10 IMPORTANT THINGS A PROPERTY BUYER IN TURKEY SHOULD KNOW (#2)
A STEP-BY-STEP GUIDE TO BUYING PROPERTY IN ALANYA
(Generally, the process is the same, but the timeframe might be different as well as some local nuances might exist in other places)
STEP 1: Choosing the property you would like to purchase (yourself or with the help of a real estate agency).
We recommend that you look at a sufficient number of apartments (both brand new ones offered by the developers and the secondary market offers) in different areas of Alanya. In Alanya you can find different types of housing of different quality categories, both just built or at the construction stage, as well as resale apartments. There is housing in residences with a full infrastructure of a 5-star hotel, or in small cozy residences with a pool and a garden, or even without any infrastructure (for the latter ones the monthly maintenance fee would be very small). Some apartments are sold only with finished interior decoration, while the other ones may be fully furnished, equipped with all white goods and hope appliances and ready to move in. The districts of Alanya also vary in the height and density of buildings, the numbers of parks and green areas, supermarkets, bazaars, transport infrastructure, the quality of beaches, proximity to schools and hospitals. It should be also taken into account that properties may be of different liquidity - the ability to be quickly sold without losses. We are sure that in all this diversity, there is certainly that very apartment (villa) that will be the MOST OPTIMAL FOR YOU.
We would also like to draw your attention to the fact that quite often, the real estate prices in the secondary market are more attractive than those offered by the developers, even in the same residence. At the same time, developers often offer an opportunity to pay by installments (and this is one of the reasons why their prices are usually a bit higher). In the secondary market, the payment is almost always done according to the “advance payment (to reserve the apartment) + full payment” scheme. It is quite easy for a foreigner to get a mortgage loan from Turkish banks.
STEP 2: Concluding a PRELIMINARY PURCHASE/SALE AGREEMENT to stop the sale and give the advance payment. Typically, such agreement (contract) is signed between a real estate agency that performs the sale of a certain property and the buyer, or a tripartite agreement between the seller of the property, the buyer and the agency may be signed. If a real estate agency is involved, we advise to deal only with officially licensed and registered ones, as in case of any problem you can file an official complaint. If you are buying new property (completed or at the construction stage) from the Developer, such agreement may be signed with the Sales Office of the Developer (construction company) or with the real estate agency – partner of this Developer. If no real estate agency is involved, you may sign it with the Seller. In that case we advise to notarize it to have a proof that you have given the advance payment and of the obligations of the parties under the contract. The agreement should be in Turkish as well as in the language you understand well (usually English, German or Russian) and issued in at least 2 identical copies, one of which you should keep.
However, according to the Turkish legislation, the TITLE DEED (called TAPU) issued by the Land and Cadaster Office and entered into the LAND REGISTRY AND CADASTRE INFORMATION SYSTEM is the ONLY official document guaranteeing your Property Rights after the transfer of rights in the TAPU Office.
The AGREEMENT will stop the sale of the property and allow to start the process of collecting all the required documents to apply to the Land and Cadaster Office for the transfer of the property rights and issuance of the new Title Deed. It should specify the amount of the advance payment, the price, the payment plan (if any) and the timeframe of the deal as well as the obligations of the parties. If you are signing it with a Real Estate Agency, make sure it will specify the services they will be providing to you during the preparation of the deal and after you become the owner of the new Title Deed, not to be left alone with any problems. Such services may include checking the technical documentation of the apartment, full inspection of the property, getting all the Turkish tax numbers and other official documents you need, helping you get the mandatory evaluation of the property and up to helping you get the subscriptions for water and electricity, fix any problems the property might have and purchase furniture or make renovation (if there is a need).
STEP 3: Submit the APPLICATION for the property rights transfer with all the required documents to the LAND AND CADASTER (TAPU) Office, where the deal will take place and the new Title Deed will be issued. To submit the application, you would need the following:
• TURKISH PERSONAL TAX NUMBER – issued in the Tax Office (you would need it to pay taxes, also if you want to open an account with a Turkish bank, apply for the residence permit, etc.) It is issued for free and takes just up to 15 minutes. For this you need your passport, also a copy of it would be helpful and a document confirming your address in Turkey. You could use the address of the property you are buying. It could be just a water bill with the correct address. You could use another address (hotel, etc.) but after you purchase your apartment/villa you would need to update it.
• PROPERTY VALUATION (PRICE APPRAISAL) REPORT – has been required since March 4th, 2019. The process of getting it may take up to 3-5 days. It includes legal, cadastral, structural and valuation data. Our partner, licensed to perform property valuation does it within 1-2 days.
• Notarized translation of your passport
• 2 recent biometric pictures (3x4)
• Documents from the City Council certifying the official cadaster price of the property and the absence of any tax arrears
• The Property Completion Report and Habitation License - ISKAN - Technical passport and permission to use the property – you don’t need it to submit to get the TAPU, but it is in your interests to make sure that the property you are buying has it (both the building/ complex and the individual apartment/villa should have it) not to have any unpleasant surprises in the future
• Passport (original and copy) and Property Title of the owner (Seller) It should be noted if the property is purchased as a power of attorney, the original copy of the power of attorney plus the verified translation by the Turkish embassy in the buyer’s country is required
STEP 4: After the submitted documents are processed you will get an SMS specifying the time of the appointment at the Land and Cadaster Office to sign the transfer of the property rights document and get the Title Deed (TAPU) with your name on it. Usually it takes up to 1-2 days. Prior to that all TAXES AND TAPU RELATED COSTS should be paid by you, namely:
• Property acquisition tax (4% of the price stated in the property evaluation report, however, until the end of October 2019, a discounted rate of 3% is applied
• Cadaster tax, stamp duties, payment for the authorized interpreter assigned by the TAPU office
• Earthquake insurance (DASK) - compulsory in Turkey and is calculated on a square meterage basis. Risks that may arise from fire, explosion, tsunami or landslide during and after an earthquake are under Mandatory Earthquake Insurance. Fee varies between 150 TL to 400 TL (depends on m2).
Currently all additional costs amount to around 5% of the price. Please note that in many countries there is also a VAT tax and other taxes to be paid, so often all additional costs may amount to 10-15 % of the price.
STEP 5: Signing the TITLE DEED TRANSFER DEAL in the Land and Cadaster Office. After all the required taxes and dues are paid you and the Seller will sign the deal in the presence of the TAPU officer and the official interpreter. Before sighing it, the final payment is made, as the Seller will certify that he/she has been fully paid for the property and has no claims on you.
STEP 6: Getting the new TITLE DEED with your name on it. It is issued within 10-15 minutes after the information is entered into the LAND REGISTRY AND CADASTRE INFORMATION SYSTEM.
STEP 7: Getting WATER AND ELECTRICITY subscriptions (for this you would need the Property Completion Report (ISKAN), a copy of your Property Deed, a document certifying your address and mandatory DASK insurance policy.
STEP 8: You also need to register your address on the Address Registration System and register for the annual property tax with the City Council department. The size of the annual property tax ranges between 0.1 and 0.6 percent of the official price. For real estate located outside of a metropolitan municipality area it is:
• Residences 0.1% • Other buildings 0.2% • Land 0.1% • Farming land 0% • Vacant land (but allocated for construction purposes) 0.3%
For real estate located inside of a metropolitan municipality area:
• Residences 0.2% • Other buildings 0.4% • Land 0.2% • Vacant land (but allocated for construction purposes) 0.6%
So, generally, it may take up to 3-5 days to get the Title Deed after you decided which property you would like to acquire. However, in case there is a mortgage loan, it might require a bit longer time, since the bank would need to make their inspection and appraisal before approving the loan.
WE WISH YOU A SMOOTH AND EASY PURCHASE OF A SECOND HOME IN ALANYA!
TREDVISOR is a licensed (Level 5 Professional Certification) Oba-based real estate company with a network of foreign partners. We have a lot of good offers (both new ones - directly from the best developers - or in the secondary market). It would be our pleasure to help you find the property which fits your requirements - your happiness is our goal.
Please check our business page https://www.facebook.com/tredvisoralanya or visit our office (see the directions at our business page) to benefit from all 10 important things a property buyer should know, as well as other useful tip and the comprehensive check list for a property buyer.