Turkish conveyancing procedure
As in most foreign countries, the conveyancing procedure in Turkey is relatively straight-forward if you know what you are doing but this takes years of experience and unfortunately, is an ever changing environment. Buyers should be aware that there are multiple potential pitfalls and many of these are what are publicised and give 'bad press'.
Any buyer of Turkish property (whether they be Turkish or foreign) should use a licenced and EXPERIENCED real estate agent as well as the appropriate legal representation at all stages, thus ensuring the buyer's interests are upheld and all contracts and transactions are legal and binding within the Turkish legal system.
Foreigners may purchase freehold land and property in Turkey, in their own names, provided that:
1-) Their country has the right to buy Turkish property and land. Since the summer of 2012, there are 183 countries with this right, including European countries; Arabic Countries, Asian, African and Oceanic Countries. If you are not sure of your country's right to buy, please email us with your nationality and we will confirm whether or not you have the right to buy Turkish property and land, according to your nationality.
2-) Military clearance is granted ie it is found that the property is outside Military or Restriced Zones and the applicant does not have any criminal record or have a background of working in intelligence, or a record for spying.
When a buyer has decided to purchase land or property within Turkey it is strongly advised that they appoint an independent solicitor. If the buyer is able to return to Turkey to complete their purchase, at key stages then a Power of Attorney (POA) to act on their behalf is not required, but if a buyer prefers for elements of the purchase to be conducted in their absence, saving them the time and cost of travelling, then a POA may be appointed. Under normal circumstances the buyer's solicitor will act as POA although other parties can be appointed, at the buyer's preference.
Once appointed by an authorised Public Notary, the POA will then be legally entitled to act on the buyer's behalf to BUY one property in the buyer's name. If required the POA can be empowered with legal powers for property utilities or anything deemed necessary, by the client, to act on the their behalf.
In Turkey, a licenced estate agent is also a qualified conveyancer BUT DSP still recommends that the buyer appoints a solicitor so that they have an independent party to act on their behalf although DSP will also be advocating for the client; it is re-assuring for buyers to know that they have two parties working on their behalf.
The buyer's estate agency, solicitor /POA will work together to undertake the following:
1. Perform searches at the Title Deed Registry Office to confirm that the deeds are clear of debts; confirm the legal ownership and ensure that there are no discrepancies over the title deeds.
2.Qualify any outstanding debts to be settled at the Tax Office (for the seller).
3. Preparation of Sales Contract in Turkish and English, between buyer and seller.
4. Apply for Military clearance
5. A hypothec (lien / charge on the deeds) is an optional service that the solicitor can perform to give complete peace of mind on ownership before the deeds are transferred.
6. Inform buyer of the return of the Military clearance
7. Co-ordinate the transfer of the Title Deed (TAPU)
8. Arrange compulsory earthquake insurance
9. Liaise with seller and authorities to arrange utility connection and registration in buyer's name.
10. Register the property for Council Tax (free for the first year on a new property).
The disbursements which the buyer may be required to pay depend upon the level of service requested and the fees of the service provider / the area in which the property is located but a rough guide in Didim is as follows :
Solicitor fees:1,000 TL - 1,800 TL (to create a sales agreement)
Military Clearance fee: 1000 TL
Legal Translator fee: 150 TL per document when not included in the service fee
Notary Stamp fee: 150 TL per document
Real estate agency commission 3% of the property purchase price
Water and Electric connection: 400TL - 850 TL each
Deeds office admin fees - 250 TL
Deeds runner: 200 TL - 400 TL
Title deeds transfer tax: 4.0% payable at the Title Deed Registry Office on transfer of Title Deeds (TAPU).
Earthquake insurance: 100TL - 350TL dependent upon house size.
The above disbursements are paid over the course of the buying process.
All buyers with Didim Sun Properties are provided with a full breakdown of costs at the time of purchase, or just before so there will be no nasty surprises.
The Buying Process
1-) A non-refundable, negotiable, reservation fee can be paid by the buyer to take the property out of the market for up to 28 days.
2-) A Private Purchase Contract is drawn up between the buyer and seller. The contract should contain all details and conditions related to the purchase and terms and conditions of payment, together with buyer's and seller's responsibilities. The buyer will be required to pay a deposit in an agreed time to activate the contract.
3-) Once the contract is signed by all parties and activated the property is considered as 'sold'. This protects the buyer from the owner, as the owner, after signing the Contract, cannot re-negotiate the price or sell to another bidder. The owner is also protected as the buyer has agreed to the methods of payment, and will forfeit any monies already paid if the contract is not adhered to.
4-) For some property purchases, it is advisable for a secondary sales contract to be drawn-up at the Public Notary Office. This contract becomes legally binding in the Turkish courts. A Turkish Public Notary is a Government appointed solicitor and the Public Notary, unlike the buyer's solicitor, does not act on the buyer's behalf.
4-)After the contract(s) is(are) signed and the deposit paid, the process of applying for Military clearance can begin. This takes either a day OR it takes about 2 - 6 weeks depending upon the status of the property, the status of the buyer(s) and whether or not other foreign buyers have bought at the development previously . The TAPU (deeds) cannot be transferred to a foreign purchaser before clearance is received.
Registration of property and owners
There are a number of ways in which a property and its owner should be registered and DSP carries out these registrations for new property owners:
1. Register with the Tax Office to receive a Turkish Tax Number
2. Have the transfer of Title (TAPU) registered in the Title Deed Registry Office
3. Register the new owner with the Municipality thus establishing a Council Tax record.
4. Register utilities, Electric, Water, Telephone in the buyer's name.
5. Register the property and owner with the local police.
6. Register the owner and their address with the local representative from the Council (known as the 'Muhtar'). This is most important for those who choose to live in Turkey permanently.
DSP do not advise declaring a lower price on the deeds of the property, as has been a common practice here in Turkey, for many years as a tax 'dodge'. DSP recommend that home owners declare their full sales price on their deeds valuation, unless the new buyer particularly wants to declare a lower value.