-
A
detailed description of the property (address,
TAPU details, technical conditions etc),
-
The
actual price to be paid to the seller for the
property (Please note that when the contract
includes any “price” clause, then each of both
you and the seller are to pay a Stamp Duty of
0.75% of the value stated in it. However,
mentioning the actual price will allow you to
secure your all rights in case of a future legal
dispute),
-
The
details on the bank account of the seller (It
should be a single account into which all
payments to the seller should be made),
-
The
details of the bank account of the professional
you use, if any (you should use a single account
for all payments to be made to this
professional),
-
The
payment terms and conditions (payments to the
seller including deposit, interim and final
payments, and payments to an agent/solicitor, if
any, ought to be separately identified),
-
A
Statement emphasising that the seller and the
buyer will pay their own tax liabilities (some
sellers may force you to pay all taxes including
theirs with regards to the sale of the property
and this is completely illegal and unfair),
-
The
fees and commissions to be paid to the solicitor
or agent (this will secure you in a way that you
will not be involved in a tax evasion which may
be caused by those professionals. Furthermore,
this will prevent those professionals from
making unfair money)
-
Under
what conditions and how the money paid by the
buyer will be refunded by the seller,
-
Force
majeure conditions (For example, what if a legal
obstacle occurs in the future),
-
How
current tenants, if any, will be treated,
-
How
over-due debts, if any, of the current owner,
which are property-related, will be treated,
-
How
existing furniture, if any, will be handled
-
Whether parties can give up the sale/purchase,
if so, under what conditions this can happen,
-
How
to keep the parties regularly informed about the
on-going transactions at the local TAPU office,
-
How a
power of attorney, if any, will be cancelled or
amended, how other parties will be kept informed
about this,
-
Detailed permanent contact information of the
signature holders,
-
What
if one of the parties breaches the promises
written down, who will decide under what
conditions that a breach was realised,
-
How
future disputes will be sorted out,
-
The
rights and responsibilities of the persons whose
signatures appear on the contract,
-
ID
numbers of Turkish nationals (TC Kimlik No) who
are to sign the contract, the Barr registry
number of the solicitor being used and the trade
registry number of the real estate company.
3.5 |
Payment terms of the contract |
To take off the asset
from the market, you may pay a deposit which is
negotiable between the seller and you. In some
situations, interim payments may be required.
Please note that real
estate purchase deposits are averaged at 5-to-10% of
the selling price. Interim payments should be as
minimal as possible.
Real estate commissions
may be charged on both the seller and you. For some
cases, only one party may pay the commission. Total
commission rate is around 3%.
3.6 |
Application to the TAPU Office |
As a next step, both
buyer and owner (or their legally authorised agents)
apply to the TAPU Office for transferring the
ownership.
3.7 |
Documents asked by the TAPU Office |
During the application,
the buyers (individuals) are to provide the local
TAPU Office with the following documents:
|
3.7.3 |
Companies established abroad |
Commercial companies
established in countries with which reciprocity
exists have to submit an officially ratified
authorisation document similar to the document
described in the above sub-section. If any power of
attorney is to take place, then two recent passport
photos of the agent and an acceptable Power of
Attorney are required.
Please note that The
Turkish-British Chamber of Commerce and Industry (www.tbcci.org)
can help you prepare all commercial documents and
you can have the necessary documents ratified at the
Turkish Consulate General
in London.
For further
information, you can contact the Directorate General
of TAPU
through
Address:
TAPU ve Kadastro Genel Müdürlügü
Dikmen Ankara/Turkey
Tel: +90-312-413 60 00 (pbx), 413
61 01, 413 61 02, 413 61 03, 413 61 04 (direct)
Fax: +90-312-413 61 05, 413 61 13,
413 61 25
Web:
www.tkgm.gov.tr
E-mail:
webmaster@tkgm.gov.tr
3.8 |
Forbidden zones and size limitation |
Foreign nationals and
foreign commercial companies are not allowed to buy
property in the military, strategic and security
zones of Turkey.
In addition, the
Council of Ministers is authorised to determine
specific zones to be preserved such as lands which
are strategically very important in terms of energy,
agriculture, mining, history, cultural values,
biological flora, and national security. Thus,
foreign nationals and foreign commercial companies
will not be able to buy property in those specially
preserved zones.
In other words, TAPU
offices are supposed to check whether a property
that is being purchased by a foreign national is
within one of those forbidden zones or not.
Upon your application,
the local TAPU office will do a search on behalf of
you whether the asset is in a forbidden zone or not.
If the information provided by military authorities
confirms that the real estate is outside the
military and security zones, then your application
is automatically accepted.
Please also note that
military clearance may take a considerable time and
it may be worth checking at what stage the procedure
is. Thus, you are advised to gather the contact
information of the TAPU office you are using so that
you can call the authorities later.
In case the total area
of all lands you will own in Turkey cannot exceed
2.5-hectares (25,000 m2) then the Council of
Ministers’ approval is needed. (Please note that the
Law allows the Council of Ministers to increase this
threshold to 30 hectares).
The maximum size of all
lands owned by foreign real persons in a province
shall be capped by the Council of Ministers and this
cap cannot be more than 0.5% of the total area of
the whole province.
3.9 |
How
are FDI and foreign companies treated by TAPU
Offices? |
Companies may freely
acquire real estate or limited rights in rem through
a legal entity established or participated in Turkey
by foreign investors provided that such acquisitions
are permitted for Turkish citizens.
Foreign real persons
and trading companies having legal personality
established in foreign countries according to the
laws of these countries can acquire real estate in
Turkey on the conditions of being reciprocal and
complying with legal restrictions. In implementation
of reciprocity principle, it is essential that real
estate acquisition rights given by a foreign country
to its own citizens and to trading companies
established in foreign countries according to the
laws of these countries, are also given to the
citizens and trading companies of the Republic of
Turkey.
The real property
purchase application of such company to local Land
Registry Offices is forwarded to General Directorate
of TAPU (The Land Registry and Cadastre Office) for
reciprocity control. General Directorate double
checks the application from the Ministry of Foreign
Affairs as the existence of reciprocity between our
country and a foreign country in terms of trading
companies, is determined by Ministry of Foreign
Affairs.
After the reciprocity
confirmation of aforementioned Ministry and response
of the military post stating the subject real estate
is out of military forbidden zones and security
zones the company then becomes eligible for buying
the property.
Trading companies
having legal personality established in foreign
countries according to the laws of these countries
have to submit an officially stamped authorization
document during the registration.
Foreign commercial
companies which are legal entities can buy property
provided that they operate pursuant to the special
laws such as the Tourism Encouragement Law, the
Oil/Petroleum Law, the Industrial Zones Law, etc. In
addition, foreign legal entities other than the
above mentioned commercial companies, such as
foreign charities, foreign foundations and foreign
societies, etc. cannot buy property in Turkey.
For more information
please visit
www.tkgm.gov.tr
3.10 |
Issuance of a new TAPU by the Office |
Finally, after military
clearance has been finished, you are given an
official ownership document called the Title Deeds
(TAPU), which is explained in Section (V).
Without having a TAPU,
you are never considered to legally own the property
even if you signed a legally acceptable purchase
contract with seller.
You are advised to make
the payments net of the deposit (plus interim
payments, if any) to the seller at his stage.
3.11 |
Declaration of acquisition to the local
government |
You are supposed to
apply to the Municipality for declaring the
acquisition of the property by the end of the year
of acquisition. You simply fill out a form and
submit it to the municipality. Afterwards, the
municipality officers will tell you when/how much
‘real estate tax’ (a tax similar to the Council Tax
in the UK) you are going to pay.