Bodrum Real Estate

GENERAL EXPLANATION OF BUYING REAL ESTATE IN TURKEY

Foreigners to Turkey may purchase real property in Turkey; it is not as complicated as many people think even though Turkish laws are different to English law with regards to purchasing property. In fact the process can be simpler than in other European countries. Legal entities though cannot acquire a real property as a general rule, the business entities established by foreign investors may buy a real estate because they are regarded as local opnce they are set up in Turkey thanks to the ‘National Treatment’ principle of the Foreign Capital Law. Purchases can be in their own names provided the properties are not in restricted areas.

The sale procedure for foreigners is the same as for Turkish citizens except for urban area and non-military zone restriction. Once a sale has been agreed with the owner, an application has to be made to the local Land Registry Office.

Both purchaser and seller are liable for a 1.5% property transfer tax, based on the declared price of the property. There is also a municipal property tax, again, based on the declared value of the property, at the rate of 0.1% for residential properties and 0.3% for land annually. The newly built residential properties are exempt from the municipal property tax for the first five years.

For property purchased on the Bodrum peninsula the title deeds, known locally as "Tapu", have to be entered into a log book at the Deeds Office in Bodrum, where the purchaser and vendor have to be present to sign these documents. A nominated person can act on the purchaser’s behalf if required. A translator is required to be present at this time so that everything can be translated to the foreign buyer. All written work is usually done in Turkish but, if so required, can be done in the buyer’s language for an extra fee. The Deeds document is then given to the new owner and dated accordingly.

Once the sale of a property has been agreed, an application must be made to the Land Registry Office to acquire the title of the property.

The acquired property may be resold or rented out and the proceeds of the sale or the rental income may be transferred out of Turkey.

The problems for most foreigners who choose to own property abroad are quite basic. They need to establish a trusting relationship with competent people. They are faced with legal, bureaucratic and cultural processes which are unfamiliar. They require assistance by individuals who can communicate with them in their own language whilst at the same time have in-depth knowledge of the area and properties.

They need easy access to information, documentation and visual presentations of properties that are available. Once they have visualised the process mentally, they are more likely to make that critical step. After the initial decision to go ahead then they are faced with the arduous task of choosing their property.

Visiting various properties can take its toll even in a small town. Once the individual reveals that they are potential buyers, local bar, restaurant and just about any shop owner is keen to grasp the opportunity. In most cases they have access to some individual property belonging to a friend or relative. They aim to influence the individual in that course. The buyer is overwhelmed by the attention, often getting side tracked and confused in all the commotion.

Having a firm with a strong portfolio of properties that have been pre-sorted to meet the of the individual make for a better decision process for the buyer. It is important that the buyer is not forced, but, rather guided through the process of finding a suitable dwelling.

Architectural design is another area of concern. The buyer needs property that will fit his/her life style. The more sensitive builders are to the needs of the various buyer profiles the better the outcome. Empirical research driven building schemes based on flexible modular designs and well spelled out options will make the process easier.

Real Estate Agencies in Bodrum