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Foreign country citizen's (real persons') real estate purchases in Turkey

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Buying A Real Estate In Turkey

Foreign country citizen's (real persons') real estate purchases in Turkey

Basic scope of foreign real persons' real estate purchases in Turkey could be summarized as follows:

1.      Legal Basis:

In accordance with the Article 35 of the Land Registry Law No. 2644, amended by Law No. 6302, which entered into force on 18 May 2012, the reciprocity rule in foreigners’ real estate purchases has been abolished.
Foreign country citizens can buy any kind of property (house, business place, land, field) within the legal restrictions.
 
2.      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 registry which is signed at the Land Registry Directorates.
It is possible to sign a “promise to sell agreement” before a notary. Such an agreement entitles the buyer to force the owner to transfer of title of deed when the conditions in the agreement are met.
 
 
3.      Legal Restrictions for Foreigners in Buying Property:

a)      Foreign country citizens can buy maximum 30 hectares of property in Turkey in total and can acquire limited in rem right.
b)      Foreigners cannot acquire or rent property within military forbidden zones and security zones.
c)      Foreign country citizens can acquire property or limited in rem right in a district/town up to 10 % of the total area of the said district/town.
d)     Legal restrictions do not apply in setting mortgage for real persons and commercial companies having legal personality which are established in foreign countries.

4.      Application and Procedure:

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.
If the preliminary application is incomplete, the file will be kept waiting.

5.  Financial Aspect of the Procedure:

a)      Both seller and buyer have to pay the title deed fee, calculated according to the selling price which cannot be less than the “Property Statement Value” to be issued by the relevant municipality. (According to the Charges Law No:492, the title deed fee percentage for each side of the transaction for 2014 is   2% [4 % in total].)

b)      Circulating capital fee which is determined locally has to be paid. (Maximum 73x2.5 TL for 2014.)

c)      At the stage when the Land Registry Directorate inquires with the relevant military authorities whether the property is located within a military or special zone, circulating capital fee for the map prepared by the Cadastre Directorate has to be paid. (336 TL for 2014)
 
  
6.  Due Diligence:

We strongly recommend that a basic due diligence of the property be performed before the transfer of title of deed where such due diligence shall cover the crosscheck of the following:
-          ownership of the property,
-          limitations on property (attachments, mortgages and etc.)
-          in conformity with zoning laws,
-          property taxes,
-          Licenses.

7. Transaction

Please note that with a power of attorney issued on our name we are able to represent the client in all of the above steps and finalize the  transfer of title of deed where the client is not obliged to be present during proceedings.