Commission?
- The mortgage does not prevent the applicant from approaching the Immovable Property Commission. However, the mortgage must be lifted before the end of the process.
9. How is the compensation calculated by the Immovable Property Commission?
- The Immovable Property Commission calculates the compensation to be awarded by considering the 1974 value, current market value, investments around the property plus the loss of use since 1974.
10. How long does it take for applications to be processed?
- Currently, it takes approximately a few years to complete the process.
11. How will I receive the compensation awarded to me by the Immovable Property Commission?
- A personal account will be created in your name at a bank of your choice, and the compensation will be deposited into that account. From there, you can transfer your funds to any bank account you wish.
12. Does the Immovable Property Commission actually pay out money?
- Yes, this is definitely the case. As the commission is regularly evaluated by the European Court of Human Rights Delegates Committee, it has no option to not pay. Recent one-off payments and the laws passed to fund compensations are clear indicators of the commission’s effectiveness.
13. What if I have submitted an application to the commission before but cannot communicate at all with my representative?
- In such cases, it is highly recommended to change your representative to someone you can communicate with easily.
14. If I need any information, whom can I contact?
- You can contact us directly. You can reach us via our phones, email, WhatsApp, or Viber.
15. We have never been to Northern Cyprus. How can we find your office?
- Our office is within walking distance from the Ledra Street checkpoint. The map on our website clearly shows our location. However, if you still cannot find us, you can always ask us to send you a location or have our assistant come to pick you up.
16. So, if we want to start the process, what should we do first?
- You should contact us and request an appointment. As mentioned earlier, your identity card/passport, the title deed, or the land registry search is sufficient for the application to the Immovable Property Commission.
This guide has been prepared by Sertbay Law Firm. For more information, please contact us at:
Email: [[email protected]]
Tel: +90 392 2288001
Fax: +90 392 228009
Cyta: 99166237 TC: +905488802020
Web: www.sertbaylaw.com
N.B. This guide is for general information only and does not constitute legal advice.
