The Turkish system of conveyancing is different to that applicable in the UK. In Turkey, the rules and legalities which apply to foreign nationals wishing to buy property are different to those applied to Turkish nationals. It is because of this that we strongly recommend that potential purchasers use a professional, licensed estate agent (ask to see the licence, a qualified estate agent will not mind being asked to show proof of their qualifications) and a lawyer to ensure that all aspects of a potential purchase will be trouble free.
The stages of a purchase for foreign nationals are -
1) Pre-contract stage- The purchaser will agree with the seller to purchase a specific property. Any negotiations regarding price, payment terms, fixtures and fittings etc will be negotiated with the seller by the estate agent, acting on behalf of the buyer. The parties will agree a price.
2) Military Permission- as the purchaser is a foreigner, permission must be obtained from the Turkish military authorities to allow the purchaser to be registered as the owner of the property in the Land Register. This process of obtaining military permission normally takes between two or three months. Application is made on the purchaser’s behalf by the estate agent. Without the military permission, a foreigner cannot be registered as the legal owner of property in Turkey. If the property has previously been owned by a foreign national and is being sold by him/her to another foreign national, this process is much quicker
3) Contract stage- the parties draw up a contract in which the conditions of the property and the sale are specified. The contract represents a commitment by the seller not to sell the property to a third party whilst waiting for the military permission to be issued. It is a legal commitment by him/her to sell the property to the purchaser. In return the purchaser pays a deposit (usually 10%) of the sale price to the seller. This is the legal commitment by the purchaser to buy the property. Such contracts should be notarised by the Notary public.
4) Completion- once the military permission has been granted, the purchase can be completed. This is done by the seller transferring the title into the name of the purchaser, by having the purchaser’s name registered in the Land Register as the legal owner. The purchaser will receive a title deed (Tapu senedi) which is a copy of the entry in the Land Register. The purchaser will then pay the balance purchase monies to the seller. The purchase is now completed.
5) Estate agent fee- it is standard practice in Turkey for the buyer and seller to each pay a 3% agent's commission (unless otherwise agreed). These standard terms are offered by all Turkish estate agents. Purchasing real estate from a non licensed agent with no or lesser commission may seem attractive but is often disastrous and costs much more in the long run.
6) Post completion- on top of the compulsory earthquake insurance (DASK) renewed once every year and construction insurance paid by the builder/contractor (only for the cases of construction), we advise all new property owners to get private building and contents insurance. We can arrange this for you to concur with the deed transfer or completion date. Insurance policies usually cost between 250- 500 GBP per year for a furnished 2-3 bedroom villa. This would involve making an inventory list of all the contents and the value of the building to be presented to the insurance company’s agent. We do this for you. As property owners you must also register your ownership of the property with the local government for council and rubbish tax. We do this on your behalf and make sure you are registered with all the utility companies. Annual property tax is collected by the local government at the rate of 0.3% for houses (roughly about £20-30 per year) and 0.3% for developed land, calculated according to the value for each square meter). New properties are ¼ exempt from the annual property tax for 5 years.
For more information regarding buying property in Kalkan please contact us:
Useful Link
http://www.turkisheconomy.org.uk/buying_property.html
Common questions regarding buyin property in TURKEY
Can all foreign nationals purchase property in Turkey?
Most foreign nationals can purchase property in Turkey. Agreements are usually reciprocal between governments.
Nationalities which can purchase:
|
ANDORRA |
KOREA,SOUTH |
Can I borrow money in Turkey to purchase a property?
There are a number of Turkish banks willing to offer mortgages to foreign nationals wishing to buy property in Kalkan. Our mortgage adviser will help you with a mortgage application.
What will the buying costs on top of the purchase price include?
The costs ontop of the purchase price will be:
- Purchase tax, 3%
- Legal fees (i.e. annual property tax, 0.3% land and 0.1% for a property)
- Re registration of the utilities at completion
- Insurance for the property at completion
As a rough guide lines these usually work out as a 4-5% of the total cost on top of the purchase price.
What services do I get in return for paying the estate agent fee?
Kalkan Domain will represent your interests in all matters pertaining to the purchase or sale of a property in Kalkan. If you are buying a property we will
Negotiate on your behalf with the seller
Check all documentation and carry out all necessary checks with the local Belediye (council)
Apply for military permission
Obtain a Turkish tax number on your behalf
Assist you in opening a bank account
Handle mortgage applications if applicable
Register your property with the local authorites
Arrange power of attorney
Organise connection to all utilities
Hold deposits or staggered payments in an escrow account on your behalf
Arrange for any maintenance or refurbishment work you may require to be carried out
How can I pay the deposit to secure my property?
There are several ways you can pay the deposit money:
1. Cash or travellers cheques
2. Cash withdrawl on a credit card over the counter in a bank
3. Money transfer from your account in the UK to an account in Turkey
1. Is self explanatory but not always practical depending on the amount of cash you need to bring with you.
2. For this to work sucessfully the local banks must accept your card. As a general visa is fine but maestro is not accepted locally. You will need to tell you credit card company that you plan to make a large cash withdrawl otherwise they can stop the transaction for security reasons.
3. Not all UK money institutions will accept a fax or phone authorisation for a foreign transfer. You must check with your bank or building society before you come to ensure this is possible and if so what documentation they require.
Can I open a Turkish bank
account from the UK?
What documents do I need to open an account?
It is not generally possible to open an account at a Turkish bank from the UK. You must be present at the bank to open the account as they require your passport and other forms of identification. Before opening a bank account you will need to be issued with a tax number by the taxation authority in Kas. You do not need to place funds in the account but most banks levy a small administration fee for setting up the account.
Are transactions completed in Sterling or Turkish Lira?
Generally most property transactions in this region are completed in Sterling. If the property is advertised in Sterling then the contract and payment usually in Sterling. Euro or Dollar are equally acceptable and the rate of the conversion will be agreed at the contract date.
How long will it take to complete the purchase?
The main factor that determins the complete purchase is the military approval. Once the application is made all parties have to sit and await its return. Currently the time taken is around 10 to 16 weeks.
Do I have to return to Turkey for the completion?
Unless you have arranged for your power of attorney to be given to a lawyer or friend then yes. The transfer of the title deed of the property is a process completed face to face.
How do I arrange power of attorney?
Power of attorney is arranged through the Notars office. You will need to visit this office along with the person to whom you are giving the power of attorney to, if necessary we can arrange an official translator. The Notars office is open Monday to Friday only, so allow time for arranging this, if this is your preferred method of completion.
If later I sell my property can I take my funds out of Turkey?
Yes. There is no restriction on foreign money movements into or out of the country.
Please do not hesitate to give us a call or send us an email for further information on buying a property in Turkey.
tel: +90 242 844 2097
Address: Cumhuriyet caddesi Kalamar road
07960 Kalkan - Antalya - TURKEY
Contact : info@kalkandomain.com