Buying property in Turkey: new building and resale
Buying property in Turkey: new building and resale
Buying a home in the primary market
Buying property in Turkey at the construction stage today has become one of the most popular types of investments among foreign buyers - the price will be more affordable than if you invest in a finished object, and installment payment is longer. During construction, real estate in Turkey rises in price by 15-25%. After laying the foundation and building the frame, the developer submits an application to the cadastral office to divide the object into independent shares, that is, into apartments. As a rule, this happens when the property is 30-50% ready and after the developer receives TAPU for each apartment, he is ready to transfer the property to future owners.
As soon as the buyer decides on a specific apartment or house, a meeting is organized with the representative of the developer, owner or director of the company, where all the terms of the transaction are specified in detail, a sales contract is drawn up, where the final price is set, the payment schedule (if there is an interest-free installment plan, and it’s a common practice with developers,) the dates of delivery of the property are agreed upon, if it is under construction, special conditions and wishes of the buyer are entered and written according to the internal his design of the apartment. The document also indicates the rights and obligations of the parties, warranty obligations and penalties in case of delay in the construction period - the developer will be required to pay each overdue month
Then during the week the first payment is made, comprising from 30% to 50% of the total cost of the object. According to the contract with the developer, even if the object is still under construction, the price is not subject to change. If the buyer for some reason refuses to buy, then he must pay penalties in the amount of 5-30% of the value of the object - here each developer has its own conditions and the amount of penalties.
After the entire amount has been paid for the object (payment can be made both in cash in the accounts of developers, and non-cash payment by bank transfer to the bank account of the developer), documents are submitted to the cadastral office to reissue ownership in the name of the buyer. Usually, the TAPU renewal procedure takes a maximum of 2-3 business days. After receiving TAPU, you must enter the data of the new owners in the local municipality (beyanname).
Then a technical passport for the apartment is drawn up (ferdi iskan) - as a rule, the presence of the buyer is not necessary for this, usually it is the developer himself or the real estate agency accompanying the transaction. However, it can be issued only if the house has an act of putting the building into operation (on iskana) - this is the main document that the developer should receive. The cost of this document is from 1200 (190 euros) to 1800 lira (290 euros).
After this, subscription agreements for the connection of water supply and electricity to the apartment take place. Many open bank accounts in Turkey and link automatic bills for electricity and water bills to their accounts. At a cost, the average payment is about 1000 lire (160 euros) when buying a new building and 400 lira (64 euros) when buying a secondary property. The buyer can do all these procedures in person or through a formal power of attorney for a representative of the company or his agency.
Buying a home in the secondary market
Secondary real estate is attracted by several factors: price (often sale is urgent, therefore the price is minimal), housing is ready for living and does not require expenses associated with the purchase of furniture, household appliances and air conditioning, there is no risk of delayed construction or unfinished housing in principle. The truth is too “elderly” secondary housing has very worn furniture and appliances, and the implementation of the replacement is associated with additional investments.
There are pitfalls: it often happens that urgent sale is associated with the mortgage encumbrance of a given apartment and the amount of encumbrance can only be found in the cadastral office. Very cheap options for finished housing, as a rule, carry the risk of the absence of the most important commissioning document - iskana, without which it is impossible to legally draw up electricity and water meters. But the main point: today the secondary offers to pay the entire amount within 3-4 weeks maximum after making a deposit of any installments possible when buying a house under construction.
TAPU should be presented by the current owner to the potential buyer. If the owner is not in the city, then a proxy who has in his hands the original power of attorney from the owner to perform cadastral operations on his behalf. If the property is sold “turnkey”, then the list of furniture, household appliances, accessories, etc. should be indicated in the contract of sale.
The process of buying real estate in the secondary market is not much different from acquiring new housing from the developer. After the buyer determines his choice, a sale contract is concluded between the buyer, seller and real estate agency, where the price, terms and conditions of the transaction are prescribed. The agency checks the property for its legal purity, then upon signing the contract an advance is paid - usually it ranges from 500 euros to 10% of the value of the object.
Next, the date of the transaction itself will be determined, on which all three parties must simultaneously be present, the agency submits documents to the cadastral office on this day, and, as a rule, within 2-3 days, the ownership rights are re-registered. Payment for an apartment in the secondary market is made on the day of the transaction either in cash or to the seller’s bank account. Next, the procedure for renewal of subscription agreements for the connection of water supply and electricity services takes place.
General purchase rules
Regardless of which market the property is purchased from, buyers will need a passport and a notarized translation of the passport into Turkish, which is done in any notary office in Turkey. The cost of translating a passport is 180-200 Turkish liras (about 30 euros). The tax number is issued within 10 minutes absolutely free in tax Turkey.
Innovations and purchase costs
According to the new law, from April 2019, for all transactions and re-registration of property rights in Turkey, a mandatory cadastral appraisal of real estate is required. As a rule, it is carried out after signing the contract of sale. This expert report contains all the information about the property being purchased: area, specifications, internal and external plans, the presence of all permits for a particular property, the cadastral value of the object, the presence of a mortgage, arrests or liens for an apartment, etc.
The cost of the examination varies from 1,000 (160 euros) to 1,500 lire (240 euros), depending on the company that has a license and accreditation of the cadastral office to conduct such an examination. Usually the procedure is paid by the buyer's side. The procedure for registration of real estate in the property includes registration of a technical passport for real estate (genel iskan), insurance against earthquakes and natural disasters - DASK, without which it is impossible to conclude contracts with utilities, On average, we recommend laying additional costs for real estate registration 1200-2000 euros.
An expert report is prepared in 2-3 business days, and the personal presence of the buyer and seller is not necessary - this can be done by the agency in advance of the transaction. Then, on the day of filing the documents on the re-registration of property rights to the cadastral office, the personal presence of the seller and the buyer or their representatives, who have a power of attorney to buy or sell, issued at the Turkish notary or at the Turkish consulate, is required.
Next, cadastral forms, a buyer’s questionnaire and an application for a transaction are filled in, original passports and notarized translations of passports and photographs are handed over. The tax on the purchase of real estate is paid 4% of the cadastral value (indicated in the report on the examination). The tax credit (when paid 3% instead of 4%) is extended until the end of 2019. The services of a sworn translator are also paid: by law, all transactions with foreigners must be accompanied by sworn and accredited translators in the cadastral office. For example, in Alanya, the cost of these services is about 500 liras (80 euros).
The whole process of buying property in Turkey takes a minimum of time from 2 to 3 business days, and a minimum of necessary documents. The main thing is to choose the right professional agent. According to the new law, only licensed agencies that have received accreditation in the chamber of commerce, as well as have passed specialized courses and passed exams and have a diploma of a realtor of 4 or 5 levels, are entitled to sell and rent real estate in Turkey. (meslek yeterlelik belgesi 4 veya 5 seviye).