Valuation Report for Foreign Property Sales in Turkey
Nationwide Valuation Report for Foreign Property Sales
As of the circular dated 15.02.2019 issued by the Directorate of Foreign Affairs of the Ministry of Environment and Urbanization, obtaining a valuation report for immovable properties has become mandatory in real estate transactions involving foreign individuals in Turkey.
Valuation reports will be prepared by real estate appraisal institutions listed by the Banking Regulation and Supervision Agency (BRSA) in accordance with valuation standards.
A valuation report is required for all sales transactions in which foreign individuals are involved as buyers or sellers, and the validity of the valuation report submitted to the Land Registry Directorate extends from the date of its issuance until the completion of the transaction, within a period of three months, provided that an application is made.
Foreign individuals who intend to acquire immovable property must adhere to the following instructions:
They must be citizens of countries that are determined by the President of the Republic and fulfill the acquisition conditions. Subject to compliance with legal limitations, foreign individuals can acquire all types of immovable properties (residential, commercial, land, etc.) in Turkey. Foreign individuals who purchase undeveloped immovable property (land, plots, etc.) are required to submit a project developed in accordance with the nature of the property for approval by the relevant Ministry within two years.
Failure to apply to the Ministry within the specified period or failure to complete the project within the designated timeframe will subject the property to liquidation provisions. A valuation report is mandatory for all real estate sales involving foreigners. When foreign individuals or Turkish citizens with dual citizenship of another country engage in real estate buying or selling, the Land Registry Directorate requests an appraisal report prepared by authorized valuation institutions accredited by the Capital Markets Board (CMB), which demonstrates the current market value of the property.
The mandatory valuation report for foreign sales aims to prevent sales at inflated prices and unregistered transactions. Furthermore, it will enhance the reputation of our country among foreign investors.
The valuation report includes:
- Detailed title deed information of the property,
- Its location coordinates on the map,
- Detailed description and features of the property,
- Photographs of the property,
- All legal examinations of the property,
- The current value of the property, as well as the completed value in case of unfinished construction.
Legal Limitations: In Turkey, only citizens of countries determined by a Presidential Decree can acquire immovable properties and limited real rights. Additionally:
- The total area of immovable properties that a foreign individual can acquire nationwide cannot exceed thirty hectares.
- The total area of immovable properties that foreign individuals can acquire cannot exceed ten percent of the district’s privately owned land area.
- Information regarding properties located in military restricted and security zones is registered in the property’s records, and notification is provided by the Land Registry Directorates.
- Registration procedures for immovable properties located within military restricted and security zones have been completed in all 81 provinces.
- The desired property should not be located within military restricted and security zones or in other areas where acquisition by foreign individuals is prohibited.
- If the desired property is situated within “Special Security Zones,” permission must be obtained from the governorship of that particular location.
- In the case of foreign individuals and foreign trade companies established in their home countries in accordance with their own legislation, acquiring undeveloped immovable properties requires the development of a project within two years and the submission of this project for approval to the relevant ministry.
- Only trade companies with legal personality established in foreign countries according to their own legislation can acquire immovable properties, provided that there is a special provision in the laws. Other legal entities cannot acquire immovable properties, and limited real rights cannot be established in their favor.
- Properties acquired in violation of legal provisions, identified as being used contrary to the intended purpose, not applied within the specified timeframe, or where projects have not been implemented within the designated period, will be subject to liquidation provisions.
If you’re a foreign individual planning to buy or sell property in Turkey, obtaining a valuation report is mandatory. At Bayraktar Attorneys, we specialize in assisting foreign clients with their real estate transactions.
Our expert team can guide you through the process and ensure compliance with all legal requirements. Contact us today to secure your valuation report and make your property transaction a smooth and successful one.
