Real estate appraisal law in Turkey

Certainly, there are many inquiries and questions for any investor who wants to buy a property in Turkey, whether for real estate investment, or obtaining Turkish citizenship by buying a property, or even obtaining a house or apartment to settle or spend holidays in Turkey.

Foreign investors’ knowledge of these issues and inquiries is very necessary and important to clarify the picture for them about the legal and administrative affairs in questioning the purchase of the real estate, which will help them to adjust their budget and arrange their accounts in a way that ensures them getting the best real estate within the scope of their desires and capabilities.

In this article, we will address a very important and sensitive topic in the purchase process, which is the topic of real estate appraisal, which is one of the most important basic joints in the procedures of owning a property in Turkey.

What is the real estate appraisal law in Turkey?

Real estate appraisal in Turkey is a complete report detailing the condition of the property that the investor wants to buy, as the real price of the property is evaluated in the real estate market.

This report is prepared and issued by a group of companies or people who have long experience in the field of real estate and who have a government license to prepare this type of report.

This report is known as Real Estate Valuation Document in Turkey.

The time it takes to extract this report ranges from 3 days to about a week after applying to the competent company, including the time it takes for the report to arrive by mail.

This report is considered one of the official, important and basic documents for the completion of the title deed registration transactions in real estate sales to foreigners in Turkey, without it, the title deed cannot be obtained.

The validity period of the real estate appraisal report is three months, starting from the date of its issuance, and the report can be used more than once in case that the buyer wishes to sell his property within the validity period of the report “three months.”

Real estate appraisal decisions are not accepted by appraisal companies that are not approved or licensed by the government.

When was the real estate appraisal law decision issued?

Initially, the requirement for real estate appraisal in Turkey for foreigners was approved as a mandatory condition in the real estate ownership process for those qualified to obtain Turkish citizenship.

Since the basic condition for obtaining Turkish citizenship through real estate investment is that the value of the property or a group of repurchased properties should be worth 250 thousand US dollars or its equivalent in Turkish lira according to the exchange rate when selling the property, so the valuation of real estate in such a case guarantees No price gouging.

On February 15, 2019, a circular was issued by the General Directorate of Land Registry and Real Estate Records under No. 1/2019, which became effective on March 4, 2019, stipulates that foreigners must obtain a real estate appraisal report wishing to sell or buy a property in Turkey, regardless of whether the aim of obtaining Turkish citizenship or for real estate investment.

What are the most important benefits of the real estate appraisal report in Turkey?

The real estate appraisal law brings many benefits to foreign investors, the most important of which are:

• Protection of the foreign investor from scams and fraud:

 This law was designed mainly to ensure that the investor pays the price of the real property without having to pay imaginary amounts in unrealistic numbers in real estate that may not be equal to what he pays, and therefore this law puts an end to scammers who want to sell foreign investors real estate at exorbitant prices.

2- Adjusting real estate prices in Turkey:

It is one of the main objectives of drafting this law because the process of selling real estate without an official and licensed evaluation control factor may hurt the real estate development process in Turkey. From the real estate market value of the area, and then real estate prices rise, but what is the mechanism that will be increased, what is its percentage, and what is the controlling factor for it?

Here comes the role of real estate appraisal in monitoring and controlling the issue of price increases, which ensures that prices remain within a reasonable and appropriate limit since the increase in urban development in the region will push foreign investors to it and thus increase real estate prices in it.

From this point of view, we find that residential development plans in some areas are overlooked due to the weak ability to control the price of real estate in them.

3- Setting the condition for obtaining Turkish citizenship through real estate investment:

Since obtaining Turkish citizenship through real estate investment requires that the property have certain specifications and conditions to be suitable for Turkish citizenship, that its value is not less than 250 thousand US dollars, so the real estate appraisal report ensures that there is no manipulation or fraud in the prices of these properties.

Do not forget that the real estate appraisal report constitutes a source of confidence for the investor after purchasing the property and obtaining citizenship so that he can obtain an investment return in line with the value of the money he paid to obtain his property.

4- Preventing the tax evasion process related to real estate in Turkey:

One of the advantages of this law is that it stops tax evasion operations in the issue of real estate ivnesting for foreigners. Without the presence of the evaluation report, the investor can easily carry out the tax evasion process as he can register his high-value property at a lower price than it is, which allows him to evade without Paying higher property taxes

Through this procedure, the tax evasion process has been put to an end, which has negative consequences for the government treasury and investors at the same time, as it reduces the chances of foreign investors being subjected to legal and administrative violations.

5- Establishing investment security for foreigners in Turkey:

Perhaps one of the main reasons for the investor to stay in a country and increase the percentage of his investment and projects in it lies in the presence of the investment safety factor, which gives the investor a feeling of confidence and satisfaction to invest in this country.

Perhaps the numbers of real estate purchases by foreigners, especially in the first half of 2019, which increased significantly after the issuance of the real estate appraisal law, reflects the increasing demand for buying real estate in Turkey because of the confidence and security factor provided by this law in the real estate investment process.

6- Development of the real estate sector system in Turkey:

This law can be considered one of the best modifications and improvements that have been made to the structure of the Turkish sector, which has led to a significant increase in the number of foreign investors in this sector, as it provided them with an area of ​​safety away from fraud and manipulation.

It is expected that by the end of 2022, Turks may also obtain a real estate appraisal document when buying or selling a property in Turkey, as part of a set of developments and reforms in the structure of the real estate sector in Turkey.

What is included in the real estate appraisal report?

The real estate appraisal report includes in its document the following data:

• Title deed and real estate registry information
• information about the address, location of the property, and transportation nearby.
• Legal information about the property.
• Specifics inside the property, such as construction, decoration, and design.
• The problems and negatives facing the property.
• Information about the market price of similar properties.
• Extensions and other information.
• Price and real estate appraisal of the property.

From this article, it becomes clear that the main idea of ​​approving the real estate appraisal law in Turkey is to control and monitor the buying and selling of the real estate and to ensure that this process takes place in complete comfort, away from fraud and tax evasion, as it aims to modernize the structure of the Turkish real estate sector and move it forward to secure a comfortable investment climate It is convenient and highly credible for foreign investors wishing to buy real estate in Turkey.

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Follow our website constantly and see the most important information and details related to the real estate sector in Turkey, its reality, its future, and the most important things that you should do when you go through the experience of buying, owning and investing.