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THE BUYING PROCEDURE IN TURKEY

The buying process in Turkey is very similar to that in many other European countries with a deposit paid on contract and a balance payment on transfer of the title deed.

The only anomaly of the Turkish process was the requirement for a “military approval” to check the property is in an area where foreigners are allowed to buy.

This process used to cause a delay in the buying process between contract exchange and completion.

As of 2018 however the process has been moved “in house” to the land registry in the area of the purchase and for this reason we no longer have to wait for a military approval.

It is being advertised that it is now possible to buy a property in day in Turkey due to these changes.

DEPOSIT AND CONTRACT

Once a sale is agreed, a purchase contract will be drawn up by the buyer’s lawyer, for the buyer and seller to sign and the deposit is paid.

On signature of the contract and payment of the deposit the contract becomes binding on both parties.

If following the payment of the deposit the buyer decides to pull out of the agreement the deposit will be forfeited.

If following the payment of the deposit the seller decides to pull out of the agreement the deposit is refunded and penalty clauses apply.

The level of deposit varies from property to property but as a general rule 10% applies for resale property.

Contracts should ideally be signed by buyer and seller face to face in the presence of the Turkish solicitor.

However this is not always possible and it is acceptable for the parties to sign the contract and return by scanned email.

The use of reservation deposits is also common, with a small amount of money paid in order to remove the property from the market for a given time.

This timeframe, usually three to four weeks, gives all parties a breathing space, in which to complete the conveyance and check the terms of the contract fully before signing and paying the contractual deposit.

A reservation deposit is usually 3% and paid to the agent as guarantor for both parties (buyer and seller).

Property purchased off plan or in construction may have different payment schedules with interim or stage payments common place.

As a general rule, payment terms and purchase price go hand in hand with property price negotiation. You will therefore need to know the time scales you require to release or organise your finances when making an offer.

COMPLETION. TRANSFER OF THE TITLE DEED

At completion both buyer and seller must meet in person at the local land registry office for the transfer of the title deed. This process usually takes place in a day and the solicitor and/or agent will oversee the proceedings.

Foreigner buyers are required to have an official translator present to certify the registration.

In many cases buyer and/or seller will have arranged a power of attorney (POA) to their lawyer, agent, or someone they trust to represent them at the completion rather than travel to Turkey for this process.

On the day of the transfer of the Title Deed the balance of the contact will be paid to the seller. Buyers should be aware that escrow services are not common in Turkey.

The balance is paid to the seller direct (gross) and both the buyer and seller have to bring their sale/purchase expenses with them or wire them to their own accounts in Kalkan for the completion.

Most of the expenses have to paid out on or in advance of the deed transfer and are not cut from amounts by the solicitor on the middle as in many other countries.

Again use of power of attorney is common is ensure this process is smooth.