Sale and purchase, donation, bank pledge, insurance and a number of other issues are often associated with movable / immovable property, the estimated value of which is vague. In order to effectively manage their property, experienced Turkish citizens as well as legal entities conduct an accurate expert assessment of corporate and personal property.
On February 15, 2019, the General Directorate of Land Registry and Cadastre (TKGM or Tapu ve Kadastro Genel Müdürlügü) issued a decree according to which all foreign citizens purchasing Turkish real estate from March 4, 2019 must have with them to conclude a sale and purchase transaction and obtaining a certificate of ownership (TAPU) real estate appraisal report.
As you know, for such an assessment, indicating the actual market value, confirmed by SPK, you will need to pay an average of 1000 to 2000 TL. Buyers will pay this fee directly to the Home Appraisal Department. The document is valid for 3 months from the date of receipt.
After the TAPU is signed, the appraisal sheet is added to the base of the Land Register and Cadastre, and then returned to the new owner. For Istanbul, this waiting time is about 3 days, for cities in other provinces – about 6 days.
When is real estate appraisal required
In 2020, as in previous years, many companies were registered in the Republic of Turkey, owned by citizens of foreign countries. Why Turkey remains an attractive power for business and what features should be taken into account by everyone who wants to start their own business, you can learn from our material: “Investment Guide”.
However, even with a stable income, the risk of bankruptcy, a drop in the company’s rating, and a financial crisis persists. These and other reasons can become fundamental for real estate appraisal of a company in order to obtain a loan from a bank or to sell an object at a favorable rate.
As for the citizens of the country, it may be necessary to determine the real value of movable / immovable property in various situations – from buying a home under an investment program to selling shares in the event of a divorce and division of property rights.
The most valuable tangible assets of many individuals and legal entities are concentrated in real estate. To manage your capital, regardless of its form and type, there is an accurate examination to assess its market value. When you may need such a procedure in 2020:
purchase and sale of property;
determination of the amount of rent;
distribution of company shares among shareholders;
a bank loan secured by property;
division of property between spouses and so on.
Why do you carry out a real estate examination in Turkey?
Compulsory property valuation in Turkey (gayrimenkul değerleme raporu) is carried out primarily to protect foreign buyers. Agree, picking up square meters abroad, it is quite difficult to navigate the local sales market and determine how real the cost of a particular property declared by the seller is real, who is the legal owner of the apartment, is there any encumbrances (debts, mortgages, arrests), how high-quality the engineering is, the state of communications – electrical wiring, sewerage, gasification, etc.
An examination before buying real estate in Turkey from an expert bureau will set the date for the start of construction work and the commissioning of the object, which, of course, is of great importance for you as a buyer. After all, some sellers may indicate biased information in their ads.
The second global task of the innovation is to attract even more foreign investors to the Turkish real estate sales market. The leaps in the rate make the purchase of apartments in Turkey a very interesting offer for many capital investors, and with an expert assessment, the number of applicants will undoubtedly increase constantly.
It is important to remember that in order to obtain Turkish citizenship by investment through the purchase of real estate, the value of the object (s) must be at least 250,000 US dollars. This amount is the appraised value of the property in Turkey according to the examination, and not the market price indicated by the seller.
How is a Turkish property appraised before buying?
The real estate appraisal procedure in Turkey consists of several successive stages:
Independent experts check your chosen object for the legal purity of documents. Namely, for the presence of encumbrances on loans, pledges, arrest, debts to the state, companies, individuals.
The documents of the Cadastral Chamber are analyzed and rechecked, TAPU is a certificate of ownership, which establishes the fact of compliance with the development plan.
In parallel, a request is sent to the state authorities with a request to confirm the information on the alienation of the property.
The quality control of construction, the state of utilities are checked.
Iskan is requested from the owner or the construction company – the act of commissioning the building.
If all the documents are in order, an expert will visit the property to evaluate the property in Turkey.
The specialist double-checks the square of the premises, takes a photo of the object.
The expert report will contain the following information:
The cost of objects with similar characteristics. Thus, you, as a buyer, will have an objective snapshot of prices in the market and the ability to compare them yourself.
Location of apartments in Turkey, their coordinates on the map, cadastral data.
Description of the area where the property is located. Thus, the buyer can understand how liquid the purchase item will be in the future.
Apartment plan and area.
Land area owned (land area in Turkey is proportional to the area of the apartment).
Type of object of sale.
Confirmation of the value in Turkish lira. If the object is at the stage of construction, the report indicates its future price at the time of completion of construction work.
Data on whether the current owner has debts for utility bills and encumbrances.
Is there an act of putting the house into operation (Iskan).
Photos of housing are attached to the assessment.
This expert decision is valid for three months from the date of issue.
The cost of expert appraisal of real estate in Turkey
The cost of an examination before buying Turkish real estate is about 1000 – 2000 Turkish liras. You can pay for the service directly at the institution where you ordered the expert assessment.
The duration of the examination is approximately 3-6 days, depending on the city where the object is located. After signing the TAPU, the certificate of expert assessment is added to the database of the Land Register and Cadastre Department, after which it is returned to the new owner of the apartment.