Buying Procedure

Buying Procedure

The purchasing procedure in Turkey is pretty straight forward and people are often surprised at how easy it is, and the main points are listed below:

Reservation deposit is made
To reserve a property a £2,000 reservation fee is typically made to the developer and a reservation form is completed and signed by the client and the developer.

Turkish Lawyer
It is always recommended to use the services of a Turkish Lawyer who will cover the following points.

Power of Attorney
Clients would typically grant the lawyer a Power of Attorney (P.O.A.). They initially decide on which points they would like to give their lawyer a P.O.A.

• Buying and selling property in the territories of Turkey
• Signing private purchase contracts
• Opening bank accounts
• Connection of water and electricity utilities
• Obtaining title deeds on behalf of clients
• Obtaining tax number on behalf of clients
• Representing clients at the court house and acting on behalf of clients in the event of any Problems with regards to the purchase process.

When clients are present in Turkey, the P.O.A. is given by Turkish Notary Public. First the clients’ passports are translated into Turkish and then the P.O.A. is drawn up. Because the P.O.A. is in Turkish, there is always an official sworn translator present to translate the P.O.A. into the language of the clients.

When clients are not present in Turkey (purchase over the phone or weekend visits), the lawyer will send the P.O.A. to the client. Clients need to take the P.O.A. to a solicitor or a notary. The P.O.A. then needs to be apostiled at the common wealth office if the client is a British citizen (or at the nominated institution by their government). After this the P.O.A. is sent to Turkey and is translated into Turkish by an official sworn translator and certified at the Notary Public in Turkey.

Checking title deed and building license;
The Lawyer conducts several checks including the following:

• The title deed of property is free of debts and other charges
• The property is freehold property and can be purchased by a foreigner
• The current ownership of the property at the land registry
• That the developer has all necessary planning permissions and building licences

Private purchase contract (maximum 2-4 weeks from reservation)
If the title deeds are clear the lawyers draft the purchase contract between the buyer and seller. This contract covers:

• All details of the property
• Payment terms
• Current situation of the property
• Completion and delivery date
• Penalties for both buyer and seller
• Special agreed adjustments in the property
• Attached technical specifications

This draft contract is drawn up in Turkish and English, and is signed and exchanged along with the initial payment.

Applying for military approval to the relevant municipality
Foreigners buying property in Turkey must still be approved by the military authorities. This requirement should have been removed in 2006, however until it is removed permission for the sale to proceed is granted once background checks are completed. These checks cover that the property is not in a military restricted area, and that the purchaser is not a serious criminal or terrorist. This is normally a formality and is expected to be removed at some time in the future.

Independent surveyor (optional)
Clients have the option to hire an independent surveyor between 150 -300 euros’ for a full report on the property they have purchased. If the report is positive they can proceed with payments.

Transferring and registering of title deeds (Tapu)
After obtaining the ”no objection to buy permission from the Army” and the last payment/ full amount has been paid to the seller. The title deed transfer takes place at the Land Registry Department. For completion of this registration the buyer (or legal representative with p.o.a.) and seller needs to be present at the Land Registry Department.

Fees
Transfer Tax
A Transfer Tax of 3% , based on the declared value of the property is due and is typically shared between the buyer and seller. The declared value of the property on the official title deed , or tapu is normally lower than the actual purchase price. Although illegal, such under reporting is a common practice, which reduces the stamp duty and annual property tax.

Registration Fee
A registration Fee, also based on the declared value of the property is due by the purchaser when the deeds are transferred at the registry office. If you use a Notary Public, the fees are standard and vary from £100-£250 depending upon the service provided.

Estate Agent Fees
If the sale was organised through an estate agent the their typical fees are 3% from both the seller and the buyer.

Lawyers Fees
Turkish Lawyers typically charge £500 upwards for their services depending upon the services provided.

Earthquake Insurance
There is a compulsory earthquake insurance required which is about £35.

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