What Is an Exchange Title Deed? Risks and Price Impact

Short answer: An exchange title deed (koçan) is the title deed for immovable property that belonged to Greek Cypriots before 1974 and was allocated through a points system to Turkish Cypriots who left property in the South and moved to the North after 1974, as compensation for the property they left behind. It provides full ownership within the TRNC; it can be sold, mortgaged and inherited. The risk arises from the Republic of Cyprus not recognizing this title deed and from the possible legal consequences of this in the EU.

Most buyers looking at new projects in Northern Cyprus sooner or later come across exchange title deeds. This article takes the question of what an exchange title deed is beyond the basic definition: it explains its legal basis, for whom the risk is real, how it is reflected in the price, and which additional checks you should have carried out when buying a home with an exchange title deed.

What is an exchange title deed?

An exchange title deed is the title deed of former Greek Cypriot property in the North that is considered "equivalent" to Turkish Cypriot property left in the South; its name comes from this reciprocity. In English sources, it is referred to as an "exchange title".

With the division of the island in 1974, Turkish Cypriots who left their homes, fields and shops in the South settled in the North. In the North, there were immovable properties left behind by Greek Cypriots who moved to the South. The TRNC matched these two situations through an equivalence system: the value of the property left in the South was converted into points, the person received an immovable property in the North in exchange for these points, and over time a title deed (koçan) was issued in their name.

An important detail: no matter how many times an immovable property with an exchange title deed has changed hands today, its category does not change. A field allocated as exchange property in the 1990s remains exchange-title property even if 60 apartments are built on it in 2026. What matters is not the apartment you are buying, but the origin of the land beneath it.

Legal basis and points system

The basis for exchange title deeds in the TRNC is the Housing, Land Distribution and Equivalent Property Law enacted in 1977 (ITEM, 41/1977); the law was amended many times in later years. The constitutional framework regarding abandoned immovable properties being deemed state property is set out in Article 159 of the Constitution of the TRNC. You can access the Official Gazette where laws and amendments are published via the TRNC State Printing House.

The essence of the system is points. The value of the property left by the right holder in the South was converted into "equivalent points" according to certain criteria; a person with sufficient points could apply for a suitable immovable property in the North. The same law also granted points to other groups outside the exchange category; title deeds arising from these allocations are generally referred to as allocation title deeds. We discuss the difference between the two categories separately in our article what is an allocation title deed.

The practical result for the buyer is this: an exchange immovable property for which the title deed has been issued has the same rights as a Turkish title deed under TRNC law. It can be sold, donated, mortgaged, inherited and transferred to foreigners with Council of Ministers permission. Transfer fee, VAT and stamp duty are also calculated at the same rates.

For whom is the risk of an exchange title deed real?

The risk of an exchange title deed is not in your title deed in the TRNC, but in the way the Republic of Cyprus and EU law view this title deed; therefore, the weight of the risk varies depending on where you live and where your assets are located.

The source of the risk can be read through three events. In 2006, the Immovable Property Commission was established in the TRNC and opened the way for compensation, exchange or restitution for former Greek Cypriot property owners. In 2009, in the Apostolides v Orams case, the Court of Justice of the EU ruled that a judgment issued by a court in the South regarding a property in the North could be recognized in England. In 2010, in the Demopoulos decision, the European Court of Human Rights accepted the Immovable Property Commission as an effective domestic remedy. The details of this process are the subject of our article the Immovable Property Commission and the Cyprus property issue.

In recent years in the South, reports have reflected that regulations defining the development, sale or marketing of projects on former Greek Cypriot properties in the North as criminal offences have been tightened, and that some developers and intermediaries have been detained within this scope. The practice appears to target mostly developers and intermediaries; however, if you are a buyer who frequently crosses to the South, discuss the matter separately with your lawyer before signing.

How does an exchange title deed affect price?

Homes with exchange title deeds are generally slightly cheaper than comparable Turkish-title properties in the same area; however, this gap has narrowed significantly in recent years and there is no fixed rate. In 2021, local media wrote that the gap between the two title deed types had "almost closed"; in some coastal listings, however, the difference is still visible.

Let’s calculate with an example. Two similar apartments in the same area: the one with an exchange title deed is 140.000 £, and the one with a Turkish title deed is 151.000 £.

1. Price difference: 11.000 £ (approximately 7.3%).
2. Cost difference: If we assume the total purchase cost is 10–13% of the price, the costs for the cheaper apartment would be 14.000–18.200 £, and for the more expensive one 15.100–19.630 £. Including costs, the difference rises to around 12.100–12.430 £.
3. What can be done with this money? For a buyer living in Turkey, this amount can largely cover furniture and rental preparation, or it can be directed toward early payment in an instalment plan.
4. What happens on exit? If, when selling 10 years later, the apartment with an exchange title deed is also sold cheaper at a similar rate, the difference gained at purchase is lost at sale; the net effect is close to zero. If the sale period extends, waiting cost is added.

The figures are only intended to show the calculation logic; actual listing prices and cost rates vary as of October 2026, so verify them. The real question is not "which one is cheaper", but "who will my buyer be on the exit day".

If you will use a bank loan, state the title deed type at the beginning of the application. Local media reports that banks previously had difficulty granting loans for exchange title deeds and that this issue has largely been resolved; nevertheless, collateral policy varies from bank to bank.

Additional checks when buying a home with an exchange title deed

For a home with an exchange title deed, in addition to the standard title deed investigation, you need to ask your lawyer a few more questions about the parcel’s history. The standard check itself (mortgage, attachment, encumbrance) is explained in our article on TRNC title deed inquiry; here, we focus on matters specific to exchange title deeds.

• Has the title deed been registered? An immovable property that has an exchange right but whose title deed has not yet been issued means a separate risk for the buyer.
• Is there an Immovable Property Commission record? It may be possible to investigate whether the former owner has filed an application for the parcel, or whether there is a concluded compensation or exchange decision. A file closed with compensation reduces risk; an open application requires attention. This information may not always be easy to access.
• Is the parcel mixed? The project land may have been formed by merging Turkish-title and exchange-title parcels. Find out which parcel your unit sits on.
• Is the seller the first right holder? On lands purchased from the first right holder, chain-of-title issues such as division among heirs or old sales made by power of attorney are seen more frequently.
• Is the title deed type written in the contract? Clearly stating the title deed type in the sales contract prevents a future dispute such as "I was told it was a Turkish title deed".

The observation of the Akol Global sales team is this: most concerns about exchange title deeds become clearer when the buyer places their own situation into the table above. The right answer is not the same for someone living in Turkey who buys a home to use, and someone living in London who plans to sell it upon retirement.

Exchange title deed or Turkish title deed?

The decision depends more on where you live and your exit plan than on your risk appetite: for a buyer whose assets are in Turkey and who will use the home for a long time, an exchange title deed is a reasonable choice; for someone with assets in the EU or who plans to sell to a European buyer, paying the difference for a Turkish title deed may be worthwhile.

You can find the advantages of a Turkish title deed and the verification steps in our article what is a Turkish title deed, and the full comparison of the three title deed types in our main guide to TRNC title deed types. When looking at a project, asking the sales team about the title deed type is the most natural question; the list of Akol Global’s completed and ongoing projects is on the projects page. Whichever project you are considering, confirm the title deed information provided by the sales team through your lawyer’s investigation.

Frequently asked questions

Can I sell a home with an exchange title deed?

Yes. An exchange immovable property whose title deed has been registered is full ownership under TRNC law; it can be sold, donated and inherited like a property with a Turkish title deed. If the buyer is a foreigner, Council of Ministers permission is required. In practice, the only difference is that the buyer pool may be slightly narrower than for a Turkish title deed and the sale period may therefore be longer.

Can I get a bank loan for a home with an exchange title deed?

Usually yes, but the decision belongs to the bank. Local media reports that banks were more cautious with exchange title deeds in the past, and that this difference has largely decreased in recent years. If you are considering a loan, share the title deed type and the title deed investigation report from the start in your pre-approval application; the appraisal value and the completion status of the project also affect the decision.

Can the former Greek Cypriot owner come and ask for my home back?

Within the TRNC, your exchange title deed is valid and TRNC courts protect this ownership. The route available to former owners in the TRNC is the Immovable Property Commission; the commission may decide on compensation, exchange or, in some cases, restitution. The main risk is the possibility that a lawsuit filed in the South could be directed toward your assets in EU countries. Assess your personal situation with your lawyer.

Does an exchange title deed turn into a Turkish title deed over time?

No. The title deed type depends on the land’s pre-1974 registration, and subsequent transfers do not change this. A parcel for which compensation has been paid to the former owner through the Immovable Property Commission may reach a stronger position in terms of international risk; however, this does not mean that the registration has been converted into a Turkish title deed.

Can I obtain a residence permit with a home that has an exchange title deed?

Yes. The title deed type is not a criterion in a residence permit application; what matters is that the property is registered in your name, or that the contract has been registered with the land registry and the required payment has been made. There are separate conveniences for Turkish citizens. Since application conditions may change, confirm the current conditions with the Immigration Department as of October 2026.

If you would like to discuss whether a home with an exchange title deed you are considering is suitable for your situation, you can write to the Akol Global team; let’s clarify together the questions you should ask your lawyer.

This article is for informational purposes only; it does not replace legal, tax or financial advice. Last updated: October 2026.