Buying a property in Turkey is far less complicated than in many European countries. The Developer or Estate Agent holds more responsibility in terms of managing the process between the buyer and seller. All property sales transactions completed by Capital Developments Turkey, are carried out within the legal framework set out by the Belediye (County Council) Land Registry Authority (TAPU) and the Kusadasi Estate Agents Association (Kusemder).
Unlike most European Countries, Legal Representation is not required when buying or selling a property in Turkey as the contract between buyer and seller and Land Registry documentations are legal documents in their own right. Capital Developments Turkey use official Kusemder issued contracts for all resale property purchases and our own contracts for off plan purchases.
We provide you with a complete breakdown of your purchasing costs, official receipts for all payments received. We work closely with the Land Registry Office (TAPU) thus ensuring you are always legally protected throughout the entire process.
In previous years all contracts and documentation were only provided in Turkish so it was necessary for all foreign investors to employ a public notary and official translator at the contract stage. However, due to the huge increase in foreign investors and in order to simplify the process, the Kusadasi Estate Agents Association (Kusemder), has drawn up a comprehensive contract in both English & Turkish that fully explains the terms of the sales contract and provides legally binding protection for both the buyer and seller under the terms of the contract. All of our own contracts are in English.
Please ensure that when you are signing and paying a deposit for resale property, the contract is an official Kusemder numbered contract - these contracts are made in triplicate with the Estate Agent, Buyer and Seller each receiving a copy.
Off Plan contracts are generally more detailed including the obligations of both the developer and the buyer, as well as payment schedule details. You should ensure you receive an original copy of off plan contracts when signing and paying a deposit.
If you wish to employ a lawyer during this process, Capital Developments can provide you with an official list of local bar registered lawyers and Noteries to represent you. An estimate of these costs are provided on Financial Matters Page.
Your Lawyer will check:A lawyer will check :
This is not the case with property built before 1999, but all details of the property will be on file with the local county council . Capital Developments Turkey check that all the requirements are in line with regulations for the property is offered through us. If you are still wish to employ a property surveyor, he can check all the details of the property with the county council and survey the property, presenting you with a report prior to your decision to buy the property concerned.
Once you are satisfied with all the details of your property and the sale price is agreed, a legally binding Kusemder or Off Plan contract is drawn up between the buyer and seller. To secure your purchase, a deposit wll be required, usually 10% of the agreed purchase price but booking deposits can also be accepted if the seller is in agreement with the balancing amount of the 10% deposit payable by bank transfer at a later agreed date.
From this point to the close of sale, the process differs based on the category your chosen property falls into. See below for full details.
UNDERSTANDING THE SALES PROCESS FOR THE PROPERTY YOU ARE BUYING
In Turkey, when you are buying freehold property, please make enquiries and ensure you are aware of the type of sales procees the property you are buying will be subjected to. There are three main ways of purchasing freehold property in Turkey - they are Resale Property, Co-Operative Property and Off Plan Property.
Each type of property has a different sales process - each of them explained below.
RESALE PROPERTY
This applies to properties that already have a TAPU (Title Deed) issued for the property.
For this type of purchase, foreign investors will need to obtain clearance from the Local Army Headquarters. A copy of all the existing title deed document and a copy of your passport are sent to the Army Headquarters to obtain clearance for you to purchase.
Since January 2008, it is necessary to have your passport photocopies main headings translated to Turkish – your Estate Agent, Developer or Lawyer will organise this for you with an Official Recognised Translator and a small charge will apply (€50 will cover all costs associated with this process.
This process ensures the property is not in or close to a military zone and background checks on the foreign purchaser are also carried out. This process can take between 3 & 6 months depending on how busy the Military Land offices are, and sometimes longer is there are backlogs of applications.
Once clearance is received, the legal exchange of Title Deeds can take place within one day.
If it is difficult for you to return to Turkey to complete this final transaction, Power of Attorney can be given to a Turkish National of your choice or a lawyer to act on your behalf. Power of Attorney documentation can be carried out and any local Notary Office. It entails you giving your nominated Power of Attorney the authority to sign on your behalf on the day the deeds are exchanged into your name. A Translator must be presnet as allt he points of the Power of Attorney assignment must be understoond by you.
If completing the transaction yourself, a Translator must be present as all the points of sale must be understood by the buyer and seller alike before the transaction can be completed.
Closing the sale and receiving deeds entails the Buyer (or Power of Attorney), Seller and Estate Agent attending the TAPU Office. Title Deeds and keys are exchanged for balancing amount due on the purchase price of the property.
The TAPU office also ensure that all debts, bills and charges on the property have been finalised and paid by the seller prior to closing the sale and exchanging deeds. TAPU Tax (Title Deeds Tax - similar to stamp duty) Notary & Translator Fees and Estate Agents Fees will also be due on the day.
Once the Transaction is finalised, you (or yor power of attorney) will receive a TAPU in your name with your photographs attached. - these newly issued title deeds to the property confirm you as the legal owner to the property.
CO-OPERATIVE PROPERTY
This type of sale applies to properties that have been developed under a Co-Operative Building Scheme. A Co-Operative Build is where a land owner and builder come together to offer building services to individuals who pay set monthly amounts to have their property constructed.
A Co-Operative Build is normally a much slower building process than from a private developer. The buying process is however a little quicker than buying resale property as clearance is not required from the Army until after the co-operative has applied for Title Deeds.
In a Co-Operative Purchase you are buying a share in the co-operative, where the sellers share is designated to the plot of land and house that you have chosen to buy. Ensuring that the seller is the legal owner of the co-operative share and that all debts, charges, bills and co-operative payments have been made to date takes a few weeks (2 - 4 weeks).
Once this has been cleared, the name change of the share from the sellers name to your name can proceed. The process is similar to the above but instead of receiving a TAPU, your name is replaced in the co-operative register with that of the current owner of the property, and you will receive a legal document confirming this transfer of share to you. All of the above takes place under the framework of a Legal Notary and a translator will also be necessary for you on the day to ensure you understand all the terms of the sale. Balancing amounts for the purchase price of the property, notary and translator fees and estate agents fees will be due on the day.
Once you are the designated new owner under the co-operative scheme, the property is legally yours.
Title Deeds are not usually issued until the co-operative development (including any landscaping, roads, walkways, pools etc) is completed and there will normally be co-operative payments until this time - please ensure you are aware of what these payments are and the date they are due to finish. Once deeds are ready to be issued, you will the have to obtain military clearance. The Co-operative Association and/or your Lawyer will complete these requirements on your behalf and all legal costs and stamp duty costs will be payable by uo.
OFF PLAN PROPERTY FROM THE DEVELOPER & COMPLETED PROPERTY FROM THE DEVELOPER.
Off Plan Property Purchases will usually entail a stage payment plan set out over a number of months (usually 6 & 24 months) depending on the build schedule of the project.
Payment plans with due dates for balancing amounts are set out and usually run in line with the building schedule. Balancing amounts must be paid on agreed dates - failure to do so can incur late payment percentage penalties. Please ensure you are able to meet all financial committments before signing a contract or paying booking deposits. You will receive official receipts for all payments made to Capital Developments.
All Capital Developments Turkey projects are constructed in line with the Turkish Building Authority (Yapi Denetimi). The building project is monitored throughout the build by this organisation, so you are assured that your property is built in line with required standards.
Once the development has been completed including all landscaping, roadways and communal amenities, and the living permission documentation completed (OTURMA RUSHATİ – similar to chief county council engineers certificate), military clearance will be obtained for you, as detailed above for Resale Properties.
At this point in the process, Capital Developments Turkey can assign full rights and acess to the Property to you the owner, allowing you to take up occupation of the Property on completion of the development, whilst the military clearnace documentation is being processed. This allows you to make use of your Property during the 3 – 6 months it can take to obtain military clearance.
The deed for your Property is submitted by the Developer, along with a translated copy of the photograph page of your passport and all the council maps relating to the location of the property you are purchasing as per the map reference numbers detailed on your title deed, to the Military to obtain your clearance. Once clearance is received the deeds are ready to be transferred to your name.
You, or your Power of Attorney will need to be present at the Title Deeds Office on the day of transfer.
If it is difficult for you to return to Turkey to complete this final transaction, Power of Attorney can be given to a Turkish National of your choice or a lawyer to act on your behalf. Power of Attorney documentation can be carried out and any local Notary Office. It entails you giving your nominated Power of Attorney the authority to sign on your behalf on the day the deeds are exchanged into your name. A Translator must be presnet as allt he points of the Power of Attorney assignment must be understoond by you.
If completing the transaction yourself, a Translator must be present as all the points of sale must be understood by the buyer and seller alike before the transaction can be completed.
Power of Attorney Costs, Translation costs for passort submission to the Military for Clearance and Translator Costs incurred either through Power of Attorney assignment, or on the day of Title Deed Exchange are paid by you the Buyer. Title Deeds Taxes and other related costs for a Capital Developments built Project are paid by us. This is not always the case with developers so please ensure you check this if buying from another developer.
In the case of buying a Capital Developments property in a development that has already been completed, the process is exactly the same as above, with the exception of the Payment Plan. A payment plan for the initial 90% of the purchase price will be agreed to suit your financial arrangements. The final 10% will be due either on receipt of your Title Deed or on 1st occupation of your Property, whichever is preferred by you.
Points to Note:
Before signing any contracts, ensure you get a full breakdown of all the costs involved on top of the cost price of the house. If the cost is all inclusive, ask for a breakdown of individual costs for house, fees, sales tax, title deed tax and any other costs involved.
If you are buying in a Co-Operative Development ask for details of monthly co-operative payments and when they are due to finish.
