Buying property in Turkey has become increasingly popular among both Turkish citizens and foreign nationals. Although the process after the payment of the real estate sale price may seem like a simple purchase and sale procedure, it actually involves serious research and detailed steps. Considering the fact that thousands of cases related to real estate ownership are filed in Turkish Courts every year, the issue is of great importance.
There are basic points to be considered in cases where the property is purchased for investment or residential use. The parties should be extremely careful in this process in order to avoid problems during or after the purchase and sale transactions.
It is extremely important to get expert lawyer support in real estate purchase and sale transactions in order to carry out the process in a healthy way. Processes carried out by intermediaries or businesses working on commission may cause legal grievances.
In this article, we will discuss the issues that should be considered in real estate purchase and sale transactions. With our 25 years of experience and expert lawyer staff, you can contact us for more detailed information and professional support.
Buying property in Turkey…
1. What should be examined in Land Registry Records when buying a property?
Failure to examine the title deed records before purchasing real estate may cause various grievances. In order not to encounter an unexpected situation after the purchase of real estate, title deed records should be examined accurately and professionally.Buying property in Turkey…
The Turkish legal system has ensured that the title deed records are correct in line with the principle of “Trust in Title Deed”. In this direction, the examinations to be carried out by the relevant persons in the land registry office where the immovable is located is one of the most important steps to be considered when purchasing real estate.
So what are the issues that should be examined in title deed records?
a. Finding out the real owner of the house
The real owners of immovable properties are characterised as “owner” in Turkish law. Examining the real owner in the land registry records is extremely important in terms of finding out whether the person selling is actually the owner of the house, or if the sale is made by proxy, whether the necessary power of attorney is possessed.
Not knowing who the real owner of the immovable property subject to sale is or buying the house from someone other than the owner is not a situation protected by the legal order. Therefore, it is extremely important to find out who the real owner of the house to be purchased is and whether the person to be purchased has the authority to sell the house.
b. Learning the Existence of Attachment, Injunction, Mortgage and Obstacles to Sale
Although the existence of restrictions such as mortgages, liens and injunctions on the real estate does not prevent the sale, these restrictions are transferred to the new buyer together with the real estate in case of sale. The new buyer who purchases a foreclosed or mortgaged house is deemed to have accepted these restrictions and their consequences.
b.1. What Happens If a Foreclosed or Mortgaged House is Purchased?
If there is a lien or mortgage on the title deed, the new homeowner who buys this house is deemed to have accepted the consequences of these restrictions and to be responsible for these consequences. Therefore, the new homeowner faces the risk of losing the house in case of foreclosure and mortgage.
It should be noted here that after the sales promise agreement is prepared for the immovable to be purchased and annotated to the title deed at the notary public, the restrictions imposed despite the existing annotation will not be valid. In the decision of the 14th Civil Chamber of the Court of Cassation numbered 2019/4081 regarding this issue, the following statement is stated:
In this case, since the court will continue the effect of the annotation that continues to exist in the land registry since its cancellation is not requested by the owner of the immovable property, and if other restrictions are added despite the existing annotation after the annotation of the promise of sale in favour of a party to the land registry becomes public, they will not be valued, and since it will be accepted that the owners of the annotation placed later will see the annotation previously placed in accordance with the principle of publicity of the title deed, the defendant creditor . … in favour of the defendant creditor … through the file numbered 2009/3159 of Kastamonu 3rd Execution Directorate dated 12.09.2014 and numbered 12394 and the attachment annotation dated 17.10.2011 and numbered 15343 dated 17.10.2011 through the file numbered 2009/4122 of Kastamonu 3rd Execution Directorate in favour of the defendant creditor … should also be cancelled, but it was not deemed correct to make a decision as written, and the judgment was reversed for this reason.
b.2. Can a House with a Public Lien be Purchased?
In foreclosures made by public institutions and organisations such as municipalities, special provincial administrations, tax offices, the transfer of the immovable property cannot be carried out until the foreclosure is removed. Without the official and written approval of the relevant public institution, the title deed transfer process cannot be carried out in the sale of a foreclosed house.Buying property in Turkey…
c. Learning that the house shown for the purpose of sale is the same as the house in the title deed
In order to verify this situation, title deed examinations are required. As it is known, thanks to the Parcel Inquiry service offered by the General Directorate of Land Registry and Cadastre, the relevant persons can compare the addresses of the immovable properties they are considering to purchase with the island, plot, parcel information registered in the land registry and see the location of the immovable through the application. The parcel query of the immovable can be made through the internet application, or it can also be confirmed from the land registry offices. In this way, checking whether the immovable property at the address shown to the real estate buyer and the immovable property subject to sale are the same, whether the island, plot, parcel and address information are compatible is one of the most important steps to be taken when purchasing real estate.
2. What should be examined in the Municipality Records when buying a property?
The municipality records of the considered property should be examined in detail. This is because not only the information specified in the municipal archive file of the relevant property is not legally recognised, but it may also have unexpected consequences for the new homeowner. These factors can play an important role in the buyer’s decision to purchase a property and can also help the buyer to reduce the risk of unexpected situations in the future. Factors that can be analysed from municipal records are as follows:
- – History of the property,
- – Zoning status,
- – Whether there is a certificate of occupancy,
- – Property tax debt
Based on the results of the municipality records and enquiries to be made from the relevant units, the real market value of the immovable can also be determined. Knowing the fair market value of the immovable correctly may affect the purchase and sale transactions to be carried out at the land registry office. When the purchase and sale price is reported to the Land Registry Office, this price cannot be lower than the current price, so an accurate declaration is important.
3. What is Title Deed Fee? What are the Title Deed Fees Determined According to?
One of the most frequently asked questions by people who will own a new home is “How much is the title deed fee? ” comes. So what is the title deed fee and what is the title deed fee determined according to?
Title deed fee is a fee determined according to the sales price of the real estate sold in the title deed. The title deed fee is applied as 4% of the total sales price, 2% for both the buyer and the seller.
Buying property in Turkey…
3.1 Who pays the title deed fee?
The title deed fee is determined as 2% for both parties of the sales contract. However, this is not a mandatory provision. Therefore, the parties may determine a different rate for the title deed fee or decide that one party pays the entire title deed fee.
3.2 What happens if the sale price is underestimated in the title deed?
In real estate sales, underestimation of the sales price in order to lower the title deed fee causes high penalties in practice. In the event that the Ministry of Treasury and Finance detects the act of understatement of the sale price carried out by persons, the penalty for understating the value of the house in the title deed is demanded from the seller and the buyer with interest for delay. Likewise, a penalty of 25% is added to the title deed fee due to the under-declaration of the value of the house.
In short, in the event that the sale price is underestimated in the title deed, the underpaid amount is demanded from the parties and a 25% penalty is applied to the actual amount to be paid.
4. What are condominium easement and condominium ownership?
Although these two terms are often confused, there are actually important differences between them. The document obtained in order to have rights on the construction built on a land is called the title deed of condominium easement, and in order to obtain this document, transactions are made with the General Directorate of Land Registry and Cadastre. In projects that have been approved for construction but not completed, a title deed is usually issued. After completing the project, the contractor applies for a housing licence from the municipality. The title deed obtained when the occupancy licence is obtained is called a condominium title deed.
Buying property in Turkey…
4.1 Can I Buy a House with Condominium Easement?
Houses with a condominium easement in land registry records can be purchased. Floor easement generally means that the shares of the shareholders are allocated together with the fact that the building seems to be not yet completed. Therefore, even if the house is physically completed in houses with a condominium easement, a housing licence must be obtained from the municipality with a housing licence application.
4.2 What happens if a house without a housing licence is purchased?
The certificate of occupancy, in other words “certificate of occupancy”, is a permit that shows that a building is “completed” in terms of science, technical, zoning and legal processes. Structures that are not constructed in accordance with the above-mentioned process are not given occupancy permit by the municipality.
In this context, those who own an apartment without occupancy should be aware that the residence they reside in is an incomplete structure. It is especially important to pay attention to the houses with condominium title deeds, because as a rule, the buildings that do not have a “occupancy licence” are the ones with condominium title deeds.
So, what is the difference between houses with a housing licence and houses without a housing licence?
- Customers who want to buy non-occupied flats may not be able to get a loan from banks when they apply for a loan.
- Houses under construction without a housing licence can get electricity, water and natural gas subscriptions, but it is not possible for the apartment to get a subscription on its own. Invoices are issued in the form of construction site subscriptions in houses without a settlement licence. In this case, it may cost twice the normal cost for the same services.
- It is not possible to convert the title deeds with condominium easement into condominium ownership without obtaining a certificate of occupancy.
- In order to obtain a certificate of occupancy, sections that are not built in accordance with the project may need to be rebuilt or reorganised, which may cause significant costs.
- A fine or demolition order may be imposed on buildings that do not receive a certificate of occupancy within 5 years.
5. What is Project Licence? Why is Project Licence Important When Buying a Property?
Firstly, the licence project is the project that includes the exterior appearance, interior design, the ratio of masses to each other, plans and all similar details before the application process of the building to be built. Licence projects are prepared by the architects of the buildings and then submitted to the municipality. Before proceeding to the project stage, the land and settlement status and zoning plan are meticulously examined by the architect.
If you are interested in mass housing projects built by real estate companies, it is important to do preliminary research about the companies in order to prevent future time and cost losses. Examining the portfolio of the company that owns a project you like can be useful for you to make a reliable decision.
In addition, it is also critical to check the company’s references, find out whether it has been in court with any buyer before, whether it has successfully completed its previous projects, and whether it has delivered the houses to the buyers within the specified period.
6. How to get a residence permit by buying a house in Turkey?
One of the most frequently asked questions by foreigners who want to live in Turkey is “Is it possible to get a residence permit by buying a house in Turkey?”
Yes, it is. Turkey is one of the countries that gives residence permits to foreigners who buy properties that meet certain criteria. However, in order to obtain a residence permit by buying a house, the house you will buy must have some features.
Accordingly, in order to obtain a residence permit by purchasing real estate in Turkey, the property in question should not be purchased with a joint title deed. There is no right to residence permit in purchases made through a joint title deed. However, the right to residence permit is only granted to the title deed holder, his/her civilly wedded spouse and minor children.
The most important condition is that the real estate in question is residential and used as a residence. For more comprehensive information about the residence permit, you can take a look at our article titled “How to Obtain a Residence Permit?“.
7. How to get citizenship by buying a house in Turkey?
Individuals who wish to obtain citizenship are required to purchase real estate worth at least $ 400,000 or equivalent in this process and then apply to the General Directorate of Land Registry and Cadastre. As a result of this application, a request for Turkish Citizenship is received. The value of the real estate is documented with the Real Estate Valuation Report and submitted to the Ministry of Environment and Urbanisation. After approval by the Ministry, the General Directorate of Land Registry and Cadastre adds the annotation that the property cannot be sold for three years upon the request of the Ministry. Then, the citizenship application is sent to the General Directorate of Population and Citizenship Affairs and the final stage of the application process is started. After the civil registry office procedures are completed, the individual is entitled to receive the Republic of Turkey identity card.
For comprehensive information on obtaining citizenship in Turkey, you can take a look at our article titled “How to Apply for Citizenship?“
8. Is it possible to buy a house with a tenant living in it?
The most important issue to be considered when buying a house is the tenant living in the house. In this case, the lease agreement signed by the tenant and the previous landlord is completely transferred to the new landlord.
Therefore, there is a process that should be carefully maintained especially in the case of tenants living in houses purchased for use.
Buying property in Turkey…
8.1 How to Remove a Tenant from a Newly Purchased House?
Tenant eviction from the newly purchased house is a process that should be carried out very carefully. If the specified times are missed in this process, the eviction of the tenant may turn into a more difficult and protracted process. Therefore, it is very important to benefit from the support of an expert lawyer for the eviction of the tenant living in the house you have just purchased.
First of all, the new landlord must notify the tenant on the grounds of use. This notification must be made by drawing a notice from the notary public.
Article 351 of the Turkish Code of Obligations regulates this issue as follows:
If the person who subsequently acquires the leased property is obliged to use the leased property for himself, his spouse, spouse, descendants, ascendants or other persons who are obliged to take care of him by law, he may terminate the lease agreement with a lawsuit to be filed after six months, provided that he notifies the tenant in writing within one month starting from the date of acquisition.
The person who subsequently acquires the leased property may, if he wishes, exercise his right to terminate the lease agreement due to necessity by filing a lawsuit within one month starting from the expiry date of the lease agreement.
Accordingly, if the tenant is not evicted after the tenant is notified of the situation, the new owner has the right to file an eviction lawsuit at the end of 6 months. Although the law does not specify when this six-month period starts, the accepted practice is to start from the date of acquisition.
On the other hand, according to the second paragraph of the article in question, if the new landlord misses the request or notice period, the right to file an eviction case within one month from the end of the existing lease agreement.
As we mentioned, since this process is a legal process that needs to be managed very carefully, it is very important that you benefit from the support of an expert lawyer. With our 25 years of experience and our professional team of lawyers offering services in 4 languages (German, Russian, English, Turkish), you can contact us to initiate the necessary legal processes for the eviction of the tenant living in the house you have purchased in Turkey.
WHAT WILL WE DO FOR YOU?
As Güneş & Güneş Law Office, with our 25 years of experience and our expert team of lawyers providing services in 4 languages (Turkish, German, Russian, English), we can follow all legal processes and provide consultancy services for your new real estate purchase.
Accordingly for you:
- Title deed checks for your new home,
- Mortgage, foreclosure, restriction on sale checks,
- Zoning and settlement status,
- Checks whether there is any tax debt or subject to litigation,
- Examining the suitability of the houses you intend to buy for citizenship or residence permit application and making the applications you will make in this status,
- To represent you in judicial proceedings in any legal dispute
We offer many services such as. You can contact us via our Whatsapp contact line to benefit from our lawyer and legal counselling services in Antalya, Istanbul, Ankara, Izmir, Adana, Mersin, Bursa and all over Turkey.
Buying property in Turkey…
