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Turkish property buying process |
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 Buying Process
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Buying property in Turkey is a fairly straightforward process and much easier than in many other European countries. Thanks to reciprocity agreement between Turkey and all EU countries foreigners from these countries can now freely purchase a freehold property in Turkey . The only restriction is that a property cannot be on a land within a military zone.
Here are a few steps to take in order to become a satisfied owner of a Turkish property:
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1- Choose your property/properties
2- Go on a viewing trip. This is not a necessity; however, we believe it is very important that you see the property yourself before buying it. It is good to check the exact location and get ‘the feel’ of the surrounding area.
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3- Upon decision to buy a buyer and a seller meet and a sale contract is being drawn. The contract should be both in Turkish and English and contain details of the property you are buying, deposit you are paying, payment plan (in case of an off-plan property) and any other relevant issues. |
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After reading the contract carefully and making sure that everything is clear both parties sign the contract in front of a notary. Although such contract is a legally binding document we recommend that you use a lawyer. At that stage a deposit is paid which is usually between 10% and 30% of the value of the property. |
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4- An application together with a copy of your passport and 2 passport sized photographs will then be sent to the Land Registry Office. They will run relevant checks on the property and contact a military office in Izmir to ensure that the property is not in a military zone. This process usually takes 2 – 3 months. |
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5- The final step is transfer of the ‘TAPU’ Title Deed into your name. When all relevant checks have been made and the documents are received from the Turkish Military a meeting is being organised at the Land Registry Office. All parties have to be present: the buyer, seller, estate agent and a certified translator. At this stage any outstanding balance has to be paid together with other fees and taxes. |
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The purchase costs involved are as follows: |
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You should budget around 5-7% of the purchase price for above expenditure. A full breakdown of these costs will be given to you. |
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Resale Property |
A resale property is a property previously owned by someone else. Because it is usually an older property there are a number of things you should be aware of as a buyer. |
Firstly, some older properties may not meet the new building regulations, particularly for earthquake resistance. Secondly, the property may be in need of extensive renovation and it is advisable to have the property checked by a specialist who can give you a quote so that you can factor that into your budget. Last but not least, it is vital to make background checks with the Land Registry Office and municipality office in order to:
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| confirm that the seller is the actual owner of the property |
| make sure that there are no outstanding debts or mortgage on the property |
| check that there is a planning permission and the property was built legally |
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| It is advisable to use a lawyer when purchasing a resale property to ensure that all the above checks are made for you before you commit yourself to the purchase. |
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| New Property |
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According to regulations introduced in 2003 all newly built properties in Turkey have to comply with the EU building standards, be earthquake proof and come with 5 years of construction warranty. There are other advantages of a new property such as an up to date design and modern facilities. Also, when buying a new property you will be exempt from an annual property tax for a period of 5 years. |
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| Although there are potentially fewer problems to look out for than when buying a resale property, it is still essential to ensure that a property was built legally and that there is a clean title deed. |
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| Off Plan Property |
Buying an off-plan property differs from buying a newly built or a resale property. First of all, there is no property built yet and all you can see is an architect’s design on paper or a building site. It usually takes around 18 months before a property is completed. Off-plan is a type of property favoured by investors as it is usually introduced at prices below market level and increases in value by an average of 30% by the time it is finished. |
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| There is also an added benefit of spreading your payments over a period of several months with the last payment due at the development’s completion. |
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Upon a decision to buy an off-plan property there is usually a small reservation fee to pay in order to take your property off the market. If you then decide to go ahead with the purchase, a sales contract is being drawn between the seller (developer) and the buyer. At that stage a deposit is being paid (usually 30%). |
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The remaining amount is divided into several instalments. Payment terms details have to be incorporated in the contract. |
| It is important to make sure that the developer you want to buy from is financially viable and has a good track record. It is a good idea to see properties previously built by the same builder and speak to people who bought properties there. Because developers in Turkey are not legally obliged to have a bank guarantee you should make sure that a sales contract has a clause stating the developer’s liabilities in case he cannot finish the development on time. |
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Opening a bank account in Turkey |
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It is strongly recommended that you open a bank account in Turkey (you can do it yourself while on a viewing trip or through a power of attorney). According to current regulations any monetary transaction exceeding £3,000 has to be made through banks, private financial agencies or a Post Office. |
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| Having a bank account will enable you to transfer your funds into and out of the country easily and all your transactions will be documented. All you need is your passport and a tax number which can be obtained in a few minutes from a local tax office. We will offer you full assistance with that. |
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It may happen that you are unable to be present at the Land Registry Office to complete the purchase and transfer the Title Deed of you property into your name. In that case you can appoint somebody the Power of Attorney in order to act on your behalf. You can give a Power of Attorney to your lawyer or to your estate agent. However, you should always be careful and make sure that the person you choose to act on your behalf is trustworthy.
You do not have to go to Turkey to prepare a Power of Attorney. You can have it prepared in the UK . However, such a document has to be legalised so that it is a valid document in Turkey . To do that your solicitor should send the document to the Foreign & Commonwealth office to get the document stamped and the appropriate apostils attached to it. When you receive the documents back and send them to Turkey again, the documents will be translated in Turkish and with that the Power of Attorney is given.
As of that moment the person(s) appointed by you can sign in your name and complete the sale or purchase on your behalf. |
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