a guide to buying property in turkey

The buyers process in Turkey has relaxed considerably over the last two years and now the buying process is much easier and clearly defined. Even Issues over buying older properties/farm houses without title deeds have been resolved as all properties by law now need a TAPU (land registry & title deeds). This was put into place over a year ago, so there are never any grey areas concerning correct paperwork. We hope this Turkey buyers guide will help you to understand the process of buying property in Turkey.

The vast majority of purchases are off-plan projects therefore title deeds and paperwork is set up when the project is completed. This is done through the TAPU office and the paperwork is usually submitted when either 20-30% of the purchase price is paid. In some cases the developer will submit the paperwork immediately and look at having the paperwork ready before the completion of the project.

As of the 1st January 2008 foreign mortgages will be available to everyone of any nationality, this is largely in part to a relaxation in laws which come into affect on this date. However it is possible to purchase a mortgage in Turkey right now but with a slightly higher deposit rate. This will make the process safer with regards to developers completing projects to a standard that has been agreed between the developer and client as well as meeting the set criteria by the banks involved. The usual type of mortgage period is 15-20 years with a standard deposit of around 30-50% of the purchase price. This is an easy process to do and can be set up when opening a bank account.

When you have found the property you are looking for it is essential that you take the right steps to make the process operate as smoothly as possible. Masseco has years of experience in guiding British buyers through the purchase process in Turkey and can ensure that you face no issues or trouble with regards to the paperwork and any potential problems with taxation and connection of utilities. We can even help pay the utility bills on your behalf.

There are key steps to take when purchasing and we have listed below the order and process of a property sale in Turkey.

Signing the Contract- Make sure all the points you have discussed with the developer or agent are in the contract, i.e. You have requested black granite throughout the kitchen area, or you have asked for a specific sized swimming pool. If its not in the contract it will cause you problems later!

Paying the deposit

With virtually every sale a good developer or agent will allow a reservation deposit which is usually a nominal sum (£500- £1000) this is what we insist on at Masseco as it allows a cooling off period and you are not tied into a contract if you decide to change your mind. Be very careful of any developer/agent insisting on 10-20% up front with no cooling off period. Make sure that any money paid will be returned if you change your mind in the cooling off period.
Appoint a solicitor- Thought of as the most important part of the process but actually not the most essential. The reason for this is simple, you are buying a brand new project with no previous owners and everything in the contract is what has been agreed between you and the developer and is legally binding. Although for piece of mind we recommend that you get an English speaking solicitor. They will advise you of any issues with the developer and actually pull you out of a sale if your interests are not best served by the developer/agent. This has happened in certain areas with certain developers although rest assured is not that common. The solicitor should be independent of the developer at all times, always choose your own solicitor as this is easy to do. You can do this through the internet before you go expect to pay a fixed fee usually around £500-£800 per sale. You do not pay per hour as is the case in some countries. The solicitor should ensure the payment plans are clearly defined and the solicitor should also make sure you have some form of penalty clause in place, due to the developer not meeting deadlines.
Do remember that the solicitor does this every day and has the contracts in place the process is usually over in an hour, only sometimes will there be a specific request on the contract and that usually means contracts will be ready a little later.

Payments

Once you have the contract and are happy with the purchase then you have to start making payments, this is usually done over the course of the build. Expect to make a big payment (10-20%) every 2-3 months although this is dependant on how far along the development actually is. I.e. if the project is only 3 months from completion then it is usually accepted that the bulk of payment will be required from the client. Always hold back a percentage of the payment plan to be paid to the developer usually this is 10%. This ensures your property has been finished to your specification and if any jobs are not complete you are well within your rights to hold back on payment until the work required has been done.
Masseco actually offer very good deals that are tilted in the buyers favour, we either opt for ESCROW accounts, which ensures peace of mind for any buyer as all your money remains untouched by the developer. We have also managed to bring in a 10% deposit and balance on completion for some of the more prestigious developments we have. Something we are very proud of as it really is the safest way to buy. Do not pay for any property up front before it has been completed.

Registering to buy Turkish property

For this you will need to open a Turkish bank account and get a Turkish tax number. All of this can be done by the developer /agent in Turkey itself. We have a team in Turkey who take care of the buying process in Turkey and we look at usually have it all done with 2 hours. We also submit the legal papers to the army for checks and clearance. This usually takes around 8 weeks to come through but again it is more a formality these days as opposed to rigorous checks that once were the norm.

Power of Attorney

This is a tough one to give advice on. A power of attorney is basically a document that allows a nominated person to sign and sell on your behalf. Usually, either the developer or agent will do this it does not cost much to set at all, the benefits are that all paperwork can be completed in your absence. The down side to this is that are unsavoury characters that will sell your property and keep the profits for themselves or they may even keep the property and transfer all details officially into their name. We never try and get clients to sign a POA unless it is absolutely necessary. Our general advice is if you are happy with you are dealing with and have spoken to previous clients then you should do whatever makes your buying process easier. It is something we leave to the clients but it is a personal option.

TAPU

The most important piece of paperwork you will get once all payments have been made. This will be only given to you in the TAPU office. We always advise getting a Notary to explain and translate everything for you, they operate independently and ensure you understand what is on the TAPU and that all your details are correct. The fee is usually £600-£800 this is payable to the Notary direct. When you go with the developer also accompanied by one of the Masseco team we will explain the process and make sure the Notary is there also. The process then involves some reading and also listening to the Notary who goes through every detail on the TAPU. When you are happy the developer and you then sign a few documents and your TAPU is handed over. It will also have a picture of you in the top left hand corner. All information on the TAPU will be in Turkish.

Additional costs

These are to be expected when buying abroad and more so in Turkey. The usual costs will cover the submitting of papers for TAPU and military clearance. Other costs always involve the connection of utilities, fees for the Notary. You really should not be paying more than 2% of the purchase price. Do not worry about ensuring all of these essentials are paid for as the developer/agent can usually ensure it is all done for you in your absence. You will also have to account for furniture but again this can be sorted out closer to the time of completion.

Getting the keys

By now you have ensured that all the work has been done and it is as you expected it would be. The final process is making sure that you have furniture in place. We at Masseco can help through out the purchase by making sure goods are ordered and delivered when you arrive to take possession of your property. It is a service and we do not charge. Do not ever pay a service charge to anyone who goes and purchases goods on your behalf. In Izmir there is an IKEA and the store will deliver to as far away as Marmaris just expect to pay a delivery charge, it does mean goods are brought into your home and set up for a fraction of what it would cost in the UK and there’s virtually no chance of any damage. You can select goods in the UK and we can ensure that they are delivered, set up, fitted when required in your new home.