HOW TO PURCHASE A PROPERTY IN TURKEY
Buying property in Turkey is a straight forward process and often easier than in other European countries.
1. Once you have seen a property in Turkey that you would like to purchase, you will need to provide a deposit. This is payable by cash or credit card – Personal cheques are not accepted by banks in Turkey. An initial payment of 20-40% of the property purchase price is usually required. The exact figure will be confirmed individually with the property owner at the time of purchase. Upon payment, a receipt is given and the amount received is written into the contract.
2. You will need to have your passport with you. Photographs are also required; your agent will be able to show you where the nearest place to get these done is.
3. Then you should visit the Solicitor who will prepare the purchase contract. They are there to help you. You are paying for their services, so please use this time to ask any questions you may have. When purchasing from a sales agent (ALTIN TURK REAL ESTATE COMPANY), the developer, or the construction company, they usually have an agreement ready so you do not need a solicitor.
4. Should you not be present in Turkey for the actual purchase of your property, then you need to go with your agent from ALTIN TURKREAL ESTATE COMPANY, to a Notary office to sign a Power of Attorney to your Agent for the property’s transaction. This enables the agent to continue with obtaining the Title Deeds in your absence.
The initial stage has been completed and you do not need to be present for any more of the property purchase transaction. This process only takes a few hours.
You will be given the original contract and a copy of the Power of Attorney to take back home with you.
The same day or the next day, your papers are forwarded to the Land Registry office in Izmir, for all documentation relating to the purchase. Here everything is checked and then the title deeds (TAPU) are re-issued in the new owners name and forwarded back to the local Land Registration office who, in turn contact your agent. This process usually takes 6-8 weeks.
Your agent will advise you of this when it happens. At this time you will need to pay the final balance plus the 4% property tax. Upon receipt of payment, we can then sign for and collect your TAPU from the Land Registration office on your behalf and this will then be held in the office pending your next visit and collection.
Q: On top of the purchase price, are there any extra taxes or fees payable?
A: Yes, there are some extra costs:
• 4% of the property value tax. This is a one-time payment and it is due for payment before the TAPU is issued.
• Lawyer fee, for purchasıng residential property, is about 800-1500 USD and usually require for the purchase of resale (old) properties. For New Apartment Projects , IF YOU BUY DIRECTLY FROM A SALES AGENT (ALTIN TURK REAL ESTATE COMPANY) OR DEVELOPER, YOU WILL NOT NEED TO PAY THIS FEE. This is due to the fact that every new project has typical and standard form of contract that supplied to all the buyers. However, if you choose to hire a lawyer then you will be responsible for the lawyer fees.
• An approximate 140 USD Notaries Charge for giving us (ALTIN TURK REAL ESTATE COMPANY) the Power of Attorney to handle the documents relating to the property in your absence.
• 3% agency fee that covers all agents’ commission and charges. This is usually payable at the time that the contract is made, together with the initial deposit payment on the property.
• It is compulsory to have earthquake insurance and we recommend you take out full home and contents insurance coverage as soon as the property is registered in your name. (The cost of this varies depending on the value of the property and its contents for the number of months it will be occupied.) Approximately 210 USD/year.
• The connection of Water and Electricity into your name so that the bills will come directly to your house. This does not apply to some properties.
Approximate cost breakdown for the purchase of a property of 100,000 USD:
Property purchase price (*new construction) $100,000
Tax @ 4% $4000(only once)
Notary’s charge $140(only once)
Full insurance (incl. earthquake cover) $210 (yearly)
* A 3% commission fee does not apply to new construction properties.
Once you have received your TAPU there are some other charges which need to be paid. We estimate annual costs per property to be as follows:
Water / Sewage $70
Site maintenance $100
DigiTurk Satelite TV $15
Council tax $100 (yearly)
It is not necessary to hire anyone to pay bills. Utilities can be paid by pre-authorized bill payments once you have a bank account. Water bills are intermittent and likewise your council tax can be paid when you visit annually.
These cost estimates are correct at the time of writing, but are subject to change. Variations will occur due to location of purchase and other factors beyond the control of ALTIN TURK REAL ESTATE COMPANY. This is intended as a guide only.
If you have any questions, please do not hesitate to contact us.