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Buying Property in Turkey

The Turkish system of conveyancing is different to that applicablein the UK.  In Turkey, the rules and legalities which apply to foreignnationals wishing to buy property are different to those applied to Turkishnationals.  It is because of this that we strongly recommend thatpotential purchasers use a professional, licensed estate agent (ask to see thelicence, a qualified estate agent will not mind being asked to show proof oftheir qualifications) and a lawyer to ensure that all aspects of a potentialpurchase 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 specificproperty. Any negotiations regarding price, payment terms, fixtures andfittings etc will be negotiated with the seller by the estate agent, acting onbehalf of the buyer.  The parties will agree a price.

 

2)   Military Permission- as the purchaser is a foreigner, permission must be obtained fromthe Turkish military authorities to allow the purchaser to be registered as theowner of the property in the Land Register. This process of obtaining militarypermission normally takes between two or three months. Application is made onthe purchaser’s behalf by the estate agent. Without the military permission, aforeigner cannot be registered as the legal owner of property in Turkey. If theproperty has previously been owned by a foreign national and is being sold byhim/her to another foreign national, this process is much quicker

 

3)  Contract stage- the parties draw up a contract inwhich the conditions of the property and the sale are specified. The contractrepresents a commitment by the seller not to sell the property to a third partywhilst waiting for the military permission to be issued. It is a legalcommitment by him/her to sell the property to the purchaser. In return thepurchaser pays a deposit (usually 10%) of the sale price to the seller. This isthe legal commitment by the purchaser to buy the property. Such contractsshould be notarised by the Notary public.

 

4)  Completion- once the military permission has been granted, the purchase canbe completed. This is done by the seller transferring the title into the nameof the purchaser, by having the purchaser’s name registered in the LandRegister 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 paythe 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 toeach pay a 3% agent's commission (unless otherwise agreed). These standardterms are offered by all Turkish estate agents. Purchasing real estate from anon licensed agent with no or lesser commission may seem attractive but isoften disastrous and costs much more in the long run.

 

6)    Post completion- on top of the compulsory earthquake insurance (DASK) renewed onceevery year and construction insurance paid by the builder/contractor (only forthe cases of construction), we advise all new property owners to get privatebuilding and contents insurance. We can arrange this for you to concur with thedeed transfer or completion date. Insurance policies usually cost between 250-500 GBP per year for a furnished 2-3 bedroom villa. This would involve makingan inventory list of all the contents and the value of the building to bepresented to the insurance company’s agent.  We do this for you. Asproperty owners you must also register your ownership of the property with thelocal government for council and rubbish tax. We do this on your behalf andmake sure you are registered with all the utility companies. Annual propertytax 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 accordingto the value for each square meter). New properties are ¼ exempt from theannual property tax for 5 years.

 

For moreinformation regarding buying property in Kalkan please contact us:

 

 

info@kalkandomain.com

 

 

Useful Link

  http://www.turkisheconomy.org.uk/buying_property.html
 

Commonquestions regarding buyin property in TURKEY

 

Can all foreignnationals purchase property in Turkey?

Most foreign nationals can purchase propertyin Turkey. Agreements are usually reciprocal between governments.

 

Nationalities which can purchase:

 

ANDORRA, ARGENTINA, AUSTRALIA, AUSTRIA, BAHAMAS, BAHRAIN, BANGLADESH,BARBADOS, BELGIUM, BELIZE, BENIN, BOLIVIA, BOSNIA-HERZEGOVINA, BOSTWANA, BRAZIL, CAMEROON, CANADA, CAPE-VERDE, CENTRAL AFRICAN REPUBLIC, CHILE, COLOMBIA, COSTARICA, COTE D'IVOIRE, CROATIA, DENMARK, ECUADOR, EL SALVADOR, ESTONIA, FINLAND, FRANCE, GABON, GERMANY, GHANA, GREAT BRITAIN ,GRENADA, GUATEMALA, GUINEA, GUYANA,HAITI, HONDURAS, HUNGARY, IRELAND, ISRAEL, ITALY, JAMAICA, JAPAN, SOUTH KOREA, LATVIA,LIECHTENSTEIN, LITHUANIA, LUXEMBOURG, MALAWI, MALAYSIA, MALI, MALTA, MAURITANIA,MAURITIUS, MEXICO, MONACO, MOZAMBIQUE, NETHERLANDS, NEW ZEALAND, NICARAGUA,NIGERIA, NORWAY, PANAMA, PARAGUAY, PERU, PHILIPPINES, POLAND, PORTUGAL, SANMARINO, SENEGAL, SINGAPORE, SOMALIA, SOUTH AFRICAN REPUBLIC, SRI LANKA, SPAIN,SWAZILAND, SWEDEN, SWITZERLAND, TANZANIA, THE REPUBLIC OF DOMINIC, TURKISHREPUBLIC OF NORTHERN CYPRUS, UNITED STATES OF AMERICA, URUGUAY, VENEZUELA, YUGOSLAVIA(SERBIA-MONTENEGRO)

 

 

 

Can I borrow money in Turkey to purchase a property?

 

There are a  number of Turkish banks willing to offermortgages to foreign nationals wishing to buy property in Kalkan.  Ourmortgage 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, 4%
  • 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 thetotal 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 matterspertaining to the purchase or sale of a property in Kalkan.  If you arebuying a property we will

 

Negotiate on your behalf with the seller

 

Check all documentation and carry out all necessary checks withthe 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 yourbehalf

 

Arrange for any maintenance or refurbishment work you may requireto be carried out

 

How can I pay the deposit to secure my property?

 

There are several ways you can pay thedeposit 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 notalways practical depending on the amount of cash you need to bring with you.

 

 2. For this to work sucessfullythe local banks must accept your card. As a general visa is fine but maestro isnot accepted locally. You will need to tell you credit card company that youplan to make a large cash withdrawl otherwise they can stop the transaction forsecurity reasons.

 

 3. Not all UK money institutionswill accept a fax or phone authorisation for a foreign transfer. You must checkwith your bank or building society before you come to ensure this is possibleand 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 bankfrom the UK. You must be present at the bank to open the account as theyrequire your passport and other forms of identification.  Before opening abank account you will need to be issued with a tax number by the taxationauthority in Kas. You do not need to place funds in the account but most bankslevy 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 completedin Sterling. If the property is advertised in Sterling then the contract andpayment usually in Sterling. Euro or Dollar are equally acceptable and the rateof 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 themilitary approval.   Once the application is made all parties have tosit 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 toa lawyer or friend then yes. The transfer of the title deed of theproperty is a process completed face to face.

 

How do I arrange power of attorney?

 

Power of attorney is arranged through the Notars office. Youwill need to visit this office along with the person to whom you are giving thepower of attorney to, if necessary we can arrange an officialtranslator. The Notars office is open Monday to Friday only, so allow timefor 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 orout of the country.

 

Please do not hesitate to give us a call or send us an email forfurther information on buying a property in Turkey.

 

 

 

 

Kalkan Domain Estate Agent and Property Services

Office: +44 (0)142750866
Mobile: +44 (0)7742030235
Email: info@kalkandomain.com
55 ErringdenRoad, Hebden Bridge, West Yorkshire HX7 5AR

Copyright © 2014 Kalkan Domain Estate Agent / All rights reserved.


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