Due to certain factors including inheritance, gifting a property, or estate planning, many people think about transferring a property title to a family member. In Turkey, the transaction known as Tapu transfer that involves transferring ownership comes along with a certain procedure. If you give this property to a close relative or you are about to leave it through an inheritance, you should know the legal steps, paperwork required, and taxes associated with the process.
Therefore, this blog aims to explain step by step how to transfer a property title to a family member in Turkey.
1. Know How the Property Act of Turkey (Tapu) Works
Before getting into the details of how to transfer property, it is critical to first know how the “Tapu” works in Turkey. The Tapu is the official document or title deed granted by the Land Registry Office (Turkish: Tapu ve Kadastro Müdürlüğü) where the land in question is located identifying the registered proprietor of the specific land. It bears details of the property, its registered owner’s name, and any mortgages or restricting orders on it.
Should you decide to transfer property to a member of your family, the Land Registry Office will be involved because they are the ones who manage the transfer of the ownership of property titles in Turkey.
2. Why Would One Consider Property Transfers Within the Family
There are various situations which may compel someone to transfer ownership of a property to a relative:
Inheritance:
Preparing for the unknown and making sure the asset will be passed to the next generation.
Gifting:
The transfer of property for reasons related to purposes like affection and also tax purposes.
Family Estate:
One may have a property and would wish to make sure that a particular family member manages the property for purposes of long-term estate planning.
3. Steps to Transfer the Property Title in Turkey
This is a guide on transferring the property title to another household member in Turkey.
Step 1: Get all the Required Documentation
The initial action is the collection of the relevant documents. Such documents will be required at the Land Registry Office. The relevant documents include:
Tapu (Title Deed): The title deed currently owned for the property in question.
Proof of Identification: There should be submission of identification documents by both the present owner and the family member, who is being given the property (Turkish ID or a passport).
Compulsory Insurance: The respective property should have the DASK (Doğal Afet Sigortaları Kurumu) insurance that protects against earthquakes.
Аll types of tax number in Turkey: A Turkish tax number is required for both parties and can be availed from the tax office if the person has not possessed one already.
Property Valuation Report: The Real Estate Valuation Report provides the market price of that property assessing for costs and taxes.
Power of Attorney: A power of attorney can allow either party to appoint an agent to represent him or her in a transaction if the real person is unable to be present.
Step 2: Submit an Application to the Land Registry Office
To apply for registration at the land registry, you will be required to go to the office once you have all the required documents. Both the existing property holder and the family member acquiring the asset must be in attendance unless power of attorney is provided.
At the Land Registry Office, you will tender the application for the registry transfer. They will check the documents submitted and the property will be checked for tax or debt or any claims attached to it. If all the requirements are met, the next step of the transfer will proceed.
Step 3: Settle the Required Taxes and Charges
In Turkey, where the property title transfer is concerned, there are issues of taxes and charges to be paid to the title registry even if the transaction is between relatives.
Title Deed Transfer Tax (Tapu Harcı): The general percentage of transfer tax on property in Turkey is 4% of the market value of the given property which is paid equally by the current owner and the new owner. Tax exemptions and reductions apply in certain cases for instance when you are gifting the property to your spouse, children, or parents.
Notary Fees: The transaction may entail more costs when a notary is engaged within the transaction.
Service Fees: There is a service charge for the transfer of the title and that is paid to the Land Registry Office. These expenses have to be incurred before the completion of the deal and the relevant payment slip tendered to the Land Registry Office.
Step 4: Completing the Process of the Transfer
After the payment of all taxes and fees by the relevant parties, they will be required to attend the Land Registry Office again to affix their signatures on the remaining transfer documents. The title deed will then officially be transferred to the family member and a new Tapu will be issued in their names.
He will now enjoy total control over the property as the owner. However, it is important to go through all the details contained in the new Tapu and confirm that it is correct.
Conclusion
In Turkey, transferring the title of a property from one individual to a family member is a determinedly legal exercise that one should be vigilant in following every stage of the transfer process. The process consists of the preparation of the necessary documents, payment of taxes, and completion of the transfer at the Land Registry Office among other steps, and knowing each step helps to facilitate the process and success of the transaction.
Whether one decides to give a property to a relative or to plan for the far future renouncing all the rights, make sure you follow the proper steps to avoid any problems and have the property legally transferred under the laws of Turkey.
