Purchasing property in Turkey

Buying and selling property in Turkey

 

Citizens of countries who have a reciprocity agreement with Turkey can purchase a property in Turkey (Turkey has a reciprocity agreement with all European Union members). The only restriction is that the property can not be within a distance of a military area.

 

The transfer of the title has to be carried out at the Land Registry Office. It is legally compulsory for the seller and the buyer to be present on the entry of the property in the land registry, however it is also possible to delegate legal authority to another person by a notarised power of attorney. After the transfer of the property the Land Registry issues proof of ownership which is called `tapu` then the property will be transferred into buyer's name.

 

Foreign nationals can buy property in Turkey through a Turkish company. Companies with foreign capital established pursuant to Turkish law are treated as Turkish legal entities, foreigners can buy property in Turkey and no restrictions with regards to foreign nationals and the size or location of the property apply to them.

 

 PERFECTUM GROUP  can do for you;

Preliminary free consultation with client;

Carrying out all the necessary title checks related to building construction, the property's title(full or restricted), the area zone where the property is built before you sign the main contract;

We can deal with the reservation and preliminary contract on your behalf, our associate firms will accompany you to sign the final contract at the land registry;

Appointment of attorney by power of attorney to complete the transactions on your behalf;

Application for "military permission" on your behalf (this normally takes 8-12 weeks);

Dealing with planning permission applications to the local council;

We also check the existing planning permission and give you advice on planning consent for any changes that you want to make;

Holding your deposit;

Signing the final contract(tapu) at the Land Registry Office;

Ensuring registration of the property in the correct name(s);

General advice to those who are planning to buy property in Turkey.

We provide legal advice on tax matters related to your property in Turkey;

General advice on new Turkish mortgage regulations.( The new mortgage law and other relevant laws with regards to the regulation of the property market are expected to be enacted by the end of 2005)

Setting up Turkish limited companies and purchase a property through that company

 

 

The Right To Buy Freehold Property In Turkey

 

 Foreigners are allowed to buy freehold property in Turkey provided the following items apply:

The property has a government Title Deed (Tapu) recorded at the Land Registry

 The property is located within a town development (Imar or Mevzi Imar Plani) area

 The property is not located close to military installations

 The land does not belong to the forestry commission

 The foreigner is of a nationality with reciprocal rights to buy.

 

 Turkish Title Deed , called a Tapu, is an absolute right of ownership. A Tapu proves that the land has been officially recorded and ownership can not be contested. Unlike many other countries foreigners are able to purchase Turkish property freehold and in their name.

 Nationalities with reciprocal rights include all European nationalities. If you are unsure as to your status to purchase please contact us or click here to link to the approved nationality list

 

 All the properties featured in our website (with the except of listings under rural property) have proper Title Deed and can be purchased free hold by foreign nationals.

 

The Buying Process

 

 The buying process in Turkey is very similar to that in many other European countries with a deposit paid on contract and a balance payment on transfer of the title deed.

 

 The only anomaly of the Turkish process is the requirement for a “military approval”. Whilst this sounds dramatic, it is simply a process that has to be undertaken, to ensure that the buyer is purchasing a property for which they have a right to buy *see above. Once the deposit has been paid the application is made by the agent or solicitor and a photocopy of the buyer’s passport and details of the property are submitted. The approval is granted approximately 3 months later, after which the buyer can complete.

Deposit and Contract

 

 Once a sale is agreed, a purchase contract will be drawn up for the buyer and seller to sign and the deposit is paid. On signature of the contract and payment of the deposit the contract becomes binding on both parties. If following the payment of the deposit the buyer decides to pull out of the agreement the deposit will be forfeited. If following the payment of the deposit the seller decides to pull out of the agreement the deposit is refunded and penalty clauses apply. The level of deposit varies from property to property but as a general rule 10% applies.

 

 Contracts should be signed by buyer and seller face to face in the presence of the Turkish solicitor. However this is not always possible and it is acceptable for the buyer to sign the contract back in their home country witnessed by a local solicitor or notary public.

 

 The use of goodwill deposits is also common with a small amount of money paid in order to remove the property from the market for a given time. This timeframe, usually two weeks, gives all parties a breathing space, in which to complete the conveyance and check the terms of the contract fully before signing and paying the contractual deposit.

 

 Property purchased off plan or in construction may have different payment schedules with interim or stage payments common place.

 

 As a general rule, payment terms and purchase price go hand in hand with property price negotiation. You will therefore need to know the time scales you require to release or organize your finances when making an offer.

 

Completion. Transfer of the Title Deed

 

 At completion both buyer and seller must meet in person at the local land registry office for the transfer of the title deed. This process usually takes place in a day and the solicitor and/or agent will oversee the proceedings. Foreigner buyers are required to have an official translator present to certify the registration.

 

The Use of Power of Attorney

 

 The easiest way for foreigners to buy is to give power of attorney through the Turkish Notary Public to their solicitor. Many forms of power of attorney are available to cover every circumstance but the general power of attorney to buy a property is most common. With power of attorney the solicitor can, with the buyer’s authorization, sign the purchase contract, administer bank accounts for payments and act on behalf of the buyer for the completion process and formalities.

 

 Power of attorney can be given to the solicitor in sole or multiple names depending on how many owners names will be recorded on the title deed. If a property is to be purchased in joint names then both buyers must be present in Turkey to give power of attorney.

Buying Costs

 

 Stamp duty is payable at 3.3% of the the title deed value and this may be shared as 1.65% buyer and 1.65% seller. We or your or solicitor can give advice as to how much the stamp duty will be.

 

 Turkish solicitors in this area generally charge £500 for conveyance and an additional £500 to complete the purchase process with power of attorney. A power of attorney costs on average the equivalent of £150 pounds at the Notary.

 

 It is a requirement for completion that the property has government DASK insurance. This insurance covers 20% of the rebuild cost of the building in the event of an earthquake. After completion buyers should take out additional private insurance to increase the level of building cover for all risks and to insure the contents. We undertake this service for our buyers using the reputable insurance companies of Koc Allianz and Anadolu Sigorta.

 

 After completion the buyers should register the property with the local authority for payment of council and rubbish tax. Buyers also need to transfer the water and electric accounts with the utility companies and they levy a charge for this service. These processes can be completed by your solicitor with power of attorney.

 

 

 Post purchase, foreign owners should undertake a Turkish will. Whilst property in Turkey will not generally revert to government ownership on death, there are differences in Turkish inheritance law and foreign owners should ensure they are protected. Your solicitor will be able to assist you further on the subject of wills, which are undertaken through the Notary Public.

 

Property Buying Tips:

 Research the Property Market

 

 Research your choice of location. Visit property web sites to get an idea of what properties are available in different locations and at what price. Then decide which combination of location, property type and price is most suitable for you. Bodrum  is one of Turkey’s most exclusive destinations and you will find property prices higher than in other locations.

 Organize your Finances

 

 Whether you plan to visit Turkey to buy or just to conduct some research, you need to know your financial position.

 

 If you are buying with borrowed money speak to the lender and get a written confirmation of the amount you can borrow and the time scales involved. Turkish mortgages are an option for foreign buyers - please contact us for up to date information.

 

The buying process

 

Buying property in Turkey is very straightforward but It is a good idea to be familiar with the main points of the process.

 

Most people are surprised at how straightforward it is to buy property in Turkey. A property transaction between two Turkish people can be completed in an afternoon. For a foreign buyer it takes longer only because they must get official permission to proceed from the military authorities. This is a simple process, but it can take considerable time.

Deposit

 

It is normal to pay a deposit or reservation fee to hold a property while you get out to Turkey to view it, or while you organize the necessary finance.

 

A solicitor should conduct searches to confirm that the property belongs to the seller, and that there are no outstanding debts against the property. They should also check for the necessary planning permission. Searches normally take a few days.

Military Check

 

Foreign nationals buying property in Turkey must be approved by the military authorities. Approval is based on cursory checks into the purchaser’s background and the location of the property. The military investigation takes 4-12 weeks depending on how busy things are.

Completion

 

Once you get the go-ahead from the military authorities you are ready to complete in the land registry office (tapu dairesi), or occasionally in a Notary Public. The procedure involves the seller, or their legal representative, giving consent for a new title deed (tapu senedi) to be issued in the buyer’s name. The formalities take anything from 30 minutes to several hours. By granting power of attorney to a legal representative these formalities may be completed on your behalf.

 

Contact us now for more detailed legal information on buying in Turkey

 

Buyers & the Law

 

It is a good idea to appoint an experienced solicitor to look after your interests and to check all contracts before you sign them.

 

Granting power of attorney to your solicitor allows them to act on your behalf. This can be particularly useful if you don’t have the time to return to Turkey during the buying process. It also saves you money on air travel and accommodation. A power of attorney can be drafted by a Turkish solicitor and must be notarised in your presence at the Notary Public.

 

In January 2006, the law concerning foreign buyers was changed. The new law limits land purchases to 2.5 hectares, or 30 hectares with special permission, and bans foreigners from buying in strategic or military zones, and rural areas. This change does not affect the vast majority of buyers in the coastal resorts, towns or cities.

 

Foreign nationals can:

Buy freehold property within planning areas (cities, towns, resorts and some villages)

Own up to 2.5 hectares (30 hectares with special permission) of land in a planning area

Set-up a limited company to buy property or land in rural areas