BUYING PROCESS IN
TURKEY
INTRODUCTION
Foreign nationals are entitled to buy a property or land in Turkey
under the Turkish reciprocity agreements. Although there are some restrictions
which apply, the buying process is actually quite straightforward. According to
Turkish Law, foreigners cannot buy property or land in some designated areas and
the property or land must be within a municipality or borough
boundaries. Foreigners cannot purchase in rural areas or military sensitive
zones as well as archaeological sites. Also, you will need approval from The
Turkish Cabinet of Ministers if the land or property is larger than 74
acres.
THE STAGES
Once you have found property of interest the stages
would be as follows:
Stage 1: A reservation contract is
drawn up in to hold the property you wish to purchase.
Stage 2: A reservation deposit is
payable upon signing the contract, usually around £2,000 per property. The
remainder of the balance will be payable as detailed in the sales contract. A
typical payment plan on a off-plan property might be £2,000 deposit, then 30% of
the balance in 4 weeks time, then the remainder of 70% on
completion.
Stage 3: A solicitor draws up a sales
contract in both English and Turkish, detailing what it is the purchaser is
buying, the price that will be paid, and terms of the payment. These are signed
by both the seller and the purchaser, usually in front of the Notary as
witness.
Stage 4: You may wish to instruct a solicitor to carry out checks
on the property you are buying, and to act on your behalf with power of
attorney. The latter is usually done in a case where the purchaser is too busy
to travel to Turkey. You or your solicitor can then get a tax number and open a
bank account for transferring funds.
Stage 5: You make further payments as
specified in the sales contract.
Stage 6: The title deeds "TAPU"
are transferred into your name, after the application has been approved by the
Land Registry Office (passing security and property location checks). This
process may take 2 - 3 months to complete. You may be present for this or a
solicitor can do this on your behalf with power of attorney. The TAPU property
title deeds are then signed over to the new owner subject to all outstanding
monies being paid. It is at this point that purchase tax of 3% is payable by the
purchaser.
In some cases when purchasing property in Turkey, it is advisable
to use an independant solicitor to carry out checks for you. Although it is not
absolutely neccessary, a solicitor will check:
-
The property was built legally
-
If the property has any outstanding debts or mortgage
-
The person or company selling it is the actual owner
-
You are allowed to purchase in that area
Aegean Homes would like to stress that the above checks have
already been made with the developers that we work with, for greater peace of
mind. We only work with reputable developers who have already passed this vital
criteria, and so we would warn you to be careful if considering purchasing from
a private seller.
COMPLETION
As the new owner of your
freehold property, you have to apply to the local council to register your
property for the electricity and water bills etc.
AGENT
COSTS
In Turkey there is also a typical agent commission rate of
3% of the value of the property for sale. This is a typical agent
commission rate in Turkey, and it may not clear if you will need to pay
this.
Aegean Homes does not charge you the purchaser any commission,
we charge our fee to the developer.