The property purchase contract in Turkey is the most important legal document that determines the rights and obligations of both the seller and the buyer, forming the foundation of any successful real estate deal. Accurate understanding of clauses in a property purchase contract in Turkey is not a routine procedure but a guarantee to protect your investment and avoid any future disputes.
From the basic conditions of a real estate sale contract in Turkey to the detailed clauses related to financing and guarantees, the contract must be comprehensive and clear. Baki Investment offers its clients a comprehensive guide that explains in detail what should be included in the real estate ownership contract in Turkey, emphasizing the importance of using a specialized legal advisor to review the contract before signing.
Parties and Property: The Foundational Clauses of the Contract
The contract must accurately specify the identities of the concerned parties and describe the property in detail. These foundational clauses form the basis upon which all other clauses in the property purchase contract in Turkey with legal clauses are built.
The seller’s data in the contract must completely match his data in the title deed (Tapu).
Parties and Property Data
These clauses include:
- Full names and identification numbers of the seller and buyer
- Detailed address of the property and the parcel number in the real estate registry
- Total area, built area, and number of rooms
- Accurate description of the property and affiliated facilities
Price and Payment Method: Basic Financial Clauses
The price and payment method clauses are among the most important clauses in a property purchase contract in Turkey, as they clearly determine the buyer’s financial obligations. The contract must mention the total price, the currency dealt with, and the money transfer method.
Payment conditions for the real estate contract in Turkey vary according to the nature of the deal and the agreement of the two parties.
Payment and Financing Options
- Full cash payment: Specifies the dates and place of delivering the amounts
- Payment in installments: Clarifies the value of each installment and its due dates
- Bank financing: Requires obtaining bank approval within a specified period
Seller’s Obligations: Guarantees and Information to be Provided
The contract determines the seller’s legal obligations towards the buyer, which constitute basic guarantees for the buyer. The guarantees in a property purchase contract in Turkey include the seller’s commitment to deliver the property free of any debts or mortgages.
The seller must declare that there are no legal disputes on the property.
Basic Seller Guarantees
- Guarantee that the property is free of debts and mortgages
- Guarantee of ownership validity and document safety
- Commitment to deliver the property in the agreed condition
- Disclosure of any hidden defects in the property
Buyer’s Obligations: Clauses to be Adhered To
The contract also determines the buyer’s obligations towards the seller, which usually include commitment to payment dates and completing legal procedures. The duration of the real estate contract in Turkey is usually linked to completing these obligations.
The buyer must commit to property receipt dates and completing registration procedures.
Basic Buyer Obligations
- Adherence to the agreed payment schedule
- Completing necessary legal procedures
- Paying agreed fees and taxes
- Receiving the property at the specified date
Pledge Not to Sell Clause: The Condition for Turkish Citizenship
The pledge not to sell as a condition for citizenship in the contract is one of the vital clauses for investors wishing to obtain Turkish citizenship. The buyer pledges not to sell the property for 3 years as a condition for obtaining citizenship.
The contract must clearly state the buyer’s commitment to this condition.
Conditions of the Non-Sale Clause
- The time period of the pledge (usually 3 years)
- Legal consequences of breaching the pledge
- Procedures for proving commitment to the pledge
- Exception cases from this clause
Registration and Expenses: Procedural and Financial Clauses
The contract determines the responsibilities for contract registration and bearing the associated expenses. Registering the contract with the notary in Turkey is mandatory to protect the rights of all parties.
Taxes and tax clauses in the real estate contract in Turkey include determining the responsibility for paying the purchase tax and other fees.
Expenses and Fees
- Property transfer tax (usually 4% of the property value)
- Notary and registration fees
- Real estate agency fees (if any)
- Any other agreed expenses
Frequently Asked Questions (FAQ)
1. What is the most important clause to pay attention to in a property purchase contract in Turkey?
The guarantees clause and the property being free of debts is one of the most important clauses in a property purchase contract in Turkey, as it protects the buyer from unexpected financial claims on the property.
2. How is the Turkish citizenship clause included in the contract?
The pledge not to sell as a condition for citizenship in the contract is included as a separate clause in which the buyer commits not to sell the property for 3 years, specifying the legal consequences of breaching this commitment.
3. What is the typical duration of a real estate contract in Turkey?
The duration of the real estate contract in Turkey ranges between 30 to 90 days, depending on the complexity of the deal and the time for completing legal and financing procedures.
4. Who is responsible for paying the property transfer tax?
Usually, it is agreed to divide taxes and tax clauses in the real estate contract in Turkey between the seller and the buyer, where each party pays 2% of the property value, but it can be agreed otherwise.
5. How can the investor be protected in the contract?
Investor protection in the Turkish real estate purchase contract is achieved through clear guarantee clauses, dispute resolution mechanisms, and using a specialized legal advisor to review the contract before signing.
Conclusion
In conclusion, careful attention to clauses in a property purchase contract in Turkey is the first line of defense to protect your real estate investment and avoid future risks. Each clause in the contract represents an additional legal protection that ensures the safety of the deal from start to end.
Baki Investment offers its clients contract review services by specialized legal advisors, ensuring that all conditions of a real estate sale contract in Turkey are clear, comprehensive, and compliant with local laws. We guarantee our clients contracts that protect their rights and ensure safe investment in the Turkish real estate market.
Do not leave your investment future to chance, contact our advisors at Baki Investment today to get a comprehensive real estate and legal consultation that guarantees you a successful and safe real estate deal in Turkey.