How does the real estate purchase work in Bodrum?
The below information is provided for our clients as a guide to learn about how the purchase process works in Turkey.We tried to explain all the information step by step basis.I hope our article enables you to understand the process before you take any steps about buying property in Bodrum.
1- Finding the property that you want to purchase:
First of all when a buyer finds the property that he/she wants, we recommend them to view the property.
2- Due dilligence of the property
Checks will be carried out by us to ensure there is a building licence and planning permission in place. At this step we will check if everything is in order at District Land Registry Office and Municipality’s development directorate. If there are any debts records on the property, the buyer will be informed by us.
3- Making a Sales Agreement and paying a deposit
Once buyer has decided to purchase a property, an agreement is prepared setting out the terms and conditions of the purchase by us. The sale agreement will include the details of the property, sales price, and completion date, penalty clauses for all parties, guarantee clauses and technical specifications.
A duly signed copy of that agreement and a copy of the title-deed of the property are given to the relevant parties. Once the reservation agreement is completed and a deposit will be paid in order to secure the property in the client’s name at the agreed price and terms of sale.
Buyer will be required to pay legal taxes and expenses. This will be around 2-3% of the purchase price for this expenditure. A full breakdown of these costs will be given to Buyer.
4- Preparing a power of attorney document if requested
Although we recommend to our clients to be present at the purchase process, it is also possible to buy property in Bodrum by using a power of attorney. We can represent you and organize all the legal procedures on your behalf. To be able to do that we will need a power of attorney officially prepared and translated by a notary. It is also possible to give a power of attorney from your own country if there is a Turkish Consulate in your country
5- Obtaining Tax Number and opening a bank account
In order to open a Turkish bank account you will need to have a Turkish tax number. We supply the services of obtaining tax numbers from the tax office in Bodrum. To be able to obtain a tax number for you we will need your passports. Once we have obtained your tax number we can then take you to a bank and they will help you to open your bank account. (Passports, Tax number and personal details needed.)
6- Getting earthquake insurance and Starting the official process at the Title Deed Office
There is a compulsory insurance policy covering the risk of earthquake and is applicable to all property purchases. Title deed transfer cannot take place unless a valid DASK is presented at Land Registry Office. We will supply the services of purchasing an earthquake insurance for you.
This step will be taken care of us if you decided to give us a power of attorney. We willstart the process, and apply for the military permissions to release the title deed (TAPU) to you, enabling then to take over the title deeds. A translated copy of your passport and photographs are required for this process. The military permission process takes approximately 2 months. This military permission process is only a formality as the location will have already been determined as suitable for foreign buyers.
7- Exchanging title deeds
When all the checks have been conducted and the documents returned to us, we will inform you. At this stage you should inform the lawyer about your return date to Bodrum to exchange deeds so we can in turn notify the relevant parties. The funds for the property purchase should be transferred into the country through a Turkish bank at least a week before exchange deeds to prevent any complications.
On the exchange day, buyer( if you give us a power of attorney, you will not need to be present at this stage), seller(or seller’s legal representative with Power of Attorney) will be at Title Deeds Office to complete all the legal issues (title deeds, land registry etc.) and financial issues, then title deed of the property will be registered under buyer’s name. Registration fee at Deeds office is around 4% of the property price which is written on the property title.
Final payment for the property usually takes place after the deeds have been exchanged but this depends on buyer’s agreement with the seller. After purchased of the property buyer have to apply to the various department offices to get the utilities changes like electricity, water and phone subscriptions.
If you have any questions in your mind about Property Purchase Guide for Bodrum , please feel free to contact us. For more information about buying property in Bodrum please read our article here.
Purchase Related Fees Military Clearance: Variable (depends on which Municipality we must apply to)
Notary Expenses: £200 Approximate
Purchase Tax: Variable (will be 4% of the declared value of property)
Working Capital Cost for the title deed office : 300 TL