Buy Real Estate in Turkey
Buying Real Estate in Turkey: How to Obtain the Title Deed
Purchasing property in a foreign country can be a daunting and complex process, especially for international buyers unfamiliar with local regulations. To simplify this journey, here is a clear 8-step guide on how to obtain a title deed (Tapu) in Turkey, ensuring a smooth and legal transaction.
Before the Title Deed Process Begins
Before initiating the title deed process, you must complete the due diligence on the property. This includes conducting background checks to ensure the property is free of legal issues. For more details on property background checks in Turkey, click here.
Once the background check is completed and the sale price is agreed upon, the title deed process follows these steps:
Step 1: Gather the Necessary Documents for the Buyer
The buyer must provide the following documents for the title deed office to process the purchase application:
- (For non-residents) Potential tax identification number
- Notarized translation of the buyer’s passport
- Buyer’s photographs in the specific format required by the title deed office
Step 2: Obtain an Expert Report
When a foreign buyer is involved, Turkish law mandates an expert report on the property. This report, prepared by a state-appointed surveyor, verifies the property’s value and is designed to protect foreign buyers from financial exploitation. It is the seller’s responsibility to initiate this process, but the buyer should carefully review the report, ideally with the assistance of a Turkish real estate lawyer, to ensure there are no hidden issues with the property.
Step 3: Open a Turkish Bank Account
A Turkish bank account is essential for paying the seller securely through the banking system and for obtaining the Foreign Currency Purchase Certificate. It is also useful for managing property-related expenses, such as taxes and rent collection if the property will be rented out.
Step 4: Obtain the Foreign Currency Purchase Certificate
Recent regulations require foreign buyers to obtain a Foreign Currency Purchase Certificate by converting their foreign currency into Turkish lira (TL). This certificate is issued by the buyer’s bank and must be included in the title deed application. The amount converted into TL must cover at least the full property sale price.
Step 5: Submit the Title Deed Application
Once all necessary documents are gathered, and the buyer is ready to pay the remaining balance of the sale price, the seller submits the application electronically to the land registry office (Tapu) to initiate the property transfer process.
Step 6: Pay Property Transaction Taxes and Fees
Once the title deed office verifies that all documents are in order, both the buyer and the seller are notified via SMS. They are then required to pay the necessary property transaction taxes and fees. An appointment for signing the official sale agreement is usually provided at this stage.
Step 7: Payment of the Sale Price
Before signing the official sale agreement, the buyer must pay the full sale price to the seller. The title deed officer will confirm with the seller that payment has been made. However, this step involves a brief period where the buyer fulfills their obligation before the seller transfers ownership. To mitigate risks, it is highly recommended to use an escrow service, which could be provided by an attorney, bank, or even the state. This ensures the simultaneous exchange of money and property. A Turkish real estate lawyer should guide the buyer through this critical phase.
Step 8: Sign the Official Sale Agreement at the Land Registry Office
At the scheduled appointment, both the buyer and seller meet at the title deed office to sign the official sale agreement. The title deed officer prepares the contract, confirms that the seller has received payment, and ensures that the buyer has no further concerns. After the contract is signed by both parties, video and audio recordings are collected as permanent records by the state.
The property ownership is officially transferred to the buyer at the moment the agreement is signed. The issuance of the title deed document to the buyer is for informational purposes, as the state retains permanent records of ownership.
The sale agreement can also be signed by the parties’ attorneys via power of attorney. For foreign buyers, it is strongly advised to hire a Turkish real estate lawyer to ensure they fully understand the legalities of the transaction without relying on translations.
Legal Assistance for Buying Real Estate in Turkey
Navigating the Turkish real estate market can be complex, but working with a specialized Turkish real estate lawyer can make the process seamless. From obtaining the foreign currency purchase certificate to safely handling the final sale agreement, a lawyer ensures that all legal requirements are met and that the transaction is secure.