Selling Your Property in Turkey: Step-by-Step Guide

Introduction

Turkey continues to maintain its appeal for foreign investors due to its location, lifestyle, and affordable real estate. However, while buying property is relatively easy, the sales process can involve some legal and administrative complexities, especially for foreigners. If you want to sell your property in Turkey to make a profit from your investment or move to another country, this comprehensive guide will guide you through every step.

Real estate transactions can have serious financial and legal consequences. Therefore, it is of great importance to obtain professional legal support to ensure that each step proceeds correctly and safely.

Everything you need to know from preparing your property for sale, to legal and tax obligations, from title deed transfer to sales expenses is in this article.

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Pre-Sale Preparation

Prepare your Property for Sale

It is quite important to get your property ready for sale before putting it on the market. This can both speed up the sales process and increase your sale price.

Beautify your Home

Making some minor repairs, ensuring that electrical and plumbing systems are working properly, having a professional cleaning done, and arranging the garden if there is one, before putting your property up for sale, will provide a significant advantage in the sales process.

Additionally, working with a professional photographer to take high-quality photos, preparing a promotional video, and creating a virtual tour will greatly contribute to marketing and increase the interest of potential buyers.

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Appraisal Report in Sales Involving Foreign Nationals

Mandatory Appraisal Report

According to the regulation published by the General Directorate of Land Registry and Cadastre (TKGM), as of March 4, 2019, if either the buyer or seller is a foreign national in real estate sales transactions in Turkey, it has become mandatory to submit an appraisal (valuation) report prepared by an SPK licensed expert before the sale.

The main purposes of this practice are to ensure transparency in real estate buying and selling transactions of foreign investors in Turkey, ensure transactions are carried out at fair value, and prevent unrecorded transactions.

What You Need to Know about the Appraisal Report:

• For whom is it mandatory?

If either the buyer or seller is a foreigner, an appraisal report is mandatory.

• For whom is it not mandatory?

If both the buyer and seller are Turkish citizens, such a report is not mandatory according to current legislation.

• Who can prepare it?

Only reports prepared by real estate appraisers authorized by the Capital Markets Board (SPK) are valid.

• What is the validity period?

Reports are valid for 3 months from the date of issue. After this period, a new report may be required for a new transaction.

• Who Pays the Appraisal Fee?

It is recommended to determine by contract before the sale which party will cover the fee for the appraisal report.

In practice, the buyer often covers this fee. However, with the agreement of the parties;

• sharing the fee equally,
  • the seller paying the entire fee,
  • or determining another form of payment is possible.

It is important to clearly state this matter in the sales contract to prevent potential disputes in the future.

This obligation is of great importance in terms of protecting the rights of foreign investors, ensuring sales in line with market value, and creating a real estate market that complies with international standards.

You can access detailed information and current regulations from TKGM’s official website:

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Required Documents for Real Estate Sales

For the sale transaction to be completed smoothly at the Land Registry and Cadastre Directorate, the following documents must be prepared completely by both real persons and legal entities (companies).

A. Required Documents for Real Persons

1. Identity Document
2. Representation Document (If Any)
   • Notarized power of attorney
   • Guardian decree or other legal representation documents
3. Appraisal (Real Estate Valuation) Report
   • If one of the parties is a foreigner, a valuation report for the property is mandatory.
   • The report can only be prepared by CMB-licensed valuation companies.
   • For authorized institutions, CMB list: http://www.spk.gov.tr/SiteApps/SirketIletisim/List/gds
4. Mandatory Earthquake Insurance (DASK)
   • A current DASK policy must be presented for properties classified as buildings.
5. Title Deed (Ownership Certificate)
   • Title deed of the property to be sold.
6. Occupancy Permit (Building Use Permit)
   • May be required for properties that have transitioned to condominium ownership.
7. Real Estate Declaration Value
   • Must be obtained from the relevant municipality.
   • It must be electronically transmitted to the land registry offices.
8. No Real Estate Tax Debt Certificate
   • Must be obtained from the municipality to which the property is affiliated.
9. Title Deed Fee
   • Paid separately by the buyer and seller at a rate of 2% of the sale price.
   • This amount cannot be less than the real estate declaration value.
10. Revolving Fund Fee

B. Additional Documents for Legal Entities

If the title transfer will be made through a company, the following documents are required in addition to those mentioned above:

1. Tax Plate: Original and photocopy must be presented.
2. Signature Circular: Notarized document showing the signature authority of the company representative.
3. Trade Registry Gazette: Copy showing the latest board of directors election or appointment of the authorized person.
4. Authorization Certificate: Document containing explicit authorization for real estate sale and including identity information of the person who will act on behalf of the company.
5. Power of Attorney (If Any): If the company will conduct the transaction through a proxy, a notarized power of attorney must be presented.

It is of great importance that all documents are up-to-date and complete for the timely completion of transactions. The required documents and transaction steps can also be followed on the official website of the Land Registry and Cadastre Directorate.

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What are the Title Transfer Costs and who should Pay Them?

One of the most important financial obligations that parties should be aware of in real estate transactions is title transfer costs. These costs are determined under the Law on Fees No. 492 and create separate obligations for both the buyer and the seller.

What is Title Deed Fee?

The title deed fee is a legal fee collected by the state during the transfer of ownership of a property through sale. This fee is calculated based on the sale price.

What is the Title Deed Fee Rate?

The title deed fee rate is set at 2% of the sale price (20 per thousand).

• For the buyer: 2% (20 per thousand)
• For the seller: 2% (20 per thousand)
• Total: 4% (40 per thousand) title deed fee is collected.

Who Pays the Title Deed Fee?

According to the Law on Fees No. 492, the title deed fee is legally paid equally by both the buyer and the seller. In this respect, the standard practice is:

• 2% buyer + 2% seller.

However, parties can agree on a different arrangement. Common payment arrangements encountered in practice are:

• Title deed fee is usually paid entirely by the buyer,
• In some cases, it can be covered entirely by the seller,
• Or parties may choose to split the fee equally.

In any case, the sales contract should clearly state how much each party will pay. This is important to prevent potential disputes in the future.

Other Related Expenses

In addition to the title deed fee, there are some legal and transaction-related expenses during title transfer. In practice, these expenses are usually shared as follows:

• Revolving Fund Fee: Collected during the transaction according to the tariff determined by the General Directorate of Land Registry and Cadastre.

Standard practice: Paid by the buyer.

• Mandatory Earthquake Insurance (DASK): A valid and current DASK policy must be presented for properties classified as buildings.

Standard practice: Paid by the buyer.

• Real Estate Tax Debt: The seller should not have any real estate tax debt related to the property from previous periods.

Standard practice: Paid by the seller.

• Appraisal Report: If one of the parties is a foreigner, it is mandatory to obtain an appraisal report from a CMB-licensed firm before the sale.

Standard practice: Paid by the buyer.

• Power of Attorney Fees: A notarized power of attorney is required if the transaction is carried out through a proxy.

Standard practice: The party arranging the power of attorney pays.

However, parties may reach a different agreement regarding the sharing of these expenses. In any case, it should be clearly stated in the sales contract which party will cover which expenses. This is important to prevent potential disputes in the future.

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How much is the Real Estate Agent Commission in Turkey?

Legal Basis

In Turkey, the service fee (commission) to be paid to real estate agents for property buying and selling transactions is legally determined by the “Regulation on Real Estate Trade”. Article 20 of the Regulation on Real Estate Trade article states:

“(1) In buying and selling transactions, the service fee rate cannot exceed four percent of the sales price specified in the brokerage contract, excluding Value Added Tax (VAT).”

According to this regulation, the real estate commission rate in a property transaction cannot exceed 4% excluding VAT. This rate is usually collected 2% from the buyer and 2% from the seller.

Generally:

• 2% from the Buyer
• 2% from the Seller

How is the Commission Calculated?

Sample Calculation – for a Sales Price of 10,000,000 TL

For example, for a property sale worth 10,000,000 TL:

• Buyer’s commission: 10,000,000 TL × 2% = 200,000 TL + 20% VAT = 240,000 TL
• Seller’s commission: 10,000,000 TL × 2% = 200,000 TL + 20% VAT = 240,000 TL
• Total real estate agent commission: 480,000 TL (including VAT)

Note: These rates are maximum limits. If a different agreement has been made between the parties, the commission rate may be lower.

Can the Commission Rate be Changed?

Yes. This rate is the maximum rate determined by legislation. That is:

• A lower rate can be determined by a prior written agreement between the parties.
• It is also possible for the commission to be collected only from the buyer or only from the seller, but this should also be agreed upon in writing.

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Important Notes:

• Commission payment is due only if the sale is completed.
• It is essential to work with firms and individuals who have a Real Estate Trade Authorization Certificate, and services should not be received without a contract.
• Conducting transactions without a contract or demanding commission before the sale is completed is against the law.

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Clarifying real estate agent commission rates and payment terms upfront makes the process transparent and smooth for both buyers and sellers. If necessary, it is recommended to seek legal support on this matter.

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The Role and Importance of a Lawyer in Real Estate Buying and Selling Transactions

What Does a Lawyer Do?

The real estate buying and selling process is a serious transaction that involves many legal and technical details, not limited to just the title deed transfer. Getting professional support from a lawyer during this process is of great importance in terms of protecting the rights of the parties and preventing potential risks.

A lawyer represents and guides you in the following areas before and during the buying and selling transaction:

• Preparation and Review of Contracts:

In practice, standard contracts are often used; however, these contracts often do not adequately protect the interests of the parties and do not include important details. A lawyer prepares a detailed and solid contract that clearly defines the obligations and rights of the parties and prevents potential disputes.

• Legal Examination of the Property:

The lawyer thoroughly investigates whether there are any:

• mortgages,
• seizures,
• annotations, other shareholders registered in the title deed,
• sales restrictions or obstacles on the property to be purchased.

It is determined whether the property is legally suitable for sale.

• Follow-up of Title Deed Transactions and Tax Obligations:

All official procedures, from obtaining necessary documents to calculating and paying the correct fees and taxes, are followed by the lawyer throughout the title deed transfer process.

• Payment Terms and Earnest Money Process:

The lawyer clearly and securely determines issues such as when and how the payment will be made; how the earnest money will be given; and the legal consequences if one of the parties withdraws from the sale. Thus, the parties complete the process without experiencing any loss of rights.

In short, in a real estate transaction, a lawyer is not just a legal representative; they are also a strategic consultant who secures every stage of the process. This professional support becomes even more critical, especially in high-value transactions or those involving foreign parties.

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Timing and Methods of Money Transfer

The payment process in real estate sales is one of the most sensitive and important stages between parties. The timing and method of payment should be planned to secure the rights of both the buyer and the seller.

Generally, the payment process is carried out simultaneously with the title deed transfer. The buyer and seller meet at the land registry office, and after the buyer pays the sale price, the seller completes the transfer by signing in the presence of the land registry official. The official explicitly asks the seller during the transaction, “”Have you received the full sale price?”” and obtains confirmation.

At this stage, the buyer also has the right to inquire from the land registry official whether there are any restrictions, mortgages, annotations, seizures, or other encumbrances on the property.

Main Payment Methods

1. Cash Payment in Person

This method has the lowest level of security. The buyer hands over the sale price in cash to the seller in person. However, the following points should be considered in this method:

• A money counting machine should be used during the money handover,
• The transaction should be conducted in a secure bank environment if possible,
• Payment should not be made before the title deed transfer is completed.

This method is not recommended due to the security risk of carrying cash.

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2. Bank Transfer (EFT / Wire Transfer)

This is one of the most preferred methods today. The buyer transfers the sale price to the seller’s bank account via EFT, wire transfer, or mobile banking.

Points to consider:

• The property’s block/parcel information and a statement regarding the sale price must be written in the description field.
• Example: “”This is the sale price for the property at block 123, parcel 45 in Sarıyer district, Istanbul.””

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3. Payment by Blocked Check

A blocked check is one of the safest payment methods in title deed transactions. In this method:

• The buyer obtains a blocked check issued in their name from their bank.
• This check is handed over to the seller when the title deed transfer is completed.
• The seller takes the check to their bank and collects the payment.

Advantages:

• No need to carry physical cash between parties.
• Both the buyer and seller are protected in terms of transaction security.

Warning: Before issuing a blocked check, the bank should be contacted to confirm the validity and authenticity of the check. Also, some banks may charge a commission fee for blocked checks.

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4. International Money Transfer and Payment in Foreign Currency

Buyers from abroad can make international money transfers through banks in Turkey. However, there are important points to consider:

• According to the Law on the Protection of the Value of Turkish Currency, all real estate sales in Turkey must be made in Turkish Lira (TL).
• If payment is made in foreign currency, a Foreign Currency Purchase Document (DAB) showing the conversion to TL must be issued and added to the transaction file.

This is a common practice, especially for foreign investors and those applying for citizenship. The description for the money transfer should still be written correctly and in detail.

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5. Payment through a Lawyer or Authorized Representative

One or both parties may conduct transactions through a lawyer or representative. If explicitly stated in the power of attorney:

• The buyer can pay the sale price to the seller’s lawyer or authorized representative.
• Or the seller can collect the price from the buyer’s lawyer or representative.

The most important point to consider in this method is that the power of attorney must be detailed, clear, and cover the transactions. Especially, phrases such as “”authorized to collect or pay the sale price”” should be explicitly stated in the power of attorney.

Conclusion

The method and timing of payment in real estate sales are vital for transaction security. A transparent, documented, and legally secure method should be chosen for both parties; the payment method should be clearly stated in the sales contract. Proceeding with lawyer support ensures that this process is completed smoothly and securely.

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Common Problems and Their Solutions

Various legal and technical issues may arise between parties during the real estate buying and selling process. Anticipating these problems in advance and taking necessary precautions is of great importance for the safe and smooth completion of the transaction.

1. Buyer’s Delay in Payment

Failure to pay the sale price on time may lead to delay or cancellation of the title deed transfer.

Solution: The sales contract should clearly state when and how the payment will be made; sanctions to be applied in case of delayed payment (such as late payment interest, non-refund or non-transfer of deposit) should be regulated.

2. Ownership and Restrictions on the Property

The presence of debt, mortgage, seizure, annotation, or restrictive rights in favor of third parties on the property’s title deed may prevent the transfer of ownership.

Solution: Before the title deed transfer, the current title deed records of the property should be examined in detail; conditions such as mortgage, seizure, usufruct rights, partnership should be identified. If necessary, the transaction should not be carried out without removing these obligations.

3. Fraud and Insecure Transactions

Transactions with fake documents or unauthorized persons can lead to serious victimization.

Solution:

• Transactions should only be conducted through trusted, licensed real estate consultants and official institutions,
• The identities, powers of attorney, and title deed information of the parties should be carefully checked,
• If possible, the entire process should be carried out with the assistance of a lawyer.

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Such risks can be minimized with careful contract preparation, detailed title deed examination, and professional support. Especially in high-value transactions, getting expert lawyer and reliable consultancy support is of great importance.

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Frequently Asked Questions (FAQ)

1. I Am outside Turkey. Can I Sell My Property?

Yes, even if you are abroad, transactions can be carried out through your proxy with a notarized power of attorney.

2. How Long Does the Sales Process Take?

If all documents are complete, sales transactions are usually completed within 1 to 2 weeks.

3. Can Payment be Received in Foreign Currency?

Yes, payment can be made in foreign currency. However, in title deed transactions, the amount must be shown in Turkish Lira and a Foreign Exchange Purchase Document (DAB) must be issued showing that the foreign currency has been converted to TL.

4. Are there Restrictions on Sales to Foreigners?

In general, there are no obstacles for foreigners to acquire real estate in Turkey. However:

• In some regions, permission may be required due to military security zones,
• The right to purchase is limited for citizens of some countries (for example, Syrian citizens),
• There may be restrictions on acquiring land, fields, or property in coastal areas for citizens of certain countries.

Therefore, it is recommended to get legal consultation before the sale.

5. What Happens if there is a Tenant in the Property?

The tenant’s situation must be clarified in advance.

• If the tenant is to leave, this statement should be put in writing with an eviction commitment to be drawn up at the notary.
• Otherwise, a malicious tenant may not vacate the property and the eviction process may be prolonged.

6. What about Rent and Deposit if there is a Tenant?

• From the title deed transfer, the tenant must make rent payments to the new owner. Therefore, the IBAN information should be notified to the tenant in writing.
• The deposit issue should be agreed upon between the previous owner and the buyer. It is recommended to add a special clause to the sales contract on this matter.

7. Can Foreigners without Residence or Work Permits in Turkey Buy Real Estate?

Yes, they can. A residence permit or work permit is not required to acquire real estate in Turkey.

8. Can Citizenship or Residence Permit be Obtained through Real Estate Purchase?

Yes, but not every property provides these rights.

• For citizenship or residence permit, the purchased property must meet the relevant legal criteria.
• In such transactions, consultation from a legal expert should definitely be obtained.

9. Is it Mandatory to Work with a Real Estate Agent for Buying and Selling Property?

No, working with a real estate agent is not legally mandatory for real estate buying and selling in Turkey. However, getting professional real estate consultancy speeds up your sales process and provides a safer environment for the buyer.

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Conclusion

If you are planning to sell your property in Turkey, it is of great importance to be prepared for every step of the process.

The complete and accurate preparation of documents, proper management of legal processes, and awareness of tax obligations ensure a smooth completion of the sale.

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Legal Support

As MFY Legal | Law Firm, we are by your side with our expert team of lawyers for a secure, smooth, and professional process in real estate sales.

We can provide personalized legal consultancy throughout the process and represent you in all stages from the sales contract to the title deed transfer.

Additionally, our expert and reliable real estate consultants can manage the entire sales process on your behalf.

You can contact us for detailed information and one-on-one consultation.