Finalizing the Purchase: A Comprehensive Guide

Finalizing the purchase of a property in Turkey involves several important steps to ensure that the transaction is completed smoothly and legally. This guide provides a checklist to follow before finalizing the deal, details on the process of signing the sales contract, and the necessary post-purchase steps, including registering the property in the buyer's name.

1. Checklist Before Finalizing the Deal

Before you finalize the purchase of a property, it’s crucial to ensure that all aspects of the transaction have been thoroughly reviewed and confirmed. Here’s a checklist to guide you:

1. Legal Due Diligence

• Verify Ownership: Confirm that the seller is the legal owner of the property by checking the title deed (Tapu) at the Land Registry Office.
• Check for Encumbrances: Ensure that the property is free from any mortgages, liens, or other encumbrances that could affect ownership.
• Property Survey: If not already done, conduct a property survey to confirm the boundaries and assess the condition of the property.

1. Financial Considerations

• Purchase Price Agreement: Ensure that the purchase price and payment terms have been clearly agreed upon and are documented in writing.
• Funding Availability: Verify that the funds for the purchase are available, whether through personal funds, a mortgage, or other financing.
• Final Costs Review: Review all associated costs, including taxes, legal fees, notary fees, and any additional charges that may apply.

1. Documentation

• Property Valuation Report: Obtain the required property valuation report, especially if you are a foreign buyer or applying for a mortgage.
• Tax Number: Ensure that you have obtained a Turkish tax identification number, which is required for the transaction.
• Legal Representation: If you are using a lawyer, ensure they have all necessary documents and have reviewed the contract.

1. Inspection and Verification

• Final Property Inspection: Conduct a final inspection of the property to ensure it is in the agreed-upon condition before signing the contract.
• Utilities and Services: Check that all utilities (electricity, water, gas) are connected and that any service charges are up to date.

1. Government Approvals

• Military Clearance: For foreign buyers, ensure that military clearance has been obtained if required, confirming the property is not in a restricted zone.
• Municipal Compliance: Verify that the property complies with all local zoning and building regulations and that it has a valid habitation certificate (İskan).

2. Process of Signing the Sales Contract

The sales contract is a legally binding document that formalizes the agreement between the buyer and the seller. Here’s how the process typically unfolds:

1. Drafting the Sales Contract

• Contract Preparation: The contract should be drafted by a lawyer or real estate professional, outlining all the terms and conditions of the sale. This includes the purchase price, payment schedule, property details, and any other agreed-upon terms.
• Inclusions: Ensure the contract includes any specific items or conditions, such as fixtures, fittings, furniture, or penalty clauses for non-compliance.
• Review: Both parties should carefully review the contract to ensure all details are correct and understood. It’s advisable to have the contract reviewed by a legal professional to avoid any misunderstandings.

1. Signing the Contract

• Location: The sales contract is typically signed at the Land Registry Office, but it can also be done at a notary's office or through a lawyer if one or both parties are not present in Turkey.
• Witnesses: In some cases, witnesses may be required to sign the contract. This is often the case when the buyer or seller is represented by a power of attorney.
• Payment of Deposit: A deposit, usually around 10% of the purchase price, is paid at the time of signing the contract. This deposit is a commitment to proceed with the purchase and is often non-refundable if the buyer pulls out of the deal without a valid reason.

1. Contract Registration

• Registration: After signing, the sales contract may need to be registered with the local municipality or Land Registry Office, depending on the type of property and the specific transaction.
• Final Review: Ensure that all signatures are in place and that the contract is legally binding. Both parties should receive a copy of the signed contract for their records.

3. Post-Purchase Steps

After the sales contract is signed, there are several important steps to complete the transaction and secure your ownership of the property:

1. Title Deed (Tapu) Transfer

• Application: Both the buyer and seller (or their authorized representatives) must apply for the title deed transfer at the Land Registry Office where the property is registered.
• Fee Payment: Pay the required title deed transfer fees (Tapu Harcı), which are usually 4% of the declared sale price, and any other associated taxes.
• Verification: The Land Registry Office will verify all documents and ensure that the sale complies with Turkish law. This includes checking that the buyer has obtained the necessary military clearance and that all taxes have been paid.

1. Final Payment

• Payment Balance: The remaining balance of the purchase price is usually paid at this stage, either through a bank transfer or by other agreed-upon methods.
• Receipt of Payment: Ensure that you receive a receipt or confirmation of the final payment, which should be documented in the transaction records.

1. Receiving the Title Deed (Tapu)

• Title Deed Issuance: Once all conditions are met and payments are made, the title deed will be transferred to the buyer's name. This is the final and most important document confirming your ownership of the property.
• Official Handover: The official handover of the property typically occurs at the same time the title deed is transferred. Ensure that all keys and relevant documents (e.g., warranty certificates, service contracts) are provided by the seller.

1. Registering the Property

• Municipal Registration: Register the property with the local municipality to ensure you are listed as the official owner for property tax purposes.
• Utility Registration: Transfer or set up accounts for utilities in your name, including electricity, water, gas, and any other essential services. This may require presenting your title deed, tax number, and identification.

1. Post-Purchase Maintenance

• Property Insurance: Consider purchasing property insurance to protect your investment against risks such as natural disasters, theft, or damage.
• Furnishing and Setup: If the property is unfurnished, you may need to furnish and equip it according to your needs, especially if you plan to rent it out or use it as a vacation home.

1. Compliance and Documentation

• Tax Obligations: Ensure you are aware of your ongoing tax obligations, including annual property tax and any applicable rental income tax if you plan to rent out the property.
• Document Safekeeping: Safely store all documents related to the purchase, including the title deed, sales contract, tax receipts, and any other important records.

Finalizing the purchase of property in Turkey involves several critical steps, from thorough due diligence and signing the sales contract to transferring the title deed and registering the property in your name. By following this guide and ensuring all legal and financial requirements are met, you can successfully complete your property purchase and enjoy the benefits of property ownership in Turkey.