ALTINKUM PROPERTIES ALTINKUM TURKEY

Mortgages are currently not available in Turkey at all - neither for Turkish citizens nor foreigners. Turkish citizens can take out a home loan at a bank but foreign nationals cannot borrow money at all.

This means that if you do not have the cash to pay the full price of the property, you will need to arrange finance in the UK.

However your purchase can be made easier in two ways:
" Turkish law decrees that every sale of property to a foreigner must be cleared by the government to make sure it meets certain requirements. The title deeds cannot be transferred until the sale has been approved, which normally takes several months. Before this time, you are not liable to pay the balance of your property.
" If the vendor agrees, you can have a payment schedule written into your sales contract. The schedule will state the date each payment is due and the amount, up to the total balance of the property. Any payment schedule will need to be agreed with the vendor and including it in the sales contract secures this.

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What is a Sales Contract and a Title Deed? And what's this Tapu I've heard about??

You will come across both the Sales Contract and the Title Deeds when buying your property in Turkey - in fact they are the most important documents in the whole process.

The Sales Contract is the legal document stating that, subject to security clearance, you, the buyer, agree to buy the property; the price you agree to pay, and the date by which you agree to pay it. It also states that the seller agrees to sell you the property at the agreed price, and that if there are any undeclared problems with the property or the seller pulls out of the sale, the sale will be annulled and the seller will pay you a penalty fee of £5000. Similarly if you pull out of the sale, it states that you will pay the seller the same penalty fee. The sales contract will also include any extras you negotiate with the seller, such as fixtures and fittings.

The Title Deed is the legal document of ownership of the property. The Turkish name for this document is "Tapu Senedi", hence the Tapu you may have heard about. Once the property is sold, the title deeds are transferred from the seller to the buyer and that concludes the sale. If there are any restrictions on the property they will be itemised in the title deeds. Therefore it is very important for the solicitor to check the deeds carefully before recommending that the sale proceed. You can also ask to have restrictions placed on the deeds once transferred to you if you wish.

In order to have the deeds transferred into your name, the details of the sale will be submitted for security clearance (See Are there any differences between the laws for Turkish citizens buying property and the laws for foreign nationals?) and once clearance has been given, the deeds will be transferred.

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What documents do I need to buy my property in Turkey?
The only documents you will need to provide personally to purchase your property are your passport and two recent passport photographs, which can be taken here.

Once the Sales Contract is signed, your agents will send to the Title Deeds office all the necessary documentation:
i. Title Deed of the property
ii. An authorised copy of your passport
iii. Two recent passport (4cm x 6cm) photos

If you are giving Power of Attorney to the estate agent or the solicitor to sign the Title Deeds on your behalf, we will also send:
iv. Copy of passport and/or ID Card of the authorised agent
v. Two recent passport photos of the authorised agent
vi. Power of Attorney documentation

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Are there any differences between the laws for Turkish citizens buying property and the laws for foreign nationals?
No, Turkish citizens and foreign nationals are treated identically under Turkish property law - they have the same rights and the same obligations with two exceptions:

1. Foreigners cannot own property within a military zone or of more than 30 hectares / 74 acres in area. More than likely, if you are buying residential property in an established area, neither of these will apply. However, every sale of property to a foreign national needs to be screened by the government (General Directorate of Land Registry and Cadastre) before the title deeds are released for transfer.
The documents you will need to provide for this screening are:
i. A copy of your passport
ii. The full names of your parents
iii. The title deeds of the property

2. It is recommended that all sales of property to foreign nationals are notarised by a government-authorised interpreter to guarantee that the contract is understood by all parties (see I don't speak Turkish! How can I be sure that the sales contract I'm signing to buy my property is genuine?!)

Currently, the Turkish government takes between three and nine months to process the paperwork and release the title deeds for transfer.

your agent will arrange the paperwork on your behalf, send it for screening and notify you when the sale has been cleared and the title deeds released.

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When I buy my property in Turkey do I need to use a solicitor?
The short answer is - you don't have to but you should. In Turkey, the solicitor you instruct to oversee your sale will perform the same duties as a conveyancer in the UK: check the title deeds of the property, confirm there is no outstanding debt against the property and verify the terms of the sales contract. If there are any unfair or restrictive clauses in the contract the solicitor will draw these to your attention and recommend against buying the property.

It is perfectly legal to buy a property without going through a solicitor but unless you are familiar with Turkish, and conveyancing, and Turkish conveyancing, you could find that £250 saving you made looks like less of a good deal when you find you are liable for the previous owner's bank loan!

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I don't speak Turkish! How can I be sure that the sales contract I'm signing to buy my property is genuine?!
In Turkey there is a legal recommendation that all property sales to foreign nationals are notarised by a government-authorised interpreter. This is the case even if the buyer, the seller and the solicitor all speak the same language fluently! This recommendation has been made to give extra protection to all parties in the buying process and formally ensure that all parties understand the contract and the terms of sale.

In addition to this service, your agent will provide a written translation of the sales contract, also drawn up by the government-authorised interpreter. As the property purchased is in Turkey, the legal contract is the original, Turkish language version. The translation is for your information and verifies the content of the Turkish contract.

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I've heard horror stories about people buying property abroad only to find that someone else still has rights to use their land. Could this happen to me in Turkey?
Turkish property law is very straightforward in comparison to many other countries. All properties are freehold, and only the person / people named on the title deeds of a property have any claim to that property. The permission of all named owners must be given in writing before it can be transferred to a new owner. This is checked by the solicitor prior to sale, and the solicitor cannot let the sale proceed if any party objects to it.

This may sound like hard work, but it guarantees peace of mind for anyone choosing to buy a property in Turkey!

Your agent will ensure that all sales are checked by a reputable solicitor prior to contract.
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What happens if I buy a resale property and the previous owner ran up debts against it?
When you buy a resale property in Turkey, it is important to have the property checked for outstanding debts by the solicitor. If there are debts outstanding against the property they will be logged at the Title Deeds office.

If there is any problem with the property, the solicitor will advise you not to proceed with the sale, and the seller will be required to pay you a penalty fee which is written into the Sales Contract.

Your agent will arrange for this check to take place as standard on all sales to give you complete security.

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In the UK, I have drawn up a will leaving my inheritance to my spouse and my children. What laws apply to my property in Turkey?
There are two laws that apply to the inheritance of property in Turkey. One is inheritance law and the other is property law.

Under Turkish Inheritance Law the inheritance of property by a foreign national is dependent on reciprocity between the two countries involved. As Turkish nationals can inherit property in the UK, UK citizens can also inherit property in Turkey. If you have no will, the property will automatically be inherited by your next of kin (usually your children). If you wish to leave your property to someone other than your next of kin, you should make a will in the UK specifying this.

Under Turkish Property Law, foreign nationals cannot own property within a military zone or of more than 30 hectares / 74 acres in area. Therefore your inheritors will need to go through security clearance before inheriting your property. (See Are there any differences between the laws for Turkish citizens buying property and the laws for foreign nationals?)

If your willed heirs are nationals of a country that does not have a reciprocity agreement with Turkey (See Does my country have a reciprocity agreement with Turkey for ownership of property?), any real estate that you have willed to them will be liquidated and they will instead inherit the cash value of your property. The same applies if your heirs cannot inherit the property because it is within a military zone or of more than 30 hectares [Article 35 of the Land Registry Law].

Inheritance tax is payable in Turkey but any tax paid in the UK will be deducted from the amount payable in Turkey.

It is generally recommended that you have a will drawn up no matter what your circumstances.

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I want to buy a property in Turkey but I can't take enough time off work to fly over too often to sign all the paperwork. What is the safest way to manage all the legals without getting the sack?!
The buying process in Turkey is very straightforward in comparison with other countries. The buyer only needs to sign two sets of documents, the sales contract and the title deeds. However due to the laws governing the purchase of property by foreign nationals in Turkey, there is generally a delay of several months in between signing the sales contract and signing the title deeds (See Are there any differences between the laws for Turkish citizens buying property and the laws for foreign nationals?).

The most popular way to avoid having to return to Turkey to sign the title deeds when they are released is to delegate authority to your estate agent or solicitor via a Power of Attorney. Power of Attorney can be very broad but the standard type your agent recommends is a limited Power of Attorney, permitting the appointed agent only to sign the title deeds on your behalf.

The appointed agent is obliged to act in your interest and this is protected legally. You can cancel the Power of Attorney at any time by writing to the appointed agent revoking the Power of Attorney and requesting the return of the Power of Attorney documents.

If you wish, you can have your Power of Attorney document prepared in the UK but it will need to be apostilled by the Foreign and Commonwealth office (www.fco.gov.uk) at a charge of £19.

Alternately, your agent can arrange your Power of Attorney document in Turkey for you and ensure it is notarised by a government-authorised translator in your presence.

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I know how much the property I want costs. What are the additional costs of buying a property?
In addition to the basic cost of your property, you can expect to pay the following costs:
" Estate Agency Fees - 3%
" Solicitor and Government-Authorised Interpreter - £250 (set fee)
" Title Deeds Charge (Buying Purchase Tax) - 1.5% of declared value of the property (See When I bought my property the solicitor recommended that I declare a different value for the property on the sales contract than what I actually paid. What's that about?)

If you plan to use your property for rental or as a holiday home, you will also need to think about the following additional costs:
" Electric and water connection - £250-300
" Furnishing, white goods and curtains - £2500-5000 depending on the size of the property

If your sales contract has been officially stamped, you are charged a Stamp Tax of 0.75% of the declared value of the property.

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When I bought my property the solicitor recommended that I declare a different value for the property on the sales contract than what I actually paid. What's that about?
In Turkey the Tax Assessment Commission sets an assessed value for properties, on which tax calculations are based. This assessment generally seems remarkably conservative considering it is the valuation on which the Turkish government decides how much tax to levy!

You can choose to declare a higher value if you wish but it is perfectly legitimate to declare the value as assessed by the government instead and you will - legally - save yourself several hundred pounds in tax.

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The property I want to buy isn't completed yet. What safeguards are there to make sure that the builder completes the property on time and to a high standard?
There are many benefits to buying an off-plan property in any country. The sale price will generally be slightly lower than the price of a completed property because you are effectively subsidising the construction and giving the builder peace of mind that his investment is going to make a return! Also, buying off-plan gives you more flexibility - if the structure permits you can ask for walls to be knocked through or put in and change the layout of the kitchen.

The downside to buying off-plan is that you are buying on faith because you have not seen the finished article, and you are effectively buying a promise because the property is not yet finished.

When you choose to buy an off-plan property, the completion date is written into the sales contract, with a completion clause requiring the builder to pay you a penalty charge each month if the property is not completed on time.

Additionally, there is a 10 year guarantee on the structure of the building, a three-year guarantee on the windows and doors, and a one-year guarantee on fixtures, fittings and minor repairs. All of these guarantees are legally attached to the building and so if you sell the property within the guarantee period the new owner can also claim against the guarantee if required.

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The property I want to buy is a resale property but most of the properties I see for sale in Turkey are new builds. Is there anything I should be looking out for?
When it comes to resale property, there are a number of things you need to think about.

Older properties
The main one is this: when you buy an older property in a resort area, you must remember that it was almost certainly built as a summer house at most, and more likely for occasional use only. This means that the property may not have been looked after as well as a permanent home would be, and may not have been built to last in the same way as a permanent home would be. Additionally, older properties will not have been subject to the structural standards brought in after the earthquake in 1999 (See What about earthquakes?), and will not be subject to the building guarantees that apply to new and off-plan properties.

Newer properties
Newer properties are a better bet, providing they have been built since 2002. The improvement in building standards brought in after 1999 becomes more evident in post-2002 properties, and the standard continues to improve year on year. Just as importantly though, newer properties constructed very recently as part of Turkey's property boom will still be covered by the original building guarantees - 10 years structural guarantee, three years for doors and windows, and one year for minor repairs.

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What about earthquakes?
Geographically, the earth is divided into enormous plates that float on top of the Earth's crust. Turkey is on a plate of its own that is being squeezed by two bigger plates. This has created fault lines along the northern and south-eastern borders of Turkey, making it vulnerable to earthquakes.

The Southern Aegean Coast is about as far from the earthquake zone as it is possible to be in Turkey. In fact you are almost more likely to experience a tremor in the UK as you are on the Aegean Coast.

Nevertheless, after the major earthquake in north-western Turkey in 1999, the Turkish Government brought in new laws, requiring all new buildings to be of a certain structural standard to better withstand earthquakes, and requiring all buildings to be insured against earthquake damage. These laws apply equally to everywhere in Turkey so in Altinkum, Akbuk, Bodrum, Fethiye and Kusadasi you are about as safe from earthquakes as you will ever be!

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If I buy a property in Turkey, what power sources can I use for lighting, hot water, heating and cooking? And what about the other utilities?
In most coastal parts of Turkey, including Altinkum, Akbuk, Bodrum, Fethiye and Kusadasi, power is supplied largely through mains electricity and solar power. Mains electricity is provided by private utilities companies and is billed periodically - either monthly, quarterly or twice a year. Electricity bills can be paid either in person or by direct debit.

Solar power is free, but the supply is limited to how much power can be stored in each solar panel and how many panels are fitted.

Some people also like to use gas, for example for cooking. However natural gas is only supplied to some cities in Turkey and is not preferred in most coastal regions. In these areas, private companies deliver gas in barrels, which can be connected to a gas hob.

Water is supplied by the local municipal area. Bills are charged based on usage, and are generally quarterly. Water bills must be paid in person, either at the Belediyesi (municipal hall) or the post office).

When you buy your property, you will need to have the utilities connected or transferred into your own name. This can be done within one working day and your agent will arrange this.

If you are using your property as a holiday home, it is unlikely you will ever find your total utility bills reaching more than £200 / year. However if you plan to use your property for holiday lets you should factor higher usage into the rent. If you plan to rent your property out on a long lease, have the tenants register the utilities in their own names.

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Do I need buildings insurance for my property in Turkey? And what about earthquakes? Aren't they an Act of God?
In Turkey, as the owner of a property you are liable for any damages if anything happens to or because of your property. To help protect against this, all new buildings must be insured against earthquake damage and must meet certain construction standards (See The property I want to buy is a resale property but most of the properties I see for sale in Turkey are new builds. Is there anything I should be looking out for?).

The mandatory earthquake insurance (DASK) can either be bought from an insurance company along with a general buildings and contents policy or separately from the government. The value of the property is based on the declared or assessed value on the title deeds (See When I bought my property the solicitor recommended that I declare a different value for the property on the sales contract than what I actually paid. What's that about?). Don't worry if this is less than it cost you to buy your property - it should be perfectly adequate to rebuild it should a catastrophe occur!
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I'm planning to buy a property in Turkey and I want to furnish it comfortably. Do I need to bring furniture from the UK?
Furnishing in Turkey is generally of a good standard. In fact, Turkey exports furniture all over the world. Manufacturers and distributors such as Konfor and Istikbal supply several big companies in Europe and the United States.

If you are furnishing an entire house, get an idea how much individual items are worth, and then think about going to one supplier for everything. It puts you in a good bargaining position and you could end up saving hundreds of pounds. Even better if your estate agency has a furnishing service - they can use their even greater bargaining power to your advantage and some will forgo any commission they might receive to get you a better deal still.

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There are a lot of agencies advertising property in Turkey - how can I tell if the one I've chosen is a good one or not?
Good question - you can't judge a book by its cover. A flashy website doesn't necessarily mean good customer service, but good websites cost money to build so it could be an indication that a company is successful.

Look for customer testimonials, especially testimonials that can be followed up; ask for references; look for accreditation on the website.

Additionally certain areas, such as Altinkum on the Aegean Coast, have started regulating the local agencies, requiring that they are registered with the local chamber of commerce, and that they adhere to certain codes of practice.

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Does my country have a reciprocity agreement with Turkey for ownership of property?
In order to own or inherit property in Turkey as a foreign national, your country needs to have a reciprocity agreement with Turkey. (See In the UK, I have drawn up a will leaving my inheritance to my spouse and my children. What laws apply to my property in Turkey?)
Countries listed in the Annex 1 list have a full reciprocity agreement with Turkey, and nationals of these countries can own and inherit property in Turkey.

Nationals of Annex 2 countries cannot own or inherit property in Turkey.
Nationals of Annex 3 countries have reciprocity for building acquisition only.
The rights of nationals of other countries will be considered on a case-by-case basis.

If you have any questions regarding your rights to own or inherit property in Turkey, you should address them to your embassy.

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ANNEX - 1

1. ANDORRA
2. ARGENTINA
3. AUSTRALIA
4. AUSTRIA
5. BAHAMAS
6. BANGLADESH
7. BARBADOS
8. BELGIUM
9. BELIZE
10. BENIN
11. BOLIVIA
12. BOSNIA-HERZEGOVINA
13. BOSTWANA
14. BRAZIL
15. CAMEROON
16. CANADA
17. CAPE-VERDE
18. CENTRAL AFRICAN REPUBLIC
19. CHILE
20. COLOMBIA
21. COSTA RICA
22. COTE D'IVOIRE
23. CROATIA
24. DENMARK
25. ECUADOR
26. EL SALVADOR
27. ENGLAND
28. ESTONIA
29. FINLAND
30. FRANCE
31. GABON
32. GERMANY
33. GHANA
34. GUINEA
35. GRENADA
36. GUATEMALA
37. GUYANA
38. HAITI
39. HONDURAS
40. HUNGARY
41. IRELAND
42. ISRAEL
43. ITALY
44. JAMAICA
45. JAPAN
46. KOREA, SOUTH
47. LATVIA
48. LIECHTENSTEIN
49. LITHUANIA
50. LUXEMBOURG
51. MALAWI
52. MALAYSIA
53. MALI
54. MALTA
55. MAURITANIA
56. MAURITIUS
57. MEXICO
58. MONACO
59. MOZAMBIQUE
60. NETHERLANDS
61. NEW ZEALAND
62. NICARAGUA
63. NIGERIA
64. NORWAY
65. PANAMA
66. PARAGUAY
67. PERU
68. PHILIPPINES
69. POLAND
70. PORTUGAL
71. SAN MARINO
72. SENEGAL
73. SINGAPORE
74. SOMALIA
75. SOUTH AFRICAN REPUBLIC
76. SRI LANKA
77. SPAIN
78. SWAZILAND
79. SWEDEN
80. SWITZERLAND
81. TANZANIA
82. THE REPUBLIC OF DOMINICA
83. TURKISH REPUBLIC OF NORTHERN CYPRUS
84. UNITED STATES OF AMERICA
85. URUGUAY
86. VENEZUELA
87. YUGOSLAVIA(SERBIA-MONTENEGRO)

ANNEX - 2

1. AFGHANISTAN
2. ALGERIA
3. ARMENIA
4. BURMA
5. CAMBODIA
6. CUBA
7. CZECH REPUBLIC
8. ERITREA
9. ETHIOPIA
10. FIJI
11. ICELAND
12. INDIA
13. INDONESIA
14. IRAQ
15. KOREA, NORTH
16. KUWAIT
17. LAOS
18. LIBYA
19. MALDIVES
20. MONGOLIA
21. NEPAL
22. NIGER
23. OMAN
24. PAPUA NEW GUINEA
25. QATAR
26. SAUDI ARABIA
27. SLOVAKIA
28. SUDAN
29. SURINAME
30. THAILAND
31. TUNISIA
32. UNITED ARAB EMIRATES
33. VIETNAM
34. YEMEN

ANNEX-3

1-AZERBAIJAN
2-BAHRAIN
3-BELARUS
4-CHAD
5- CHINA
6-EGYPT
7-GEORGIA
8-IRAN (With the conditions of five-year residence and permission of relevant Ministries)
9-JORDAN
10-KAZAKHISTAN
11-KENYA
12-KYRGIZISTAN
13- MACEDONIA
14-MOLDOVIA
15-MOROCCO
16-NAMIBIA
17-ROMANIA
18-RUSSIAN FEDERATION
19-SLOVENIA
20-TAJIKISTAN
21-TURKMENISTAN
22-UGANDA
23- UKRAINE
24-UZBEKISTAN
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What happens if something goes wrong?

Unfortunately as with any commercial transaction, there is always the possibility that something can go wrong. This is why it is so important to make sure your purchase is handled by a professional estate agency and through a solicitor who specialises in real estate.

In the event that your property falls below the standard agreed in your sales contract, you can either contact the builder directly or ask your estate agency to try to contact the builder on your behalf to ask him to resolve the issue. If this fails, you have the right to initiate legal proceedings. This should of course be considered as a last resort but as long as you have a sales contract signed by both yourself and the builder, you have the safeguard of this option.
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