Buying a Real Estate in Turkey
Turkey’s Booming Real Estate Market
The real estate market in Turkey had never been livelier. As per August 2020 statistics, 229,357 properties were sold in July 2020 alone and 170,408 in August 2020. The July 2020 numbers have a whopping 124,3% increase since July 2019; and the August 2020 numbers have starkly increased by 54.2% since August 2019, an incredible boom considering the overall market shrinking worldwide in the year 2020.
Legally Purchasing a Real Estate in Turkey
In Turkish real estate law, real estate sale contracts are only valid if they are drafted by and signed before the land registry directorates (called “Tapu” offices). Any other contract of sale of a real estate is invalid, regardless of what is written in the contract and whether the price of the real estate has been paid or not. All payments and down-payments that are made with respect to such unofficial contracts are made in good faith. This means that, based on an unofficially-signed real estate sale contract, the seller cannot legally force the buyer to pay any price or penalty, and likewise the buyer cannot force the seller to transfer the ownership of the property. This is where legal disputes arise; by signing and trusting unenforceable and invalid agreements, parties make arbitrary and risky investment decisions.
Another example of a case where legal disputes often arise is the day of the transaction at the land registry. By law, the agreed price of a real estate must have been paid prior to the signing of the official real estate sale contract at the land registry. Therefore a seller will always require the payment before transferring the ownership of the real estate to the buyer. However, a buyer will also wish to guarantee that the seller will honor the agreement in good faith and transfer ownership once the payment is made. This brief period of time between the moment of payment and the moment of ownership transaction is where legal disputes are most likely to occur.
Hiring a Real Estate Lawyer
Foreign nationals are often not equipped to handle real estate purchases without the help of a professional, due to the lack of knowledge of Turkish property laws and language barriers. In order to avoid potential legal disputes, foreign nationals must have an expert report done on the property. Furthermore, foreign buyers are also highly recommended to hire the service of a property lawyer who is experienced in property deals.
Antalya Lawyer Baris Erkan Celebi and his Antalya Law Firm offer legal services for Turkish real estate purchases to foreign nationals. These services include performing background checks on the property to make sure the property is clear of debts, mortgages and potentially risky reservations, reviewing and advising on any agreements signed between the buyer and the seller and/or the real estate agent, advising to the buyer on the expert report, confirming that all the permits are in order, securing the payment of the agreed price and duly pursuing the transaction process until the real estate is securely registered on the buyer’s name.
More About Real Estate Purchase & Property Background Checks
Buying, Selling and Mortgaging Real Estate in Turkish Law In Turkish Law, the conditions required for a legal transfer of real estate are Registration in the land registry, and A