The process of purchasing real estate in Turkey

The purchase of the real estate by foreigners in Turkey has taken on a new dimension in recent years. There are several reasons for people from other countries to show great interest in the oriental country. Some people have long dreamed of a holiday home by the warm sea and buy real estate for a comfortable vacation. More enterprising ones see the potential return on their investments.

In 2021, the procedure for real estate purchase in Turkey involves the following stages:

• Stage 1. Selection of a property
• Stage 2. Study tour
• Stage 3. Signing the sales contract
• Stage 4. Transfer of ownership and receipt of TAPY
• Stage 5. Conclusion of contracts for housing and communal services.

This publication provides detailed information on the features and peculiarities of real estate purchases in Turkey.

Selection of housing in Turkey

First, let's talk about how to choose real estate in Turkey. There will be no problems with the choice of housing. The Turkish real estate market offers various options for primary and secondary housing. New buildings from local developers attract buyers with high-quality construction, developed internal infrastructure, minimum requirements for paperwork, and attractive payment terms. In modern residential buildings, spacious apartments are sold ready to move in.

The secondary market in Turkey also has plenty to choose from. If you do not consider apartments in old residential buildings, you can find excellent real estate in a building commissioned several years ago. Such residential buildings are not inferior to brand new residential buildings from the developer.

For those who value peace and quiet away from busy city streets, villas, cottages, and townhouses would be suitable options. Such real estate can be located within walking distance from the azure coast or in more remote areas close to mountain ranges.

Free Inspection Tour

Remote communication and photos of the real estate may not be enough to make a final decision. When choosing real estate abroad, you need to understand where the residential building is located, how far it is from the sea, and what view opens from the windows. You can see the whole picture only by visiting the location. That is why we offer buyers an inspection tour in Turkey.

The inspection tour is a trip to another country for a personal inspection of the real estate and its further purchase.

 As part of the inspection tour, clients are provided with:

• Booking and ordering return tickets 
• Pick up at the airport. Transfer and accommodation
• Acquaintance with the city
• Inspections of selected real estate 
• Full legal advice and informational support on the purchase of a real estate in Turkey
• Signing a preliminary contract

During his stay in the sunny Republic of Turkey, the client will be accompanied by a personal English-speaking specialist from a real estate agency. The specialist will tell you about the advantages of real estate purchase in Turkey and explain the details of the real estate purchase and all related legal issues. Clients will also receive information regarding mortgage lending and the specifics of Turkish real estate legislation.

The duration of the inspection tour is often 3-5 days.

At the end of the inspection tour, the client is provided with a transfer to the airport. Most local real estate agencies further accompany the buy-sale agreement and offer a wide range of after-sales services.

Important! The inspection tour does not oblige the client to purchase an apartment. However, if signing a preliminary contract, accommodation and transfer from/to the airport are provided free of charge.

Finalizing a buy-sale agreement

When the real estate is selected and the final decision is made, the buyer and seller finalise a deal by signing a buy-sale agreement.

A preliminary buy-sale agreement is a document according to which the parties (buyer and seller) are obliged to subsequently conclude the main agreement for the purchase of the selected real estate.

The preliminary agreement contains the following information:

• Passport details of the parties (seller and buyer)
• The subject of the sales contract: technical data of the real estate
• The exact amount and payment terms
• Rights and duties of the parties, penalties for failure to comply with the terms of the agreement

The agreement is concluded in English and Turkish languages in triplicate. One copy is received by the buyer, the second by the seller, and the third is sent to the Cadastral Department.

The main tasks of the preliminary buy-sale agreement:

• guarantee of the transaction in the future;
• protecting the interests of the parties (seller, buyer);
• fixation on the value of the real estate;
• stipulating the consequences for non-performance.

Another important point: at this stage of purchasing real estate in Turkey, the buyer transfers a down payment to the seller to reserve the real estate. Usually, it is 5-10% of the real estate price. The amount is included in the value of the real estate. The payment of a deposit confirms the firmness of the client's intention and guarantees that the sale will take place within the agreed time. After making the down payment, the property is removed from sale and cannot be offered to other customers.

Registration of documents for real estate in Turkey

The only document that confirms the rightful ownership of real estate in Turkey is TAPU.

TAPU (TAPU) is a title of ownership in Turkey.

The title contains detailed information about the real estate location, owner, type, and area.

To re-register ownership, the seller must first submit an application to the land registry at the location of the purchased real estate. On the appointed day, the buyer and seller come with the documents to the main office of TAPU. The parties then sign a document on the absence of claims to the property, after which the transfer of ownership takes place. The new owner is entered in the cadastral book and receives a TAPU.

To apply for a TAPU, the following must be provided:

• foreign passport of the buyer,
• tax number,
• two color photographs.

Important! The full cost of the real estate, taxes, and other associated costs must be paid before the title is issued.

The term for issuing a TAPU is up to 5 days from the date the application was submitted to the Land Registry and Cadaster Department. After receiving the title, the buyer officially becomes the rightful owner of the apartment.

Expenses on purchase of a real estate

After the seller has submitted the application, but before the agreement is finalised, all taxes and duties associated with the ownership registration must be paid.

Taxes when purchasing real estate in Turkey in 2021:

• Tax on the purchase of real estate - 4% of the cadastral value of the object.
• Annual real estate tax - 0.2% of the cadastral value of a real estate in regional centres and large cities, and 0.1% in small towns and villages.
• Translation of documents and certification by a notary - approximately 500 Turkish liras.

When purchasing real estate, the Department of Cadastral Administration requests an expert appraisal report carried out by an appraiser with an SPK license. This report is a confirmation that the real estate purchase in Turkey was made by foreigners at a valid price. For the examination, you should pay around 1500 lire.

Utility service contracts

After buying Turkish real estate and receiving TAPU, the new owner needs to conclude or renew utility service contracts. When real estate is bought from the secondary market, the contracts are re-registered to the name of the new owner upon the application to regional water and electricity companies. If real estate was bought in a new residential building, it is necessary to sign a new contract for the buyer.

To re-register a contract the following documents are needed:

• application for connection of utility services;
• passport of the owner of the object;
• Turkish TIN;
• TAPU title;
• ISKAN (registration certificate);
• serial numbers of counters;
• DASK insurance policy (compulsory home earthquake insurance).

The cost of connecting utilities in new apartments from the developer will cost 2000-3000 Turkish liras. Re-registering a contract for a new owner of secondary real estate will cost almost twice less.

Specialists of the New Time Investment real estate agency will help you select Turkish real estate on the Mediterranean coast. They will provide detailed information on buying property in Turkey. We will prepare a selection of the most suitable real estate for the client and organize an inspection tour during which a client can sign a preliminary contract.