When buying real estate in Turkey, it is essential to understand that property transactions must be conducted in an official manner. Both the sale promise and the sale transactions are formal procedures. The transfer and registration of property are carried out at the land registry office, while the sale promise agreements are executed at a notary. It is important to note that entering into a sale promise agreement does not mean that the property will be transferred and registered in your name immediately. Here are 20 important points that foreign buyers should be aware of before purchasing real estate in Turkey:
Citizenship in Turkey
- Verify Ownership: Ensure that the person you are dealing with is either the property owner or has the legal authority to act on behalf of the owner.
- Check Property Details: Verify the details and nature of the property from the land registry records.
- Examine Legal Annotations: There may be annotations on the property that can prevent its sale. Before making any agreements or payments, thoroughly check the property’s land registry for any restrictions.
- Identify Liens and Encumbrances: The property may have liens, mortgages, or other encumbrances. Verify these details before entering into a contract or making a payment.
- Verify Construction Permits: Check for a valid construction permit and ensure the property complies with zoning regulations. Non-compliance can lead to issues with pricing and future property value.
- Obtain Expert and Legal Reports: Along with a mandatory expert report prepared by a CMB-licensed expert, obtain a legal report and confirmation from your lawyer regarding the property’s status.
- Land Registry Transactions: Real estate transactions and title deed acquisitions in Turkey are conducted through the land registry offices. Property rights are acquired, lost, limited, and transferred through land registry records.
- Notary Agreements: Notarized real estate sale promise agreements do not by themselves transfer property ownership. These agreements indicate a commitment from the seller to transfer ownership but do not transfer the property.
- Invalid Contracts: Oral or simply written real estate sale or sale promise agreements are not valid.
- Potential Liens on Promised Properties: Creditors of the property owner can place liens on the property despite a sale promise agreement. Ensure the property is free of such liens before proceeding.
- Register Notarized Agreements: Ensure that your notarized real estate sale promise agreement is registered in the land registry on the same day to strengthen your rights.
- Rights After Registration: Even after registering the sale promise agreement, the owner can still dispose of the property. However, the registration strengthens your rights.
- Ownership Transfer: The transfer of ownership will not occur until the property is registered in the name of the person for whom the sale was promised.
- Family Housing Rights: If the property is a family residence, the non-owning spouse’s legal rights will take precedence over the sale promise agreement.
- Verify Seller’s Ownership: Ensure the person you are making the agreement with is the property owner. A third party can promise to sell the property, but their ownership must be verified.
- Avoid Cash Payments: Do not make payments in cash.
- Use Bank Transfers: Transfer the property payment through bank transfer, EFT, or money transfer, and specify the property’s address details in the payment explanation.
- Foreign Exchange Certificate Requirement: Foreign buyers must make payments in foreign currency, which must be sold to a Turkish bank, and then the bank must sell it to the Central Bank of Turkey before completing title deed transactions. Payments are made in Turkish Lira.
- Title Deed Fee: The responsibility for paying the title deed fee can be mutually agreed upon by the buyer and seller. If not otherwise agreed, it is reasonable for both parties to pay 2% each of the 4% total fee.
- Proper Handover: Conduct the handover of keys properly to avoid any legal process for the eviction of current occupants.
Why Choose aSons for Your Real Estate Purchase in Turkey?
At aSons, we offer comprehensive legal services to ensure a smooth and secure real estate purchase process. Our experienced lawyers are well-versed in Turkish real estate law and provide personalized consultation, meticulous documentation preparation, and continuous support throughout your journey.
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For more information or to start your real estate purchase process in Turkey, contact our law firm in Istanbul today. Our dedicated team is ready to assist you with all your legal needs, ensuring a smooth and successful transaction.
