Selling Real Estate: What You Need to Know
If you want to sell your real estate, you must prepare enough and follow a well-prepared plan. There are important points that real estate sellers need to know before and after sales. Knowing these can provide various advantages to the seller. Here is what you need to know before selling real estate.
Agreement terms, tax debt, and insurance control
You must clearly state the terms of the agreement you will make with the person you will sell your property to, in order not to experience any negative consequences. The terms of the agreement should be arranged in a way that protects the interests of both parties. Also, you should learn that the real estate you are selling does not have real estate tax debt, and if any, you must pay it. You should also check whether the house you are selling has compulsory earthquake insurance.
Tenant notice and subscription cancellation
If you are selling a house, and you already have a tenant, inform him about the sales process. If possible, introduce the new landlord and tenant. Do not forget to cancel subscriptions to bills such as electricity, water, natural gas, and internet or transfer them to the new owner of the house.
Deed price notification and secure money transfer
You must notify the land registry office about the real price for the property you will sell. If you do not make any declaration to the land registry or make a declaration at the lowest price, you may face criminal action. You can transfer the money of the property you sell through a reliable bank.
Check the value of the property declared in the title deed
The earnings obtained from the disposal of real estates within 5 years from the date of acquisition are declared as gain from appreciation for real persons and are subject to income tax at rates varying between 15-35%. If the relevant real estate is disposed of in less than 5 years and its value is declared low in the title deed, high income tax may be paid for the seller. However, if the real estate is acquired through inheritance or donation, no income tax will be paid regardless of the sales price. Likewise, you do not pay income tax in the sale of real estate held for at least 5 years.
The title fees to be paid during the purchase and sale should not be less than the minimum property tax value. It is calculated over the declared transfer and acquisition price. The price to be declared must be the real purchase-sale price of the real estate in question. The purchase and sale prices to be declared in the title deed cannot be below the minimum real estate tax value determined for that year.
Notification to the municipality
It is useful for those who sell their real estate to report this situation to the relevant municipality after the sale to prevent future problems related to real estate and garbage collection tax (for businesses). A single notification is sufficient for more than one real estate purchase of the same type. However, the real estate in question must be purchased within the same year and be located within the same municipality.