Gokce,  Wednesday, 1 October 2014

 

Turkey has always been an attractive location for foreigners. With the newly developed cities; the number of new real estate opportunities is folding. This is not only an opportunity for Turkish citizen buyers but also for foreigners. There are a significant number of foreigners who own a real estate in Turkey, especially at the Mediterranean and Aegean regions. As of 2008, 63,085 individual properties have been sold in Turkey to over 73,103 different foreigners. The investors were mainly German, British and Greek citizens.

So what should one do in order to own a house in Turkey?

Foreigners may buy real estate from Turkey within the framework of the special local Law of Immovable Property. According to the law, there are two main conditions for the home purchase for foreigners:

Reciprocity Basis: The same rights for real estate purchase must have been given to Turkish citizens at the buyer’s country.

Foreigners should obey the legal restrictions imposed at certain laws like the Law of Military Restricted Zones Law and Village Law in Turkey. For the first condition, a mutual agreement on property purchase must have been made between Turkey and the other country. The qualifying countries are Germany, Austria, Switzerland, Belgium, Netherlands, United Kingdom, Spain, Italy, Norway, France, Greece, Ireland, Luxembourg and some African countries. Still, a government approval is required from the relevant municipality before purchasing a property. This is because some areas in Turkey are restricted or preserved where no property could be built. The second condition for buying property is all about those areas.

Second condition is about the nature of the property, and the location which should not clash with the legal requirements. The total acquired property must not exceed a total surface area of 25 thousand square meters. In addition, property acquisition is also prohibited from the military of restricted zones.

There are several ways that you can pay for a property in Turkey. You can either pay cash, or find a variety of loan options. Several banks offer mortgage services to foreigners for property finance in Turkey. Offers change on a daily basis so it’s best to contact an overseas mortgage broker to determine what the current offers are.

A good agent selection that will be reliable and helpful is the first important step in your purchase process. Making trips to the area you are interested in and getting a true feeling for the area is the second important step. Also, you should be informed about the taxes and all other costs when buying/selling a home in Turkey.

You should consider paying several fees like estate agent’s commission, lawyer’s fee, deeds transfer tax, property title deed registration fee, property tax, and several other side costs like the translation services, notary fees, municipality fee, earthquake insurance and VAT.

So how is the process for buying a house in Turkey? It is often considered far simpler than many other European countries. First, you should make your selection and agree with the price with the seller. A preliminary agreement may be signed between two parties, which may require deposit. It maybe the best to find a lawyer first, whom will act in your best interests. There are several Turkish law firms that give service in English. Make sure to find a lawyer independent from the real estate agent, working only for your best interest.

Once you receive your title deed (which is called TAPU in Turkish) after a series of official procedures, you will be able to prove the ownership of the property. Land Registry Office is the only authority which can transfer the title deed to your name. No other person can do this on behalf of you.

In order to avoid risks, save your money and make a successful purchase, you should have an effective plan with correct guidelines.