Turkey has become an attractive real estate market for both local and foreign investors in recent years. The country’s natural beauty, strategic location, and economic growth potential have led many to consider buying property in Turkey. However, it is crucial to follow the legal processes correctly when purchasing property. This guide will detail the legal processes involved in buying property in Turkey.

1. Preparation Before Purchasing Property

The property purchasing process in Turkey begins with proper preparation and research. Key steps to consider include:

• Budget Determination: Before buying property, it is important to determine how much budget you can allocate. This applies to both those making a cash payment and those using a mortgage. When determining your budget, consider additional costs (such as title deed fees, notary fees, real estate commissions, etc.).
• Area Selection: Properties are available in various price ranges across different regions of Turkey. Major cities like Istanbul, Antalya, and Izmir have higher prices, while smaller cities and rural areas may offer more affordable options. When choosing an area, consider both the investment potential and your personal needs.
• Working with a Real Estate Consultant: Working with a reliable real estate consultant can make the process smoother and more efficient. The consultant will guide you in finding the right property, negotiating the price, and navigating the legal processes.

2. Property Purchase Process for Foreigners

Turkey allows foreigners to purchase property, but there are specific rules and restrictions that foreigners must be aware of:

• Legal Restrictions: Foreigners’ ability to purchase property in Turkey is restricted in certain areas, such as military zones, strategic locations, and rural settlements. Therefore, it is essential to check whether the area is suitable for foreign ownership before purchasing.
• Residence Permit: Foreigners who buy property in Turkey may be eligible for a residence permit based on the property’s value. As of 2022, foreigners purchasing property worth at least 400,000 USD may have the right to apply for Turkish citizenship.
• Payment in Foreign Currency: Foreigners must make payments for property purchases in foreign currency. This transaction is carried out through Turkish banks, and a receipt proving payment in foreign currency is obtained.

3. Contract Stage

The contract is a critical document that outlines the rights and obligations of both parties in the property purchase process. Key considerations during this stage include:

• Sale Agreement: The sale agreement is a written contract between the buyer and the seller. This agreement includes details such as the sale price, payment terms, transfer date, and other important aspects. Having the agreement notarized increases trust between parties and ensures its legal validity.
• Payment Terms: The payment terms specified in the contract are crucial for the smooth progress of the purchase. If paying in full, the timing and method of payment should be clearly stated. In the case of financing, the agreement and payment plan with the bank should also be included in the contract.

4. Title Deed Transactions

Title deed transactions are among the most critical steps in the property purchasing process in Turkey. The title deed officially registers your ownership of the property. Key considerations during this stage include:

• Application at the Land Registry Office: The title deed transfer is carried out by the Land Registry Offices under the General Directorate of Land Registry and Cadastre. The seller and buyer must apply to the Land Registry Office with the required documents.
• Required Documents: Documents required for title deed transactions include identity documents, the sale agreement, a copy of the title deed, an appraisal report showing the property’s value, and the DASK (Compulsory Earthquake Insurance) policy.
• Title Deed Fee and Taxes: A title deed fee must be paid during the property purchase. The fee is 4% of the property’s sale price and is usually split equally between the buyer and the seller. Additionally, real estate tax must be paid to the municipality where the property is located.
• Title Deed Transfer: After applying to the Land Registry Office and submitting all documents, an appointment is scheduled for the buyer and seller. At this appointment, the title deed transfer is completed, and ownership of the property is officially transferred to the buyer.

5. Post-Purchase Procedures

After purchasing property, some legal procedures need to be completed:

• Municipal Notification: After buying property, the new owner must notify the municipality where the property is located. This notification is required for real estate tax registration.
• Occupancy Permit: When purchasing a newly built property, an occupancy permit must be obtained. The occupancy permit confirms that the building complies with all legal requirements and is ready for habitation.
• Insurance: The property owner should secure insurance to protect the property from natural disasters. In addition to the compulsory DASK insurance, additional insurance for risks such as fire and theft can also be obtained.

The process of purchasing property in Turkey requires following specific legal procedures. Having accurate information and seeking expert assistance ensures that your investment is safe and smooth. By being attentive to title deed procedures, contract details, and special rules for foreigners, you can ensure that your investment remains profitable and secure in the long term.