The Turkish property market: Buying and Selling Property in Turkey

Buying Property in Turkey - Advice from a specialist lawyer in Turkey

Precautions to take when buying a house!

There are many important factors to consider in order to be on the safe side when buying. There are a few key points that need to be considered to ensure a smooth and seamless process. Here are the most important points to consider avoiding financial and legal disadvantages when buying a home:

1. The first and most important stage in buying a property is the title deed:

• Check whether the title deed contains a note or charge.
• Check that the information on the title deed matches that of the person selling the property.

2. When buying a new house, the following criteria should be considered: 

• Check that the builder has a building permit.
• Check that planning permission has been obtained and the general state of occupation.

3. A second-hand house needs more attention: 

• It is important that the structure of the house is checked by experts.
• The accuracy of the information on the title deed and past tax liabilities should be checked.
• If you are buying a house from a landlord, check that the title deed is up to date.

4. Valuation of the house: 

• Property price indices and prices of similar dwellings should be consulted.
• The price quoted by the landlord or estate agent should be checked for reasonableness and a valuation should be obtained.

Preparation of a Legal Report - Property Valuation in Turkey

If our client decides to purchase a property in Turkey, a legal report is prepared to inform our client if there are any restrictions on the property. If after the legal review it is decided to purchase the property, the application procedures for the purchase of the property are carried out.

After preparing a legal brief and with the client's consent, we proceed with the sale of the property. This process protects you from potential fraud in Turkey.

Regulations for foreigners

Foreigners who have been approved for purchase can buy any type of property in areas where private ownership is possible (residential, office, land, agricultural land, etc.). 

However, there are some rules that foreigners must observe:

If the purchased property is unstructured, the foreign owner must apply to the relevant public authority to develop a project there within two years, depending on the subject of the project.

A foreign person may acquire immovable property and limited real rights up to 30 hectares throughout the country. The Turkish government may increase this value up to two times.

Foreign property owners may not purchase or lease property in military restricted areas or military security zones. With the approval of the Governor, they may purchase or lease property in special security zones.

The acquisition of foreign property is limited to a maximum of ten per cent of the total area in a district that is open to private ownership. Once this limit is reached, no further applications by foreigners to purchase property in that district will be approved. The purpose of this rule is to maintain a balance between domestic and foreign ownership and to prevent an excessive concentration of property in the hands of foreign buyers.

The buying process: How to buy a property in Turkey step by step

I. Preparation and Research 

• The title deed (information about the ownership of the property): The most important thing to consider when buying a house is to check the land registry. The ownership status of the property is determined by the land registry entry. These records are used to determine who owns the property.
• Information from the title deed: The Land Registry data contains detailed information about the property, such as the number of the plat, the Land Registry map, the date of registration and the date of issue of the title deed. This information helps to clarify the ownership structure.
• Information on encumbrances (easements, attachments, building regulations): The encumbrance information, which shows the obligations on the property, is checked. If there are notes and explanations, such as easements, attachments or building regulations, these should be taken into account.
• Mortgage status: Determine if the property is encumbered with a mortgage or if there is a mortgage record. The mortgage status provides information on the rights to the value of the property.
• Management plan and notes on the title deed: The property's management plan is checked and the land registry notes made by the property owner to the developer are taken into account.
• Current status of the zoning: The latest zoning for the property is assessed. This information provides insight into the use and construction status of the property.
• Tax debt status: This checks whether the property has accumulated tax debts. Tax debt can be a significant financial burden for the buyer.
• Property declaration value: This determines the value of the property's most recent property declaration. This can affect the amount of fees payable when buying and selling the title. Underestimating the sale price at the Land Registry can lead to prosecution.
• Administrative order: It is checked whether there is a direct or indirect administrative order against the property.

II. Completion of the purchase

The transfer of ownership of the property takes place with the signing of the binding deed of sale and the subsequent registration at the Land Registry. For this reason, it is essential that the agreed purchase price is paid in full before the deed is signed. If there is any uncertainty between the parties, it is recommended that the buyer gives the seller a certified cheque for the purchase price. This will ensure that the sales proceed smoothly and safely.

Another way to complete the transaction is to use Taputaka's land exchange system, which is similar to a notary procedure in Germany. This system allows the parties to ensure that the purchase price has been transferred to Takasbank and blocked there. Once the seller confirms that the amount has been blocked, he can sign the deed at the land registry office. Once signed, the purchase price is automatically transferred to the seller's account. This method provides a high level of security for both parties. In addition, the buyer will be kept informed of the progress of the transaction by text message (SMS) about each step at the land registry.

Once the property purchase has been officially certified by the Land Registry, ownership is transferred to the buyer. At the time of signing the contract at the Turkish Land Registry, both parties mutually confirm that the buyer has paid the full purchase price and that the seller has received the full amount. As a result, the buyer is obliged to register with the relevant municipality within three months of purchasing the property in order to pay the property tax.

After purchase: Managing your property

I. Registration and Maintenance (regular maintenance and repairs)

Organising all other official registrations with the local council such as electricity, water and similar services. In addition, the management of the property during periods of absence includes representation at owners' meetings, coordinating maintenance services, property management and carrying out renovations and repairs.

II. Renting (legal framework for renting, strategies for maximizing rental income)

Foreign investors can let their properties in Turkey as they wish without any restrictions. If the property is used for commercial purposes, both foreign investors and Turkish citizens living abroad are exempt from income tax. These groups are also exempt from tax on the rental of residential property. 

III. Selling Property (Market Valuation)

Our firm will guide you through the entire process of selling your property. We will take care of the preparation of an independent report on the value and condition of your property, ensure the complete handling of the procedure and guarantee a smooth drafting of the purchase contract up to the transfer of the purchase price.