1.The claims of persons who were dispossessed of their properties by events prior to entry into force of this Agreement shall beresolved in a comprehensive manner in accordance with international law, respect for the individual rights of dispossessed owners and current users, and the principle of bi-zonality.
2. In areas subject to territorial adjustment, properties shall be reinstated to dispossessed owners.
3. In areas not subject to territorial adjustment, the arrangements for the exercise of property rights, by way of reinstatement or compensation, shall have the following basic features:
a. Dispossessed owners who opt for compensation, as well as institutions, shall receive full and effective compensation for their property on the basis of value at the time of dispossession adjusted to reflect appreciation of propertyvalues in comparable locations. Compensation shall be paid inthe form of guaranteed bonds and appreciation certificates;b. All other dispossessed owners have the right to reinstatement of one-third of the value and one-third of the area of their total property ownership, and to receive full and effective compensation for the remaining two-thirds. However, theyhave the right to reinstatement of a dwelling they have built, or in which they lived for at least ten years, and up to one donumof adjacent land, even if this is more than one-third of the total value and area of their properties;c. Dispossessed owners may choose any of their properties for reinstatement, except for properties that have been exchanged by a current user or bought by a significant improver in accordance withthe scheme. A dispossessed owner whose property cannot be reinstated, or who voluntarily defers to a current user, has the right to another property of equal size and value in the same municipality orvillage. S/he may also sell his/her entitlement to another dispossessed owner from the same place, who may aggregate it with his/her own entitlement;d. Current users, being persons who have possession of properties of dispossessed owners as a result ofan administrative decision, may apply for and shall receive title, if they agree in exchange to renounce their title to a property, ofsimilar value and in the other constituent state, of which they were dispossessed;e. Persons who own significant improvements to properties may apply for and shall receive title to such properties provided theypay for the value of the property in its original state; andf. Current users who are Cypriot citizens and are required to vacate property to be reinstated shall not be required to do so until adequate alternative accommodation has been made available.
4. Property claims shall be received and administered by an independent, impartial Property Board, governed by an equal numberof members from each constituent state, as well as non-Cypriot members. The Property Board shall be organized intobranches in accordance with sound economic practice. No directdealings between individuals shall