Legal Aspects of Real Estate Transactions in Türkiye

1) What legal documents are required for a real estate transaction?

For a real estate transaction, the following documents are required: 

1. a valid identification document, a residence certificate;
2. a copy of the title deed fee payment receipt;
3. a sales promise agreement (if applicable);
4. the title deed or land registry record;
5. an appraisal report indicating the property's value;
6. a document confirming there are no outstanding property tax liabilities.

2) Which official institutions are authorized to make real estate transactions?

Real estate transactions are still carried out at the Land Registry Offices. However, with the amendments made with Law No. 7413 on the Amendment of the Law on Judges and Prosecutors and Some Other Legislation, as of January 1, 2023, the official contract serving as the basis for the transfer of property can also be executed by Notaries.

3) What are the tax implications of buying and selling real estate?

The real estate transaction tax is paid individually by both the buyer and the seller. As of 2022, the distribution of the 4% transaction tax is as follows: the buyer pays 2%, while the seller is responsible for 2%, in addition to the revolving fund service fee. The revolving fund service fee is calculated by multiplying the fixed indicator value of 822 liras for the year 2024 by the coefficient determined for the province or district where the immovable is located.

In addition, if the real estate is sold before the expiration of 5 years from the date of purchase and if a profit is obtained over the exemption amount of the year of sale, income tax will be paid for the sale price by the seller.

4) Are there any differences to consider if the purchaser of the real estate is a foreigner?

Foreign nationals are subject to certain legal restrictions when purchasing real estate in Turkey. In order to acquire real estate, the foreigners concerned must be among the citizens of the countries designated by the Council of Ministers. The total area of the real estate that foreigners may acquire may not exceed 10% of the area of a district subject to private ownership and may not exceed 30 hectares per person throughout the country. This limit may be doubled by a decision of the Council of Ministers. In addition, permission is required for the acquisition and lease of real estate in military exclusion zones and security zones. On the other hand, commercial companies established in foreign countries may acquire real estate and limited real rights only in accordance with the provisions of special laws.

5) What are the responsibilities of the seller in a real estate transaction?

The seller is responsible for providing all necessary documents for the sale in a complete and accurate manner. The seller is required to guarantee the accuracy and completeness of these documents. Furthermore, the seller is responsible for responding openly and accurately to any questions the buyer may have regarding the property. The buyer has the right to inquire about the condition, surroundings, and other details of the property, and the seller is obligated to provide truthful and comprehensive answers to these questions.

6) What are the implications of property liens and encumbrances?

Liens and encumbrances directly affect the use, value and legal status of a property. Liens generally provide security to the creditor by limiting the sale and transfer of the property, while encumbrances may impose specific conditions on the manner of use. Since liens and encumbrances are recorded in the land registry of the property, their most important effect is that if the ownership of the property is transferred to a third party, these liens and encumbrances are also transferred together with the ownership of the property.

Authors: Ali Ceylan, Gülendam Tüylüoğlu