The real estate sector in Turkey has an important place in the economic structure and meets the basic needs of many individuals or organizations such as investment, housing or workplace acquisition. However, transactions in this sector involve certain legal processes and subtleties. The correct and complete operation of these processes prevents disputes between buyers and sellers, protects the value of the investment and minimizes legal risks.
Understanding and managing the legal processes you may encounter in the real estate sector ensures that real estate transactions proceed more smoothly. Having a clear understanding of these processes is very helpful in preventing potential problems and protecting your investment. The basic legal processes that you need to know in the real estate sector include the following points;
A) Characteristics and Location of Real Estate
Real estate classifications indicate whether it is land, residential, business or agricultural land. The physical location of the property refers to which city, which neighborhood or which street it is in. This information is officially recorded in the title deed. This document shows in whose name the real estate is registered and what rights it has. This document is essential for real estate transactions.
Market Value of Real Estate
The value of a real estate property may vary depending on the current market conditions, supply and demand in the region, infrastructure and social facilities. Valuations take into account the market prices of other properties with similar characteristics. At the same time, the physical condition of the real estate (age, construction material, general condition) and any legal restrictions (mortgage, lien, etc.) are included in the evaluation.
Control of Title Deed Information
In order to understand the legal status of a property, it is necessary to examine the land registry. The land registry shows who owns a property, what size it is and what characteristics it has. It also indicates whether there are any claims on the real estate, such as a mortgage or lien. This is important for the buyer because such restrictions can affect the transfer or use of ownership.
What are the Points to Consider in Title Deed Information?
Your main reference document in real estate transactions is the title deed. A title deed is an official document stating who owns the real estate and is a must-have for transactions such as buying, selling or renting.
Title deed information is the most official and reliable document regarding the ownership of a real estate property. It is of great importance to examine the title deed information accurately and completely in real estate purchase and sale transactions. The main points to be considered in title deed information are as follows:
a) Property Information
Make sure that the person or persons registered in the title deed are correct. The approval of the person or persons registered in the title deed is required for the sale transaction.
b) Nature of the Immovable
It should be checked whether the real estate is land, land, independent section (residence, workplace, shop, etc.).
c) Field Information
The square meter information stated on the title deed should match the physical dimensions of the real estate. An extra research should be made for any differences.
d) Condominium / Condominium Easement
If the real estate is an independent part of a building, it is important to note whether the building has a condominium or a condominium easement. A condominium easement may indicate that the building has not yet been completed or that a certificate of occupancy has not been obtained. Most apartment buildings and complexes are subject to the condominium law. This law specifies how independent units in multiple living spaces are to be managed and used. According to this law, each independent unit, such as an apartment or a workplace, has its own title deed. This title deed states that the section is entitled to either "condominium easement" or "condominium ownership". If the section is not completed or if the occupancy license has not been obtained, the right of "condominium easement" is given. When it is completed and the necessary permits are obtained, the "condominium" right is switched to "condominium ownership" right.
e) Mortgage and Lien Information
Check whether there is any mortgage or lien on the real estate.
f) Limitations
The land registry should indicate whether there are any restrictions on the immovable property. These restrictions may be related to the sale or lease of the immovable.
g) Urban Transformation Information
It should be noted whether the real estate is located in an area within the scope of urban transformation.
h) Tax Debt
It should be checked whether there is any real estate tax debt on the real estate.
i) Reason for Acquisition
Attention should be paid to the information on how the real estate was acquired in the land registry.
j) Previous Owners
It is useful to access information about the previous owners of the real estate to see the past buying and selling movements of the real estate.
Carefully reviewing the title deed information in your real estate transactions is a critical step to avoid potential problems. A title deed sample provides a summary of the information in the land registry. Thanks to this summary, you can learn the ownership rights and restrictions, if any, on the real estate.
B) What are the Real Estate Tax Obligations?
Real estate transactions bring with them various tax obligations.
Stamp Duty: This tax, which is levied on purchase-sale and lease agreements, is calculated at a rate of 0.948%.
Title Deed Fee; It is a tax that the buyer and seller pay equally in purchase and sale transactions. It is charged at a rate of 4% and is calculated on the declared real estate value.
Real Estate Tax; This tax, which real estate owners pay annually, varies according to the type, location and value of the real estate.
Rental Income Tax; It is a tax paid on the income you receive from a real estate you rent out. It is declared in March of each year and paid in two installments.
Mastering these basic legal concepts in your real estate transactions will protect you from possible problems and help you to carry out your transactions more consciously.
The real estate sector involves many legal processes. Some of these processes are related to urban transformation and property rights. You can find an explanatory summary of these processes below:
C) Urban Transformation Process and Legal Aspects of Real Estate
This process is about updating buildings that are at risk of disaster or are outdated. If a real estate has entered the urban transformation process, the process includes the following legal processes.
Determination of the Area: The Ministry of Environment and Urbanization and the relevant municipalities determine which areas will be subject to transformation. The selected areas are both announced in the official gazette and registered in the land registry.
Project Preparation
A planning process is initiated for the area to be transformed. These projects must be approved by the relevant institutions.
Implementation
Steps are taken to transform the area: Demolition, reconstruction or renovation of buildings. In the meantime, beneficiaries are informed and provided with the necessary support.
Evaluation
After the transformation is completed, the necessary procedures for new buildings and right holders are completed.
Property Rights
The right to property, which forms the basis of the real estate sector, means that a person has full ownership of his/her property and can use it in any way he/she wishes.
Acquisition
In order to own a real estate property, it must be registered in the land registry. This is done by notarizing the purchase and sale contract.
Protection
You can protect your property rights and prevent others from using them without your consent. You can file a lawsuit and claim compensation for any interference with your rights.
Limitations
Sometimes your property rights may be restricted for works in the general public interest, but in this case you must be paid fair compensation.
To summarize, the legal processes in the real estate sector are vital to the smooth running of buying, selling and renting transactions. It is critical for anyone involved in real estate to know these processes and manage them correctly in order to be successful in the sector.