real estate law in turkey

REAL ESTATE LAW IN TURKEY AND PURCHASING PROPERTY

Real estate law in Turkey is a significant field within the Turkish legal system, and it covers issues such as the purchase, sale, and transfer of immovable properties. Real estate law in Turkey also includes the transfer of immovable property through inheritance, mortgage transactions, lease agreements, examination of land registry records, and land registry cancellation processes. There are many laws and regulations in this field, and different legal procedures are applied for each transaction. In Turkey, real estate law is an area managed by the General Directorate of Land Registry and Cadastre, which is responsible for maintaining land registry records and ensuring the transfer of immovable properties to their rightful owners.

The Civil Code defines the subject matter of real estate property as follows:

” The subject matter of real estate property includes the following:

Land, independent and permanent rights recorded on a separate page in the land registry, independent units registered in the condominium registry.”

Unless there is a separate provision in other laws, anything considered as immovable property according to the Civil Code is also subject to immovable property provisions in other laws. Real estate lawin Turkey is, in its simplest definition, the branch of law that regulates all rights arising from immovable properties.

The Turkish Civil Code; B. Acquisition of Real Property I. Registration Article 705

Acquisition of real property is done through registration. In cases of inheritance, court decisions, compulsory execution, occupation, expropriation, and other cases prescribed by law, ownership is acquired before registration. However, the ability of the owner to carry out transactions in these cases is dependent on the registration of ownership in the land registry.

PURCHASING PROPERTY IN TURKEY

In Turkey, real estate buying and selling transactions are quite common and subject to many regulations under the scope of real estate law in Turkey. It is important to carry out these transactions correctly to protect the rights of the parties involved and to anticipate possible issues by determining solutions in advance. Here are some things to consider when purchasing property in Turkey.

HOW CAN I BUY REAL ESTATE IN TURKEY

Purchasing property in Turkey and selling transactions are carried out in accordance with the provisions set out in the Turkish Civil Code and the Land Registry Regulation. The first step answer of “how can i buy property in Turkey” is the buyer applying to the land registry office.

The buyer requests an legal examination of title deed the relevant property’s land registry record and the determination of the title deed owner. After the examination of the property’s land registry record, the buyer and the seller sign a contract that includes information about the property, the sale price, payment method, delivery date, taxes, and expenses.

At the contract stage, the parties must agree, especially on the sale price and payment method. After signing the contract, the buyer pays the sale price as specified in the contract to the seller. After the payment, the seller delivers the property, and the title deed is issued in the name of the buyer.

In summary, the most important considerations when purchasing property in Turkey are determining the property owner, examining the title deed document and the land registry record, identifying any restrictive annotations or declarations on the property, signing a sale contract between the buyer and the seller, and completing the sale transaction officially at the land registry office after payment.

ACQUISITION OF REAL ESTATE OWNERSHIP ACCORDING TO REAL ESTATE LAW IN TURKEY

According to real estate law in Turkey, acquisition of real estate ownership can be achieved through two main ways: acquisition by possession or acquisition by registration.

The Civil Code generally requires registration for the acquisition of real estate ownership. The registration must be based on a valid reason for the ownership to be acquired. Examples of cases where ownership can be acquired before registration include inheritance, court orders, and forced execution, among others, as provided for by law. However, registration is generally the essential requirement for the acquisition of real estate ownership.

Registration is an administrative act of the land registry officer, and it only ensures ownership acquisition when all other essential elements of acquisition are present. Otherwise, it would be an unlawful registration. Sales made outside of the law do not carry any legal weight, and contracts aimed at transferring property ownership must be officially arranged to be valid. The formalization of real estate transfer aims to protect the parties from hasty decisions and to ensure reliability and confidence in the land registry.

RIGHTS AND BENEFITS IN REAL ESTATE

Owning real estate comes with many rights and benefits. The most fundamental right of a real estate owner is the right to dispose of the property they own. This right to dispose includes the authority to carry out various transactions, such as selling, leasing, mortgaging, transferring, or donating the property. The concept of rights and benefits in real estate can be considered as any kind of action that the owner can take on the property.

In addition, the real estate owner has the right to obtain permission for any kind of structural changes or renovations that can be made on the property. This right also includes the right to be compensated for any damages resulting from the renovation or changes made.

Furthermore, the real estate owner has the right to benefit from the income of the property in addition to their rights on the property. These incomes can come from different sources, such as renting or selling the property.

LIMITATIONS OF PROPERTY RIGHTS

The rights of property owners are not unlimited. The owner of real estate has an obligation to use the property in accordance with its general use. This obligation includes factors such as protecting the property against environmental factors and taking precautions in case of potential danger.

In addition to the technical registration institution for real rights, the Civil Code has accepted the possibility of limiting the disposal power of certain personal rights and placing temporary registration annotations. According to Article 1009 of the Civil Code, “rights arising from contracts such as construction in exchange for land share, promise of sale of immovable property, lease, purchase, pre-emption, and right of repurchase, as well as other rights expressly provided for in the laws where they can be annotated, can be annotated in the land register. These are generally referred to as personal rights annotations.

Furthermore, Article 1010 of the Civil Code specifies the restrictions on the disposal that will be subject to annotation, which include those specified in the Civil Code (court decisions related to disputed rights, seizure, bankruptcy, concordat periods, annotation of family home, etc.), those foreseen outside the Civil Code (expropriation, annotations under Article 30 of the 2510 numbered Housing Law, etc.), and annotations of temporary registrations (claims of real rights, etc.). The annotations and statements on real estate can be explanatory as well as restrictive. To access our article on the most common annotations and statements on real estate, please click the link.

real estate law in turkey

LEGAL EXAMINATION OF TITLE DEED

A real estate deed is a document that shows who a property is registered to and is crucial in real estate transactions. Title deeds are issued and updated by the General Directorate of Land Registry and Cadastre in Turkey. Legal examination of title deed  is an important step that must be taken before any buying or selling transaction.

WHAT TO CONSIDER TO LEGAL EXAMINATION OF TITLE DEED

It is crucial that all information on the real estate deed is correct and complete to protect the rights and interests of the property owner. Any mistake or omission on the deed can jeopardize the property owner’s rights. Therefore, legal examination of title deed is a critical part of the buying and selling process.

  • Examine the Original Deed: The original real estate deed must be reviewed. The deed should be examined using the original copy obtained from the Land Registry and not a photocopy.
  • Examine the Contents of the Deed: The information on the deed should be reviewed and checked for accuracy. If there is any incorrect information, the deed should be corrected before any transaction takes place.
  • Review the Property Owner’s Land Registry Record: The land registry record contains the name of the property owner, the names and shares of any other individuals on the deed, legal restrictions on the property, mortgages, and sales promise contracts. These details should be thoroughly reviewed and checked for accuracy.
  • Review the Title Deed’s History: The deed’s history includes information on the previous owners of the property and any issues the property may have had in the past. The deed’s history should be examined in detail along with the dates recorded on the deed.
  • Examine Any Restrictions on the Deed: Restrictions on the deed, such as a ban on commercial use or protection for trees on the property, can impact the property’s use. Therefore, it is important to review any restrictions on the deed.
  • Ensure the Deed is Up-to-Date: The last updated date on the deed should be checked, and the deed should be updated if necessary to ensure it is up-to-date.

HOW TO EXAMINE REAL ESTATE TITLE DEEDS?

During the legal examination of title deed, the first step is to verify the identity of the property owner and the accuracy of the title record. It should be ensured that the owner listed in the title deed is indeed the real owner of the property. Additionally, the information on the title record, such as the date, number, and plot and parcel numbers, must also be accurate.

The title record also contains information about the property, such as its intended use, type of structure, number of floors, and gross and net area. The accuracy of this information should also be verified. In particular, the accuracy of information regarding the intended use of the property is important for obtaining construction permits and other approvals in the future.

Furthermore, it should be checked whether there is any mortgage, lien, or other encumbrance on the property listed in the title deed. Such encumbrances can cause difficulties for the property owner during the sale process.

The legal examination of title deed can be carried out by interested parties at the Land Registry Directorate. Additionally, a lawyer or real estate expert can be consulted to review the title deed.

During the legal examination of title deed, it is essential to ensure that all information is accurate and complete. If there is any doubt, it is recommended to verify the accuracy of the information with the Land Registry Directorate.

WHO CAN EXAMINE REAL ESTATE TITLE DEEDS?

The Land Registry is responsible for registering and maintaining the records of real estate and the rights attached to them. Each administrative district is a Land Registry region. The Land Registry ledger is the main element of the Land Registry. The creation of real rights and the disclosure of personal rights are subject to registration in this ledger.

Anyone who has an interest in real estate can examine the Land Registry and obtain the necessary information. However, they must demonstrate their interest credibly. Lawyers, on the other hand, have the authority to examine the Land Registry ledgers regardless of their interest, in accordance with the Law on the Legal Profession. Therefore, it is crucial to seek the support of a lawyer to determine whether there are any encumbrances, restrictions, or prohibitions affecting the value or transfer of the real estate before purchasing a property.

SUBJECTS RELATED TO REAL ESTATE LAW IN TURKEY

Real estate law in Turkey is a vast field that requires expertise. In fact, there are many sub-branches of real estate law in Turkey, and each sub-branch may be subject to separate regulations in Turkish law. The most common transactions encountered in real estate law in Turkey are listed below.

  • Purchasing Property in Turkey:

Purchasing property in Turkey and sale require many documents and procedures. An attorney can assist in ensuring that these transactions are conducted correctly while protecting the rights of the parties involved.

  • Title Deed Transactions:

Title deed transactions are necessary for real estate acquisition. An attorney can assist in ensuring that title records are accurate and that the parties’ rights are protected during title transactions.

  • Lease Agreements:

Lease agreements are an essential part of real estate law in Turkey. An real estate lawyer in Turkey can help in preparing lease agreements correctly and protecting the parties’ rights.

  • Zoning Law Problems:

Zoning law is an important branch of real estate law in Turkey. An attorney can address the problems and opportunities that clients may encounter regarding zoning law and help protect their rights.

  • Inheritance Law:

Inheritance law can present various issues, particularly concerning real estate. An real estate lawyer in Turkey can provide legal advice to clients regarding inheritance law and assist in ensuring that inheritance is distributed correctly.

  • Foreigners’ Real Estate Acquisition:

Real estate acquisition by foreigners in Turkey requires many legal procedures and documents. An real estate lawyer in Turkey can guide foreign clients through the process and help them fulfill legal requirements.

  • Dispute Resolution:

Disputes often arise in real estate law in Turkey. An real estate lawyer in Turkey can defend the rights of clients and help resolve disputes.

LAWSUITS IN REAL ESTATE LAW

Real estate law in Turkey covers a wide range of issues related to real property, including its construction, purchase, sale, and lease. In Turkey, due to the significant role of the real estate sector in economic growth, real estate law in Turkey has become increasingly important.

There are many different types of cases related to real estate, and it is essential to seek the assistance of a specialized lawyer in cases that may affect the ownership of real property. Even a minor procedural mistake can lead to the loss of property. The most common cases encountered in practice include:

  • Lawsuits for cancellation of title deed : These are lawsuits filed on the basis that the title deed registration of a real estate is unlawful. In such cases, it is claimed that the title deed registration is invalid or incorrect, and the cancellation of the registration is requested.
  • Lawsuits for wrongful registration: These are lawsuits initiated when someone wrongfully registers a real estate in someone else’s name. In cases of wrongful registration, the invalid title deed registration is requested to be cancelled, and the true owner is sought to be determined.
  • Lawsuits for nullification of disposition: These are lawsuits filed on the grounds that a person’s disposition over a real estate is unlawful. In such cases, the invalidation of sales, transfers, or other dispositions made over a real estate is requested.
  • Lawsuits for claims arising from real estate sales contracts: These are lawsuits filed against the seller regarding claims arising from the sale of real estate. In these lawsuits, compensation may be claimed based on non-payment of the purchase price or other outstanding debts according to the sales contract.
  • Rent determination lawsuits : These are lawsuits filed to have the court determine the rental amount. In such cases, either the tenant or the landlord requests a court decision to determine or re-determine the rental amount.
  • Eviction lawsuits : These are lawsuits filed to terminate the lease agreement and vacate the premises. Eviction lawsuits aim to prevent the tenant from breaching the terms of the lease agreement or continuing the tenancy beyond a certain period.
  • Lawsuits to prevent interference: These are lawsuits filed to prevent an unauthorized person from interfering with a real estate. These lawsuits aim to protect property rights and prevent unauthorized interference.
  • Compensation lawsuits for unauthorized use: These are lawsuits filed to seek compensation for damages resulting from the unauthorized use or occupation of a real estate. In ecrimisil lawsuits, the real estate owner claims compensation for damages caused by unauthorized use or occupation.
  • Lawsuits for the partition of joint ownership: These are lawsuits filed when multiple individuals have ownership rights over a real estate, seeking the termination of joint ownership.
  • Mortgage and pledge lawsuits : These are lawsuits initiated to resolve disputes arising from the encumbrance of a real estate with a mortgage or pledge right. In mortgage and pledge lawsuits, when there is a disagreement among the rights holders regarding the scope of the mortgage or pledge right, payment conditions, or the sale of the real estate, a court decision may be requested.

purchasing property in turkey

PURCHASING PROPERTY IN TURKEY BY FOREIGNERS

Turkey is among the world’s leading countries with its geographical location, natural beauties, historical and cultural riches, economic opportunities, and tourist attractions. Therefore, it is quite common for foreign investors to acquire real estate in Turkey. However, foreign investors may face some problems during the process of acquiring real estate in Turkey, which are usually related to language, law, and local practices.

There are two different options for foreigners who want to acquire real estate in Turkey. The first one is to acquire real estate at the land registry office, and the second one is to acquire real estate by establishing a foreign-capital company.

  • Acquiring Real Estate from the Land Registry Office

Acquiring real estate from the land registry office is a common method preferred by foreign investors. However, in this method, foreign investors may face some limitations. For example, during the process of acquiring real estate in Turkey, foreign investors must provide certain documents, including the foreign national’s passport, residence permit in Turkey, and opening a bank account in Turkey. Additionally, foreign investors are required to obtain notarized translation services for the process of acquiring real estate in Turkey.

  • Acquiring Real Estate by Establishing a Company

Another preferred method by foreign investors is acquiring real estate by establishing a foreign-capital company in Turkey. In this method, foreign investors can acquire real estate through the company they establish in Turkey. However, legal restrictions must be taken into consideration, and regulations and rules established by the government must be followed.

Another important aspect that foreign investors need to consider during the process of acquiring real estate in Turkey is tax liability. Foreigners who own real estate in Turkey are subject to tax liability just like Turkish citizens. Different types of taxes may be applied depending on the value and usage of the real estate. For example, if a foreigner purchases a business in Turkey, they may be required to pay VAT on the purchase price.

In conclusion, the process of acquiring real estate in Turkey is open to foreigners. Foreigners owning real estate in Turkey are an important source of investment for the Turkish economy, and therefore, the Turkish government provides an appropriate legal framework for foreigners to acquire real estate in Turkey. However, there are certain aspects that must be taken into consideration during this process. It is recommended for foreigners to work with a reliable real estate consultant and real estate lawyer in Turkey during the process of acquiring real estate in Turkey.

PROTECTION OF PROPERTY RIGHTS OF FOREIGNERS

Foreigners can purchase, sell, and encumber their personal rights in immovable property in Turkey under the Civil Code, just like Turkish citizens. However, there may be specific laws or provisions determined by bilateral state agreements that restrict the acquisition of real estate by foreigners. Therefore, it is important for foreigners to seek the assistance of a lawyer before purchasing proeprty in Turkey. Immovable property acquired by foreigners in Turkey is protected under the Civil Code provisions. Additionally, foreigners can freely rent out the properties they have acquired.

PROBLEMS FOREIGNERS MAY ENCOUNTER IN THE PROCESS OF ACQUIRING REAL ESTATE IN TURKEY AND SOLUTIONS

Foreigners may encounter some problems when acquiring real estate in Turkey. These include:

  • Language Barrier: Foreigners who do not speak Turkish may encounter language barriers during the process of land registry and real estate transactions. Therefore, it is recommended for foreigners to work with a real estate consultant or lawyer.
  • Legal Examination of Title Deeds: Failing to properly examine title deeds is one of the biggest problems that foreigners may encounter in the process of acquiring real estate. The legal examination of title deeds is important for verifying ownership, determining legal obligations, and predicting potential future problems.
  • Real Estate Agents: Some real estate agents may demand higher commissions from foreigners. Furthermore, it is possible for real estate agents to act as intermediaries in purchase and sale transactions without the knowledge of foreigners or provide misleading information. Therefore, it is important for foreigners to work with a reliable real estate consultant or lawyer.
  • Tax Obligations: The acquisition of real estate in Turkey by foreign nationals may create some tax-related problems. In particular, foreign nationals should be informed about the VAT and fees they paid when purchasing property in Turkey. Additionally, the income obtained from the sale of real estate must be subject to taxation in Turkey.
  • Illegal Structures: Illegally constructed buildings and structures in Turkey are one of the problems that foreigners may encounter during the process of acquiring real estate. Such structures can create legal problems that are not indicated in the title deeds and put foreigners’ investments at risk.
  • Legal Transactions: Legal transactions in Turkey may take time and can sometimes be complicated. Therefore, it is recommended for foreigners to act patiently and pay attention to details during the process of acquiring real estate in Turkey.
  • Money Transfer: Foreigners need Turkish Lira to acquire real estate in Turkey. Therefore, foreigners must open accounts in Turkish banks and perform money transfer transactions.
  • Lack of Required Documents for Property Ownership: Among the documents required for the purchase of immovable property in Turkey are the title deed, identification card, residence permit, tax declaration, etc. It is recommended that foreigners acquire these documents beforehand to avoid any complications in the acquisition process.
  • Cultural Differences: Foreign nationals may experience difficulties during the process of purchasing immovable properties in Turkey due to cultural differences. Therefore, it is recommended for foreign nationals to seek support from a local attorney or real estate consultant during the process of acquiring real estate in Turkey.

SUPPORT OF REAL ESTATE LAWYER IN TURKEY FOR PROPERTY SALE

Transactions related to real estate law in Turkey are quite complex and detailed. Therefore, the support of an attorney is highly important during real estate purchase and sale transactions. There are many benefits that attorneys provide in real estate law:

  • Legal Consultancy: An attorney provides legal consultancy to their client on real estate law. With their knowledge, experience, and expertise, they offer their clients the best legal options from a legal perspective.
  • Contract Preparation: Real estate attorneys are specialized in preparing real estate purchase and sale contracts. Therefore, they ensure that contracts are drafted in a way that protects the rights and interests of the parties involved.
  • Title Deed Transactions: A real estate lawyer in Turkey carries out title transactions. These transactions are highly technical and detailed, so an attorney’s experience and knowledge ensure that they are completed smoothly.
  • Problem Resolution: Many problems can arise in real estate law in Turkey, including title deed problems, property right violations, and disputes. A real estate lawyer in Turkey assists their client in overcoming these problems and resolving them through legal means.
  • Reducing Legal Risks: Real estate transactions carry many risks due to their high financial values. A real estate lawyer in Turkey helps their client take necessary precautions to reduce their risks and ensures that transactions are completed smoothly.

In conclusion, real estate transactions are highly important and carry significant financial values. Therefore, the support of an attorney is crucial for completing transactions smoothly. The experience, knowledge, and expertise of a real estate lawyer in Turkey help their client achieve the best legal outcomes.

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