Procedures / Purchasing Procedure
Title, Estate Agent, Solicitor, Survey.
All Turkish property has FREEHOLD title. In Turkey the ownership of real estate is obtained by entry in the Land Register (article 633 Turkish Civil Code) and the simultaneous delivery of the real estate.
In Turkey, Estate Agents (Emlak in Turkish) are accountable in terms of managing the process between Seller and Purchaser, which is why it is in your interest to ensure that the Kusadasi Association of Estate Agents (KUSEMDER) have licensed your Estate Agent. All Estate Agency transactions must be carried out within the legal guidelines set out by the Land Registry Authority (TAPU) and under the Rules & Regulations of KUSEMDER.
Purchasing property in Turkey is much more straightforward than in many European countries, legal representation (Solicitor) is not required when buying or selling a property as the contracts between the Seller and the Purchaser are LEGAL contracts in their own right.
However, if you wish to employ a Solicitor during the process, we have sourced two local Solicitors authorised by the BARO (Turkish equivalent of the Law Society) who speak European language(s), the set fee, irrespective of the purchase price of the property payable by you is €1000 - €1500
Please be advised the Solicitor acts as your Agent and is independent of Lighthouse Ltd.
The duties of the Solicitor in relation to the transfer of property are to verify that:
The title deeds to the property are in order
The Seller is the registered owner
No debts or charges (e.g. mortgages) on the property
Building Licences and planning authorisations / permissions (e.g. any extensions to the property since first registered) are in order
Terms and Conditions of purchase.
The only actual benefit of employing a Solicitor for this process in Turkey is to check the terms and conditions of the contract, as all other duties listed above are dealt with either by the Title Deeds Office or the Municipality. (Turkish equivalent of the County Council)
A survey is NOT legally required. Recent building regulations have been passed and the Turkish Building Standards Authority MUST approve and certify all new constructions. This is not the case with resale property built prior to 2000 however all details of title are filed with the local Municipality (County Council) and MUST be in accordance with regulations to enable the property to be sold.
However, if you wish to employ a Property Surveyor during the process, there are two options available.
a) Government Office Surveyors levy a set fee of €1500.
b) Private Surveyors levy between €250-€400.
The Property Surveyor will:
Verify all the details of the property with the Municipality (County Council),
Surveys the property and
Presents you with a report PRIOR to your decision to buy the property.
MILITARY AUTHORISATION PROCESS:
Turkish National, Current Owner Non-National, first Non-National Owner.
If you are a Turkish National the legal exchange of property title deeds is a very speedy process and normally takes place within 24 hours.
There is a similar time frame where the Owner of the property is already a Non- National.
If you are the first Non-National* to apply for registration the process can take between six to twelve weeks and recently due to the high turnover of properties here, further delays are being experienced. However, this lengthy process is in the interest of the Non-National Investor
a) It ensures that the property is not in or close to a military defence zone.
b) The Sellers legal ownership, debts and charges are checked
c) Background checks are conducted on the Purchaser.
The following documentation is required:
a) A copy of all the title deed documents
b) A letter of explanation of the purchase
c) A copy of the contract
d) A copy of your passport
e) 4 passport photographs (not more than 6 months old).
The above are then forwarded to Military H.Q. in Izmir.
We will assist you with all of the above requirements.
*first Non-National -Turkey has a reciprocal agreement for the purchase of land and properties with the following countries Argentina, Austria, Australia, Barbados, Belgium, Canada, Colombia, Denmark, Egypt, El Salvador, England, Finland, France, Germany, Greece, Guatemala, Holland, Israel, Ireland, Italy, Luxemburg, Malawi, New Zealand, Norway, Spain, Sweden, Switzerland, The Dominican Republic, The Turkish Republic of Northern Cyprus, USA and some other South American Countries.
Nationals from the above listed countries are authorised to purchase property in Turkey from a Turkish National or a registered Non-National Seller.
A selection of other countries has also been granted permission restricted by the satisfaction of some provisions.
We will assist you with all of the above requirements.
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The procedure followed during the purchasing process is dependant on the “status” of the intended purchase.
Basically “status” falls under three headings:
a) RESALE PROPERTY.
b) CO-OPERATIVE SALE PROPERTY.
c) NEW DEVELOPMENT SALE PROPERTY.
COMMON to (a), (b) and (c)
The sale price is agreed; the contract between the Seller and the Purchaser is drawn up. To make the purchasing process more explicit, particularly for the ever-increasing number of Non-Nationals purchasing property here, we use a pro-forma contract supplied by the KUSEMDER (Kusadasi Association of Estate Agents -Licensing Authority).
These comprehensive, numbered, contracts are pre-printed in both English and Turkish. They fully explain the terms of the sale and provide a legally binding agreement for both the Seller and the Purchaser.
At this point a deposit of 10% of the agreed purchase price is required however, at the discretion of the Seller, a booking deposit may be paid accompanied by a signed agreement that the balance (amount to 10%) is paid to a bank within the agreed time frame. The criterion for new developments is detailed under the respective heading. PLEASE NOTE if the Owner changes their mind / wants to sell to another party, this deposit (10%) is refundable but if the Purchaser pulls out of the deal, there is no clause in the Turkish legal system that guarantees the return of the deposit.
The remainder of the process varies according to the “status” of the property.
a) RESALE PROPERTY.
These properties already have a TAPU (Title Deed) in the name of the Current Registered Owner i.e. the Seller.
Military clearance is required – see “MILITARY AUTHORISATION PROCESS” above.
On receipt of clearance the legal exchange of property deeds can be completed in one day at the TAPU Office (Land Registry). To close the sale and receive the Title Deeds, the Seller, the Purchaser (or the Power of Attorney*), and Estate Agents attend the TAPU Office. Keys and Title Deeds are exchanged.
If it is difficult for you to return to Kusadasi to complete the final stage of the process, the Power of Attorney* can be given to us (LIGHTHOUSE Ltd.) / your Turkish Solicitor to act on your behalf.
If completing the transaction yourself, a Translator / Interpreter (Fees €100-€150 (approx.)) MUST be present.It is a legal requirement that the Purchaser and the Seller understand the points of sale before the transaction can be completed.
The title deeds are transferred once the Seller confirms that he has received the monies for the transaction and the Purchaser (or the Power of Attorney*) confirms their willingness to buy the property and that they have received keys to said property.The balance of funds for the purchase should be transferred electronically into the country through a bank and specifically identified for that purpose e.g. (transfer purpose - for the purchase of No, 9 Deniz Sitesi, Title Deed No. 9980) (see Note 2)
The foreign currency should be sufficient to cover both the purchase cost plus other costs incidental to the purchase.
(See Note 3). Please keep all receipts to prove the original purchase LIGHTHOUSE Ltd. supply official receipts for all monies given to them. The TAPU office ensure that all debts, bills and charges on the property have been settled by the Seller prior to closing the sale and exchange of deeds.
On completion of the transaction the Purchaser (or the Power of Attorney*) receive the TAPU (see sample “Practical Information” on this site) registered in your name thus making you the legal Owner. All these details are kept on file at the TAPU Office thus providing further security for your investment.
TAPU Tax (Stamp duty), Notary, Translator and Estate Agency fees are payable on the day.
b) CO-OPERATIVE SALE PROPERTY.
These developments are constructed under the Co-Operative Building Scheme; this system has been in operation for many years in Turkey. Up until recently Banks did not provide mortgages to Turkish Nationals (Individuals) for the purchase of property, the Co-Operative system came into operation to fulfil this niche in the market place.
Basically you are buying a share in the co-operative, where the Seller’s share is designated to the plot of land and house.
The searches required for these properties:
That the Seller is the legal owner of the co-operative share
That all debts, charges, bills and co-operative payments have been made to-date (turnaround time approximately 2-4 weeks)
Military clearance is NOT required for the purchases of these properties.
Once the searches have been completed satisfactorily the change of name from the Sellers to the Purchasers can advance. This process is similar to that of “resale properties” but instead of receiving a TAPU, the current registered Owners name is replaced with the Purchasers name on the Register in the TAPU Office. All of the above takes place under the framework of a Legal Notary.
A Translator / Interpreter will also be necessary for you on the day to ensure you understand all the terms of sale.
The balance of the purchase price of the property, Notary, Translator and Estate Agency fees are payable on the day.
On registration under the co-operative scheme you become the legal owner of the property.
Title Deeds normally issue on completion of the co-operative development (including all landscaping, roads, walkways, pools, communal areas etc.) there will normally be co-operative payments until this time – we will advise you of these payments and the date they are due to finish.
c) NEW DEVELOPMENT SALE PROPERTY.
New developments usually involve buying off–plan. This is a brilliant investment for those who don’t mind waiting 12-24 months before taking possession of their property and those looking for a good profit on their property purchase.
Buying off-plan means you reserve a property on a new development before the construction is completed, often before it has even started. Because of this, the prices are significantly less than a resale or new property.
As the construction begins and the development starts to take shape prices can start to increase. Therefore buying off-plan is a popular investment.
Another reason for buying off-plan is that instalment payments can be made.
The instalment payment plan:
Depends on the individual project but the standard method of payment in Turkey is to pay one third as a deposit, one third at roof level and the balance on receipt of the key.Lead-time for most new developments is usually (2-12 months) depending on the nature of the development.
The payment plan will detail the due dates for the balancing amounts. These amounts must be paid on agreed dates. Failure to do so can result in the forfeit of any monies paid and could result in your property being offered for resale.
It is in your interest to ensure you are able to meet all financial commitments before signing a contract or paying booking deposits.
Within a set period (usually 2-3months) you will receive either
a) A Temporary TAPU (designating you as the legal owner of the plot and detailing the type of property to be built) or
b) Deeds of Assignment.
We ensure that all projects assigned to us are constructed in strict compliance with the Turkish Building Authority who monitors the projects throughout the building stages thus assuring you that your property is built in line with the high standards set.
On completion of the development (including all landscaping, roads, walkways, pools, communal areas etc.) a full title deed is issued to you as well as a certificate from the Turkish Building Standards Authority.
Some developments include sales fees, taxes and Title Deed related expenses into the price of the property, others don’t in any event we provide you with a detailed breakdown of all expenses so that you can remain within your original budget.
You will receive official receipts for all payments made to us.
NOTE 1: Power of Attorney
A power of attorney is an authority granted by one Party (the Donor) to another, to act for that Party in matters in which the Donor has power to act.
It is a special form of agency. Its most common use is when the Donor intends to be absent from the country for some time.
The Attorney may execute any document or deed in his or her name under the authority of the power and every such act done is as effective in law as if the Donor had performed the act. The Power of Attorney can be given to us (LIGHTHOUSE Ltd.) / your Turkish Solicitor to act on your behalf.
NOTE 2: Bank accounts.
LIGHTHOUSE Ltd. will assist you with the process of opening a Turkish bank account and have selected Banks with Staff who speak English and other European languages. You will need your passport for identification purposes a photocopy will NOT suffice.
To align Turkey’s currency laws with E.U. States the importation of foreign currency is FREE, it cannot be subject to any legislation and its origin may be questioned (Decree 32 August 1989 Article 4.0).
We strongly recommend that you set up a bank account before leaving Turkey as this is the most efficient and effective means for the transfer funds both in and out of the country and for arranging direct debits for utility services, insurances etc.
NOTE 3: Associated property costs.
3% of the sale price payable by the Purchaser to the Estate Agency. This fee is subject to an additional 18% sales tax e.g. if the fee payable is €1000, payment will be €1,180.
Property Purchase Tax / Title Deeds tax – is calculated according to the area (square meters), property location and the nominal title deed valuation. The Council and the TAPU office compile these assessments. New properties can be exempt from purchase tax. If applicable, the amount varies between 1-3% of the nominal valuation quoted on the Title deed.
Your contract with the Water Authority & The Electricity Supply Authority €250-€500 in total.
Notary Public (a person with official authority to be a Witness when one signs a document thus making the document valid in law) fee €150 approx.
State Earthquake Insurance is mandatory. The premium charged is calculated on the area (square meters). e.g. 100sq mt. property will attract an annual premium of €100.
Translator / Interpreter Fees - €100-€150 (approx.). A Government recognised interpreter during the transfer of the title deeds at the TAPU office is a LEGAL requirement.
A GUESSTIMATE of a MAXIMUM of 10% of the sale price of the property will provide more than sufficient funding to complete all property related transactions. You will have sufficient funds left for the obligatory bottle of champagne to celebrate your new venture!
NOTE 4: Your Turkish Tax Number:
You will need a Turkish tax number:
To open a Bank account
To pay property taxes when purchasing your property and for payment of annual property tax.
It is also required by the Council to facilitate the payment of amenity charges (bin collection etc.).
We will assist you with this process.
It is very straightforward and entails a visit to the local tax authority, which is on the same street as our office. A photocopy of the picture page of your passport plus the original will be required on the day.
NOTE 5: Average ongoing expenses and practical information:
The average cost of maintaining a home in Turkey is substantially lower than in many European countries. Naturally the costs will vary according to the size and nature of the property. The following guesstimate will assist you in assessing your annual expenditure.
Annual property tax (0.1%) collected by Local Government levied on the nominal value of the property (value quoted on the TAPU)
Payment is due before 31st May each year.
On new properties a 25% reduction is given until the revaluation date (after 5 years).
All properties are subject to a revaluation every 5 years.
Community Tax: €15 (approx.) p.a.
Rates: €25 (approx.) p.a. allocated to Government Education and Earthquake Funds.
State Earthquake insurance (Mandatory) is renewable annually, the premium payable is assessed on the area (sq mt.) of your property. e.g. 100 sq mt. property will attract an annual premium of €100.
Estate Maintenance Charges vary according to the facilities available on the estate e.g. complexes with swimming pool facilities attract substantially higher fees. On average €200-€500.
Electricity charges are €0.10 (approx.) per kilowatt. Bills are payable monthly at the Electricity Supply Board / through the Bank.
House & Contents Insurance: On average €100 per annum variable according to the security measures you have taken, the number of satellite dishes, verandas, swimming pool etc.
Telephone- Land line: Standing charge €18 per annum however, you can only apply for a land line if you have a valid Residency Visa which is obtainable from the Government Offices in Aydin / the Turkish Embassy in your country. We will assist you with this process if you decide one is appropriate.
Water costs €0.58 per ton (1,000 litres on mains metered supply) or €4.35 per ton bought from a bulk tanker.
The “Practical Information” section on this site will assist you in planning your visit to the Turkish Riviera.
If you have any questions in relation to any of the above please do not hesitate to contact us.