Are you buying or selling a property in Turkey? We know that buying or selling a property abroad can be a worry. Having experience in the field of property marketing previously, Ms. Burcu is amongst the best conveyancing solicitors in Turkey.
What should you be careful about when you are buying a property?
- It is important to check if the property has all the legal licences,
- if there are any 3rd party rights on the property like a mortgage, a seizure, a legal case, any right of easement,
- It is important to secure your money to avoid paying but not getting the deed of the property.
What should you be careful about when you are selling a property?
You need to make sure you get the entire sale price the latest at the exchange of the ownership.
Why do I need a solicitor when buying and selling a property?
First of all, you need a solicitor to have peace of mind when you are dealing with that much money. Solicitors in Turkey are members of bar associations. So, they are the people to protect your money as well as your rights against the other party, estate agents and any other 3rd parties.
In accordance with the Article 35 of the Land Registry Law Nr. 2644, amended by Law Nr. 6302, which entered into force on 8 May 2012, the condition of reciprocity for foreigners who wish to buy property in Turkey is abolished.
Information on countries whose citizens can buy property and real estate in Turkey can be provided from the Turkish Embassies/Consulates abroad and the General Directorate for Land Registry and Cadastre.
Persons with foreign nationality can buy any kind of property (house, business place, land, field) within the legal restrictions.
Persons with foreign nationality who buy property without construction (land, field) have to submit the project, which they will construct on the property to the relevant Ministry within 2 years.
Format Of The Contract
According to the Turkish laws and regulations in force, transfer of ownership of a property is only possible with an official deed and registry, which is signed at the Land Registry Directorates.
It is possible to sign a “sales commitment agreement” in a notary. However, legal ownership of the property does not transfer with a “sales commitment agreement” or other kind of sales agreements to be signed in the notary.
Application And Procedure
Buyer should be from the country whose citizens can acquire property or limited in rem right in Turkey and meet the necessary conditions.
Application: The owner of the property or his/her authorized representative should make a preliminary application to the Land Registry Directorate. (Preliminary applications are made before noon by taking sequence number)
If the preliminary application is incomplete, the file will be kept waiting. (https://tkgm.gov.tr/en)
a) Tittle deed of the property or information on village/district, block, parcel,independet section number.
b) Identification document or passport (Together with its translation).
c) “Property Value Statement Document” .
d) Compulsory earthquake insurance policy for the buildings (house, office, etc.)
e) One photo of the seller, two photos of the buyer (taken within last 6 months, 6×4 cm. size)
f) If one of the sides cannot speak Turkish, certified interpreter,
g) If transaction will be performed with a power of attorney issued abroad, original or certified copy of the power of attorney and its approved Turkish translation.
Information On Powers Of Attorney Issued Abroad
Powers of attorney are issued by the Turkish Embassies or Consulates. If the power of attorney which is issued by a notary of a foreign country is certified according to The Hague Convention dated 5 October 1961 and if it bears “Apostille (Convention de La Haye du Octobre 1961)” in French, there is no need for an additional certification of the said power of attorney by the relevant Turkish Consulate. (https://tkgm.gov.tr/en)
Financial Aspect Of The Procedure
a) Both seller and buyer have to pay the tittle deed fee, calculated according to the selling price, which cannot be less than the “Property Statement Value”. (The title deed fee is 1.5% for both parties till the end of 2019.)
b) Revolving Fund fee which is determined by local coefficients has to be paid. (Maximum 103,5 x 2,5 TL for 2018)
c) In the ownership transfer transactions in accordance with Article 35 of the Land Registry Law Nr. 2644, a fixed fee shall be charged by Land Registry office, in addition to determined revolving fund service fee for the transaction. (for the year 2017: 422,5 TL) (https://tkgm.gov.tr/en)
Have you paid for a property and not got your deed?
As mentioned above, property ownership is only exchanged by the contract signed at the registered title deed offices. A sale contract signed before the exchange of the deed does not give you the right of ownership. With a sale contract that is signed at the notary before the sale, you can force the other party either to pay for the property and buy it or to sell it. However if the sale contract is not signed at the notary, you can only claim the money that you paid for the property back in front of Turkish Courts.
If you are in a situation like this, it is crucial to contact a real estate lawyer as soon as possible so you do not miss on your rights.
Are you looking to lease out a property or rent a property in Turkey?
If you are going to rent a property in Turkey or lease out a property, it is important to have a written contract that is prepared by conveyancing solicitors so you can protect your rights against the other party.
If you are going to lease out your property as a holiday home, there are also some procedures that you should follow:
- Visitors must be registered to the GIYKIMBIL system. You can get an online password for the system from your local gendarme station. If you do not declare the visitors, you may end up paying fine.
- Income made from short term rentals must also be declared to the tax office as well as long term rentals.