Turkish Real Estate Law
The complexity and broad scope of Turkish Real Estate Law make it necessary for all legal transactions to be carried out with due diligence and knowledge of the relevant regulations. The Turkish Legal Office, with its real estate attorneys, can assist you in every aspect of Turkish Real Estate Law to ensure that you get the best deal and that no irreparable damages or loss of rights occur.
We are a team of Real Estate lawyers who speak English, Dutch and German. We have extensive knowledge and experience in various aspects of Real Estate. We have helped many foreign clients with the preparation and review of real estate sale and lease agreements, as well as with the sale, purchase, and rental of commercial and residential properties. It’s important to note that when the proper steps are taken from the start, the chances of success in a real estate transaction increase. That’s why it’s crucial to have experienced Turkish attorneys in the field of Real Estate Law and Rental Law draft commercial and residential leases and real estate sales agreements. Click here to view our rental lease agreement templates and other real estate law agreements that we have prepared for you.
Purchasing Property in Turkey and our Services
Purchasing property in Turkey can be more complicated than one may expect. Based on our experience, we have observed that many real estate agents prioritize their own commission over providing comprehensive information about key issues related to the property. Questions such as the buyer’s eligibility to acquire real estate in Turkey, the seller’s legal authority to sell the property, the presence of necessary approvals for the property including zoning, construction permits, and the finalization of legal checks for any restrictions on the property such as debts, liens, or conflicting property rights are often left unresolved for those interested in investing in Real Estate in Turkey. When making such a significant investment, it is crucial to protect your money and security. Relying solely on the trust of Turkish Real Estate Lawyers who may have a vested interest in representing the agent or seller may not always result in the best outcome for the buyer.
Our attorneys, who speak Dutch, English, German, can assist you with every aspect of purchasing a property. In addition, after you have found your desired property, we can also assist you in obtaining residency and submitting a citizenship application in accordance with Turkish Citizenship Law, and obtaining your passport and identity cards.
We provide the following full services in the Purchase of Real Estate in Turkey
- Assisting in finding a property and coordinating with real estate agents and property owners.
- Representing the foreign investor in negotiations regarding the purchase price of the real estate. We can also be given a Power of Attorney to complete the purchase on your behalf in case you cannot be present in Turkey during the completion of the Real Estate Purchase.
- Conducting a examination at the Land Registry Office to ensure the property meets legal conditions for purchase and that the title deed does not have any outstanding fines or debts.
- Investigating at the municipality where the property is located to ensure the property has the necessary habitation certificate and licenses.
- Providing a due diligence report of the property.
- Drafting a deposit agreement with the seller once the property passes the Due Diligence Examination and the buyer is willing to purchase the property.
- Applying for a Tax ID.
- Collecting all the necessary documents required by the Land Registry Office for the transfer of ownership of the property, including the Real Estate Appraisal Report, Foreign Currency Exchange Certificate, and Compulsory earthquake insurance policy.
- Translating the necessary documents into Turkish.
- Scheduling an appointment with the Land Registry Office.
- Assisting and/or representing the client in the transfer of ownership of the property at the Land Registry Office.
- Requesting an annotation on the title deed in case the client is also applying for Turkish Citizenship by investment and providing other necessary services to obtain Turkish Citizenship by investment. A holding commitment of three years may be annotated either at the same time with the title deed transfer or after the title deed transfer.
- Applying for a short-term residence permit for the foreigner’s spouse and children under 18 on the grounds of investment.
- Assisting the client in transferring gas/water/electricity subscriptions from the previous owner.
- Applying for Turkish citizenship for the foreigner’s spouse and children under 18 in accordance with Turkish Citizenship Law.
The Procedure for Purchasing Property in Turkey
Performing Due diligence Investigations on Real Estate
When you have located the property you wish to purchase, it is important to conduct a due diligence investigation on the property. Independent advice from an experienced professional is essential for a due diligence investigation, as the seller or real estate agent may not always provide complete and accurate information about the property. When making a significant investment in a property, it is crucial to be familiar with the legal restrictions for the sale of the property and the property’s entire history.
In this section, we have outlined the due diligence investigation and other legal services we provide for foreigners interested in buying a property in Antalya.
- I. Application for a short-term residence permit
A foreign investor in real estate does not need to have a residence permit to purchase a property in Turkey. However, if the investor plans to stay in Turkey for more than 90 days, they must obtain a Turkish residence permit. According to Article 31-j of the Foreigners and International Protection Law (Law No. 6458) and Article 11-b of the Turkish Citizenship Law (Law No. 5901), a foreign investor can apply for a short-term residence permit if they plan to invest in real estate in Turkey. Additionally, based on Article 34 of Law No. 6458, a family residence permit may be granted to the investor’s spouse and minor child. The duration of the family residence permit cannot exceed the duration of the short-term residence permit obtained by the sponsor. If the family members hold a valid work permit in Turkey, they do not need to obtain a family residence permit or any additional residence permit, as per Article 27 of Law No. 6458.
- II. Check whether the property is not more than 30 hectares and whether it is not located in military zones
As stated earlier, foreigners who purchase real estate in Turkey do not need to have a residence permit. However, there are certain legal restrictions related to the real estate that can be sold to foreign nationals in Turkey. According to Article 35 of the Turkish Land Registry Law (No. 2644), the total area of immovable property that can be used as a workplace or residence for a foreign person to purchase in Turkey is limited to 30 hectares.
Additionally, it is necessary for foreign buyers to obtain permission from military authorities in the region before purchasing real estate. It is crucial that this issue is clarified before making any payments, as it will not be possible to sell the property to foreigners if it is located within a security zone. The land registry directorate either approves or denies the acquisition of the immovable property after correspondence with the military authorities.
- III. Perform examination at the Land Registry Office and the Municipality to verify the legal condition of the property
Once the real estate meets the criteria outlined in the previous step, the next step is to verify the legal conditions of the Title Deed/Ownership Certificate (“tapu”) and the habitation certificate (“iskan” “yapı kullanma izin belgesi”) are met. The Tapu is the single, irrevocable document that proves the ownership of a property in Turkey. The owner should and technically must provide you with a valid copy of the Tapu to verify that they are the real owner of the property you have decided to buy. Additionally, with the information on the Tapu, the property will be checked at the Land Registry Office (“Tapu Dairesi”) to verify that the property meets the legal conditions for purchase and that the deed does not have any outstanding fines or debts connected to it, such as an “ipotek” which is a lien on the property that you would be liable for if purchased. In case you are also planning to apply for Turkish Citizenship by investment, you have to annotate a commitment in the Land Registry Office that you will not sell the real estate for three years after the real estate transfer process. This three year holding commitment may be annotated either at the same time with the title deed transfer or after the title deed transfer.
The Habitation certificate (“iskan”) proves that the property is habitable and has been built according to the required standards and earthquake regulations. An investigation at the municipality where the property is located is required to determine if the relevant property has the habitation certificate. It is possible to purchase a property without an iskan, as the property may still be under construction, the necessary documents to apply for the iskan may have been submitted late by the construction company, or there may be a delay in the confirmation of the application by the municipality where the property is located. However, if an application for the iskan has not been made at all, the buyer should be cautious, as without a general iskan for the apartment building, an iskan for the individual apartment cannot be obtained.
- IV. Concluding and signing the Deposit Agreement
Our Turkish Real Estate attorneys will draft a contract between you and the seller. Our Turkish Lawyers will ensure that the terms and conditions of the sale are correctly documented and included in the contract. The contract will be signed by both the buyer and seller and witnessed by our lawyer. At this point, you will need to pay a deposit to the seller. A deposit of 10% of the purchase price is common practice to secure the sale of the real estate.
Obtaining the necessary documents for the purchase of the property
After the necessary documents are collected by the seller and the buyer, an appointment will be scheduled at the Land Registry Office for the transfer of ownership of the property.
- I. Real Estate Appraisal Report
According to a circular dated February 15, 2019 from the Republic of Turkey, Ministry of Environment and Urbanization, foreigners who buy or sell real estate in Turkey are required to obtain a certified expert report on the property from a surveyor. This report is necessary for the land registry to approve the transfer of ownership. The report must be prepared by independent and competent companies licensed by the Banking Regulatory and Control Organization. It can be obtained through the website of the General Directorate of Land Registry and Cadaster: tkgm.gov.tr
- II. Foreign Currency Exchange Certificate
As of January 24, 2022, foreigners interested in buying property in Turkey will be required to obtain a foreign currency exchange certificate before transferring ownership to their name. This certificate demonstrates that the sale of foreign currency has been reported to the Central Bank of Turkey before the transfer of ownership from the seller to the buyer.
- III. Other required documents include
- Title deed or information on the property’s village/district, block, building plot, and detachment.
- Identification document or passport with a translation, if necessary.
- “Property Value Statement Document” (Emlak Beyan Değerini Gösterir Belge), obtained from the relevant municipality.
- 1 photo of the seller and 2 photos of the buyer (photos must be taken within the last 6 months). If either party cannot speak Turkish, a certified translator and 2 witnesses are required.
- Original or certified copy of the power of attorney and its approved translation.
- Compulsory earthquake insurance policy for the building (house, office, etc.).
- Document showing payment of the title deed fee. Unless otherwise agreed upon by the parties in the agreement, the title deed fee is divided equally between both parties as required by law. The title deed fee is 2% of the sales price for both parties, for a total of 4%.
Transfer ownership at Land Registry Office
In the case in which the property you wish to purchase is still under construction and the title deed cannot be obtained immediately, we recommend making a real estate sales promise contract. This contract, which must be made at a notary, grants you the right to apply to the court and transfer the property to your name in the event that the seller is unwilling to do so. Additionally, you should present the contract to the Land Registry Office, which will make an annotation of the contract on the title deed. If this contract is not made at a notary, you will only have the right to request a refund of the money you have paid.
Once you have submitted all necessary documents, both parties will meet at the land registry office on the scheduled date. If you are buying or selling through a power of attorney, your proxy must be present for the transaction. For foreign sales, the transfer of the deed is also done in the presence of a sworn translator. After paying the full amount, the property will be registered in your name and you will receive the title deed. The final step is to transfer the subscriptions from the previous owner to your name.
Management Services of your Property in Turkey
If the property you have purchased in Turkey is intended to be used as a secondary source of income and you plan to rent it out when it is not in use, it is important to familiarize yourself with your rights and responsibilities as a landlord under the Turkish Code of Obligations.
- On what grounds can I terminate the lease contract as a landlord?
- What are my rights as a landlord when the tenant does not pay rent regularly?
- How can I evict a tenant with an eviction commitment letter?
- Under what circumstances am I permitted to increase the rent as a landlord?
In the article ‘What are the rights of the Landlord under the Turkish Code of Obligations?’ you will find all the answers to these questions.
We offer the following legal services to landlords in Turkey
- Helping you find a real estate agency to list your property for rent.
- Preparing a valid lease contract that complies with Turkish law and protects your best interests as the landlord.
- Monitoring rent payments and taking necessary legal actions, such as sending warning letters to the tenant, if rent is not paid on time.
- Preparing letters of termination for the lease agreement.
- Initiating enforcement procedures and eviction lawsuits based on eviction commitment letters, non-payment of rent, eviction for personal need and all other reasons allowed by law.
If you have any questions about Real Estate Law or Turkish Citizenship Law, please feel free to contact us for a free consultation.