Do you really need a real estate agent? How does a standard transaction work? Can you take out a loan as a foreigner? Read more about every stage of buying property in Turkey below.
Step 1. Conclude a Contract
Signing the Real Estate Sale Contract
On the first stage of the deal the buyer and the seller have to conclude a contract. It has to contain information about all parties of the deal, the property (planning, data-sheet, the date of commissioning, etc.), terms and conditions of payments, obligations of the parties.
To sign the contract the buyer only needs a foreign passport or ID. The document is made in two copies and in several languages, usually, Turkish and the buyer’s native language.
The contract itself does not have the force of a document certifying the transfer of ownership, even if it’s notarized. You need to get a TAPU (certificate of ownership) to fully become an owner.
Titling system for registration of real estate rights functions in Turkey. That means that the state authorities, represented by the Cadastral office, guarantee the purity and legality of transactions at the state level by issuing property documents.
Notaries do not have the right to register purchase and sale transactions independently. A notary can only issue a purchase and sale of real estate contract and notarize signatures on it.
Paying the Deposit
The buyer has to pay the deposit at the amount of 5-10% from the total cost, while signing the contract. That reserves their right for the property. Preferably the size of a deposit should be specified under a separated clause altogether with penalties for both parties.
If the buyer declines the deal, they don’t receive the deposit back. If the deal is scuttled due to the seller’s fault, they have to give the deposit back in double amount.
A foreign passport is enough to sign a contract, but you will need more documents to complete the registration of the property and get TAPU.
Optional - Make a Power of Attorney for Your Real Estate Agent
If the buyer cannot prepare all documents for the deal themself, they can issue a power of attorney for a representative in Turkey who will do all formal work.
Getting a TIN
The buyer (including a foreigner without a residence permit) must have an individual tax number in Turkey. This is a mandatory requirement for registering real estate, opening a bank account, concluding contracts with utility services and telephone providers.
The procedure is simple and takes a few minutes. To get a TIN you need to come to the district tax office (vergi dairesi), present your passport or ID and fill an application.
Optional - Opening a Bank Account
Most frequently buyers make a bank account in Turkey for the transactions. This is very convenient, because in the future they will be able to pay for utilities from the same account. It is also necessary, if you are applying for a residence permit.
You are going to need the following documents:
a foreign passport and it’s photocopy;
a tax number in Turkey (an official document from the tax office);
internal passport (ID) with a stamp of registration at the place of residence.
You can open a bank account in Turkey in euros, US dollars, Turkish lira or access all the three foreign currency accounts at the same time. The procedure takes just a few minutes. You can put money on that account immediately. There is no minimum deposit amount and you can keep your account empty.
You can also pay for the property by transfer from your country directly to the seller's account, if you do not want to open an account in Turkey.
If necessary - Getting Permission from Government Agencies
In some cases it is necessary to obtain a certificate from the military department that the property is not located in a protected area. There is no need to obtain a permit if a similar request has been considered at least once in the same area since 2011 according to the new rules. Therefore, the procedure is mostly formal and takes just a few days (not 6-8 weeks as it used to be).
The real estate agent must comply all formalities with the law.
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The buyer can pay for property with Turkish lira, euro, US dollar or British pound. Prices in Istanbul are indicated primarily in US dollar, except for the coast. Most of the prices there are indicated in euro. If you have a personal agreement with the seller, you can choose a convenient currency by writing this clause in the contract with the payment schedule.
The transactions are usually paid via bank transfers. To make a transfer from your country, The bank may request documents confirming the purpose of the payment (the real estate contract) to allow a transfer from your country. The transfer can be partially made in cash. Some Turkish companies accept payments at their local offices.
By the time the TAPU is received, the property must be fully paid for. You can buy a property in installments, but the certificate of ownership will include an encumbrance, which can be removed after the full payment.
The seller (or a representative by proxy), the buyer (or a representative by proxy), real estate agents and a state notary translator meet at the cadastral office. The signature of the state translator is a prerequisite for the legitimacy of the agreement involving foreigners.
The cadastral office is where the transfer of TAPU happens. It is the main document of ownership (all taxes and other expenses related to the TAPU transfer must be paid by this time).
TAPU includes the following information:
the address of a land plot where the property is located;
photo of the owner (2 photos are required);
information about registration of a land plot in the Cadastre;
status of the plot (information from the Cadastre);
the total area of the plot that belongs to the new owner (proportional to the size of the purchased property);
type of the property ownership;
property value;
information about previous owners;
information about new owners;
date of purchase of the property by the previous owner;
TAPU registration number of the previous owner (changes when transferring ownership rights);
TAPU document registration data;
date of purchase of the property by the new owner;
seal of the cadastral office, signature of the authorized person.
You can receive a TAPU in up to five days from the date of submission by the seller's application to the Cadastral Office. After that the buyer becomes the full owner of the property in Turkey.
You become a legal property owner after getting a TAPU.
Step 5. Concluding a Contract for Utility Services
The final stage of the deal is the execution of contracts with utility providers (electricity, water, telephone, Internet) with the new owner of the property.
If your property is in a new building, the first thing you need to get is Iskan, which is a technical passport for the apartment.
Good to Know
There are two types of technical passports for real estate in Turkey. First on is a Genel Iskan. It is received by the developer for the entire building at the entry into service. This document confirms that all construction standards are met and the building can be connected to engineering networks. Second one is a Ferdi Iskan. It is an individual technical passport for an apartment which the owner receives after purchase. It contains technical information about the apartment and the entire building (area, number of floors, availability of utility rooms, etc.)
An individual technical passport is issued once at the first sale of an apartment. If you buy a resale property, then a Ferdi Iskan should already exist. If it was not issued, but the entire building has a Genel Iskan, then there will be no problems getting the document. You only need to contact the municipality where the property is located and pay state fees.
To apply for utility subscriptions you need:
your passport (ID);
TAPU (copy);
individual Iskan (copy);
insurance (mandatory earthquake insurance);
the sequence numbers of the water meters;
applications for connecting utilities;
notarized power of attorney for the representative, if you are not engaged in the formal process.
Can I seal the deal remotely?
Yes, you can. You need to sign a notarized power of attorney for your representative who will collect all necessary documents.
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