When you find a house you’d like to buy, you’ll want to present the seller with an offer to purchase the home.
Beginning !
Legal systems
different from country to country so never assume that you
understand how exactly the entire house
purchase process
is going to work, and never expect things to necessarily go exactly
your way! To be assured of the fact that your personal interests
are being looked after and that you, your money and your property
are 100% secure, legal and legitimate it’s essential to seek
independent legal representation in the country you’re
considering buying property in.
This is especially true if you’re buying property in a country where you do not speak the language. You will be putting your name, signature and bond to contracts and legally binding documents...and however pleasant and helpful the real estate agent or vendor are it’s in your own best interests to make sure you have a local lawyer who’s in your pay representing you at such times.
This is especially true if you’re buying property in a country where you do not speak the language. You will be putting your name, signature and bond to contracts and legally binding documents...and however pleasant and helpful the real estate agent or vendor are it’s in your own best interests to make sure you have a local lawyer who’s in your pay representing you at such times.
Having used the professional services of DREAM HOMES of TURKEY
to find your dream home and made the decision to buy the process
is as follows.
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Find a solicitor that will represent you.we have a solicitor that we can recommend.But you are free to choose independently. It is not advisable to try to do the conveyance. Never buy anything until you have sought independent legal advice.
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Obtain a tax number(s) from the local taxation office.
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To do this you will need a valid passport
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A photocopy of the passport (Details and photograph)
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You will need to open a Turkish Bank Account.
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In order to do this you will need the following
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Passport (s) for all that are to sign on the account
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The tax card
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Transfer a suitable amount of money from your original home account to this new account
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Decide upon your dream home
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Make a formal offer
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Offer Accepted
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Once the deal is agreed the information is then passed over to your solicitor/lawyer
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Having instructed your solicitor to handle the purchase you have the reassurance that all important aspects will be fully covered. He/She will make sure of the following:
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The title to the property is checked
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The person selling the property is the one that actually owns it.
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Whether there are any charges on the property.
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All the building licences and permissions are in order
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The terms and conditions stipulated by the seller are fair and just.
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The solicitor will then draw up contracts between yourselves and the seller confirming the price and setting the date of transfer.
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At this point you require two passport photographs for every person that is to appear on the Deeds (Tapu) along with photocopies of each relevant passport
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The next step is to go to the Deeds (Tapu) where the official application is made.
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At this point your deposit is paid to the seller and the Deeds (Tapu) is sent off to the City Council. Once processed they are sent to the Army Office in Izmir.
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The balance of the payment due is paid at an agreed date between you and the seller but only once the Deeds (Tapu) have been transferred.
Welcome to Turkey and your new home.
• Purchase
price
• Amount of down payment (sometimes called “deposit”)
• The date the sale will be finalized (“closed”)
and the date you’ll move in
• Items
to be included in the sale, such as carpeting, lighting fixtures,
appliances and so forth
• A
legal description of the property
• Seller
is responsible for paying utility bills, property taxes and
other house-related expenses through
the closing date
• Language that requires the return of your deposit if
the sale isn’t completed due to not obtaining financing
or some other contingency of sale
Buying property in Turkey for Private Use
Buying property in Turkey is not as complicated as you might
imagine. The procedure is often far simpler than in most other
European countries.
Foreign nationals may purchase land and property in Turkey in their own names provided that properties are located in towns (i.e. there must be a local government in the area where the property is and the property must be situated within the boundaries of that local government or borough), not in villages or rural areas and outside of military zones.
In order to acquire the title of a property, an application has
to be submitted to the local Land Registry Office in the area in
which the property is situated. After carrying out necessary searches
and checks for the above mentioned requirements, the transfer of
the title is done by the Land Registry Office. Sometimes this process
can take a few weeks, unless the owner of the property is already
a foreign national, then the checks and searches have previously
been carried out and the whole procedure can be done very quickly.
During the transaction, the proofs or the documents concerning
the transfer of the full purchase price into Turkey must be presented
to the Land Registry Office.
In Turkey there exists an annual property tax, collected by the
local government, at the rate of 0.1% for private buildings. Newly
built properties are exempt from this annual property tax for 5
years. All properties are subject to revaluation every five years
for tax purposes.
The acquired property may be resold or rented out and the proceeds
may be transferred out of Turkey. Different regulations apply when
a property is purchased for business related purposes.
Ownership is defined in article 35 of the Turkish Constitution.
This article stipulates that anyone is entitled to ownership and
that these rights can only be restricted by other legal stipulations.
The restrictions may consist, for instance, of zoning schemes,
restrictions applicable to foreign nationals, etc.
The ownership regulations are elaborated in the Turkish Civil
Code, article 633. This mainly explains how ownership is acquired.
For the purchase of property by a foreign national, the registration
of the land is especially important. In Turkey there are regional
directorates of the Land Registry Department, which are subdivided
in provincial or district offices and they are all controlled by
the state.
Property Registration and Delivery
In most European countries the buyer and seller go to a public
notary to have the property put in the name of the new owner. The
public notary is responsible for the correct settlement of this
procedure. The public notary is also responsible for the delivery,
which often takes place in the form of a 'deed of transfer' and
the entry in the property register.
In contrast to this, the entry in the property register in Turkey is not performed by a public notary, but by an official of the Property Registry Department. It is legally compulsory for both sides (the seller and the buyer) to be present at the entry. It is possible to authorise another person to do so (i.e. give someone power of attourney) but the authorisation requires a notorial deed.
In contrast to this, the entry in the property register in Turkey is not performed by a public notary, but by an official of the Property Registry Department. It is legally compulsory for both sides (the seller and the buyer) to be present at the entry. It is possible to authorise another person to do so (i.e. give someone power of attourney) but the authorisation requires a notorial deed.
The delivery of the deed of transfer does not require the intervention
of a public notary in Turkey. The only applicable stipulation concerning
the delivery is that it takes place in writing. After the entry
and delivery the property register issues a proof of ownership,
which is called 'Tapu'. The ownership is only obtained at the moment
that the building(s), if under construction, has been completed
and the full amount has been paid.
Mainly there are no legal restrictions against foreigner nationals
regarding the acquisition of property ownership. However, the Village
Act and the Military Prohibited and Security Areas play an important
role; Article 87 of the Village Act denies the right to foreigners
to ownership of property that is outside the centre of a village
in case the cadastral division of this area had not been arranged
yet or it may belong to the Ministry of Forest. Also, the act regarding
Military Prohibited and Security Areas can be an impediment and
therefore restrict the acquisition of property by foreigner nationals
if the property is located within a particular distance of military
sites or strategically important areas.
The major legal restrictions mentioned above may in turn change
or even be (partly) cancelled by more recent legislation which
is closely related to the promotion of the economic position of
Turkey or the adjustment of regulations and laws to EU or tourism
promotions for foreigner nationals etc.
All citizens of the countries listed below can legally own a
real estate in Turkey due to reciprocity principle and are liable
with the same rights / procedures as all the Turkish citizens.
Presently a new law is pending which may allow this list to open
up to other countries in the near future. We will update the list
if/when this happens.
Argentina, Australia, Austria, Barbados, Belgium, Bosnia-Herzegovina,
Brazil, Canada, Central African Republic, Chile, Colombia, Dominican
Republic, Egypt, El Salvador, Federal Republic of Yugoslavia (Serbia),
Finland, France, gabon Germany, Greece (providing that some restrictions
are reserved), Guatemala, Holland, Ireland, Israel, Italy, Kenya,
Luxembourg, Malawi, Malaysia, New Zealand, Norway, Panama, Republic
of South Africa, Peru, Somalia, Spain, Sweden, Tanzania, Turkish
Republic of Northern Cyprus, Turkmenistan, UK, USA, Venezuela,
legal immigrants and World Citizens.
The real property acquisition of nationals of the following countries
depends on some provisions and permissions: Cibuti, Chad, Denmark,
Philippines, Ghana, South Korea, Haiti, Croatia, Iran, Japan, Switzerland,
Lebanon, Macedonia, Mexico, Nepal, Nicaragua, Pakistan, Poland,
Portugal,
Rental income is liable for tax assessment in either the UK or
Turkey and will be payable depending on the personal situation.
Selling Costs
Freehold resale costs are around 5% (comprising sales tax, local
documentation and legal fees). Property may be sold to Turkish,
or foreign nationals without restriction. Because of the change
in law (Decree 32 August 1989) the lira is now convertible so proceeds
of the sale of a property can be converted to whatever currency
and subsequently transferred to any country you choose.
Capital gains made from the sale of a property will be taxable
in Turkey if the owner is a Company.
Individuals do not have to pay capital gains, provided they have owned the property for one year. In the UK capital gains may be taxable depending on the individuals situation.
Current tax conditions were originally agreed in a double taxation treaty signed in 1986. These were amended in October 1988 and cover the reciprocal agreement relation to income tax and corporation tax in Turkey and income, corporation and capital gains taxes in the UK. This also includes a non discrimination clause "Nationals of a contracting state shall not be subjected in the other contracting state to any taxation or requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other state in the same circumstances are or maybe subjected". (Article 24). However, we would always recommend you consult an accountant because each individual's circumstances are different.
Individuals do not have to pay capital gains, provided they have owned the property for one year. In the UK capital gains may be taxable depending on the individuals situation.
Current tax conditions were originally agreed in a double taxation treaty signed in 1986. These were amended in October 1988 and cover the reciprocal agreement relation to income tax and corporation tax in Turkey and income, corporation and capital gains taxes in the UK. This also includes a non discrimination clause "Nationals of a contracting state shall not be subjected in the other contracting state to any taxation or requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other state in the same circumstances are or maybe subjected". (Article 24). However, we would always recommend you consult an accountant because each individual's circumstances are different.
An insurance
policy will “indemnify” you
for losses covered under the policy.
A homeowner's policy should cover:
• losses to real property because of fire, lightning, vandalism, windstorms, freezing, and other perils covered under the policy
• losses to personal items in the home that are damaged or destroyed by theft or the perils covered by the policy
• personal liability coverage for “bodily injury” in case a person is injured on the property
A renter’s policy will cover many of the same things, subject to additional exclusions or limitations on the real property coverage since the insured is renting.
A homeowner's policy should cover:
• losses to real property because of fire, lightning, vandalism, windstorms, freezing, and other perils covered under the policy
• losses to personal items in the home that are damaged or destroyed by theft or the perils covered by the policy
• personal liability coverage for “bodily injury” in case a person is injured on the property
A renter’s policy will cover many of the same things, subject to additional exclusions or limitations on the real property coverage since the insured is renting.
If you are a homeowner, most banks and other lenders will require
you to purchase property coverage for at least 80 percent of the
market value of your home. .