Appraisal Report to Become Compulsory for Foreign Real Estate Buyers
According to the announcement published by TKGM (Turkish General Directorate of Land Registry and Cadastre) foreign property buyers will need an obligatory appraisal report to receive a title deed. This new law will apply in Turkey from the 4th of March 2019. In that way, Turkish government aims to secure foreigners during the real estate purchase. Directorate plans to apply that rule for all real estate sales nationwide. Consequently, the appraisal reports will be conducted also for Turkish citizens by year 2022.
Key Facts about Appraisal Report
The cost of the report will be between 1.000 and 2.000 Turkish Lira. The report will be valid for 3 months from the issue date. In case of the off-plan property, the appraisal report will be handled after the completion of the construction. The value of the property given on title deed will be the same as on appraisal report.
Appraisal report will include following information:
- Property pictures
- Prices of similar properties
- Title deeds information
- Geographical coordinate of the property
- Property price confirmation
- Actual property’s debt condition
- Land Registry and Cadastre General Directorate acceptance
How it will work
Real estate appraisers will work in new real estate appraisal department included to Land Registry Directorate. Furthermore, as part of the Directorate, appraisal department reports will be validated by Capital Markets Board of Turkey (Sermaye Piyasası Kurulu in Turkish). In that way, Turkish government wants to control and ensure the payment of all necessary property taxes. Additionally, appraisal institutions will not be in any type of cooperation with real estate agents.
For buyer it means the secure transaction and guarantee of paying all necessary taxes. The valuation department will make the assessments in accordance to international methods. The process will take about 3 days for Istanbul and one week for other areas of the country.
Transactions more secure
Investments and real estate purchase will become more secure from now. Construction evaluation will be registered in the Cadastre System which will ensure the price equalization for all. The prices given by licensed appraisers will also guarantee the accurate tax calculation which will protect the foreigners from any tax penalties.