Turkey, noting significant progress with its developing economy in recent years, investments in construction and real estate sectors, is becoming a center of attraction for institutional and individual investors. In this process, the country offers significant opportunities to foreign investors who need to master local dynamics to make successful investment decisions. As Trem Global team, we are closely following developments in order to provide support to investors in real estate acquisition and investment issues, which are highly dependent on internal and external factors and have unique problems, with our experienced and industry-dominated staff. In order to meet the needs of our customers in Turkey, and to help them achieve successful results in investment decisions we present Real Estate Acquisition and Investment Guide in Turkey to the investors, where we provide sector-specific knowledge. The information in this guide is general, not social, tax or legal advice.
Before making real estate investments in Turkey, in the investment process, it should be checked whether the property really belongs to the person who identifies himself as the owner. If the real estate really belongs to the person who introduces himself as the owner of the property, it must be visited to see if the property can meet the specified properties before investing.
After the visit, it is useful to find out whether the property to be invested is included in the implementation zoning plan. The implementation zoning plan is a plan made by the district municipality on a scale of 1/1000, showing the settlement patterns that the real estate within the settlement area will receive in the future socially, culturally and economically.
By making matching control of the project to be invested and the project in the municipality, it is necessary to check all licenses and official permits required for real estate.
The building permit or settlement document obtained from local authorities also needs to be requested from the seller of the real estate. The real estate appraisal report also includes relevant documents from local authorities. The valuation report is among the documents required by sales of immovable property from the foreigners in Turkey to foreigners, from foreigners to Turkish citizens, from Turkish citizens to foreigners sales.
In order to determine the value of any real estate at the request of individuals or institutions, the report analyzes all the factors that may affect the value of the real estate by the appraisers and explains the results of the value. It is also prepared for the determination of the value of the immovable by evaluating the zoning status, the title deed information, the analysis of the area where the immovable is located, its location and place, plus many and negative factors compared to similar immovable properties.
In the preparation of the report, the process starts with the examination of the legal institution and the information such as land registry records and zoning status of the real estate is collected from the related departments of the land registry offices and municipalities. Afterwards, the information obtained in the legal institution review of the immovable property is compared to the ground sighting operations and the current situation of the immovable and the regional analysis phase is started.All information is collected in a report and sent for review by another appraiser by examining the values of the real estates in the location where the real estate is located and according to these precedents.
The real estate appraisal report contains three real estate appraisal experts in Turkey. The land registration system used in Turkey is known as a robust and secure system, where every real estate transaction is officially registered.
If the property is still in the project stage, a notary public pre-sale agreement must be concluded with the landowner. If the tenant resides in the property, the rental agreement must be checked because it is important whether the seller gives notice of eviction to the tenant or not.
Both you and the seller must have mutual statements to the Land Registry during the transfer of ownership and the new owner of the property is also liable for paying overdue real estate tax debts on the property in question. In this case, you can add a special clause to the sales contract to prevent a possible manifestation in the future.
Requesting copies of the contracts in both English and Turkish, that will be held in Turkey, is one of the important issues that will help you move towards the investment process. It is also important that the Turkish copies of the contracts are notarized.
After applying to the Land Registry Office for the transfer of ownership, it is necessary to make due diligence at the Land Registry Office. During the application to the Directorate of Land Registry, the investment owner should bring the title deed showing the exact position of the property, current price document from the relevant municipality, Dask insurance, passport and identity card and two photos of a current passport along with him. In this way the applications will be complete.