Article by: Mike Dunkerley mike.dunkerley@thegpg.com Published: 12/01/2009

A guide to the property buying process in Turkey

I bought and paid for my property in 10 days flat. In my case the property existed. It was not ‘off plan’. That meant that the vendors could produce the title deeds or TAPU to prove that they owned the property and that everything was in order.

The following day after shaking hands on the deal and armed with the TAPU and our passports we all assembled at the lawyers office. A translator was present as required by law. A ‘provisional’ contract of sale was drawn up in English and Turkish and we all signed. Photographs were taken to prove the identity of the parties on the contract. Monies to be paid over within 28 days.

This is not quite the same as ‘exchange of contract’ in English law. The contract is binding subject to ‘security clearance’ being granted to me as the buyer. It is carried out by the Military. This is a beaurocratic process that can take weeks or months. It is a check to make sure you are not a criminal, terrorist etc. and that your purchase is not to further the interests of a foreign power. In the most unlikely event that you fail the test (failure is hardly ever the case) the contract is cancelled and monies returned.

The cost for the lawyers services was £300. When my security clearance comes through I have to pay 3% of the contract price to register the property in my name and have a new TAPU issued with my name and photograph on it.

This is not quite the end of the process. The property is connected to the water and electricity supplies, but not in my name yet. It remains in the names of the vendors until I get my TAPU. I then have to re-register the supply in my name and that will cost about £300. This is often overlooked by Brits because in the UK this process is free.

Also, there are the commissions due to the agent. Agents have to be paid just as in the UK. 6% is the standard fee structure. Commissions can be paid directly to the agent by arrangement or can be recorded as items in the purchase contract so as to form part of the contract. Unlike the UK they are shared between the buyer and seller, not paid exclusively by the seller. Thus the purchaser should allow 3% on the price to cover this. The vendor will also pay 3% from the money he receives. A good agent will have worked hard for their money and probably have provided subsidised airport transfers, hotels, etc.

If you now add up all the costs – 3% TAPU registration, 3% agents commission, lawyers fees, utilities connections you should be allowing 7% to 8% on top of the property price.

Furniture Costs for a Property in Turkey

This is what I paid to furnish my 3 bed villa:

Fridge Freezer, cooker, washing machine £750

Satilite TV £ 330

Kitchen table & 4 chairs £180

Leather 3 pc lounge suit £650

3 double beds £550

6 Bedroom wardrobes/bedside tables, etc £350

Bedroom & lounge curtains £210

4 air-conditioning units installed £850

Property Insurance in Altinkum Turkey

There are 2 types of insurance. It is worked out on the sq mtr size of the building. Standard contents, fire, etc. cost me £80. However, if you insure at all, then you also have to have the compulsory earthquake insurance. (Earthquakes have not happened in living memory but just in case) that is a percentage of the standard insurance £70 in my case.

A Valuable Tip – Make friends with your property agent.

In the UK once you have completed your property purchase you don’t expect to have any more dealings with your estate agent. Not so in foreign countries. A good agent is worth their weight in gold. They will have worked hard to help you find your perfect property. They will stay on ‘your case’ whilst your security clearance is being processed. They will help you with the TAPU registration. They will help you register with the utility companies. They will help you organise the furnishing of your property. They will help you with insurance. They will keep an ‘eye’ on your property when you are not there. They will check to see if you get any utility bills in your absence because non-payment can lead to being cut off, just as in the UK.

Most ‘after sales’ problems and bad feelings arise because the British purchaser does not fully understand what needs doing beyond just signing a contract. We are here to help. Trust us and years of happy home ownership await you.

External Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=206

Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=206

Please contact the author at mike.dunkerley@thegpg.com for more information.