Guide to buying a property in Turkey
- Once you have decided on your property purchase, Prime Property Solutions (PPS) will agree the sale with the seller, confirm the sale price and agree deposit and payment terms. A Reservation Agreement will be prepared and the agreed reservation deposit paid.
- Appoint a Solicitor - PPS recommends you appoint an English speaking solicitor based in Bodrum. We can introduce you to one of our regularly used solicitors or you can appoint one of your own choosing. Your appointed solicitor will draw up contracts, check the Title Deeds and prepare all paperwork and manage the payments required to complete your purchase.
- Obtain a Tax Number - You need a Turkish Tax Number to open a bank account and purchase a property in Turkey. PPS/your Solicitor will assist you with this. You will need your original and a photocopy of your passport.
- Open a Bank Account - To open the account you need a Turkish Tax number, your Passport and Proof of Address in your country of residence e.g. driving licence or a utility bill less than 3 months old. PPS will assist you to open a bank account.
- Notery. A notarised Turkish translation of your passport is required for your purchase. PPS or your Solicitor will assist you with this. Power of Attorney - If you are not able to be present in Turkey at each stage of the purchase process, then you should appoint your Solicitor to act on your behalf. Where possible, the Power of Attorney should be arranged in Turkey before you return back to your country as it is costly and time consuming to arrange from overseas. The Power of Attorney is completed at a Noter’s Office and you must have an official Translator present to explain the contents of the document in your own language. The cost for the Power of Attorney varies according to the services you wish your appointee to act for on your behalf. You will need to take your passport and 4 passport size photographs. PPS/your solicitor will assist you.
- Military Permission - In Turkey, all foreign purchasers are obliged to acquire military clearance from the Aegean Headquarters before the title deeds can be transferred to an individual’s name. These checks control that the real estate being purchased is not in a military sensitive area. Your Solicitor will assist the vendor in the collection and submission of the relevant documents and control the application. The application can take 3-6 months to complete. It is normal for the Seller to ask for full payment or stage payments from the Buyer before the transfer of the Title Deeds. To protect your money, a Hypothec can be placed on the title deeds at the Land Registry Office. This protects the money you have paid and ensures that the property cannot be sold to a third party without your money being refunded and a pre-agreed penalty being paid by the Seller to the Buyer. Your Solicitor will manage this on your behalf.
- Transfer of Title Deeds (TAPU) - Once Military permission has been granted, your Solicitor will arrange for the Title Deeds (TAPU) of the property to be transferred to your name. You do not need to be present if you have appointed your Solicitor as your Power of Attorney. Turkish law requires you to purchase Earthquake Insurance (DASK) and also to pay the necessary purchase taxes (Stamp Duty).
Once your purchase has been completed, you should:-
- Register your ownership with the local Municipality (council) in order to pay the annual property tax. (Approx. 0.1%)
- Register Electricity and Water in your own name
- Arrange Home Insurance
Fees & Charges (please note, all fees & charges are provided as a guide and are subject to change without notice)
Agency Fees – 3% of the Purchase Price
Solicitor Fees – £1000 + VAT
Passport Translation - TL 70
Power of Attorney – TL 300-500
Hypothec – 1.2% of the amount being protected (purchase price plus any agreed penalty) + TL135 Land Registry Fee
Purchase Tax (transfer of Title Deeds) – 3.3% of the purchase price or declared value + TL135 fee
Contingency / Misc fees & taxes - £200
Military Application – Allow TL 300 for completion of the maps required, plus the Municipality fee shown on the table below.
Friday 24 February 2012
Copyright © 2005 Prime Property Solutions, All rights reserved.