REAL ESTATE ACQUISITION BY FOREIGNERS IN
In the past
decade purchasing property in
became very popular through holiday
homeowners and investors worldwide. The first time that it was permitted to
foreign buyers to purchase real estate in
was in the year of 1934 with
the Land Registry Law. At the present day the real estate market in
is
developing and becoming one of the prominent markets in the World.
Legal Basis
In
accordance with the Article 35 of the Land Registry Law Nr. 2644, amended by
Law Nr. 6302, which entered into force on 8 May 2012, the condition of
reciprocity for foreigners who wish to buy property in
is abolished.
Persons with
foreign nationality can buy any kind of property (house, business place, land,
field) within the legal restrictions.
Persons with
foreign nationality who buy property without construction (land, field) have to
submit the project, which they will construct on the property to the relevant
Ministry within 2 years.
Format Of
The Contract
According to
the
laws and regulations in force, transfer of ownership of a property
is only possible with an official deed and registry, which is signed at the
Land Registry Directorates.
It is
possible to sign a “sales commitment agreement” in a notary. However, legal
ownership of the property does not transfer with a “sales commitment agreement”
or other kind of sales agreements to be signed in the notary.
Legal
Restrictions For Foreigners In Buying Property
a) Persons
with foreign nationality can buy maximum 30 hectares of property in
in
total and can acquire limited rem right.
b)
Foreigners cannot acquire or rent property within military forbidden zones and
security zones.
c) Persons
with foreign nationality can acquire property or limited rem right in a
district/town up to 10 % of the total area of the said district/town.
d) Legal
restrictions do not apply in setting mortgage for real persons and commercial
companies having legal personality, which are established in foreign countries.
e) The
properties are subject to winding up provisions in following cases:
• if the
properties are acquired in violation of laws;
• if the
relevant Ministries or administrations identify that the properties are used in
violation of purpose of purchase;
• if the
foreigner does not apply to the relevant Ministry within the time in case the
property is acquired with a Project commitment;
• if the
projects are not materialized within the time.
Application
And Procedure
Buyer should
be from the country whose citizens can acquire property or limited in rem right
in
and meet the necessary conditions.
Application:
The owner of the property or his/her authorized representative should make a
preliminary application to the Land Registry Directorate. (Preliminary
applications are made before noon by taking sequence number)
If the
preliminary application is incomplete, the file will be kept waiting.
Required
Documents
a) Tittle
deed of the property or information on village/district, block,
parcel,independet section number.
b)
Identification document or passport (Together with its translation).
c) “Property
Value Statement Document” to be provided from the relevant municipality.
d)
Compulsory earthquake insurance policy for the buildings (house, office, etc.)
e) One photo
of the seller, two photos of the buyer (taken within last 6 months, 6x4 cm.
size)
f) If one of
the sides cannot speak
(Turkish), certified interpreter is needed
g) If
transaction will be performed with a power of attorney issued abroad, original or
certified copy of the power of attorney and its approved
(Turkish) translation.
Information
On Powers Of Attorney Issued Abroad
Powers of
attorney are issued by the
Embassies or Consulates. If the power of
attorney which is issued by a notary of a foreign country is certified
according to The Hague Convention dated 5 October 1961 and if it bears
“Apostille (Convention de La Haye du Octobre 1961)” in French, there is no need
for an additional certification of the said power of attorney by the relevant
Consulate.
If the power
of attorney is issued by a notary of a foreign country which is not party to
The Hague Convention date 5 October 1961, the signature of the said notary has
to be certified by the relevant authority of the foreign country and then the
signature and seal of the said foreign authority have to be certified by the
Consulate in that country.
Financial
Aspect Of The Procedure
a) Both
seller and buyer have to pay the tittle deed fee, calculated according to the
selling price, which cannot be less than the “Property Statement Value” to be
issued by the relevant municipality. (According to the Charges Law No:492, the
title deed fee is 2%.)
b) Revolving
Fund fee which is determined by local coefficients has to be paid. (Maximum
103,5 x 2,5 TL for 2018)
c) In the
ownership transfer transactions in accordance with Article 35 of the Land
Registry Law Nr. 2644, a fixed fee shall be charged by Land Registry office, in
addition to determined revolving fund service fee for the transaction. (for the
year 2017: 422,5 TL)
Other Issues
For Foreigners Who Wish To Buy A Property In
• The
foreigner has to inquire with the Land Registry Directorate if there is any
limitation on the property, such as mortgage, arrestment or any obstacle, which
prevents the sale of the property.
• If the
application of the foreigner for buying a property is rejected, appeals can be
made to the relevant Land Registry and Cadastre Regional Directorate.
• It is
advised that foreigners do not work with persons/companies who/which are not
expert or reliable.
• Having a
residence permit is not a condition for the foreigner who wishes to buy a
property in
.
• If there
is a disagreement between the sides on the sale of the property, the case has
to be brought before the
courts by referring to judicial authorities.
Acquisitions
By Foreign Companies
Acquisition
of property by foreign companies, which are registered in
, is regulated
by Article 35 of the Land Registry Law No 2644.
a) Foreign
commercial corporations which are established according to the relevant laws of
their countries of origin can acquire property and limited rem rights within
the provisions of private laws. These private laws are:
•
Petroleum Law Nr. 6491
• Law on Encouragement
of Tourism Nr. 2634
• Law on
Industrial Zones Nr. 4737
b) No
restriction is implemented in favor of the said commercial companies in
establishing mortgage.
c) Other
foreign corporations (i.e. foundation, association, ...) cannot buy property and
acquire limited in rem right.