Title Deed Transfer Process in Turkey

In Turkey, the process of transferring title deed is an important step when buying or selling a property. It is essential to understand the procedures and requirements involved in order to ensure a smooth and successful transaction. This blog post aims to provide an overview of the title deed transfer process in Turkey, including the role of real estate valuation reports and the steps involved in transferring the title deed.

In Turkey, foreigners who are interested in investing in real estate must go through a property valuation process conducted by licensed valuation companies in order to acquire ownership of a property. The Government Office, specifically the Capital Markets Board, is responsible for licensing these companies. Currently, there are 143 licensed valuation companies authorized to issue appraisal reports for property investments in Turkey. The complete list of these companies can be found on the following link: [link: https://www.spk.gov.tr/SiteApps/EVeri/Detay/gds].

However, it is important to note that with the recent amendment to the Ministry of Environment and Urbanisation regulation, investors are now required to work with appraisal companies appointed by the Title Deed Authority. This regulation supersedes the previous rule of selecting a company from the list provided by the Capital Markets Board. This change ensures a standardized approach to property valuation and appraisal in Turkey, providing more transparency and reliability in the real estate investment process.

When evaluating properties that are still under construction, two values are determined for investment purposes. The first is the "current value," which represents the estimated value of the property at its current stage of construction. The second is the "legal value," which represents the estimated value of the property once the construction is completed and the legal requirements are fulfilled.

For example, a valuation report may state that a property that is 60% completed has a current value of 1,500,000 TL, but it is anticipated that the value will increase to 2,000,000 TL upon the completion of construction. This information is crucial because it helps investors assess the potential return on investment and make informed decisions before acquiring a property in Turkey.

It is worth mentioning that valuation reports in Turkey have a validity period of three months from the date of issue. Therefore, the title deed transfer process must be completed within this timeframe. Failure to do so will require obtaining a new valuation report to ensure the accuracy and up-to-date assessment of the property's value.

Effective from September 20, 2021, a new regulation states that appraisal companies will now be selected by the Title Deed Offices. This means that the parties involved in a property transaction will no longer have the freedom to choose a valuation company in Turkey. The purpose of this change is to further standardize and regulate the property transfer process, ensuring fair and accurate valuations for all parties involved.

The title deed transfer process in Turkey is initiated by the seller. The seller submits the necessary documents to the Title Deed Office, along with the buyer's documents. The Title Deed Office then verifies the documents and calculates the title deed transfer fee. A fee and appointment message specifying the payment and appointment details are sent to the parties involved.

Both the buyer and the seller are required to pay the title deed transfer fee, and they must appear at the Title Deed Office on the scheduled day and time to sign the necessary paperwork. Once the transfer is completed, the title deed is transferred from the seller's account to the buyer, and the Title Deed Officer issues a new title deed to the new owner.

It is important to note that with a valid title deed, the property owner can benefit from the privileges provided by the Turkey Immigration Law, such as residency permits and other related advantages.

In conclusion, the real estate valuation report, also known as the appraisal report, plays a significant role in the property investment process in Turkey. It provides a comprehensive assessment of the property's value, considering both the current and legal value for properties under construction. The recent amendment in regulations ensures a standardized approach to property valuation by appointing appraisal companies through the Title Deed Authority. The title deed transfer process is initiated by the seller and requires both parties to pay the transfer fee and appear at the Title Deed Office to complete the transaction. Obtaining a valid title deed is essential for benefiting from the privileges provided by the Turkey Immigration Law.