Turkish Labor Law
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Standardized Property
Property Value:
TL 629,667.49
City: Istanbul
Procedure 1
The Buyer Conducts A Non-Encumbrance Check On The Property
Time to complete: 1 day
Cost to complete: no cost
Agency: Registry Office
Comment: Although not mandated by law, non-encumbrance check is a must procedure without which buyers do not proceed with the transfer process. The buyer almost always checks whether or not the property is free of liens and encumbrances. For this, the seller would need to obtain the document showing that the property is free of disputes. By law, the records are not open to public: the buyer can obtain this document only with a power attorney of the seller. Therefore, this document is typically obtained by the seller who is often accompanied by the buyer. For transactions that are undertaken by lawyers, this procedure is taken care of by lawyers (who have the power of attorney from the seller and have a legal right to search titles). The information is computerized, takes minutes to check and is free of charge.
Procedure 2
Managers obtain an authorization certificate of their authority to conduct transactions on companies’ behalf
Time to complete: 1 day
Cost to complete: TL 21
Agency: Company Registrar
Comment: If the sale transaction will be made in person by the company signatories, the managers should obtain a separate document from the trade registry, showing that they have the authority to conduct transactions before land registry on companies’ behalf. If the sale transaction will be made in proxy given by the company signatories, the representatives should be given special proxies, which will be issued before the notary and inclusive of the authorized managers’ statement as well as the photographs. The notary might ask the manager to show the above mentioned authorization document or a signature circular of the company.
Procedure 3
Obtain an earthquake insurance policy, or amend the existing one
Time to complete: 1 day
Cost to complete: no cost (unless a new insurance is needed)
Agency: Insurance Company
Comment: If a “compulsory earthquake insurance policy” had not been issued for the building, one must be prepared since in practice, when selling the building or asking for a loan on it, it is usually required. The cost of this insurance policy depends on the features such as the area of the building and the place thereof, and the insurance brokers automatically calculate it. If there is an existing “compulsory earthquake insurance policy” which is still valid at the date of the sale (i.e. if the term of the insurance policy has not yet expired), then there is no need to issue another one just as a result of the change of ownership. However, the new owner of the property shall have the insurance policy amended to indicate his own name under the policy, which will be arranged between the insurance company and the new owner.
Procedure 4
Parties apply for registration and obtain tax payment assessment
Time to complete: 1 day
Cost to complete: no cost
Agency: Registry Office
Comment: The seller and the purchaser (or their representatives) meet at the registry office and fill in an application form. Once the required documents are presented, the parties declare the consideration to be paid by the purchaser. The officer calculates the mortar dues, and gives the account details of the registry office for the payment, and makes an appointment on the very day or on the consecutive day for the parties to pay the dues and come back again for signature.
The documentation shall include:
- Tax registration certificates of the companies.
- The Authorization Certificate of the manager obtained from trade registry, if transactions are
- carried out by the company signatories.
- The notarized proxies of the representatives (if they will perform the transaction)
- The identity cards of signatories (passport for foreigners)
- Two photographs of each person who would actually sign the registry documents.
Signature Circular
Title deed copy or information regarding the title deed of the property
Procedure 5
Registration fee is paid at a commercial bank
Time to complete: 1 day
Cost to complete: TL 135(registration fee) + 3% of declared transaction price (mortar dues) or 3% of the taxable value of the real estate (whichever is higher)
Agency: Commercial Bank
Comment: Mortar dues are paid to the bank account of the land registry, and the bank will give a receipt of the payment. The mortar due is equal to 3% of the declared amount in Turkish Lira, collected 1.5% each from the parties, but in practice usually the purchaser pays all. The parties also pay a registration fee to cover overall expenses of Land Registries in Turkey. This is usually paid by the purchaser.
Procedure 6
Transaction is completed at the registry office
Time to complete: 1 day
Cost to complete: Already paid in Procedure 5
Agency: Registry Office
Comment: Once all the above procedures are fulfilled, the parties meet at registry office before the registry manager or his deputy at the appointment hour decided previously. The purchaser pays the consideration at that time. If it is already paid, the seller declares that it is fully paid. Then the parties both sign the land record sheet as well as the photographs of each other that are stuck to the document. Each person witnesses that he/she had made the transaction mutually with the person in the picture, the transfer of the title is then completed.The documentation shall include: payment receipts.
