Every real estate purchase, whether residential or commercial, is an investment because it's expected to fetch you returns within a reasonable time. If you are planning to invest in foreign real estate, Turkey is a good idea. The country is known to offer impressive properties and a fair return on real estate investments. Whether you plan to sell it in the future or rent it, capital gains will be on your way!
Buying property in Turkey
Turkey is a major player at the international level attracting more foreign investment every year. Located on two continents, it enjoys the best of both worlds. It is a highly attractive real estate market that offers considerable returns and is one of the most preferred countries for second citizenship. You can apply for Turkish citizenship by acquiring real estate. But how do you purchase property in Turkey?
The process of buying property in Turkey:
1. Do thorough research on the market to find the best property and try finding a reliable local estate agent. Make trips to the country if possible.
2. Once you shortlist a suitable property to buy, negotiate the price and terms of purchase with the seller.
3. After agreeing to the terms, you’ll sign a sales contract and pay a small reservation deposit.
4. Hire a reliable, qualified, and authorized legal professional to handle the legal side of the transaction.
5. It will take 3-4 days for a full valuation by an independent appraiser.
6. Your solicitor will check over the Tapu, property ownership document which is then sent off to the Tapu office for registration.
7. A new Tapu is issued with your details.
8. After the transaction is completed, you’ll be the proud owner of a Turkish property.
Property deed transfer in Turkey
As per Turkish law, the transfer of property can be held at the Land Registry Directorates where you need to sign two deeds- the title deed and the land deed. You can receive them only after getting your residence certificate. This can be arranged with the help of your real estate agents who specialize in arranging properties for foreigners.
To get the title deed, you need to give 4% of the property value. It’s a legal document that permits the transfer of property ownership from one person to another.
Prime Property Turkey offers you consultation and services that make you the rightful owner of the property. Our sales agents will be there when you sign all the sales and transfer documents that will be forwarded to the Title Deeds Registry Office.
Unless you specify a power of attorney, your presence will be required for title deed transfer. The seller and buyer (or your proxy) meet at the Title Deeds Office at the appointed time and the transfer takes place in the presence of a sworn translator.
For detailed information about the title deed, categories, procedure, cost, documents required, and other details, read our blog. It will answer most of your questions regarding TAPU.
What does transferring property ownership in Turkey mean?
The transfer of the legal ownership of a property to a new owner is called the transfer of real estate ownership. This process is carried out through the title deed which is signed and duly registered in the directorates of the real estate registry.
The title deed proves the ownership of the property by the legal owner and has the owner’s name and photo and property details. The deed document gives the owner the right to use the property by living, renting, selling, or investing. Once the deed is registered, it is kept in the records of the Title Deed Directorate.
In Turkey, when you buy any property, you need the title deed to give you official ownership of the property because, without it, your possession of the property can't be proven. You would need this deed for carrying out property-related transactions like buying and selling.
There can be a single or multiple owners of the property; each one in a specific percentage. The deed document contains detailed information about each person's share of the owners.is given to only one person and no copies are given to the partners.
Steps for transferring property ownership in Turkey
Transferring real estate ownership in Turkey calls for a few steps as these:
1. The buyer of the property needs to come to Turkey or appoint a trusted person as power of attorney to act on his behalf to conclude the purchase contract transaction. This will be done through an official agency or the Turkish embassy.
2. Based on the buyer's passport number, a tax number from the tax department is given with a copy of his translated passport. It is certified by a Turkish notary.
3. After these steps, the property seller will go to the Land Registry Department to waive the property to the buyer.
4. Once it's all done, the new buyer receives his title deed.
Cancelation of ownership transfer in Turkey
How to cancel the property ownership contract?
When both parties sign the agreement and the deposit is made, the contract becomes legally binding. The deposit amount varies for every property, but as a general rule, you give up to 10 % of the purchase price. If you somehow decide to cancel your contract, you will lose the deposit. But if the seller withdraws from the contract, you are entitled to a refund of the paid deposit.
Common reasons for the termination of the lease contract
- The contract to purchase a property in Turkey will be canceled if the purpose or objective of the property is violated while buying it. For instance, if the property was bought for residence and stability but was used to carry out a business, the authorities will cancel the sales contract. Also, if the purchase was made by twisted methods, the purchase will be nullified.
- Defect in the property: If the buyer discovers any defect in the property that can cause damage to his family or the property itself, he has the right to revoke the contract.
- Uncontrolled situations: Certain situations like the death of the buyer or seller, the bankruptcy of the owner, or similar reasons can also be the reason for the termination.
Inspecting the property before purchasing
You must confirm the specifications of the property before buying. Check the construction quality, and verify the strength of the property and quality of the material used.
Compare the price quoted for it as per the features of the property. Compare specifications like where is it located, what the connected amenities and other factors you might look for to the price. A modern premise will be more expensive than an old one and so will the furnished one.
Cancellation: Buyer's right
As a buyer, you have the right to cancel the contract/purchase of property up to 14 days after signing the contract. In this case, the seller is obliged to refund all your amount. If you terminate it after 14 days, you will pay a fine based on the value of the property.
up to 3 months: 2%
within 3-6 months: 4%
within 6-12 months: 6%
within 12-24 months: 8%
After paying the fine, the rest of your money will be reimbursed.
This rule mainly applies to projects that are still under construction. However, it can still apply to you if the paperwork is taking a lot of time.
Important notes and tips before you start transferring ownership
- Before buying a property, the buyer must evaluate the real estate registry to ensure the legal reliability of the property (free from loans, seizure, or inheritance problems).
- The buyer can directly refer to the directorate of the Land Registry can be directly referred in case an appointment for the transfer of ownership can't be obtained.
- The buyer doesn't need to have a residence permit in Turkey until the process of ownership begins.
- Turkish judicial bodies can be reached out to in case of any dispute between the parties.
- In the case that the buyer is a foreign company with foreign capital: the Commercial Registry Directorate must be reviewed to obtain a document specifying the capital ratios, and then the Planning Directorate at the governorate building in the concerned state to obtain permission from it.
- Get your TAPU checked. A professional and efficient estate agency would always do it for you.
- Immediately check the accuracy of the TAPU after it is issued. If there are any corrections in the information, fixing them early would be easier.
Want to be a happy TAPU owner in Turkey? Contact Prime property Turkey for reliable consultation. We will guide you through the title deed process with the best of our expertise so you enjoy easy ownership.
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