Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
BuyingProperty in Turkey What to expect from the property purchase process in Turkey: regulations for foreign buyers, contracts, transfer of title deed…
BuyingProperty in Turkey • Properties in Turkey remain relatively cheap, despite prices increasing dramatically during the 1990s. Although the market has been affected by recent financial events, it has proved to be much more robust than in many other countries. Since new laws came into force allowing foreigners to buy land, both demand and prices have increased. Prices, particularly along the coast, are rising rapidly, and are expected to continue to do so over the next five to ten years.
BuyingProperty in Turkey • Foreign Buyers - Principle of Reciprocity Foreigners can buy and own property in Turkey following the principle of reciprocity: if the foreigner's home country allows Turkish citizens and organisations to buy property, then the foreigner may, in return, buy property in Turkey.
BuyingProperty in Turkey • There are, however, further restrictions for foreigners wishing to buy property: • There are restrictions in small municipal areas which have fewer than 2,000 registered inhabitants. • Foreigners may only purchase a maximum of 30 hectares of land; anything larger requires a permit from the Turkish authorities. • Foreigners cannot purchase property within a military zone. • To ensure that all the conditions are complied with, military authorities check the details of the buyer and the intended purchase before a sale is allowed.
BuyingProperty in Turkey • Finding a Property It is not necessary to use an estate agent to find and buy a property in Turkey. However, many buyers choose to do, so as estate agents cater to the specific needs of foreigners and are aware of all the legal requirements.
BuyingProperty in Turkey • PurchaseProcess A foreign buyer needs approval for a sale from the Turkish military authorities to ensure that it complies with the restrictions placed on foreign property purchases. This is done by sending a translation of the buyer's passport and the deeds of the property to be purchased to the local army headquarters. Approval usually takes between six and eight weeks.
BuyingProperty in Turkey To get the buying process under way, a deposit of about 40 percent of the purchase price is needed when the sales contract is signed. This ensures that the property is taken off the market during the process of the deeds being changed. The deposit can be paid in cash.After that,60 percent of purchaseprice can be paid in 24 monthsbybonds.
BuyingProperty in Turkey Contracts can be drawn up with a notary or at the office of the local Land Registry. Turkish law dictates that they must be written in Turkish. They should include the following information
BuyingProperty in Turkey • Description of the property and its surface area (including land) • Full details of the seller and buyer • Purchase price - including a breakdown of fees and who is paying which fees • Purchasing schedule • Full details of the sales agent and lawyer, if used. Both should sign the contract • Information on any fittings and fixtures to be included in the sale • Details of any penalties should the sale not go through The buyer needs their passport and two standard passport photographs so that the paperwork can be completed.
BuyingProperty in Turkey • Transfer of TitleDeed Once permission for the sale has been received from the military authorities, the transfer of title deed (TAPU) can take place. This should be done at the local Land Registry Office. A TAPU is an official document stating ownership of property. It includes detailed information on the property and a photo of the owner. The buyer is not legally required to use a lawyer but is advisable to ensure that all the paperwork is done correctly. Both the buyer and the seller must attend the transfer of deeds. Turkish law stipulates that a government-authorised interpreter must notarise the sale of property to a foreigner. Once the contract has been signed in front of the appropriate officers, the buyer receives the certificate of ownership
BuyingProperty in Turkey If it is not possible for both parties to go to the Land Registry, the contract can be signed with a notary. In this case, it is considered to be a preliminary sales contract and it must be registered with the Land Registry as soon as possible. Once the sales contract is registered, it is considered binding and the new owner has all rights to the property.
BuyingProperty in Turkey • Registering a Property Registering a property takes nine days to complete. It then takes between three and nine months for the Turkish government to process and release the title deeds for transfer. It is advisable to have a lawyer manage this stage to ensure everything is completed correctly. Once the new deeds (TAPU) have been received, the rest of the money owing on the sale is paid. It is advisable to check that all the details on a TAPU are correct before finalising the purchase.
BuyingProperty in Turkey • In Turkey, there are other fees which need to be paid, in addition to the purchase price of a property. These include fees associated with registration (lawyer, notary, interpreter and permits), which are usually about one percent of the purchase price. • The following fees are shared between the buyer and the seller: • Stamp duty, which is charged at 0.75 percent of the purchase price • Fourpercent title deed charge, which is paid to the Land Registry when the TAPU is received • Earthquake insurance is compulsory when buying a property.