Legal Notice - Property In Turkey - Properties Bodrum and Real Estate

Legal & Buying Process

The Purchase Process in Turkey

Buying a property in Turkey is no more difficult than buying a property in England or any other EU country. To ensure a smooth process it is recommended that you use an English speaking lawyer to act on your behalf. Below is a breakdown of what is involved.

1. Reservation deposit

A reservation deposit is taken, normally for £2,000 when a specific plot or property is reserved. This takes the property off the market and freezes the price of the property.

2. Appointing an independent lawyer

The best way of appointing a lawyer is to have one recommended to you. If this is not possible, Aegean Sea Properties Ltd can recommend one to you on request.

3. Power of Attorney to your lawyer

You can decide on how much power of attorney you would like to give to your lawyer. Some prefer to be in Turkey for the whole process, whereas others prefer their lawyer to complete all the transactions on their behalf. Power of attorney can be given for

  1. Signing the private purchase contract
  2. Opening a bank account
  3. Connecting to water, electric and phone
  4. Transferring title deeds into your name

Power of attorney is given at the Turkish Notary Public offices. Passports are translated into Turkish and then the power of attorney is made up. As the power of attorney is in Turkish, there is always an official oath / sworn translator present to translate the power of attorney into English.

When clients are not present in Turkey to organise a power of attorney, the lawyer can send it by post. Clients will then need to go with this power of attorney to a notary public in their country of origin and sign. Thereafter the power of attorney must be sent to the Commonwealth office to be apostilled. The power of attorney must then be sent back to Turkey to be translated into Turkish at the Notary Public office as before.

4. Title deed and building licence checks by your independent lawyer

The necessary checks to be made are:

  1. Title deed of plot or property is free of debts and other charges
  2. The property is a freehold property and can be purchased by a foreigner
  3. The current ownership of the property at the land registry office
  4. The builder has all the necessary planning permissions and building licences

5. Private purchase contract (maximum 4 weeks from reservation)

If the title deeds are clear then your lawyer makes up a draft of the contract between the buyer and the vendor / builder. This contract mentions all the details of the property; from delivery date to technical specification, payment terms and any special adjustments to be made to the property.

This draft is made up in both Turkish and English. The draft of the contract is then sent to you. If the terms and conditions are agreed, the lawyer will then confirm approval for the signing of the contract. Any amendments can also be made until both parties are satisfied.

6. Payment of the 1st instalment

If clients have their own bank account already in Turkey, or have given the lawyer a power of attorney to open one up, the first instalment is sent from their own account to the vendor / builder on the day of signing the contract.

If no Turkish account has been set up, then the first instalment should be sent to your lawyers client account, not the vendor / builder direct. From here, it is transferred to the vendor / builder on the day of contract signing.

All other stage payments right through until completion can be made through your lawyers client account or directly to the builders account.

7. Military approval by the Turkish government

Your lawyer will need to send details of the property purchase to the Turkish government military approval. This is to check that the property is not located in a restricted zone for property.

The council of Ministers is authorised to determine specific zones to be preserved, such as lands which have strategic importance in terms of agriculture, energy, history, mining, cultural, flora and fauna and national security. Foreign nationals and foreign companies will not be able to purchase property in these specially preserved zones.

8. Independent surveyor (optional)

From the second payment until the last payment of the property is due, you have the option to hire an independent surveyor at a cost of £100 to £200 for a full report on the property you have purchased. On receipt of a positive report, you can safely proceed with your payments.

9. Transfer of the title deed (Tapu)

Once military approval has been granted and the last payment or the full amount has been paid to the vendor / builder, the title deed transfer takes place at the Property Registry Department. Both the buyer (or legal representative with power of attorney) and the vendor / builders needs to be present for exchanging of signatures and title deeds to be placed in your name.

Purchase Costs

Approximately 5% of the total value of the property this is made up of:

  1. Purchase tax up to 3% of the declared value on title deed
  2. Property tax 0.5% of the sale agreement price
  3. Legal fees between 1% - 1.25% of the sale agreement price
  4. Government tax approximately £100
  5. Water & electricity connection fee approximately £250
  6. Notary charges approximately £100 - £250

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