Buying Property in Turkey
Practical Information for Buying Property in Turkey
Top 10 Tips
1. Property prices vary across the country with those in tourist areas much, much higher.
2. There are a growing number of Turkish property exhibitions in Ireland.
3. Only when you are listed on the title deeds (TAPU) do you become the true owner of the property.
4. Make sure that the property has a habitation permit.
5. Check out all aspects of the apartment complex if you are buying into one.
6. You can now obtain long term mortgages in Turkey but you are probably best still dealing with an Irish lending institution.
7. Generally, no foreign national is permitted to own more than 25,000 sq m of property in Turkey.
8. Make sure all local taxes are paid on the property before completing the sale.
9. Total costs (fees and taxes) can amount to about 10 % of the property purchase price.
10. You are likely to need the services of a Turkish lawyer or one in Ireland with a good knowledge of Turkish property.
Key Phrases
ENGLISH - TURKISH
Description, location of property - Ana Gayrimenkulun
Ownership of property that is ready to use - Kat Mulkiyeti
Ownership of property that is not ready to use (still under construction or permit not yet granted) - Kat Irtifaki
Timeshare - Devre Mulk
Purchase Price - Satis Bedeli
Habitation Certificate - Oturm Izni
The Turkish Property Market
The increasing openness of Turkey and its good value as a tourist destination has seen a boom in holiday home and apartment construction especially at seaside resorts. The country is still much cheaper for property, however (by up to 50%) in comparison to Western Mediterranean destinations. The cost of living (half that of Ireland) also makes it an attractive destination. The Government is also reforming many of the laws to make it easier to finance and purchase property in this country that straddles Europe and Asia.
How to Find a Property Agent
There are an increasing number of agents in Ireland who assist in buying Turkish property and of course, some Turkish agents advertise on the web and in magazines and supplements in Ireland. It makes sense to contact such agents before you travel to an area to look at property. Exclusively Turkish property exhibitions are increasingly common as the Mediterranean country spanning Europe and Asia grows in popularity.
You will need to decide on the type of property for which you are looking. Is it a holiday home to be used a few weeks in the year, a more permanent residence or a rental investment? A holiday home ideally will require little maintenance.
Ask the agent at the outset who is paying the commission and the percentage.
Give the estate agent a clear understanding of what you seek in a property. Be prepared for the types of property you are viewing i.e. wear appropriate clothing. Take a good local map and have a list of questions prepared.
Under new laws from March 2007, mortgages are now available over long periods to potential home buyers in Turkey. This had not been the case until then and it is expected to radically change the housing market.
If you wish to remain longer in Turkey than periods normally permitted for tourists, you will need a residence visa and you should contact the Turkish Embassy in that regard.
The Legal Issues
Foreign nationals can buy property in Turkey provided that their home country has a reciprocal agreement to allow Turks buy there. In this case, Ireland is covered. Irish citizens must be treated in the same way as Turkish citizens as regards property rights. Foreign nationals and companies are not allowed to but in military, strategic and security zones. As an individual, you generally cannot purchase more than 25,000m2.
It is advisable that you use the services of a Turkish lawyer or an Irish solicitor who has a good knowledge of the Turkish property market. Turkish lawyers have particular rights with regard to searching for information on property and good English language speaking Turkish lawyers will be very helpful.
You can appoint your Turkish lawyer or someone else to act on your behalf by granting them “power of attorney”. This should be done in the presence of a notary public.
Before buying, carry out a full examination of the location and price of the property.
Most important is to have the house inspected carefully, if not by oneself, then by a knowledgeable person in the area. This can be a broker or someone with relevant expertise.
Any renovations or repairs of damages need to be checked. The roof should be examined by an expert or a good eye before buying. Age of the heating system is a very important point.
When you have agreed a deal with the seller, a contract is drawn up. You should seek a copy of the TAPU (title deeds) to the property. This will allow you to check the true ownership of the property and any conditions attaching to it. Review it carefully and have it translated if necessary. Prepare any questions you have in advance, don't hesitate to ask them and allow sufficient time for getting full answers.
You should also register with the local tax office and then open a bank account in order to allow for smooth payment.
Although contracts are not legally compulsory, you should ensure that you draw up one that gives you protection. The contract should include property details, agreed prices and payment conditions, the bank account details of the seller and any professionals acting for them and clauses specifying what will happen should either party fail to complete the contract. If there are existing tenants renting the property, demand clarity in the contract as to how they will be treated.
The notary is a State official and is legally bound to act as an impartial middleman between buyer and seller. You should get him or her to witness the signing of your contract. The notary will ensure that it is in line with Turkish law. Ideally, you should look for a notary that can speak English or have a good translator on hand.
In most cases, buyers and sellers are not single persons but couples or even groups of owners. All persons (or those with power of attorney) involved should be present at the signing ceremony. All must bring their passports in order to identify themselves.
The buyer and seller must then apply to the TAPU (title deeds) office to have their transaction registered. You will need to bring your passport or ID here as well as the title deed to the document as well as two recent passport photographs of yourself.
The TAPU office will check that you are entitled to buy the land and will then grant you the Title Deeds (TAPU). This process can take you 6 to 8 weeks. Without having a TAPU, you are not considered the legal owner of the property, even if you have a legal contract with the seller. Only at this stage, should you make final payment (less the deposit) to the seller.
The TAPU is the official document showing ownership rights and will contain the owner’s full name and photograph and detailed information on the property.
You are supposed to also then inform the municipal council in the area of your purchase. You should ensure that the property has a habitation permit – Oturma Izni. Without such a permit, you cannot live in the property nor subscribe to the utility companies.
Insurance
From the signing of the final contract the buyer is responsible for the insurance of all the buildings on the property.
Taxes, Fees and Charges
Average transaction costs work out at up to 10% of the property price. In addition to the agent's commission (generally around 3%); there will be a purchase tax of 1.5% (to be paid by both buyer and seller prior to transfer of ownership at TAPU office), a notary fee and additional small administrative costs, perhaps including the hiring of an interpreter.
Local real estate taxes are applied annually by the municipal council and these vary from area to area. Make sure that these are paid up to date when you purchase or you will be liable.
Planning Permission
Check with the local authority where you plan to build or renovate. Construction law 3194 determines all issues in this regard. You can build provided it is in line with local construction plans and you receive authorisation from the local authority.
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