Answer 1: Yes, all property sold by Didim Sun Properties is freehold.
Question 2: How will I pay for the property?
If you pay via a mortgage the bank will make the payment for you direct to the seller.
If you pay by cash, you will be given bank details so that you can transfer money from your home based bank account to the sellers bank account. This way there is an official record.
Question 3: What are the extra costs involved when purchasing?
Legal and add-on costs vary for every property but if you budget 10% on top of the sales price, then you will have change left over. Once you have seen something that you are interest to buy, DSP will provide you with a full payment plan that outlines every cost asociated with the purchase of the property that interest you. Generally speaking, the extra charges involved for a freehold purchase payable by the purchaser amount to just under 10% of the purchase price paid. Utilities connection fees Deeds transfer tax Deeds office admin fees Remember, all of your additional costs will be detailed in a payment plan from Didim Sun Properties before you decide to buy a property and the main costs will also be listed in your sales agreement by your solicitor so you will be aware of what you have to pay and when, before you sign to make any purchase. The time frame for payments will vary for each property purchased with payments over 6 months being very common.
These are broken down as follows:
Solicitor / legal translator / notary fees
Real estate commission
Compulsory earthquake insurance (after deeds transfer)
Generally speaking, the extra charges involved for a freehold purchase payable by the purchaser amount to just under 10% of the purchase price paid.
Utilities connection fees
Deeds transfer tax
Deeds office admin fees
Remember, all of your additional costs will be detailed in a payment plan from Didim Sun Properties before you decide to buy a property and the main costs will also be listed in your sales agreement by your solicitor so you will be aware of what you have to pay and when, before you sign to make any purchase. The time frame for payments will vary for each property purchased with payments over 6 months being very common.
Question 4: What are the yearly costs of running a property in Turkey?
*Complex maintenance (if applicable) varies according to the facilities but normally starts at £250 upwards.
*Monthly electric bill may start from 70 TL (£30). There are different rates throughout the day and night.
*Monthly water bill will come to around 20 TL (£8) for an apartment.
*One bottle of gas costs 50 TL (£20), cost depends on usage. Full-time usage for a family - one bottle lasts approx 3 months so in a holiday home, one bottle will last years.
Some area of Istanbul will also have piped gas for central heating.
*Property and Council tax depends on the property, average estimation is 200 TL per annum.
*It is mandatory to pay Earthquake insurance that starts at 1 TL per Meter Square. It is optional to pay for Content and building insurance. Quotes will vary depending on property bought and financial amount of contents insured for.
Question 5: What happens to my property if I die?
If you die after the title deeds are in your name, then the ownership of the property will be split as per Turhish Inheritance Laws - 50% to spouse, 50% to children.
If you situation is any other than 1 spouse and shared children only, then it is highly recommended to write a will. This can be done by a solicitor and will cost you between £200 and £500. It must be done by a solicitor in Turkey.
You can find full information about Inheritance Taxes in the your particular family situation from our colleagues at Property Tax International.
Question 6: Do I have to find my own solicitor?
Question 7: I am thinking about selling my property. What do I need to factor in?
Capital Gains Tax
If you keep the property for five years before selling then no capital gains tax is applicable. If you bought your property before 2006 then the capital gains tax is not payable after 4 years of ownership. For expert advice on Capital Gains Tax, please consult our colleagues at Property Tax International - specialists in International Tax Issues.
Costs of selling
Freehold resale costs vary according to the package that you arrange with the advertising estate agent and also the buyer.
You may choose multiple advertisers but all will work on different commission rates so always ask before you employ an estate agent.
Other costs include deeds transfer tax. You may want to share this with your buyer or you may prefer for the buyer to pay the taxes on your behalf (the normal practice).
Am I limited who I can sell to?
Property may be sold to Turkish, or foreign nationals without restriction.
Can I take my money out of Turkey?
By law, proceeds from the sale of property is convertible to whatever currency and subsequently transferred to any country you choose, although most of the Turkish High Street Banks only work in Turkish Lira, Euros, Sterling and US Dollars.
Question 8: I'm not Turkish, can I buy a property in my own name?
In the summer of 2012, the Turkish Government widened the right to buy land and property in Turkey to 183 nationalities. There are very few nationalities which are not allowed to buy property in Turkey.
To enquire about your right to buy, please email us at firstname.lastname@example.org your nationality and we will confirm same day, the right or not, as the case may be, for your nationality, to buy property in Turkey.
Question 9: Who should I buy through?
Answer 9: We recommend that you use a licenced estate agency. Check out their certificates before you engage their services. The local Chamber of Commerce accredits licenced estate agencies.
Do not buy a property through a friendly waiter, hotel receptionist, friend of a friend etc. Ask yourself, “would I do this if I was buying property in the UK?" You need a professional that is open 52 weeks of the year not just in the summer months when the tourists are abundant. You need an agent that can work on your behalf, in your absence if there are problems at your property.
Question 10: What happens during the purchasing process?
The legal procedures are quite straight forward if done properly. Didim Sun Properties can act on the buyers behalf throughout the process as is normal with Turkish customers but in the case of non-Turkish buyers, we recommend that you use an independent solicitor just as you would in your home country. Didim Sun Properties can either arrange a solicitor for you or you can choose a solicitor yourself.
Once you find your ideal property, your agent or your solicitor will carry out the searches on the Title Deeds for you and ensure that there are no outstanding debts registered against the property and that the seller is actually the person detailed on the Title Deed. DSP will check on the dwelling status of the property and will obtain proof of a habitation licence or will advise the solicitor to write a clause into the sales contract about the delivery of the habitation licence if it hasn't yet been bought.
Thereafter a contract will be drawn up between the buyer and the seller. The contract should contain the following:
- Details of the purchased property and full names and addresses of the buyer and the seller
- Details of payment times and how these will be paid
- Any extras included in the sale price
- The buyer will then be required to pay a deposit in order to secure the chosen property.
At this point it is also advisable to open a Turkish bank account; we will help you with this. At the same time, Didim Sun Properties will apply for a ‘military search' to be conducted.There is then normally a wait of 2 - 4 weeks for the military searches paperwork to be cleared by the Army in Izmir.
As soon as the local Title Deeds Office receives clearance from the Army, the remaining balance (usually 5% - 10% of the purchase price is retained by the buyer until the deeds arrive) plus any additional costs are due to be transferred to the Turkish bank account and the Title Deeds can be exchanged.
The Title Deeds formalities can all be carried out in your absence by leaving a Power of Attorney with either your agent or with your solicitor. Should you decide to use your agent for this work, they will take you to a notary to arrange this Power of Attorney. There is an official translator within the notary's office to ensure that you understand the Power of Attorney.
For more indepth details about the buying process, please see our Buying Guide .
Question 11: What is a Payment Plan, a Sales Contract, a Title Deed and a Tapu?
You will come across these terms during the buying process and all of them are important documents.
The payment plan, will be drawn up by Didim Sun Properties after consulting with the buyer and the seller. The document will outline every expense involved in the buying process and when it should be paid and to which authority / bank account. It prevents any nasty surprises later on and serves to remind the memory as not all payments are made at the same time and payments are often spread over several months.
The sales contract is the legal document, drawn up by the buyer's solicitor that agrees the sale between the buyer and the seller. The contract should state that the buyer agrees to buy the property at the price you have agreed to pay, and the date by which you agree to pay it. The contract will also state that the seller agrees to sell you the property at the agreed price. (Please remember that deposits are usually non-refundable in the event of a cancellation of sale by the purchaser). The sales contract will use information from the payment plan and will include a list of any terms and conditions of the sale (ie leaving nothing to a ‘gentleman's agreement').
The Title Deed is the legal document of ownership of the property. The Turkish name for this document is "Tapu Senedi", hence the Tapu you may have heard about. Once the property is sold, the title deeds are transferred from the seller to the buyer and that concludes the purchase. If there are any restrictions on the property they will be itemised in the title deeds although this is a very rare occurrence.
Question 12: What is a habitation licence?
A habitation licence (sometimes referred to as an ‘Iskan') - translates as a ‘Kulanma Izin belgesi' is a document that proves that the dwelling is licenced and meets building requirements. It is the third and final type of licence that the builder is obliged to buy to complete a building. It is an expensive document and the owner of a new build does not technically have ‘independent ownership' of a new build until that habitation licence has been bought ie the new building has been passed by the local licencing authorities.
It is relatively normal to buy a new build without a habitation licence – for example, if the building has been recently completed or it is bought before completion. In these cases, the solicitor should write into the sales contract that the builder is obliged to buy the licence by a mutually agreed date and the builder must be responsible contractually for the purchase of such documentation.
Didim Sun properties do not generally sell re-sale properties without a habitation licence and when we have one of these properties on our books, from time to time, the absence of a habitation certificate will be reflected in the price and fully explained to an interested buyer BEFORE they wanted to proceed on a purchase.
Didim Sun properties recommend that anybody considering a purchase find out the full situation on the habitation licence BEFORE they agree to buying a property.
Update autumn 2010:
In previous years, a habitation licence could only be purchased for a whole complex or build and this was an expensive licence that left home owners at the mercy of the "goodwill" of the developers. In the past, many builders had not always completed their responsibilities by making this purchase. Often these people havent been traceable leaving home owners in a legal pickle.
In 2010, local Council's across Turkey granted the power for individual home owners to be able to buy their individual habitation licence when the deeds are transferred to the buyer's name. However this can be a time-taking and expensive process (not always) for the home owner so DSP would always recommend that a property is purchased either with the habitation licence already in place or when the process for obtaining the licence is clearly defined in the sales contract.
Question 13: I am buying off-plan. Is the buying process different?
Purchasing off-plan is a great way to save money and to get the best choice of properties on a new development. It isnt always the best option for the nervous buyer but for those who have done their research and know what they want to achieve from their investment, have done the right due diligence on the developer and have secured good legal representation, it is a superb way to access the best deals.
If purchasing off-plan, there will normally be scheduled payments arranged during the construction of the property. These arrangements will be detailed in your contract, along with any other extras from the builder and any penalty clauses you may want to add. The buying process is the same but it will be elongated as will the payment plan.
It is wise to take bank bonds for every payment made before completion and deeds transfer - to act as a money-back guarantee.
It is wise to take extra support and advice from your solicitor.
Question 14: My question is not listed....can you help?