Appraisal Report Obligation for Property Sales to Foreigners in Turkey

Appraisal Report Obligation for Property Sales to Foreigners in Turkey

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, the Turkish government aims to secure foreigners during real estate purchases. Directorate plans to apply that rule for all real estate sales nationwide. Consequently, the appraisal reports will be conducted also for Turkish citizens by the 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 the 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 the title deed will be the same as on the appraisal report.

The appraisal report will include the 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 Does it work?

Real estate appraisers will work in the new real estate appraisal department included in Land Registry Directorate. Furthermore, as part of the Directorate, appraisal department reports will be validated by the Capital Markets Board of Turkey (Sermaye Piyasası Kurulu in Turkish). In that way, the 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 the buyer, it means the secure transaction and guarantee of paying all necessary taxes. The valuation department will make the assessments in accordance with 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 purchases 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 accurate tax calculation which will protect the foreigners from any tax penalties.

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