LEGAL POINTS TO WATCH WHEN BUYING PROPERTY IN TURKEY AND HOW TO PREVENT FRAUD

WHAT BASIC CHECKS SHOULD BE CARRIED OUT BEFORE BUYING PROPERTY IN TURKEY?

In a real estate investment in Turkey, the following four basic parameters must be verified at the same time before moving on to the sales contract or deposit (earnest money) stage:

• Land registry record: Owner/co-owner details, type of ownership, block/parcel, land share, the nature of the registration and the rules on independent units.
• Encumbrances and restrictions on disposal: Real and personal rights over the property, together with public law obstacles.
• Zoning and administrative permit status: The zoning plan, the building permit and the occupancy permit (iskân).
• Actual and legal conformity: An exact match between the approved architectural project and the actual use on site.

1. The Land Registry Record of the Property Must Be Examined in Turkey.

The examination of the land registry record, which forms the most basic pillar of the legal review under real estate law in Turkey (due diligence), is the supervision mechanism offering the lowest cost and the highest legal protection when it comes to identifying risks at the very outset. The first checkpoint for the data and the legal status of the property is directly the land register and its supporting documents.

The principle of publicity of the land registry laid down under Article 1020 of the Turkish Civil Code (TCC) forms the legal basis on which real and personal rights over a property may be asserted against third parties

TCC Art. 1020 — Publicity of the Land Registry (the Principle of Publicity):

The land registry is open to everyone. Anyone who can make his interest credible may ask for the relevant page of the land register and the relevant documents to be shown to him in the presence of the land registry officer, or for copies of them to be given to him. No one may claim not to have known of an entry in the land registry.

Under the rule that no excuse of ignorance is accepted, which takes concrete form in the last sentence of the article, the buyer is treated as acting on the presumption that he knows the restrictions in the record, even if he has not examined the land register and the underlying documents.

A buyer who does not examine the land registry record in detail loses from the outset the right to claim good faith under TCC Art. 1023 in Turkey and is deemed to have taken over the property while accepting all mortgage, attachment, annotation and declaration obligations in the register. This makes a complete examination of the land register a legal necessity before registration.

The main points that must be examined first in the land register so that risks are correctly identified during the land registry record check and ownership can be taken over safely are as follows:

2. The Encumbrance Record of the Property Must Be Examined in Turkey.

Under the standards of the General Directorate of Land Registry and Cadastre (TKGM), encumbrance is the general name given to the annotations, declarations, easement rights, real property charges and pledges (mortgages) that restrict the right of ownership.

Under Turkish law, before the property is taken over, the “Annotations”, “Declarations” and “Rights and Facilities” columns of the land register must be analysed in full.

The basic types of encumbrance in the land register in Turkey are as follows:

• Entries limiting or preventing the power of disposal:
  • Interim injunction and bankruptcy annotation: These directly prevent the transfer and assignment of the property; no official sale transaction can be carried out until such an annotation is removed.
  • Family residence annotation (TCC Art. 194): In Turkey this invalidates sale transactions carried out without the express consent of the other spouse and makes them the subject of a title deed cancellation and registration case.
• Restrictions on real and personal rights:
  • Mortgage, attachment and interim attachment: Although such a charge on the property does not prevent its transfer, the buyer takes over ownership while remaining liable for the debt with the property. There is a risk that the property will be sold through enforced execution as a result of enforcement proceedings.
  • Usufruct and right of residence: Even if ownership is transferred, the right holder’s right to use and benefit from the property continues.
  • Annotations of personal rights (promise to sell, purchase, repurchase, pre-emption): These annotations, which may be asserted against third parties, may invalidate the buyer’s right of ownership or lead to the property taken over being claimed back.
• Restrictions and declarations arising from public law:
  • Application of Art. 18 of the Zoning Law / expropriation annotation: This shows the risks of transfer to the public, loss of area or expropriation without compensation.
  • Conservation area / military prohibited zone declarations: In Turkey these restrict the right to build on and use the property from an administrative point of view.

The existence of an encumbrance as a land registry entry does not mean in every case that the property cannot be sold. For example, the transfer of mortgaged immovable property is legally possible in Turkey; however, since the legal consequences of the mortgage may continue, it must always be assessed which encumbrances the buyer will take the property over with. In particular, before the sale it must be checked at the Land Registry Office whether there is an interim injunction prohibiting transfer or a similar restriction on disposal over the property, taking into account the provisions of the Turkish Personal Data Protection Law as well.

3. The Property Type on the Title Deed Must Be Investigated in Turkey.

The official land registry entry in the “property type” (vasıf/cins) box is the constitutive element that directly determines whether a building may lawfully be put up on the property, whether the real estate may be used as security for finance (a bank loan) and which special statutory regime will apply in disputes under Turkish law.

• Building plot: In Turkey this is a property that lies within the boundaries of the zoning plan, whose subdivision procedures have been completed and which has been made suitable for construction in accordance with the legislation.
• Farmland: In Turkey this is a property in the nature of land that falls outside the zoning plan and is essentially allocated to agricultural production. It is subject to the provisions of the Soil Protection and Land Use Law No. 5403; restrictions on minimum indivisible size and on division into shares apply.
• Dwelling: This is an independent unit allocated for use as accommodation/housing in the approved architectural project and in the land register.

Legal diagnosis and warning about unlicensed buildings:

Where the land registry record of a property that actually has a building or a house on it still says “farmland” or “vineyard/garden”, this is a presumption that the structure on site conflicts with the zoning legislation and is unlicensed (illegal) or has no occupancy permit (iskân). Buildings whose type has not been registered on the title deed carry the risks of administrative demolition and fines in Turkey.

4. The Zoning Status of the Property Must Be Established in Turkey.

Under Turkish law, registration in the land register does not on its own guarantee that the property may be used without limit in the way shown in the record. For this reason, before the sale the current zoning status and the administrative archive file (the concession and permit file) must always be checked with the municipality or provincial special administration (the competent authority) to which the property belongs.

In line with the standards of the General Directorate of Land Registry and Cadastre (TKGM), it is a legal requirement that checks on the occupancy permit (iskân) and the approved architectural project be carried out exclusively through the competent municipality where the property is located, and, in places outside the adjacent area, through the archive records of the provincial special administration.

5. The Parcel and Cadastral Details of the Property Must Be Checked in Turkey.

An exact match between the actual situation on site and the block, parcel, surface area and boundary data in the property’s land registry record is the basic condition of legal security of ownership in Turkish real estate law. Inconsistencies between the data on the title deed and the actual boundaries of the land lead to a breach of the right of ownership and to serious boundary disputes. Particularly for properties in the nature of building plots and farmland:

• Verification of parcel boundaries and location: The boundaries of the land put up for sale must match its position on the sheet held by the Cadastre Directorate. In purchases of land and building plots, it is compulsory to overlay the site survey with the data of the Spatial Real Estate System (MEGSİP).
• Differences in surface area and square metres: It must be checked that the surface area in the land register is equal to the area actually enclosed by a fence, a wall or wire. Shortfalls in surface area give rise to defective performance under the law of obligations.
• Cadastral road and right of access: Under Turkish law it must be checked whether the property has a frontage on an official cadastral road. For parcels with no road frontage it is impossible to obtain a construction permit, and this creates legal dependencies that require a right of way case (TCC Art. 747) to be brought.
• Subdivision and consolidation status: It must be checked whether the parcel has been subject to a valid subdivision or consolidation procedure under Arts. 15 and 16 of Zoning Law No. 3194, and the restrictions on minimum agricultural land size under Law No. 5403 must be examined.
• Encroaching buildings and boundary breaches: In Turkey it must be established from the setting-out sketch whether neighbouring parcels encroach (overhang) onto the property, or the property onto neighbouring parcels.

If there is a suspicion of a dispute or a technical boundary problem concerning the property, the land registry record alone is not enough and the cadastral records, the relevant administrative files and, where necessary, technical measurements must also be examined under Turkish law.

6. The Building Permit, Occupancy Permit and Project Conformity of the Real Estate Must Be Examined in Detail in Turkey.

In Turkey, the most critical stage of legal examination in the purchase and sale of a property with a building on it is investigating whether the building has a building permit and an occupancy permit (iskân), and whether the actual situation on site matches the approved architectural project exactly.

a- Checking the Building Permit in Turkey

• Existence and validity of the building permit: In Turkey, under Art. 21 of Zoning Law No. 3194, for buildings begun without a permit, and under Art. 29 for buildings not begun within two years of the date of the permit or not completed within five years including the starting period, the permit becomes void and the building falls into the status of an unlicensed (illegal) building.
• Occupancy permit (iskân): This is the official administrative document showing that the building has been completed in accordance with its approved architectural project and with the rules of science and craft.
• Conformity with the architectural project and unlicensed additions: The net/gross square metres of the independent unit, enclosed balconies, roof/basement floors added to the unit, flats merged together and breaches of common areas must all be checked.
• Breaches of common areas and annexes: Using common areas such as the shelter, the car park, the plant room or the garden by including them in an independent unit gives rise to zoning pollution.
• Administrative sanctions and zoning penalties: It is compulsory to establish from the archive file whether a demolition decision (Art. 32) or an administrative fine (Art. 42) has been imposed on the property by the municipal executive committee.

Warning about construction servitude:

The fact that a “construction servitude” has been established in the land register does not guarantee that the building lawfully has an occupancy permit or that it was built entirely in accordance with the project. A construction servitude is only a servitude right attached to the land share over the building to be constructed; the only legal proof that the building was completed in accordance with the zoning rules in Turkey is the occupancy permit.

b- Checking the Occupancy Permit (İskân) in Turkey

The occupancy permit (iskân) is the administrative document showing that a building whose construction was begun after a building permit was obtained has been completed in accordance with its approved architectural project, with the rules of science and craft, and with the zoning legislation and the annexes to the permit. Under Article 30 of Zoning Law No. 3194, it is compulsory to obtain this document from the relevant municipality or governor’s office before the completed parts of the building, or the building as a whole, may be used.

When buying and selling property in Turkey, the existence and legal validity of the occupancy permit must always be checked in the light of the following basic risks:

• Assurance of conformity with the project and the legislation: The fact that an occupancy permit has been issued means that the administration has confirmed that the building was constructed in accordance with the permit and the projects annexed to it. In buildings that have no occupancy permit (where only a construction servitude has been established), it is highly likely that there are additions that breach the permit, unlicensed storeys or departures from the approved project. This may leave the buyer facing unlicensed-building sanctions (a demolition decision or an administrative fine) at a later date.
• Transition to condominium ownership and security of the real right: Obtaining the occupancy permit is a legal condition for the property to be registered from the “construction servitude” stage in the “condominium ownership” register, which denotes ownership of an independent unit. Since in buildings without an occupancy permit ownership is still treated as being in the nature of a land share, risks arising from breaches of common areas or from zoning breaches by the other flat owners affect the buyer directly.
• Obstacles to utility connections and to the change of property type: In Turkey, under Art. 31 of the Zoning Law, buildings for which no occupancy permit has been obtained may not be given the benefit of electricity, water and sewerage services and facilities until permission is granted. In addition, the property type cannot be corrected for properties without an occupancy permit; this has a negative effect on the property’s market value, its creditworthiness and its future transferability.
• The difference between “a building with an occupancy permit” and “conformity with the architectural project”: The most critical point to watch in the examination is that the building having an occupancy permit may not mean that the independent unit bought is entirely free of problems. Zoning breaches carried out later, after the occupancy permit was obtained (adding the basement to a flat, extending the shelter or car park, enlarging the roof and so on), may lead to administrative action being taken over the independent unit bought. For this reason the occupancy permit must be verified by comparing the approved architectural project in the municipal archive with the actual situation on site.

7. For Unlicensed and Illegal Buildings the Building Registration Certificate Must Be Checked in Turkey.

The Building Registration Certificate is a legal arrangement under Turkish law that allows buildings constructed without a permit or in breach of the zoning legislation to be registered temporarily by the public administration. The greatest mistake often made in practice, however, is to assume that the existence of this document solves all the zoning, permit and ownership problems of the property.

In reality, the Building Registration Certificate only freezes the risks of administrative sanctions and demolition as between the owner and the public administration; it does not provide a legal shield against zoning breaches falling outside the scope of the document, against the rights of the other flat owners arising from private law, or against disputes under the law of neighbourly relations.

For this reason, before a property is bought under Turkish law, it is not enough to rely on the mere existence of a Building Registration Certificate: the area covered by the document and the breaches declared in it, obtained through e-Devlet, must be carefully compared with the actual situation of the property on site.

a. What Should Be Watched for in Properties with a Building Registration Certificate in Turkey?

The Building Registration Certificate issued under the zoning amnesty is a document allowing buildings that are unlicensed or that breach the permit and its annexes to be registered temporarily by the administration. However, the existence of this document for a property in Turkey does not mean that the legal risks have disappeared entirely:

• Checking the scope and the declaration: Under Turkish law, a building registration certificate provides administrative protection only for the breaches expressly declared in the document. For breaches not included in the document, carried out later or wrongly declared, treatment as an illegal building continues and a risk of administrative sanctions/demolition arises.
• Private law disputes (the rights of the flat owners): A building registration certificate governs the legal relationship between the administration and the owner. It does not remove the actions to prevent interference and actions for restoration to the previous state that the other flat owners may bring because of interference with common areas, occupation of the shelter or car park, or breaches of the architectural project.
• Comparison of the actual situation with the document: The statement “there is a Building Registration Certificate” alone should not be relied on; the measurements and description of the breach annexed to the document must be compared exactly, through e-Devlet or the system, with the actual situation of the property on site.

b. Does a Building Registration Certificate Take the Place of an Occupancy Permit in Turkey?

In legal terms, under Turkish law a Building Registration Certificate does not fully take the place of an occupancy permit.

• Limited protection: The document temporarily stops the building being demolished or an administrative fine being imposed; it allows water, electricity and natural gas to be connected to the building on a temporary basis.
• Change of property type and condominium ownership: After a Building Registration Certificate has been obtained, the transition to condominium ownership (change of property type) also requires the consent of all the flat owners, a revision of the architectural project and compliance with the other technical conditions in the zoning legislation. Submitting the document on its own does not automatically bring about condominium ownership.

8. The Construction Servitude and Condominium Ownership Status of the Property Must Be Checked in Turkey.

When buying a home in Turkey, it must always be checked whether the property is held under a construction servitude or under condominium ownership.

In properties held under a construction servitude, in particular;

• whether the building has been completed,
• whether there is an occupancy permit,
• whether the position of the independent unit in the project matches the actual situation,
• the nature of the land share,
• the conformity of the common areas and annexes with the project

must be investigated in Turkey.

Under Turkish law, the fact that condominium ownership has not been established does not on its own mean that the property is legally problematic. However, investigating why condominium ownership was not established matters for identifying the legal and practical risks the buyer may face later on.

9. The Management Plan and the Records on the Use of the Property Must Be Examined in Turkey.

When an independent unit is bought in a housing estate or an apartment building where condominium ownership or a construction servitude has been established, the management plan (Condominium Law Art. 28) must always be examined from the approved file in the Land Registry Office archive.

The management plan is an official contract governing the way the main property is managed and the purpose and manner of its use, together with the rights and obligations of the flat owners, and under Turkish law it directly binds all the flat owners and their successors (the new buyers).

The main points that must be examined in the management plan are as follows:

• Restrictions on the purpose of use: It must be checked whether the independent unit may be used as a dwelling (housing) or as business premises (an office, a surgery, a nursery, a lawyer’s office and so on), and whether there is a bar on short-term letting (Airbnb and the like).
• Allocation of common areas and annexes: It must be checked which independent units have been given areas such as the car park, storage, terrace or garden by way of a right of exclusive allocation, and which of them are subject to the common use of all the flat owners.
• Rules on sharing service charges and common expenses: In Turkey it must be examined whether the common expenses (security, landscaping, pool, cleaning, heating) are to be shared in proportion to the land share or equally (Condominium Law Art. 20).
• Ban on keeping pets: Under the case law of the Turkish courts, provisions banning the keeping of pets in the management plan are binding, and a breach may become the subject of eviction cases in Turkey.
• Special rights granted to the contractor and the developer: Provisions granting the landowner, the developer or the founding management of the estate privileged votes, the right to put up advertisements/signboards or rights concerning how long they remain in the management must be examined.

10. The Tax and Property Tax Position of the Real Estate Must Be Investigated in Turkey.

Whether there is any outstanding debt on the property in terms of property tax must be checked before the sale. Under Art. 30 of Property Tax Law No. 1319, subject to certain exceptions, immovable property and land with an outstanding property tax debt may not be transferred or conveyed. Land registry offices are also able to query property tax debts through the electronic system.

For this reason, before the sale;

• property tax debts,
• unpaid public obligations relating to the property,
• financial records that could prevent the sale from being carried out

must be checked.

The property tax value is not the same concept as the actual market sale price of the property under Turkish law. The property tax value is one of the values taken as the basis for certain tax calculations in land registry transactions. According to the current guidance of the General Directorate of Land Registry and Cadastre, the value declared for the sale may not be lower than the property tax value under the relevant legislation.

That said, showing the actual sale price as lower than it is at the land registry in Turkey may give rise to legal (a pre-emption case and, in cases of removing assets from an estate, inheritance cases, among others) and tax risks. For this reason the sale price declared at the land registry must match the actual transaction price.

11. It Must Be Investigated Whether There Is Any Official Restriction on the Property in Turkey.

The most dangerous misconception in property purchase and sale processes in Turkey is to think that a clean land registry record alone will protect the buyer from every legal risk. In fact, many restrictions arising from the zoning legislation, environmental laws, urban regeneration rules and public law may not appear directly as an annotation or a declaration in the land registry record.

For this reason, depending on the situation of the property, the necessary checks must be carried out with the municipality, the relevant public bodies and the other competent authorities in terms of;

• zoning applications,
• the building permit,
• the occupancy permit,
• the building registration certificate,
• public restrictions,
• risky building or regeneration processes

in Turkey.

A clean land registry record alone does not mean that the property has been cleared of every legal risk.

12. The Actual (On-Site) Condition of the Property Must Be Checked in Turkey.

Even where the land registry records and the zoning documents look legally clean, physical examinations carried out on the immovable property itself prevent serious legal liabilities and costs that could otherwise be missed under Turkish law. Inconsistencies between the actual condition of the property and its legal records may turn into the buyer’s direct liability after the purchase.

a. What Does It Mean if There Is a Tenant or an Occupier in the Property in Turkey?

Before the property is bought, it must be established in person on site whether a third party (a tenant, an unlawful occupier, the former owner) is present in it:

• The position of an existing tenant (TCO Art. 310): Under the Turkish Code of Obligations, a buyer who subsequently acquires the leased property becomes a direct party to the lease agreement. If there is a tenant in the home that is bought in Turkey, the tenant cannot be evicted immediately even though the owner has changed.
• Eviction on grounds of need (TCO Art. 351): If the buyer wishes to remove the tenant because of a need for housing or business premises, he must notify the tenant of the position in writing within 1 (one) month of the date of acquisition and bring a case 6 (six) months after the acquisition. If this notification has not been given, the right is not lost entirely; the buyer may also assert the same need through a case brought within one month of the end of the contract period.
• Checking the lease agreement and the undertaking to vacate: Before the sale, the term of the existing lease agreement, the position on the deposit and whether there is a valid undertaking to vacate must be examined; if necessary, a condition that the seller will evict the tenant should be added to the sale protocol.
• Unlawful occupier: If there are people living in the property without any legal basis, it must be borne in mind that compensation for unlawful occupation (ecrimisil) and prevention of interference and eviction proceedings will have to be pursued in order to remove them.

b. How Are Breaches of the Project, Illegal Building Work and the Risk of Demolition Identified in Turkey?

In the physical examination it must be checked, before the Turkish authorities, whether the property matches exactly the licensed architectural project approved by the competent authority (the municipality / the provincial special administration):

• Demolition and additions that breach the project: Under Turkish law, interventions carried out later inside or outside the independent unit, such as cutting load-bearing columns or shear walls, adding a balcony to the living room, merging roof spaces, closing off gallery voids, or including annexe/shelter areas not shown in the project in the flat, must be examined.
• Zoning fines and demolition decisions (Arts. 32 and 42 of the Zoning Law): Where unlicensed works that breach the project are identified in Turkey, the municipality issues a record of breach of the permit (a building suspension report). The demolition decisions and administrative fines imposed so that these breaches are put right give rise to administrative and financial processes that the new owner will have to deal with directly.
• The risk to condominium ownership and breach of common areas: Including common areas (the garden, the roof, the car park, the coal store) in a single independent unit in a way that breaches the architectural project registered in the condominium ownership register and the land share leads the other flat owners to bring an action for restoration to the previous state (prevention of interference).

13. A Legal Review Must Be Carried Out Before the Real Estate Sales Contract Is Signed in Turkey.

The safest method under Turkish law is to complete the legal examination of the property before the sales contract, the deposit or a high advance payment.

The buyer should in particular clarify the answers to the following questions before making a payment or a binding undertaking:

• Is the seller really the owner, or authorised to sell in Turkey?
• Is there a mortgage, an attachment, an injunction or another encumbrance in the land registry record?
• Does the property type on the title deed match the actual situation?
• Is there a building permit and an occupancy permit?
• Does the building conform to the approved project?
• What is the construction servitude or condominium ownership status?
• What is the zoning status of the property in Turkey?
• Is there any property tax debt?
• Are the sale price and the payment plan expressly set out in the contract?
• Has it been settled when and on what conditions the property will be handed over?

Paying a deposit or a substantial part of the sale price without these checks may increase the buyer’s legal and financial risk under Turkish law.

SHOULD A SALES CONTRACT BE SIGNED WHEN BUYING REAL ESTATE IN TURKEY?

One of the most common mistakes in a property purchase in Turkey and in sale processes is for the parties to assume that “sales contracts” made between themselves, or with their signatures certified by a notary public, transfer ownership or mean that they have definitively bought the property.

The legal answer to this question has two stages: ordinary written contracts made between the parties do not transfer ownership; but a “promise-to-sell agreement” made in due form makes the process legally binding.

• Why Is a Property Sales Contract Made at the Land Registry Office in Turkey?

In Turkish law, the transfer of ownership of immovable property and the formal requirement are governed by mandatory statutory provisions:

1. Requirement of official form (TCO Art. 237 / TCC Art. 706): For every contract aimed at transferring ownership of immovable property to be valid, it must be made in official form. In a property sale, the authority empowered to complete the official form is the Land Registry Office.
2. Legal effect of registration (TCC Art. 705): Ownership is acquired by signing the official deed drawn up ex officio before the Land Registry Officer and by the registration made in the land register.
3. Trust in the land registry: The requirement of official form protects the publicity and reliability of the land registry. Legal certainty and the protection of third parties acting in good faith (TCC Art. 1023) are possible only if registration rests on official transactions.

• Is a Private Real Estate Sales Contract Valid in Turkey?

A sales contract signed between the parties, certified by a notary public or drawn up before witnesses, however detailed it may be, does not transfer ownership under Turkish law and does not form a basis for a request for registration.

As a rule, the return of a payment made under an invalid contract may be claimed under the rules on unjust enrichment. However, this route does not give the buyer the right to demand transfer of the property; it only provides an opportunity to recover the price paid. In periods when prices rise quickly, the difference between these two outcomes is decisive for the buyer.

Certification by a notary public and execution before a notary public are different transactions in Turkish law. A mistake buyers often make is to think that having an ordinary written contract certified by a notary public meets the requirement of official form. Certification only establishes whose signature it is; it does not make the content of the contract valid.

• When Is a Real Estate Promise-to-Sell Agreement Made in Turkey?

A property promise-to-sell agreement is a preliminary contract under which the parties undertake to make a property sales contract in the future. Under Turkish law it must be executed before a notary public.

A preliminary sales contract is preferred in the following cases:

1. In sales where the price is to be paid in instalments and the transfer is to be left to a later date.
2. In transactions where completion of the loan process is awaited.
3. Where there are steps to be completed before the transfer, such as release of a mortgage or transfer of an inheritance.
4. In off-plan property purchases.

Details concerning how the contract is structured are assessed under Turkish contract law.

• What Happens if the Promise-to-Sell Agreement Is Not Annotated on the Title Deed in Turkey?

A promise-to-sell agreement that has not been annotated creates a personal right only under Turkish law. If the promisor transfers the property to a third party, the transferee who relies on the land registry in good faith is protected and the buyer’s request for registration comes to nothing. The only remaining option is a claim for damages.

A promise to sell annotated on the title deed, on the other hand, may also be asserted against subsequent owners. The effect of the annotation is not unlimited in time: Under Art. 26 of the Land Registry Law, if no sale is made within five years of the annotation, or no easement right is established and registered on the title deed, the annotation is struck out ex officio by the land registry officers.

WHAT HAPPENS IF THE SALE PRICE IS PAID IN CASH IN A HOME SALE IN TURKEY?

Paying the price in cash (by hand) rather than through banking channels in property purchase and sale processes gives rise to legal, financial and tax risks that cannot be undone for both the buyer and the seller in Turkey.

Under the general communiqués of the Tax Procedure Law, collections and payments exceeding TRY 7,000 must be made through a bank, a payment institution or the PTT and must be documented. This requirement applies to transactions to which taxpayers within the scope of the documentation rules (traders, self-employed professionals, contractors, capital companies, real estate businesses and so on) are a party; sales made between two individuals who are not taxpayers fall outside the scope whatever the amount.

1. What Risks Does Cash Payment Create in Terms of Proof in Turkey?

In Turkey, where payments are made in cash, the buyer’s only support is a private “receipt” or a “contract text” signed by the seller. In the event of a dispute, however, these documents create serious legal weaknesses:

• Burden of proof and counter-allegations: Despite the receipt for the money taken in cash, the seller may raise objections at the trial stage such as “The payment was not for the title deed sale but for another debt relationship between us” or “That is not my signature”.
• The conclusive evidential value of an annotated bank receipt: In transfers/EFT transactions made through a bank, where the buyer adds the wording “This is the sale price of the independent unit no. …, block …, parcel …, … district, province of İstanbul” to the explanation part of the receipt, the purpose, date and recipient of the payment are proved beyond dispute by conclusive evidence under the Code of Civil Procedure.

2. Why Does the Timing of Payment of the Sale Price Matter in Turkey?

Where payments are made in cash, an unavoidable time gap arises between the moment of payment and the moment ownership is transferred at the land registry:

• Cash payment before the transfer: Under Turkish law, a buyer who hands over the money in cash has to deal with lengthy legal proceedings to recover it if the seller does not attend the land registry office or refuses to sign.
• Cash payment after the transfer: A seller who transfers ownership at the land registry faces the risk of the buyer avoiding payment if he signs before receiving the cash.

3. Does Cash Payment Create a Risk of Tax and Administrative Sanctions in Turkey?

Making the payment in cash in a property purchase and sale is not confined to a dispute between the parties; it also leads to sanctions in Turkey in terms of public law and the tax legislation:

WHAT IS THE SECURE PAYMENT SYSTEM IN A PROPERTY SALE IN TURKEY?

The mechanism that completely removes the financial risks arising from the time gap between payment and the transfer of ownership in property purchase and sale processes in Turkey is called the simultaneous payment system (Secure Payment System).

By the Amendment to the Regulation on Real Estate Trade (Additional Article 1) published in the Official Gazette No. 33238 of 29 April 2026, use of the simultaneous payment system has been made compulsory for payments of the sale price made in cash, by transfer or by EFT. Under the announcement of the Ministry of Trade dated 26 June 2026, this requirement will enter into force on 1 October 2026.

1. How Does the Land Registry Secure Payment System Work in Turkey?

The system is based on a clearing (escrow) infrastructure that guarantees that the sale price and the land registry registration in Turkey change hands at the same time (simultaneously):

• Securing the price: The sale price is transferred not directly into the seller’s personal account but into a neutral blocked account operating through integration between the General Directorate of Land Registry and Cadastre (TKGM) and authorised banks/financial institutions.
• Automatic transfer on registration: The moment the official registration takes place at the land registry office, the system receives an automatic notification and the blocked amount passes immediately into the seller’s account.
• Refund if the sale is cancelled: If for any reason the sale does not go through, one of the parties withdraws or the transaction is cancelled, the blocked money is refunded directly into the buyer’s account.

2. What Should Be Watched for in the Secure Payment System in Turkey?

The leading legal and operational details of the framework introduced by Additional Article 1 of the Regulation are as follows:

• Service / usage fee: A standard usage fee is charged for every transaction carried out through the system. This amount is deducted automatically from the total sum to be transferred to the seller once registration is completed.
• The position of sales with a loan (exception): The exception is limited to the amount financed by a bank or a financing company. Payments outside the loan, including the down payment, fall within the requirement. For the financed part, the mortgage and payment security continue to be provided (contractually) through the banks’ existing blocking and mortgage procedures.
• The relationship between substantive law and official form: Use of the secure payment system is a procedural and financial security rule. The validity of the sale as a matter of private law still arises, under TCC Art. 706 and TCO Art. 237, on the signing of the official deed before the Land Registry Office.

3. How Does the Secure Payment System Protect the Buyer and the Seller in Turkey?

• Eliminating the time-gap risk: In Turkey, the possibilities of paying and not receiving the title deed (the buyer’s risk) or transferring the title deed and not collecting the money (the seller’s risk) are made technically impossible.
• The risk of counterfeit money and of theft or loss: By removing the need to carry cash by hand, it prevents physical security risks and the dangers of counterfeit banknotes and robbery.
• Certainty of proof: Because all movement of money is recorded through an integration under state control in Turkey, legal disputes and objections that could later arise as to whether payment was made are prevented.

IS A DEPOSIT BINDING IN A PROPERTY PURCHASE OR SALE IN TURKEY?

Payments known in everyday language as “kapora” have different legal characters in the Turkish legal system according to the purpose for which they are used and the way the parties have agreed. Under the basic rule of property law in Turkey, however, the fact that a deposit has been paid does not give the buyer the right to demand ownership of the property or its transfer.

Turkish Code of Obligations Art. 177 — Earnest money

“A sum of money given by a person when a contract is made is deemed to have been given not as forfeit money but as proof that the contract was made. Unless there is a contract or a local custom to the contrary, earnest money is deducted from the principal claim.”

1- Why Does a Deposit Alone Not Guarantee the Sale in a Property Sale in Turkey?

One of the biggest legal mistakes frequently made in the market in Turkey is the mistaken belief that the deposit given to the seller or to the real estate agent, or the ordinary written receipt signed, legally guarantees the sale of the property. Under the Turkish Code of Obligations (TCO Art. 237) and the Turkish Civil Code (TCC Art. 706), the validity of contracts aimed at transferring ownership of immovable property depends on their being drawn up in official form:

• Property sales contract: This must be made exclusively before the Land Registry Office and in the presence of the official land registry officer.
• Property promise-to-sell agreement: This must be made exclusively before a notary public and by way of execution ex officio.

Oral agreements made openly or behind closed doors, handwritten contracts, messages, agent commission/deposit protocols or ordinary written “deposit receipts” do not take the place of a promise to sell or a sale of immovable property. Texts of this kind, made without complying with the formal requirement, are absolutely void under TCO Art. 12.

2- The Legal Nature of the Deposit in Turkey: Earnest Money or Forfeit Money?

There is no direct provision under the name “kapora” in the Turkish Code of Obligations; the payment made falls within two different legal institutions according to the purpose agreed:

Warning about the presumption:

If it is not written in the contract clearly and beyond doubt that the sum given is “forfeit money”, the sum paid is treated by law as earnest money under Art. 177/1 of the Turkish Code of Obligations.

3– In Which Cases Is a Deposit Refunded in Turkey?

Views current in the market such as “the deposit is always forfeited” or “the agent does not refund the deposit” have no legal basis. In the following cases, refunding the deposit given is a legal requirement under Turkish law:

Since a property sale agreement made in ordinary written form or orally is invalid, the deposit given rests on a legally invalid ground. The party who received the payment is obliged to refund this sum to the buyer under the rules on unjust enrichment (TCO Arts. 77 et seq.).

• • The contract being invalid for want of form: Since ordinary written sale agreements not made at the land registry or before a notary public are invalid, the sum paid is left without a legal basis. The party who received the payment is obliged to refund it in full under the principles of unjust enrichment (TCO Arts. 77 et seq.).
  • Fault on the seller’s part or serious defects in the property: In Turkey, where the buyer withdraws from the transaction because the legal examination has revealed concealed encumbrances (an attachment, a mortgage, cancellation of the permit, a demolition decision and so on) over the property, the deposit must be refunded immediately.
  • Termination by consent (mutual agreement): Where the parties give up the sale by common intention, the earnest money is refunded to the buyer.
  • Conditional refund provisions in the contract: In Turkey, where the special conditions added to the preliminary protocol (for example, “if the property is not approved by the bank’s valuer or the loan is not granted, the down payment given will be refunded”) come about, the sum must be refunded.

Before a deposit or an advance payment is made in a property purchase in Turkey, the land registry and zoning checks on the property must be completed in full; and for what purpose the sum is being given (as earnest money or as forfeit money) and on what conditions it will be refunded must be clearly set out in a written protocol.

CAN THE AGENT TAKE A COMMISSION IF A HOME SALE IS CANCELLED IN TURKEY?

One of the biggest legal disputes between real estate businesses (property consultants) and the parties in property purchase and sale processes is whether the agent commission (brokerage fee) is payable where the sale does not go through for any reason or is cancelled afterwards. Under the provisions of the Turkish Code of Obligations (TCO) and the Regulation on Real Estate Trade, the conditions on which an estate agent becomes entitled to a fee are governed by clear rules.

• What Is the Legal Nature of the Contract Made with an Estate Agent in Turkey?

The relationship established with a real estate business is a brokerage contract within the meaning of the Turkish Code of Obligations:

Turkish Code of Obligations Art. 520 — Definition and form

“A brokerage contract is a contract by which the real estate broker undertakes to prepare the opportunity for a contract to be formed between the parties, or to act as an intermediary in its formation, and becomes entitled to a fee if that contract is formed.

As a rule, the provisions on agency apply to a brokerage contract.

A brokerage contract concerning property is not valid unless it is made in writing.”

The third paragraph of the article is critically important. In property brokerage under Turkish law, written form is not a condition of proof but a condition of validity. As a rule, intermediary activity carried out without a written contract does not form a basis for a claim to a fee, and this point is taken into account by the court of its own motion.

• In Which Situations Does a Real Estate Agent Become Entitled to a Commission in Turkey?

Under TCO Art. 521, the real estate broker’s entitlement to a fee depends on two basic conditions being met together:

1. Valid formation of the main contract: In a property sale, “formation of the main contract” means the drawing up of the official deed and the making of the registration before the Land Registry Office (or the making of an official sales commitment agreement before a notary public).
2. Causal link: In Turkey there must be a direct cause-and-effect relationship between the sales contract formed and the effort/intermediary activity of the estate agent.

• Is the Agent Commission Payable if the Property Sale Is Called Off in Turkey?

Under Turkish law, the legal consequences differ according to the reason the sale did not go through:

1. Automatic cancellation / invalidity of the contract (the rule): In Turkey, if the parties mutually give up making the title deed transfer, or the sale does not go through because of a third obstacle outside the estate agent’s control, the estate agent does not become entitled to a commission. Any deposit or advance paid is refunded.
2. A contrary contractual provision and a penalty clause: If the written brokerage contract contains a special provision such as “if one of the parties gives up the sale without good reason, he shall pay withdrawal compensation or the agent commission”, the party who wrongfully breaks the contract becomes liable to pay the contractual penalty.
3. Withdrawal contrary to the rule of good faith (abuse of right — TCC Art. 2): If the parties, in order to cut the estate agent out and avoid paying the commission, make the title deed transfer after agreeing privately between themselves with the very buyer/seller the estate agent introduced, the estate agent may, under the rule of good faith, recover the full commission fee through the courts.

• Does a Viewing Document Alone Create an Agent Commission in Turkey?

The viewing document (property viewing form) is an official legal text drawn up between the real estate business (the property consultant) and the prospective buyer/tenant, recording that the property was physically shown and presented to that person under Turkish legislation.

Under the Regulation on Real Estate Trade (Art. 19), it is compulsory under the legislation for real estate businesses to draw up this document for every property they show.

1. Not every signature creates an obligation to pay: A viewing document does not on its own compel the buyer to buy the real estate or to pay the estate agent a commission. The basic purpose of the document is to prove that the service was provided. The commission debt arises only and exclusively when the sale/letting transaction is officially completed. For a viewing document to be capable of creating a commission debt, or for a sanction to be applied where the estate agent is cut out, that document must contain the compulsory elements set out in Art. 19 of the Regulation on Real Estate Trade and must have been drawn up with the parties’ wet signature/approval.
2. The risk of cutting the estate agent out (TCC Art. 2): Where, after the document has been signed, the buyer cuts the real estate broker out and reaches agreement with the owner directly or through third parties, this is treated as a breach of the rule of good faith (abuse of right). In that case the estate agent proves the causal link with this document and recovers the contractual commission fee and the penalty in full through the courts.
3. Condition of validity: In Turkey, for the document to be legally binding, it must be drawn up in writing in accordance with the Regulation on Real Estate Trade and must contain the full address/title deed details of the property, the date and the parties’ wet/electronic signatures.

This point is resolved by assessing two basic articles of the Regulation on Real Estate Trade together:

1. The Importance of the Regulation for the Estate Agent’s Right to a Commission in Turkey

• Free viewing service (Regulation Art. 19): In Turkey, the property viewing service is provided by drawing up a property viewing form. The Regulation expressly requires: No price or fee may be requested from the buyer/tenant in return for the property viewing service.
• Where the estate agent is cut out (Regulation Art. 20): Where, within the term of the authorisation agreement, the property is bought or rented directly from the principal by cutting out (excluding) the business that drew up the property viewing form, the real estate business becomes entitled to the service fee (the commission).

2. Why Does It Matter Whether the Property Sale Goes Through in Turkey?

The twofold structure here is not a contradiction but a legal balance under Turkish law that prevents an abuse of right. What is decisive is not the act of showing the property but whether the sale or letting transaction went through and the estate agent’s role in that process:

Decision of the Assembly of Civil Chambers of the Court of Cassation (Case No. 2020/(13)3-339, Decision No. 2022/723, dated 24.05.2022)

A real estate business that has not brought about the sale does not become entitled to a fee merely because it showed the property or brought the parties together. Having a viewing document signed does not on its own create a claim to a commission; showing the property is a preparatory stage.

In its settled decisions, the Assembly of Civil Chambers of the Court of Cassation and the relevant civil chambers do not treat a viewing document on its own as a sale/commission contract. As long as the sale has not gone through, it is contrary to law for a real estate business to claim a fee merely because “it showed the home”.

WHAT SHOULD BE WATCHED FOR WHEN BUYING AN OFF-PLAN HOME IN TURKEY?

Buying a home off-plan or from a project (pre-paid housing sale) in Turkey is entirely different in character from sales of completed second-hand property. In this model the buyer takes on the financing of an independent unit that does not yet exist or is still under construction, and thereby directly assumes the risks of the developer (contractor) being unable to perform, of the construction stopping, of permit/zoning problems and of financial collapse.

• What Legal Risks Are There in an Off-Plan Property Purchase in Turkey?

1. Delay in delivery and stoppage of construction: Under Turkish law, the project not being delivered on time because the developer runs into liquidity problems or because of cost increases.
2. Work that breaches the contract and the project (incomplete/defective performance): Construction that departs from the quality of materials promised, the net/gross square metre measurements or the architectural project.
3. Failure to obtain the occupancy permit: Being unable to move to condominium ownership because of zoning breaches, social security debts or tax debts.
4. Lack of a guarantee and security: The buyer being unable to recover the sums paid in Turkey or to take over the title deed if the developer becomes insolvent.
5. Losses of land share and common areas: The annexes (car park, storage) and social facilities shown in the contract not being allocated to the independent unit.

• What Should Be Checked First When Buying an Off-Plan Home in Turkey?

In a pre-paid housing sale in Turkey, the building permit having been obtained is one of the basic checks. Under the consumer law regime, the pre-paid housing sales contract (Consumer Protection Law Arts. 40-46) is specifically governed and made subject to strict conditions protecting the consumer:

1. Requirement of a building permit (Consumer Protection Law Art. 40/3): A pre-paid housing sales contract cannot be formed with consumers before a building permit has been obtained. Sales contracts made without a permit are absolutely void for breach of mandatory law.
2. Requirement of official form (Consumer Protection Law Art. 41): Under Turkish law, the validity of a pre-paid housing sales contract depends on its being registered in the land registry or executed ex officio before a notary public. Ordinary written brochures or estate agent contracts are invalid.
3. Pre-contract information form: At least 1 (one) day before the contract is formed, the pre-contract information form covering all the details specified in the law and the regulation must be given to the consumer in writing or on a durable medium.

• How Long Is the Delivery Period in an Off-Plan Home Sale in Turkey?

In pre-paid housing sales contracts, the transfer or delivery period is at most 48 months from the date of the contract. Under the current guidance and legislative rules of the Ministry of Trade dated 5 March 2026, the maximum statutory period allowed to the developer is likewise applied as 48 months (4 years).

1. Freedom of contract and the lower limit: The seller and the consumer may agree on a shorter delivery period; but the delivery conditions set out in the contract must be expressly stated.
2. Mandatory upper limit: The parties may not agree by contract on a delivery period longer than 48 months; and even if they do, under the mandatory provision of the law the parts of the period exceeding 48 months are treated as invalid.
3. Ministry of Trade rules: The Ministry’s current guidance dated 5 March 2026 also states expressly that the maximum statutory period is 48 months.

Under Turkish law the parties may of their own free will agree a period shorter than the maximum of 48 months (for example 24 months or 36 months). The seller is bound to keep to the shorter period he undertook in the contract. The parties may not, however, put a delivery period longer than 48 months in the contract. Contract provisions exceeding the statutory upper limit are treated as invalid for breach of mandatory legislation.

• Is a Guarantee Compulsory in an Off-Plan Property Sale in Turkey?

In pre-paid housing projects under Turkish law, protecting the buyer’s advance payments and instalments against risk is critically important in terms of whether the money can be recovered if the project cannot be completed.

1. What Security Mechanisms Are There in an Off-Plan Purchase in Turkey?

Under the current Turkish commercial legislation and guidance of the Ministry of Trade, an obligation to provide security has been imposed on the seller (the developer) in pre-paid housing sales according to the size of the project:

• Projects with 30 or more homes (compulsory security): In projects with 30 or more homes in Turkey, it is a legal requirement that the seller provide at least one of the guarantee mechanisms specified in the law (building completion insurance, a bank letter of guarantee, the progress payment system and so on) before taking payment from the consumer.
• Projects with fewer than 30 homes: Although there is no obligation to provide these guarantees in projects with fewer than 30 homes, all the other protective provisions of the Consumer Protection Law (the requirement of official form, the maximum 48-month delivery period, the rights of withdrawal and rescission and so on) apply just the same.

2. What Security Methods Are Valid in Off-Plan Sales in Turkey?

In projects falling within the legal requirement under Turkish legislation, the seller is obliged to put one of the following guarantees in place:

1. Building completion insurance: Under Turkish law this is the most comprehensive guarantee, ensuring that where the contractor becomes insolvent, dies or cannot finish the project, the insurance company completes the project or refunds all the sums the consumer has paid with interest.
2. Bank letter of guarantee: This is a definite letter of guarantee issued by a bank against the risk of the seller being unable to perform.
3. Progress payment system: Under this method, the buyer’s payments are paid not directly into the contractor’s account but into an independent blocked account, and are released to the seller in stages according to the rate of completion (the stage of progress) of the construction.
4. Security through a linked loan: This is where the housing finance institution (the bank) provides the loan while acting as guarantor for completion of the project.

• How Should the Payment Plan Be Structured When Buying an Off-Plan Home in Turkey?

One of the biggest mistakes made when buying an off-plan home in Turkey is to tie the payment plan only to calendar dates. To avoid being left out of pocket if the construction stops or is delayed, the payment timetable should be tied to the stages of physical progress.

WHAT MEASURES SHOULD BE TAKEN TO GUARD AGAINST FRAUD WHEN BUYING A HOME IN TURKEY?

Attempted property frauds encountered in property purchase and sale processes, such as a forged power of attorney, unauthorised representation, a fake identity document, a forged title deed or an attempt to sell the same property to more than one person, may lead to legal and financial losses that are hard to undo in Turkey.

The basic rule when buying real estate in Turkey is not to be satisfied with believing the document produced but to confirm that the document is genuine through the official systems.

1. How Should Identity Documents and Papers Be Verified When Buying a Home in Turkey?

• Notarial confirmation in sales made under a power of attorney: In Turkey, if the transaction is being carried out through a representative, it must always be verified with the notary public who drew it up or through the portal/system of the Union of Turkish Notaries (TNB) whether the power of attorney contains a special authority to sell (a special authority given by stating the block, parcel and independent unit number) and whether the representative has been dismissed.
• Verifying the identity and owner details: It must be checked before the land registry officer at the moment of the official transaction that the photograph and identity details on the Turkish identity card produced by the seller match exactly the MERNİS and land registry records in the Land Registry Office system.
• Verification through Web-Tapu: The physical title deeds shown to the buyer may be forged or out of date. For this reason the current land registry entry, any restriction on the property (attachment, mortgage, usufruct and so on) and the owner details should be examined directly through the system of the General Directorate of Land Registry and Cadastre (TKGM), by asking the seller for the temporary authorisation code he can generate through the Web-Tapu system.

2. How Is the Money Transfer Made Safely When Buying Property in Turkey?

In Turkey, handing over the sale price in cash, taking a promissory note by hand, or transferring the money directly into personal bank accounts before the official registration creates losses that cannot be undone.

• Use of the Secure Payment System (Takasbank / bank integration): Paying the property sale price in cash, by a promissory note handed over, or by transfer/EFT directly into a personal account carries a great risk. The Secure Payment System operated in cooperation between the Ministry of Trade and the General Directorate of Land Registry and Cadastre should be preferred. The buyer transfers the sale price into the neutral blocked account created in the Secure Payment System. Once the official deed is signed at the Land Registry Office and the registration is completed, the money is transferred automatically into the seller’s account; if the sale does not go through, the money is refunded to the buyer.
• The explanation field in bank transfers: If the Secure Payment System is not used and a direct bank transfer is to be made (at the moment of signature), a clear and detailed wording such as “this is in respect of the sale price of [province/district, block, parcel, independent unit no.]” must be written in the explanation field of the receipt.

3. How Is the Legal and Actual Situation of the Property Cross-Checked in Turkey?

• Matching the actual boundaries with the land registry record: Whether the flat shown and the independent unit number transferred at the land registry, or the land, are the same place must be verified by a parcel query and an on-site check through the Cadastre Directorate or a Licensed Surveying and Cadastre Engineering Office (LİHKAB) (the risk of the wrong title deed / transfer of the wrong independent unit) under Turkish law.
• Possession by third parties: In Turkey, the property must be visited on site and checked for the presence of a tenant or an unlawful occupier; the existence of written lease agreements and undertakings to vacate must be examined in advance.

HOW IS A HOME SALE UNDER A FORGED POWER OF ATTORNEY PREVENTED IN TURKEY?

Property purchase and sale processes carried out under a power of attorney are sensitive legal transactions under Turkish law in which the risk of fraud is extremely high. Under the Land Registry Regulation, the land registry office is obliged to check the authority in registration requests made by a representative; but for the buyer to keep the status of a third party acting in good faith (TCC Art. 1023), it is essential that he show the necessary prudence and cross-check through official channels.

Verifying the power of attorney with the notary public is not enough on its own to prevent forgery in Turkey. Notarial confirmation on its own does not provide adequate legal protection. Even if the notary’s office confirms that the document was drawn up, the scope of the authority and whether the representative has been dismissed must be assessed separately.

• Notarial verification and confirmation by the Union of Turkish Notaries (TNB): The physical copy of the power of attorney alone should not be relied on; whether the document really was drawn up by the notary’s office concerned and whether it has been tampered with without authority must be confirmed through the portal of the Union of Turkish Notaries or by telephoning the notary who drew it up.
• Examining the special authority to sell (express authority): Immovable property cannot be sold under general powers of attorney or documents giving authority to administer or manage. The power of attorney must contain a special and express authority “to sell property, to receive and collect the sale price, and to sign the official deed at the land registry”.
• The element of identifiability (matching block/parcel): If the power of attorney has been given for a specific property, it must be checked whether the province, district, block, parcel and independent unit numbers appearing in the text match the land register exactly.
• Dismissal decision and currency query: In Turkey it must be investigated whether the authority under the power of attorney has come to an end through dismissal (revocation), resignation, death or legal incapacity. Since dismissal information may be entered into the system late, the position as at the day of the transaction must be checked.
• Checking the chain of authority (substitution): If the representative has transferred his authority to another third party (a sub-power of attorney / substitution), it must be examined whether the first power of attorney expressly contains the authority “to substitute, associate and dismiss another” and whether all the documents in the chain of authority are valid.
• TAKBİS and electronic verification: Under the practices of the General Directorate of Land Registry and Cadastre (TKGM), powers of attorney previously used at a land registry office and uploaded to TAKBİS with an electronic signature/securely can be retrieved and verified electronically through the system. Instead of physical photocopies, the buyer should ask for the transaction to proceed on the basis of the digital and verified record in the land registry system.

HOW CAN A FORGED TITLE DEED BE SPOTTED IN TURKEY?

Title deeds produced physically (a photocopy or a printed document) do not on their own prove the current legal situation of the property, whether there is an attachment/mortgage over it, or that ownership really belongs to that person under Turkish law. It must separately be verified whether the title deed is current, whether the owner details have changed and whether there is a mortgage, attachment, injunction, usufruct or another encumbrance over the property. Through the Web Tapu system, title deed owners can obtain a current title deed, a mortgage document and a copy of the land registry record; they can also grant authority for the property details to be examined by third parties.

1. 1. Querying with a Web-Tapu authorisation code: Instead of relying on the physical document, the latest position of the property should be viewed directly from the TKGM database using the temporary authorisation code the seller can generate through Web-Tapu.
   2. Checking the QR code and barcode: The QR code on new-type title deeds should be scanned and checked against whether it matches the geographic and legal data in the e-Devlet and TKGM parcel query system.
   3. Physical document parameters: In Turkey, a missing embossed stamp, faulty printing, inconsistencies in the journal/volume numbers and signs of tampering are indicators of forgery.
   4. Signature of the official deed: It must not be forgotten that in Turkey the transfer of ownership takes place not through the title deed but through the parties’ signature of the official deed drawn up ex officio at the Land Registry Office before the Land Registry Officer or an authorised official, and through registration in the land register (TCC Art. 1022).

WHAT HAPPENS IN A HOME SALE MADE WITH A FORGED DOCUMENT IN TURKEY?

Transfers of immovable property carried out using fraudulent documents such as a forged power of attorney, a fake Turkish identity card or a forged title deed are invalid (defective) transactions under the Turkish Civil Code (TCC). The fact that the transfer has been completed in the land register and registration granted in the name of the new owner does not mean that the transaction is legally valid.

1. Is Title Deed Cancellation Possible in a Sale Made with a Forged Document in Turkey?

• Wrongful registration (TCC Art. 1024): A registration that does not rest on a valid legal ground (a contract of sale) or on the consent of the true owner is wrongful. In sales made with a forged document or by unauthorised representation, the right of ownership does not leave the true owner.
• The true owner’s rights (title deed cancellation and registration case): Under TCC Art. 1025, the true right holder may at any time bring a title deed cancellation and registration case to have the wrongful registration corrected; as a rule, this claim, which rests on the right of ownership, is not subject to any limitation period. If, on the other hand, the property has been transferred to a third party acting in good faith, the true owner’s claim in rem produces no result; he is left with a claim for damages.
• The position of third parties acting in good faith (TCC Art. 1023):
  • A buyer who buys directly through the forged transaction: The 1st buyer, who buys the property directly from the person selling under a forged power of attorney, is not treated as acting in good faith; the registration is invalid and the title deed is cancelled.
  • Second and subsequent buyers: The acquisition of 3rd parties who buy in good faith (unaware of the forgery and acting as a prudent buyer would) from the person who took the property over through the forged transaction may be protected under TCC Art. 1023. However, the good faith of those 3rd parties who fail to make the enquiries expected of a prudent buyer (notarial confirmation, checking the actual situation, valuation analysis) is not protected.
• The State’s strict liability (TCC Art. 1007): The State is liable for losses arising from the keeping of the land registry without any need to show fault on the part of the official. Parties who suffer loss through forgery may bring a compensation case against the State before the court of the place where the land registry is located; the State then has recourse against the officials at fault in causing the loss.

2. What Is the Criminal Liability of a Person Who Sells a Home Under a Forged Power of Attorney in Turkey?

Property sales made with forged documents are not confined to a single type of offence; according to the way the particular case was carried out, they give rise to more than one form of serious criminal liability under the Turkish Penal Code (TPC):

HOW CAN FAKE LISTING AND DEPOSIT FRAUD BE SPOTTED IN TURKEY?

With the spread of digital listing platforms in the real estate sector in Turkey, the most common scams are led by the fake listing (phishing) and the deposit trap. In this set-up the fraudsters create fake listings by copying photographs from listing portals and exploit buyers’ psychological “fear of missing out” (FOMO).

1. How Does the Fake Listing and Deposit Trap Work in Turkey?

The scam generally proceeds in the following steps:

2. How Can a Fake Property Listing Be Told Apart in Turkey?

To avoid falling victim to a fake-listing scam in Turkey, the following steps must be applied in full in purchase, sale and letting processes:

• Checking the EİDS (Electronic Listing Verification System): As required by the legislation in Turkey, it must be verified whether the listings on the platforms have been placed by real estate businesses authorised through e-Devlet or directly by the owner of the property.
• Not paying before seeing the property in Turkey: No payment should be sent under any name (deposit, option fee, security payment and so on) before the real estate has been physically viewed, the keys handed over or the door opened.
• Verifying the land registry record and identity: It must be checked whether the identity details of the person placing the listing or requesting a reservation deposit match exactly the owner details in the Tapu Takbis / e-Devlet records.
• Not sending money to third parties’ accounts: Under Turkish law, money transfers should never be made to the IBAN accounts of third parties such as “the owner’s relative”, “the agent’s employee” or “a friend”. Payment must always be sent to the personal account of the title deed owner with the wording “this is the deposit for the property on parcel …, province of …” in the explanation.
• Querying the authorisation certificate: The intermediary real estate business’s authorisation certificate number must be verified through the Ministry of Trade’s Real Estate Trade Information System (TTBS).

HOW DOES THE WEB TAPU SYSTEM PROTECT AGAINST FRAUD IN TURKEY?

Web-Tapu, made available by the General Directorate of Land Registry and Cadastre (TKGM), is the strongest digital security shield that property owners and buyers can use against forgery of physical documents, unauthorised representation and attempted fraud. By making registration and encumbrance processes transparent, the system blocks attempts made in bad faith under Turkish law.

1. Placing a “no transaction may be carried out” annotation/declaration (protection of ownership): Through the Web-Tapu portal, the owner of a property can place a declaration reading “no transaction may be carried out on my property without my representative/me being present in person” with a single click. While this declaration is active, even if an application is made with a forged power of attorney or a fake identity document, no transfer, mortgage or registration transaction may be carried out unless the owner applies to the land registry office in person and completes identity verification.
2. SMS notification system and updating the telephone number: Whenever any transaction is started on a property (an application being taken, a fee being generated, an appointment being set), TKGM sends an instant SMS notification to the mobile telephone registered in the system. Keeping the owner’s telephone number on e-Devlet and Web-Tapu up to date means that unauthorised applications are noticed immediately.
3. Secure sharing of encumbrances with a temporary authorisation code: Buyers should not be satisfied with the physical title deed the seller produces and should ask the seller for a temporary authorisation code through Web-Tapu. Using this code, the buyer can view directly from the official database the seller’s current entries in the land register and whether there is a lien, a mortgage or a family residence annotation over the property.
4. e-Devlet and identity security: Under TKGM rules, Web-Tapu and e-Devlet login passwords are personal. Sharing passwords with land registry agents, estate agents or third parties (or even with land registry staff) destroys the legal security shield.

WHAT IS THE SAFEST APPROACH TO AVOID BEING DEFRAUDED WHEN BUYING A HOME IN TURKEY?

The most effective security approach against the risk of financial loss and fraud in property purchase and sale processes in Turkey is to cross-check against official public records rather than relying on the verbal statements of the seller or the intermediaries.

Before a high-value deposit or payment of the sale price is made in particular, it is vitally important that the following official and operational checks be completed in full:

1. Which Official Checks Should Be Carried Out Before the Sale and the Payment in Turkey?

• Official current land registry record: The physical title deed produced by the seller should not be relied on; the current land registry record should be retrieved from the official system using the temporary Web-Tapu authorisation code the seller can generate, and examined.
• Confirming the owner and identity: The owner details recorded at the land registry and the photograph and data on the seller’s Turkish identity card must be compared exactly with the MERNİS records held by the Land Registry Office.
• Checking the validity and scope of the power of attorney: If the sale is being carried out through a representative, the validity of the power of attorney, whether it contains a special authority to sell (by block, parcel and independent unit) and whether there has been a dismissal must be verified through the portal of the Union of Turkish Notaries (TNB) or with the notary public who drew it up.
• Analysis of any charge on the property: Whether there is a mortgage, an attachment, an interim injunction, a usufruct/right of residence, a family residence annotation or a promise-to-sell annotation that would prevent or restrict the transfer over the property register must be checked against the official record.
• Cross-check between the physical document and the official record: It must be confirmed that there is no difference at all between the paper documents shown by the seller and the current data in the official database (TAKBİS).
• Verifying the account holder: In Turkey, if a direct bank transfer is unavoidable, it must be verified that the account to be paid belongs directly to the official right holder (the owner) on the title deed. Money must on no account be transferred to the personal accounts of third parties or unauthorised representatives.
• Preliminary legal review (due diligence): In high-value real estate investments in Turkey, the legal examination covering the zoning, land registry and possession position must be completed before any undertaking is given and before any payment is made.

2. How Can Buyers Protect Themselves Against Rushing and Psychological Pressure Tactics When Buying a Home in Turkey?

A significant proportion of fraud cases in Turkey come about through psychological manipulation and rushing techniques aimed at preventing the buyer from carrying out a sensible examination. Statements used by the seller or the intermediaries such as:

• “If you do not send the deposit/payment right now I will sell the home to another buyer,”
• “The land registry paperwork is ready, transfer the money to the account right away,”
• “The power of attorney is already certified by a notary public, there is no need for extra checks,”
• “I have the physical title deed in my hand, there is no need to bother with the system”

are a clear indicator of risk. Where pressure of this kind arises, the transaction must be slowed down immediately; and no financial transfer should be made under any name until the documents have been obtained through official channels and independent verification has been completed.

3. Why Does the Land Registry Secure Payment System Matter in Turkey?

The final step in security is to use the Land Registry Secure Payment System operating through integration between the Ministry of Trade and TKGM rather than cash or a direct transfer/EFT. Under this system the buyer’s money is held in a neutral blocked account; the moment the registration is officially completed before the Land Registry Officer, the money is transferred to the seller. If registration does not take place, the money is refunded directly to the buyer and all financial risk is removed.

WHAT SHOULD FOREIGNERS WATCH FOR WHEN BUYING A HOME IN TURKEY?

The acquisition of real estate in Turkey by foreign nationals is subject to additional legislative restrictions, public order obstacles and particular fraud risks compared with the purchase and sale processes of Turkish citizens.

1. What Restrictions Apply to the Acquisition of Property by Foreigners in Turkey?

• Reciprocity and bilateral agreements: Not every foreign national may buy property in Turkey. The rule is that the country must appear on the list of “countries whose nationals may acquire property” determined by the Presidency. Under bilateral agreements and international restrictions, the acquisition of property by the nationals of some countries is entirely prohibited throughout Turkey or in certain provinces.
• Military prohibited zones and security zones: It is legally impossible for foreigners to acquire property in military prohibited zones and security zones. When the land registry application is made, whether the property in question lies in a permitted zone is checked against the records of the Ministry of National Defence/the governor’s office through the Land Registry Office.
• Statutory limits on quantity (the 30-hectare and 10% rules): A foreign national may buy at most 30 hectares of property throughout the country; the President is empowered to increase this figure by up to double. In addition, the total area that foreigners may acquire may not exceed 10% of the surface area of the district that is subject to private ownership.

2. Money Transfer Problems and MASAK Supervision in Home Purchases by Foreign Buyers in Turkey

• Transfers of money from abroad and the MASAK legislation: Transferring the sale price from abroad to Turkey is one of the most critical stages. Because of the rules on preventing the laundering of proceeds of crime (the MASAK legislation) and international SWIFT controls, banks may apply a restriction on the account or a MASAK block to large transfers whose source cannot be documented (proved) or whose explanation is incomplete. The buyer’s passport/identity details and the block/parcel details of the property must be written in full in the explanation field of the money sent.
• Requirement of a Foreign Currency Purchase Document (DAB): In property purchases by foreigners, the foreign currency making up the sale price must be sold to the Central Bank of Turkey through a bank operating in Turkey and a Foreign Currency Purchase Document (DAB) evidencing that transaction must be issued. No title deed transfer can be made without a DAB.

3. What Operational Risks Are There for Foreigners Buying Property in Turkey?

• The language barrier and the requirement of an official interpreter: It is a legal requirement that a sworn interpreter registered on the list of experts be present for foreigners who do not speak Turkish during the signing at the Land Registry Office and during power of attorney/contract processes before a notary public. Against ill-intentioned people who exploit the language barrier, nothing should be signed until the certified translation of every document has been examined.
• Fake listings, deposits and “transfer of a different property” traps:
  • Taking advantage of foreign buyers’ unfamiliarity with the area and with land registry records, transferring a property that is of poor quality on the title deed, on a basement floor or on a completely different parcel instead of the well-kept/valuable flat shown is a frequently encountered method of fraud.
  • No deposit should be paid under any name without an EİDS (electronic listing verification) check and without examining the position on land registry encumbrances (mortgage, attachment and so on).
• Valuation report and Foreign Currency Purchase Document: To ensure that the sale price reflects the market value, a property valuation report must be obtained from an expert licensed by the Capital Markets Board, and the foreign currency corresponding to the sale price must be sold to the Central Bank and a Foreign Currency Purchase Document (DAB) issued. The figure in the valuation report and the sale price on the title deed must not conflict.

4. Why Should Foreigners Work with an Independent Lawyer When Buying a Home in Turkey?

In Turkey, interpreters and real estate businesses provide only communication and intermediary services; they have no responsibility to protect the buyer’s legal rights or to check for legal defects in the property. For this reason, working with a specialist real estate lawyer in Turkey from the very start of the process and taking online legal advice before the transactions is vitally important:

• Land registry and encumbrance examination: The lawyer officially examines with the Land Registry Office and the municipality whether there is a mortgage, an attachment, a usufruct right, an annotation or a zoning restriction over the property.
• MASAK and bank process management: He prepares the necessary source-of-funds documents so that the transfer coming from abroad does not run into MASAK and compliance hold-ups, and carries the DAB (Foreign Currency Purchase Document) process through with the bank in full.
• Contract security and the flow of money: He prepares the promise-to-sell agreements free of clauses working against the buyer, and supervises the transfer of the deposit and the sale price through secure payment systems or blocked accounts.
• Integration with citizenship and residence permits: Where the purpose of buying real estate is acquiring Turkish citizenship or obtaining a residence permit, the lawyer prevents possible losses of rights and refusal of the application by ensuring that the Capital Markets Board valuation report, the DAB document and the transfer annotations on the title deed are 100% compliant with the legislation.