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The Buying Process   

Generally, buying a property in Turkey is straightforward if buyers and sellers follow the correct procedures. These are, however, different to those which apply in the UK.

But there is one similarity: the use of a reputable local estate agent and solicitor is key to achieving a successful transaction. Indeed a good local agent and solicitor can do most of the buying work for you while you're in the UK if they are granted power of attorney.

Steps to take:

Before making an offer check that the seller owns the property, has a title deed registered at the Land Registry and that foreigners are allowed to buy the property. If you're satisfied on that score and the offer is accepted you will take the following steps:

  1. Sign a reservation contract and pay a deposit, usually £2,000 to £3,000.
  2. Instruct your solicitor to make a title search and a planning search.
  3. If all's well a preliminary contract of purchase will be signed. This commits the buyer to buying the property and paying a deposit of thirty per cent of the agreed purchase price. You may also be asked to sign a preliminary contract if the property is under construction.
  4. If building work is needed, or the property is under construction, ask your agent/solicitor to obtain a habitation certificate.
  5. A final or full purchase contract is signed by the parties concerned at the local land registry and the title is registered to the new owner.
  6. Get permission from the Turkish military to buy. Foreigners can only buy in permitted areas. This process is best handled by your agent or solicitor. It takes four to 10 weeks for a decision to be made.
Price and negotiating

As is the case in the UK there is often room for negotiating though this will depend on the state of the market. A reputable agent or solicitor should ensure that you pay a fair price.

Taxes

Property transfer tax is payable on a transaction. It's three per cent of the sale price with half each payable by the buyer and the seller. VAT doesn't apply. Stamp duty occasionally has to be paid. If so it's 0.75% of the agreed price. Estate agent's fees are three per cent split evenly between buyer and seller.

The payment itself

The agreed price plus taxes and fees payable are usually paid to the seller and/or his agent/solicitor in the presence of a land registrar. The buyer may be represented by an appropriate nominee, usually his/her solicitor or agent. Cash is still the most popular method of payment.

Surveys and inspections

The property should be inspected before purchase. A survey costs £500-£1500 and usually takes seven to 10 days. Make sure the surveyor inspects electrics, drains, boundaries, and the quality of building materials used.

Types of contract

Offer to buy: A formal written offer plus a deposit of 10-20% of agreed price. This is binding.
Reservation or option contract: This commits the seller to take the property concerned off the market for an agreed fixed period. This requires a deposit of £2,000-£3,000.
Preliminary contract: Commits both parties to sell and buy at a stated price on terms set out in the contract. At this stage it's important to obtain proof of identity of the seller.
Full contract: The final stage which must be signed in front of local land registry officer.

After purchase

The owner is responsible for paying the local property tax, local environment tax and utility bills. The property must also be insured. Foreign owners are advised to make a Turkish will to ensure they're protected under Turkish inheritance law.