Ownership of a Real Estate
Foreign individuals and foreign companies established in Turkey according Turkish Laws may own title deed regarding Reciprocity Principle. This principle referred in the 35th Article of the Title Deed Law says, that in order to purchase real estate in Turkey by a foreign legal entity or an individual, a Turkish legal entity or citizen should have the same right of purchasing real estates actually and legally in the same foreign state.
Foreign companies established in foreign countries may not own title deed. Exceptionally, commercial companies having legal personality established in foreign countries according to the laws of those can acquire real estate provided that they operate pursuant to the special laws (such as Tourism Encouragement Law, Petroleum Law, Industrial Zones Law, Foreign Direct Investment Law). Since the acquisition of commercial companies is limited and is permitted within the scope of specific legislation, what operating activity of a foreign company has a major importance by means of acquiring real estate in Turkey. For instance, currently there is no special law in Turkey, which allows foreign commercial companies to acquire land for a commercial investment such as shopping centres. Pursuant to the relevant regulation, foreign legal entities other than the mentioned companies (commercial companies) such as foreign charities, foundations, cooperatives, associations, societies and other communities cannot acquire real estate in Turkey.
Both foreign individuals and foreign commercial companies are not allowed to buy, transfer or lease real estate in military prohibited zones, special security zones and strategic zones. Thus, the legally acquirable properties by foreigners are usually located within municipal boundaries. Foreigners wishing to buy property must apply to the Title Deed Office to apply for permission from the military office. Such application may take a couple of weeks. A title deed is transferred upon receipt of military permission.
For citizens who are not allowed to buy property in Turkey due to the Reciprocity Law, we still have a solution
You still have options to benefit from the lucrative investment opportunities. First of all, the reciprocity law will be changed in a very short period of time (within year 2012) and will allow all foreigners to purchase properties in Turkey. So until the law is passed, a foreign investor shall buy the property via a sales agreement with an installment plan over a year and shall wait for the law to change. Since there will be a sales agreement on hand, the buyer shall have the right to sell the property after completing the installment payments without the transfer of the deed.
Another alternative is that we will assist you to start your own limited company. In the process our expert lawyers will consult you. Through this new established company, you will be able to purchase any property like a Turkish citizen. The cost of maintaining such a company is very reasonable and you may terminate the company any time you like after selling the properties.
Acquisition process of the title deed
There is a very trustable historical Deed registry System in Turkey. The ownership on the property depends on registry at appropriate Directorate of Titles (Registry Office) The title deed ownership is not time limited and transferred to descendents according to the inheritance law.
Turkish deed registry system depends on mainly the parties' declaration of the intention to sell and buy at the title office in front of the title officer. The registration of the sale is done immediately by the officer to the main ownership information land log. (please also see the heading below named “The Process”).
The title deed registry system in Turkey, regulated by the Turkish government provides protection against fraud or claims. The Turkish government is responsible for the correct registration of Title Deeds. An absolute liability Title registry will arise for example in case of a fake power of attorney and in this case, the government may be subject to a payment of indemnity. Although no consequential loss may occur, the related individuals always have the right for corrective action through independent courts.
The Seller and the Buyer of property are usually required to attend in person to sign the documentations in the Directorate of Titles office or alternatively they may well assign a representative through a Power of Attorney.
Restrictions for Foreigners: Reciprocity Law
Due to full-reciprocity regarding real estate acquisition between some foreign countries and Turkey, the citizens of those are able to buy property freely without any permission. The requests of foreign real persons who are citizens of countries that the reciprocity law allows will directly be concluded by the Title Deed Directorate, after asking the competent military posts whether the requested real estate is out of military forbidden zones and security.
Citizens of some foreign countries can buy residentials (no commercials) in Turkey only with the condition of five-year residence permit and by the permission of relevant Ministeries.
Citizens of some foreign countries can buy residentials (no commercials) in Turkey and only with permission of ministry of interior and ministry of foreign affairs.
At TERRA we support our customers by providing all necessary professional assistance during the whole acquisition process of the title deed
For further information about Acquisition Process of The Title Deed, please contact us. Our experts will assist you in taking right decisions to secure the success you seek.
