Real estate law in Turkey

Principles of ownership of immovable objects are in general identified in the Property Law section of the Civil Code. Property law includes not only ownership, but also acquiring and transfer of ownership, leasing the property and factors limiting property rights.

Ownership law in Turkey

According to the provisions of the Civil Code, every piece of real estate will be recorded in the title deed register of the place where it is located. The title deed is the official document which shows who has ownership rights over the real estate and upon which the owner's name and photograph appears.Any retsrictions which were placed on the real estate while it belonged to previous owner may be applied to the new owner after the transfer. 

Purchase by foreigners law in Turkey

Ownership of real estate by foreigners in Turkey is governed in general by the principles of political and de facto reciprocity. According to the provisions of Title Deed Law no.2664, enacted 22 December 1934, a foreigner may purchase real estate in Turkey in keeping with the restricting provisions of this law and on condition of reciprocity between Turkey and his country of origin.It is also necessary to obtain permission from the General Directorate of Title Deeds, Cadaster and Military.

Sales law in Turkey

According to the provisions of the Civil Code, every piece of real estate will be recorded in the title deed register of the place where it is located and a real estate sale will be legalised only by being recorded in this register. The title deed, which is issued in the new owner's name, will show that the property has changed hands. Any restrictions which were placed on the real estate while it belonged to the previous owner may be applied to the new owner after the transfer.

Sales by foreigners law in Turkey

In order for foreign non-residents to sell real estate which they own in Turkey, the sale price of such real estate must first be calculated by the tax assessment commission. The actual sale price must not he lower than this value nor more than a predetermined per cent higher. Monies received as a result of a sale are subject to taxes and blocking. However, provisions, brought on by the Foreign Capital Promotion Law, are reserved.

Rental agreement law in Turkey

Leases are governed in general by the Law of Obligations and in specific by Real Estate Rentals law no. 6579 of 18 May 1955. The following points must be clearly specified in a lease: The names and addresses of the lessor and lessee, the address and location of the rented property, the purpose for which it will be used, the amount of rent, the date the lease will become effective, and the period for which it is valid. In practice, printed lease forms are usually filled in by the parties. Attention must be paid that there are two copies of the lease, both signed, one copy to remain with each party. Leases may also be drawn up by a notary public, but this is not mandatory.

A person may guarantee his own or another person's loan with a piece of real estate. Just as a mortgage may be taken out to guarantee repayment of an existing loan, it may also be taken out to guarantee a possible future one.

The terms of a mortgage are entered on the title deed and represent a limited right over that piece of property. Mortgaged real estate may be sold, but the buyer must accept the terms of the mortgage. A piece of real estate may also be mortgaged more than once. In any case, the order of the mortgage must be registered on the title deed. The subject of mortgaging is governed in general by the Civil Code. The term "mortgage" as used here may not be adequate for explaining to foreigners the concept intended in Turkish law. The concept in Turkish law differs, particularly from that in American law. An exact equivalent would be closer to the term "hypothec" in English or "hypotheque" in French.