Real estate purchase and sale
In Turkey, the final real estate purchase takes place at the Land Registry Office (Tapu Sicil Müdürlüğü). Buyers and sellers shall put together or through their authorised representative the requested application together with the necessary documents at the relevant land registry office.
The parties can only conclude a pre-purchase contract at a Turkish notary. The risk is that, despite this notarial contract, the seller cannot be prevented from selling the same property to a third party unless the pre-purchase contract has been recorded in the land register. Then the buyer has the opportunity to take advantage of the transfer of the property from a third party. This note shall be valid for five years.
- Land register check
- Broker correspondence
- Application for the Tax ID
- Organization of translations
- Appointment with the Land Registry Office
- General examination of your file (necessary documents, insurance policies, etc.)
- Representation at the land registry office in the certification of the purchase contract
- Support for payment of purchase price & taxes
If necessary. Opening of a bank account in Turkey
- Registration with the city
- Depending on your needs, we will provide you with an individual offer
The parties to a real estate purchase contract in Turkey must submit the following documents to the land registry office:
- Identity card or passport (with notarized and certified translation) of the parties or their authorized representatives – for foreigners the tax number has to be presented
- Earthquake assurance
- a Form information sheet for foreign buyers and/or sellers
- Accompaniment of an interpreter for the Turkish language
- Land registry statement or the details of the property
- Certified value assessment report for foreign buyers and/or sellers
- The official value assessment report of the city administration
Compulsory valuation by foreigners from 04.03.2019
According to the Land Registry Regulation 2019/1, foreign buyers and sellers must have the property assessed by an accredited valuation company (these companies are officially known on the website: Www.bddk.org.tr). This valuation is then submitted to the land registry office in addition to the necessary documents. This has a period of validity of three months.
Real Estate Purchase price payment in Turkey
In the case of a real estate purchase or real estate sale in Turkey, the purchase price is usually paid in cash at the land registry office, shortly before the signed purchase contract, and mostly at the land registry office. The buyer also has the option to pay the purchase price by a blocked check. After processing at the land registry office, the seller can deduct the purchase price. For this purpose, the seller should have the check checked beforehand.
For the purchase price payment, there is a new system in Turkey: a basic book exchange system (visit: www.taputakas.com.tr). The system is very similar to the real estate purchase in Germany via the notary. The parties register with a specific public bank, so-called “Takasbank,” and enter all necessary information on payment transactions into the system.
This system protects the parties to the purchase contract from counterfeiting and money theft. The parties can inquire whether the purchase price has been sent to Takasbank and blocked in a special account. If the seller sees that the money is blocked, the certificate can be signed securely at the land registry office. After signing, the purchase price is automatically transferred to the seller’s account. This eliminates the problem of trust in the buyer. The parties receive a short message (SMS) about the respective steps of the procedures at the land registry office.
The use of this system has a low transaction fee of 70 Turkish Liras (for the year 2019). The remaining amount will then be refunded to the buyer’s account.
Transfer of ownership in Turkey
After certification of the real estate purchase contract at the land registry office, ownership is transferred to the buyers. When signing the contract at the land registry office in Turkey, the parties accept that the buyer has paid the entire purchase price and that the seller has received the entire purchase price.
Within three months of the purchase of a property, the buyer must register as a new owner with the competent municipality for the payment of the property tax. This is what a Turkish land register excerpt looks like in Turkey. State: 2021
Purchase costs and brokerage fees
Until 31.12.2019, the total land booking fees decrease by 3% of the stated purchase price, which is normally 4%. The buyer and the seller pay this fee in equal parts unless otherwise agreed. In addition, there are flat-rate administration fees of about 100 – 150 euros.
The brokerage fees total 4% and buyers and sellers share half of the costs unless otherwise agreed.
Earthquake insurance costs depend on the essential properties of the property, such as year of construction, size, height, etc.
Land with building permits
Foreigners may purchase land from the Land Registry Office in compliance with the statutory restrictions and the procedure set out below. However, foreigners must develop a project for the land approved for construction. In the case of the acquisition of land, the Observatory of the Land Registry notes that “the implementation of the project shall be subject to the approval of the submission to the competent Ministry within two years.” After the land has been purchased by the Land Registry, foreigners must submit this project to the competent ministry for approval within two years to carry out a project on the acquired land.
Information of the project: the project is presented under information by beginning date and final date to the ministry to the approval. The letter indicating that the project has been approved will be sent by the Ministry to the Land Registry, indicating the start and end dates. The project will be implemented within the indicated deadline and finally communicated to the Ministry.
Agricultural properties in Turkey
With the introduction of the land register procedure for the acquisition of agricultural property, the land registry of the foreign buyer requires an obligation explanation concerning the purpose of the purchase to pass on this explanation to the ministry of food and agriculture.
The declaration of commitment and information on the land submitted to the Land Registry Office are sent by the Land Registry Office to the Ministry of Food and Agriculture. If the Ministry gives its consent, the land may be sold to foreigners. During the processing of the sale, the following note shall be entered in the Observatory of the Land Registry: “The implementation of the project shall be subject to the approval of the submission to the Ministry of Food and Agriculture within two years.”
Information of the project: the project is presented under information to the use of the agricultural property of the authority for food and agriculture for approval. If this project is deemed appropriate, it shall be approved by the provincial authority. If the project’s start and end dates are not approved when it is audited, they may be redefined by the provincial authority. The buyer must comply with this. In the absence of documents, the buyer is granted 30 days for improvement. Once the project has been registered with the land registry office, the local provincial authority can examine the project. If there are deviations from the project, the landlord will be given 30 days to remedy the defects.
Rental and management of the real estate in Turkey
Foreigners can rent their real estate in Turkey unrestrictedly and as desired. If the real estate is rented as a trade, the foreigner and also the Turkish citizens with residence are free of income tax abroad. If the real estate is rented as a flat or house, the foreigner and also the Turkish citizens with residence have abroad a tax freeing up to 5,400, TL and for the rest between from 15 to 35% of income tax paymenys and of course must an income tax explanation will deliver.
The main phase begins only after the purchase of a property in Turkey:
- The processing of all further official registrations such as with the municipality, electricity, water etc.
- Management of the property in case of absence (representation at owner meetings, maintenance service, house management, etc.)
- Conversion measures, repairs
Real estate research in Turkey
Your debtor, deceased, or spouse may have properties in Turkey that you may not have information about.
The properties of a Turkish national (or “Mavi Kart” – so-called blue card holders, former Turkish citizens) can be verified by a lawyer with the identity number nationwide. If you do not know the identity number of the person, then the examination under the full name and the father name of the person would also be possible.
In this context, we can also identify the “passive” properties that have already been sold. This would then allow you to file the land register claims or compensation claims.
Entitlement to the residence permit after the real estate purchase in Turkey
Property owners have a right to a residence permit in Turkey. The application can be made either in the Turkish Consulate or at the Foreign Office in Turkey within the current Visa.