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Everything you need to know is included in our Turkey Property Pack
When it comes to making a significant and potentially life-changing decision, buying a property in Turkey stands out.
Whether you're in search of a new home, an investment opportunity, or a tranquil getaway, exploring the world of Turkish real estate can be truly exciting.
However, exercising caution and careful consideration throughout this process is of utmost importance. Conducting thorough due diligence is an essential step in your property acquisition journey that should never be underestimated.
This article delves into the significance of due diligence when it comes to purchasing a property in Turkey. We will shed light on the vital factors and considerations that every prospective buyer should be well-versed in. From understanding legal regulations to conducting meticulous property inspections, we aim to equip you with invaluable insights to ensure that your real estate investment in Turkey is not just exciting but also secure.
Finally, please know that the full due diligence cheklist is included in our property pack for Turkey.
What is a due diligence when you buy a property in Turkey?
In a residential real estate transaction in Turkey, due diligence is a crucial step, especially from the buyer's perspective.
It's the process where you, as the buyer, thoroughly investigate the property before finalizing the purchase.
The main reason for doing this is to ensure that there are no hidden problems or legal issues with the property. This step is not mandated by law in Turkey, but it's highly recommended to avoid any unpleasant surprises after the purchase.
When you skip due diligence, you risk encountering issues like undisclosed debts on the property, legal disputes, or even structural problems that were not initially visible.
Such surprises can be costly and stressful, often outweighing the initial savings of skipping this step.
The responsibility of conducting due diligence typically falls on you, the buyer, though you can (and should) seek help from professionals like real estate agents, lawyers, and surveyors. These experts can help uncover any legal, financial, or physical issues with the property.
Timing is important here.
You should start the due diligence process as soon as you have a serious interest in a property, ideally before you sign any preliminary agreements or make a deposit.
The duration of this process can vary, usually taking a few weeks to a couple of months, depending on the property's complexity and the thoroughness of the investigation.
Regarding costs, yes, due diligence can incur expenses.
Hiring professionals like lawyers and surveyors will cost money. However, these costs are generally considered a wise investment compared to the potential risks of not doing due diligence.
In summary, while due diligence in Turkey's residential real estate market is not a legal requirement, it's a critical step to protect yourself from future problems. It involves some time and cost but is essential for a secure and informed property purchase.
Get the full checklist for your due diligence in Turkey
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What to check during a due diligence in Turkey?
We'll give here a very brief overview of the elements you have to check when you conduct a due diligence in Turkey ; if you want a full checklist, please check the "Due Diligence" document in our property pack for Turkey.
When you're buying a property in Turkey, it's important to go through several steps to make sure everything is in order.
First, check the property title, known as the 'Tapu'. This is done at the local Tapu office. Make sure the seller really owns the property and that there are no debts or legal problems attached to it.
The Tapu also shows the property's boundaries, which should match the actual property.
Next, you need to look into local regulations. These can be about how the property can be used or what kind of changes you can make.
Since these rules can vary in different parts of Turkey, it's a good idea to talk to a local lawyer or check with the municipality where the property is located.
Financial checks are also key.
You should look into any unpaid bills or taxes linked to the property. Also, compare the property's selling price with other similar properties in the area to make sure you're paying a fair price.
Even though it's not always required, getting an environmental assessment can be smart, especially if the property is near factories or areas known for environmental issues. This step helps you find out if there are any pollution or land issues.
Having a professional inspect the building is really important. They can check the structure, electrical and plumbing systems, and other things like dampness or pests.
This isn't legally required in Turkey, but it can save you a lot of trouble later on.
Make sure the property has access to important utilities like water, electricity, and sewage. You can check this with the local utility companies or the municipality.
Understanding the neighborhood is also crucial.
Visit the area at different times to get a feel for things like noise, traffic, and overall safety. Talking to people who live nearby can give you a good sense of what it's like to live there.
It's also important to know about any legal rights others might have over the property, like easements or rights of way. These can affect how you use your property. You can find this information in the property registry or by consulting a local lawyer.
Knowing about future developments in the area can also be helpful. This information is usually available at the local municipality.
It can affect the property's value and your lifestyle.
Lastly, try to find out if there have been any past disputes or legal issues with the property. This might involve a bit of research, like looking at court records or talking to the seller and neighbors.
Everything you need to know is included in our Turkey Property Pack
What's the process and who are the professionals involved in a property due diligence in Turkey?
In Turkey, when you're buying a property, involving the right professionals in the due diligence process is crucial.
Lawyers and surveyors are typically key players. A lawyer will help with legal checks, like verifying the property's title (the 'Tapu') and ensuring there are no outstanding legal issues. They're also invaluable in navigating Turkey's property laws, which might be unfamiliar to you, especially if you're a foreigner.
Surveyors, on the other hand, conduct physical inspections of the property. They'll check the building's condition, looking for structural issues, and ensure that the property matches the descriptions in its documents.
These professionals are regulated by their respective bodies in Turkey. Lawyers must be registered with the local bar association, and surveyors should have appropriate qualifications and licenses.
Ensuring that the professionals you hire are properly accredited is essential for reliable service.
If you're not fluent in Turkish, language can be a barrier. This makes it even more important to hire a lawyer and other professionals who can communicate in your language. They'll help translate and explain documents and procedures, ensuring you understand every step of the process.
Regarding the contract, amendments can be made after it's been signed, but both the buyer and seller must agree to these changes.
It's not uncommon for some terms to be renegotiated or clarified after signing, but remember that any amendments should be legally documented to be effective.
The timeframe for completing all necessary paperwork and approvals in Turkey can vary.
Typically, after signing the contract, it might take a few weeks to a couple of months to complete everything. This includes getting all necessary approvals, ensuring financial transactions are processed, and transferring the property title.
The exact time can depend on various factors, like the complexity of the transaction, the efficiency of the local land registry office, and whether there are any disputes or issues that need to be resolved.
A mistake in your due diligence could cost you thousands of dollars
Make sure you don't overlook critical checks when assessing the condition of your prospective property purchase. Avoid legal complications. Stay prepared, get our comprehensive guide.
What are the common pitfalls happening during a property due diligence in Turkey?
After our research and the feedback collected from our local real estate partners, we have written an article about the risks and pitfalls when buying a property in Turkey.
When buying property in Turkey, there are specific risks and pitfalls that you, especially as a foreigner, need to be aware of.
These challenges can be unique compared to other countries.
One unique aspect in Turkey is the military clearance requirement for foreigners buying property in certain areas. This process, designed for national security reasons, can delay the buying process.
There have been instances where foreign buyers found their purchase delayed or denied due to this requirement.
Foreigners often face risks related to language barriers and unfamiliarity with Turkish legal and property systems. For example, contracts and legal documents are typically in Turkish.
Misunderstandings or misinterpretations can lead to serious issues, like unknowingly agreeing to unfavorable terms.
Real-life examples include foreigners signing contracts without fully understanding the content, resulting in financial losses or legal disputes.
Cultural and historical considerations also play a role. In some regions, there are properties that cannot be sold to foreigners due to historical or cultural significance. This is a unique aspect of Turkish law and something not commonly found in other countries.
Regarding contracts, a common pitfall is not thoroughly reviewing the terms, especially clauses related to payment schedules, property delivery conditions, and penalties for breach of contract.
Some contracts may have clauses heavily favoring the seller, which can be a trap for unwary buyers.
To mitigate these risks, hiring a reputable local lawyer who speaks your language is crucial. They can guide you through the legal intricacies and help you understand the contract terms.
Also, getting all agreements and promises in writing and officially documented is essential to avoid misunderstandings.
In Turkey, property insurance isn't mandatory but is highly recommended.
Earthquake insurance, known as "DASK," is particularly important due to Turkey's seismic activity. This insurance covers damages caused by earthquakes, which is a significant risk in many parts of the country.
In case of a dispute, legal avenues are available for resolution.
The first step is usually to try and resolve the issue through negotiation or mediation. If that fails, you can take the matter to court. The Turkish legal system comprises local courts (Ilçe Mahkemeleri) for minor disputes and regional courts (Bölge Adliye Mahkemeleri) for more significant issues.
For foreigners, it's advisable to have a lawyer who can navigate these legal processes.
-Turkey: how to buy real estate as a foreigner
-How to understand the property purchase agreement in Turkey
Get the full checklist for your due diligence in Turkey
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.