Set your budget according to your needs when purchasing real estate in Turkey. Examine the value change in the region; it is useful to examine the price changes in the region where houses are searched. During the house search process, you can get information such as the most valuable provinces, districts, and depreciation periods. Do not forget making insurance; after purchasing the real estate, you can secure your dwellings and belongings by insurance companies in order to have a safe and problem-free replacement process. In addition, it is compulsory to make Natural Catastrophe Insurance Institution (DASK) policy in order to be able to make the deed transfer.
Purchasing real estate for foreigners in Turkey
According to Article 35 of the Land Registry Law numbered 2644, foreign nationals can buy property from Turkey provided that they comply with the legal restrictions. There is no obligation for residence permit in order for foreigners to purchase property in Turkey. In article 35 of the relevant law, the restrictions imposed on foreigners to buy houses are stated as follows:
‘’ According to the law, foreign nationals may acquire real estate and have some property rules to follow in Turkey. The total area of immovable, independent or limited property that is acquired by foreign nationals cannot exceed the ten percent of the area of the district and cannot exceed thirty hectares throughout the country, for per person. “
Foreign nationals wanting to buy a property in Turkey are required to know the following information before the sales process:
- One should apply to General Directorate of Land Registry and Cadastre (Department of Foreign Affairs) and Land Registry Office or the Embassy of the Republic of Turkey, in order to learn which nationalities could buy property in Turkey.
- It must be confirmed that the property to be purchased is not within the military security zone. This information can be obtained through the Authorized Commandership. If the real estate is within the boundaries of the security zone, sales cannot be made to foreigners.
- After getting information about the restrictions on real estate purchases by foreigners in Turkey, the sale process can be performed.
- It should be learned whether the house to be purchased has an obstacle to sales such as mortgage or not to sell clause. This information can be obtained from the General Directorate of Land Registry and Cadastre.
- An agreement should be made with an intermediary firm or Real Estate agency if needed by the seller or buyer
- In case of a disagreement between the parties regarding the sale of real estate, a lawsuit must be filed in Turkish courts.
- Making a sales promise agreement before a notary is not sufficient for sales. Official transactions must be carried out in the land registry offices.
- The title deed fee to be paid in property purchases is paid both by the buyer and the real estate owner.
Title Deed Transfer
Prepare the title deed transfer documents; the official purchase of the property is carried out at the General Directorates of Land Registry and Cadastre. The documents required for title deed transfer are mentioned below. The transfer of immovable properties is called ‘’title deed transfer (Tapu Transfer) ’’. This situation can be between the buyer and the seller, or the deed transfer can be made due to inheritance from the family or similar reasons.
How to make an appointment with General Directorate of Land Registry and Cadastre and what papers are needed for deed transfer ?
the official website of Land Registry Directorate https://tkgm.gov.tr/tr
There are two ways to apply to the Land Registry Directorate. You can easily complete your application by making an e-appointment through the official site of the General Directorate of Land Registry and Cadastre. For this, you must follow these steps:
- When you click the “Make a new appointment” button, a page opens and you are reminded of the important points you need to pay attention to.
- After entering the 6-digit security code at the bottom of the screen, you will see a screen with several steps.
- You enter your credentials and contact information, respectively, and choose the directorate in which you will carry out your transaction.
- In the next step, you determine the type of transaction you want to do.
- At the last stage, you enter the appointment date you requested and the system shows you the appropriate hours. Your appointment is determined according to your preference and you receive a confirmation email.
- If you do not comply with the appointments received from the land registry offices 5 times in a year, you are not allowed to create an appointment again. In addition, the right to create only one appointment for the same day is given.
- Another way to apply to the Land Registry Office is to go to the government offices and apply in person. You enter the pre-application room and create your appointment. An appointment time is determined according to your transaction type and is sent to your phone as a message.
- After paying the required title deed fee, you must be present at the directorate fifteen minutes before the appointment time together with the bank receipt and documents required for the title deed transactions.
- You can also make your title deed appointment application via ALO 181.
It is of great importance to provide the necessary documents before the determined appointment date. The documents required for the title deed transfer and the process in the land registry office are in the followings.
- Identity card and representation certificate (identity card and representation certificate of the immovable owner, buyer or authorized representatives)
- Sales Memorandum of the Enforcement Directorate (if sold by enforcement)
- Court Memorandum (if sold through a lawsuit for dissolution of the partnership)
- Compulsory Earthquake Insurance for building properties
- Document indicating the value of Real Estate Tax received from the relevant municipality.
- If the seller will not apply for the title deed in person, a power of attorney is required for the applicant.
Real estate purchases and sales can transferred to one of the following, a person, group of people, legal company and these documents may vary. If a company is buying then the followings are required;
- Original and a copy of the tax certificate
- Specimen of signature of the company official
- A letter indicating that there is no tax debt and there is no fair value that is subject to a fee received from the municipality
- If the sale is on behalf of the company and to be carried out with a power of attorney; the original power of attorney must be submitted.
Title Deed appointment and Transactions for foreigners:
Appointment is a must in order for foreign nationals wanting to buy property from Turkey to carry out the title deed transfer. Online appointments can be made through the Land Registry Appointment System of the General Directorate of Land Registry and Cadastre. An appointment can also be made by calling 181 and if you are at abroad, by calling +90 312 593 99 00. Deed transactions start with the pre-application of the real estate owner or authorized representative to the Land Registry Directorate. Following the receipt of the application number, the documents and requirements for foreigners in title deed transfer are in the followings:
- Title deed document of the property
- Identity card or passport (If necessary, a translation of the passport can be requested by a sworn translator.)
- One photograph of the seller and two photographs of the buyer (Photographs must be taken within the last six months and must be 6 × 4 cm in size.)
- Real estate fair value document (experts report) obtained from the relevant appointed firms
- Compulsory earthquake insurance policy for buildings
- If there is a party who does not speak Turkish, a sworn translator and two witnesses
- In case of transaction with a power of attorney issued abroad, the original or certified copy of the power of attorney and its translation
How much is the Title Deed Transfer Cost?
Two payments are required for the title deed transfer. One of them is the title deed fee; the other is the revolving fund fee. Since 2017, there has been a reduction in the residence title deed fee. The residence title deed fee decreased from 4 percent to 3 percent. later the fees was raised back to 4 percent. it depends on the time of purchase sometimes the government announces discounts on the title deed fees by decreasing it. sometimes there is only 1 percent title fees for new projects, at the time of purchase you have to find out the latest prices for the title deed transfer. the title deed fee is divided between the buyer and seller in a way that half / half is paid by each side. A 4% title deed fee is charged for lands. The title deed revolving fund price has been 128 liras as of 2019. In addition, 17.5 TL additional service fee is also charged.
The title deed fee is paid by both the buyer and the seller and is not less than the “Real Estate Declaration Value” received from the relevant municipality. (According to the Law No. 492 on Fees, the title deed fee rate is 2 percent of the sales price.)
At the stage of asking the Authorized Commandership whether the immovable property is outside the military and private security zones, revolving fund fee is paid for the map prepared by the Cadastre Directorate, if necessary.
written by Melisa Karayusufoglu, image: finans.mynet.com