BUYING PROPERTY PROCESS IN TURKEY 2019 – LEGAL BASIS

BUYING PROPERTY PROCESS IN TURKEY 2019 – LEGAL BASIS

• In accordance with the Article 35 of the Land Registry Law No. 2644, amended by Law No. 6302, ( This law definetely entered into force on 18 May 2012), the condition of reciprocity for foreigners who wish to buy property in Turkey abolishes now.
• Information on countries whose citizens can buy property and estate in Turkey can be provided from the Turkish Embassies/Consulates abroad and the General Directorate for Land Registry and Cadastre.
• Persons with foreign nationality can buy any kind of property (house, business place, land, field) within the legal restrictions.
• Do persons with a foreign nationality buy property without construction (land, field)? They have to submit the project which they will construct on the property to the relevant Ministry within 2 years.

THE FORMAT OF THE CONTRACT

• According to the Turkish laws and regulations in force, transfer of ownership of a property is only possible with an official deed. And you must registry it at the Land Registry Directorates.
• It is possible to sign a “sales commitment agreement” before a notary. However, legal ownership to the property does not pass with a “sales commitment agreement” or another kind of sales agreements. They must sign before by the notary.

 LEGAL RESTRICTIONS FOR FOREIGNERS IN BUYING PROPERTY

• Persons with foreign nationality can buy maximum 30 hectares of property in Turkey in total.  Furthermore he can acquire limited in rem right.
• Foreigners cannot acquire or rent property within military forbidden zones and security zones.
• Persons with foreign nationality can acquire property or limited in rem right in a district/town up to 10 % of the total area of the said district/town.
• Legal restrictions do not apply in setting mortgage for real persons and commercial companies having a legal personality which are established in foreign countries.
• The properties are subject to winding up provisions in following cases: (i) if the properties  are acquired in violation of laws; ii) if the relevant Ministries and administrations identify  that the properties are used in violation of the purpose of purchase; iii) if the foreigner does not apply to the relevant Ministry within the time in case the property is acquired with a project commitment; iv) if the projects are not materialized within time.

  APPLICATION AND PROCEDURE:

• Above all buyer should be from the country whose citizens can acquire property or limited in rem right in Turkey and meet the necessary conditions.

Application:

The owner of the property or his/her authorized representative should make a preliminary application to the Land Registry Directorate. (Preliminary applications you should make before noon by taking sequence number).

Necessary Documents:

1.  Title deed of the property or information on village/district, block, building plot.
2. Identification document or passport (Together with its translation).
3.  “Property Value Statement Document” to be provided from the relevant municipality.
4.  Compulsory earthquake insurance policy for the buildings (house, office, etc.)
5.  1 photo of the seller, 2 photos of the buyer (within last 6 months, 6×4  size)   
6.  (If one of the sides cannot speak Turkish). Here must be translator and 2 witnesses.
7.  (If  the power of attorney you prepared abroad).  The original or certified copy of the power of attorney and its approved translation.

Information on powers of attorney issued abroad:

• The Turkish Embassies or Consulates issued powers of attorney.
• If the power of attorney which issued by a notary of a foreign country certifie according to The Hague Convention on 5 October 1961. And if it bears “Apostille (Convention de La Haye du Octobre 1961)” in French. But there is no need for an additional certification of the said power of attorney by the relevant Turkish Consulate.
• If the power of attorney issue by a notary of a foreign country which is not party to The Hague Convention on 5 October 1961. The signature of the said notary has to be certified by the relevant authority of the foreign country. And then the signature and seal of the said foreign authority have to be certified by the Turkish Consulate in that country.

    FINANCIAL ASPECT OF THE PROCEDURE:

• Both seller and buyer have to pay the title deed fee. It calculates according to the selling pric. It cannot be less than the “Property Statement Value” according the rools of the relevant municipality. (According to the Charges Law No:492, the title deed fee percentage for 2018 is  % 4.)
• Moreover you must pay circulating capital fee. It determines locally (Maximum 760 TL for 2018.)
• At the stage when the Land Registry Directorate inquires with the relevant military authorities whether the property locates within a military or special zone, you must pay circulating capital fee for the map( This map prepares by the Cadastre Directorate). (323 TL for 2018)

Source: Ajyad investment