EVERYTHING ABOUT MORTGAGE

Before buying a property in Turkey, the potential purchaser must first decide on some crucial criteria in property search;

Whether to buy the property for investment purposes or to reside? If the purpose of the purchase is to reside, it is mostly recommended to rent a place in the area, prior to purchasing, in order to get to know the area better and to have a more decent understanding on the conditions.

By knowing the area better you can easily handle the second most important criterion that is whether the property has a right or in another words a prime location? What are the future plans for the surrounding area? ...etc.

It is also very important to identify the individual needs when you are about the buy a property; Things seem like details, may play an important role depend on the purpose of the purchase. Whether it is rental or holiday home? If it is a rental, common preferences will probably have to be in front of your own choices.

To set up your mind the most determining criteria will be the price; can you see the value for money? What could be the estimated annual capital growth? Comparison of the surrounding properties may give you a good idea.

Please note that, after 5 years there is no Capital Gain Tax payable in Turkey.

May be last but definitely not the least important, is the cost of living expenses of the area; Turkey is one of the most attractive retirement destinations due to its low cost of living under the sun. Depending on the duration you intend to stay, the living expenses and the climate should also be counted in.

A professional agent shall identify your needs before taking you to show any property. To take this journey with professionals will ensure;

• to choose within a good selection of a portfolio,
• pre-approved builders/projects,
• the planning regulations met,
• building permissions obtained,
• architectural plans approved,
• sellers pre-checked to have the authority to sell the property,
• assistance through out the process,
• more importantly, peace of mind on your return.

The buying process is very smooth in Turkey; once you have found yourproperty and agreed on the selling price, the Sales and ConstructionAgreement (Purchase Contract) can often be drawn up within the same dayboth in Turkish and English.

Both Buyer and Seller sign the contract setting out theagreed sale price, payment schedule, the names of Buyers and Sellers,full property details, obligations of both parties, the completion date,all terms and conditions applies to completion and ensure that theproperty is free from restrictions. When the contract is signed, usuallya non-refundable deposit is due.

In order to make sure the legal side of the process is takenwell care, it is advisable to have an independent bilingual LegalAdviser/Solicitor who is experienced in Turkish Property Law.

There is a Notary Public in every town. It is normal practice to issue a Power of Attorney (POA) to the Solicitor, to enable them to follow and complete the purchase process on your behalf without the need for you to be present until a convenient time.

A POA can be issued abroad as well; usually Solicitors abroad have the authority to notarize the documents. The notarized POA should then be apostilled at the Local commonwealth Office or should be certified by the Turkish Consulate in order to be recognized as valid. Please note that a POA obtained from abroad and written in languages other than Turkish should be translated into Turkish Language and the Legal Translation approved by the notary in Turkey as well. Or you can directly contact the Turkish Consulate in order to prepare a legal POA.

All Buyers will need to obtain a tax identification number from the local authorities (tax office) to open a bank account (for the transfer of the funds), sign up to utilities or obtain the title deeds of the property in your name. It is a very easy process; a 10-digit number you will obtain with the photocopy of your passport. It can easily be obtained by your solicitor via POA as well.

The most recommended mean of payment to transfer funds to the Seller, is to open an account with a Turkish bank. You can transfer the money from your account at your home country by simply filling out a transfer form via giving the name, address, branch code and IBAN (International Bank Account Number) of your Turkish Bank account.

There are 2 ways to make the payment to the seller. You can either arrange the cash to be available or have your bank issue a check (banker's draft) on the name of the beneficiary.

For money transferring, Garanti Bank offers Expatriate Banking, which provides attractive full foreign currency and Turkish Lira services including deposits, and savings accounts, credit cards, overdraft facility and debit cards as well as fast money transfer to any bank in the world.

You can do your banking transactions in English via our Online banking and 444 0 333 telephone banking. Your solicitor via Power of attorney can then transfer the money from your Garanti Bank account to the Seller's bank account.

The transfer of title deed will not usually take place until the cleared funds are in the seller's account or the cash has been handed over.

The Builder/Seller must apply for military permission. This procedure is standard for all foreign purchasers in Turkey. The checks are to ensure that the land on which your property is built is not in a military, strategic or security zone. Once you have clearance, than the title deed transfer process shall start.

It is important to note that the military search period may take up to 3 months and in some cases 6 months.

The title deeds (known as "TAPU" in Turkish), will be signed at the Land Registry Office, and then the Buyer should pay all costs and taxes related to the transfer of the title deeds. If the Buyer has taken out a mortgage, a Garanti Bank representative may also attend this transaction with the Solicitor.