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Registering Property in

Turkey

Below is a detailed summary of the steps, time and cost involved in registering property in Turkey. It assumes a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Turkey to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    The buyer conducts a non-encumbrance check on the property

    Agency: Land Registry office

    Although not mandated by law, non-encumbrance check is a must Procedure without which buyers do not proceed with the transfer process. The buyer almost always checks whether or not the property is free of liens and encumbrances. For this, the seller would need to obtain the document showing that the property is free of disputes.

    By law, title deeds are open to anyone who legitimizes their interest. However, in practice the records are not accessible to the public: the buyer can obtain this document only with a power attorney of the seller. Therefore, this document is typically obtained by the seller who is often accompanied by the buyer. For transactions that are undertaken by lawyers, this procedure is taken care of by lawyers (who have the power of attorney from the seller and have a legal right to search titles). The information is computerized; it takes minutes to check and is free of charge. If the buyer or seller wish to obtain a copy of the records displaying the status of the property, a fee applies (TL 7.60 per page + a fixed fee of TL 17.50 that only applies if it is not the owner of the property who is is requesting a copy of the records).

    1 day no cost
    2

    Managers obtain an authorization certificate of their authority to conduct transactions on companies’ behalf

    Agency: Company Registrar

    If the sale transaction will be made in person by the company signatories, the managers should obtain a separate document from the trade registry, showing that they have the authority to conduct transactions before land registry on their companies’ behalf. If the sale transaction will be made in proxy given by the company signatories, the representatives should be given special proxies, which will be issued before the notary and inclusive of the authorized managers’ statement as well as the photographs. The notary might ask the manager to show the above mentioned authorization document or a signature circular of the company. The notary will charge a fee of approximately TL 200 for issuing the power of attorney. The validity period of this authorization certificate is one year as of the date of receipt thereof.

    1 day TL 35.8
    3

    Obtain an earthquake insurance policy, or amend the existing one

    Agency: Insurance Company

    If an earthquake insurance policy had not been issued for the building, one is prepared since in practice, when selling the building or asking for a loan on it, it is usually required. Even though commercial properties are excluded from the scope of the compulsory earthquake insurance policy, it is generally recommended to obtain one before transferring the property. The cost of this insurance policy depends on the features such as the area of the building and the place thereof, and the insurance brokers automatically calculate it. If there is an existing "compulsory earthquake insurance policy" which is still valid at the date of the sale (i.e. if the term of the insurance policy has not yet expired), then there is no need to issue another one just as a result of the change of ownership. However, the new owner of the property shall have the insurance policy amended to indicate his own name under the policy, which will be arranged between the insurance company and the new owner.

    1 day no cost (unless a new insurance is needed)
    4

    Obtain the real estate value statement from the Municipality

    Agency: Municipality

    The parties need to obtain a document showing the current value of the property from the local municipality. This value statement is used by the land registry officer to determine the mortar dues.

    1 day no cost
    5

    Parties apply for registration and obtain tax payment assessment

    Agency: Land Registry office

    It is possible for parties to make an online appointment from the general IT system of the Land Registry in order to pick a date/time when to submit an application to the registration. The seller and the purchaser (or their representatives) meet at the registry office and fill in an application form. Once the required documents are presented, the parties declare the consideration to be paid by the purchaser. The officer calculates the mortar dues, and gives the account details of the registry office for the payment, and makes an appointment on the very day or on the consecutive day for the parties to pay the dues and come back again for signature. The documentation shall include:

    (i) Annual property tax declaration of the seller and buyer companies

    (ii) The Authorization Certificate of the manager obtained from trade registry, if transactions are carried out by the company signatories.

    (iii) The notarized proxies of the representatives (if they will perform the transaction)

    (iv) The identity cards of signatories (passport for foreigners)

    (v) One photograph of of the seller (or his representative) and two photographs of the buyer (or his representative)

    (vi) Signature Circular of the buyer company and seller company,

    (vii)Title deed copy or information regarding the title deed of the property

    (viii) A document showing the current value of the property, issued by the Municipality

    (ix) An earthquake insurance policy

    (x) Signatories shall keep the seal of the company during the Procedure.

    The Land Registry Office accepts application when all of the above listed documents are submitted and informs interested parties (with a text message generated through the general IT system of the Land Registry) giving them the application number and notifying that the application is being processed.

    1 day no cost
    6

    Registration fee is paid at a commercial bank

    Agency: Commercial Bank

    Mortar dues are paid to the bank account of the land registry, and the bank will give a receipt of the payment. The mortar due is equal to 4% of the declared amount in Turkish Lira, collected 2% each from the parties, but in practice usually the purchaser pays all. The parties also pay a registration fee to cover overall expenses of Land Registries in Turkey. This is usually paid by the purchaser to the bank account of the Land Registry. General IT system informs the concerned parties with a text message when the registration fee and mortar dues should be paid at the commercial bank. This message is being sent to the parties after the evaluation process is completed by the Land Registry officers. The commercial bank to which the registration fees and mortar dues are deposited is a bank designated by the Land title registry. In other words, the parties have to deposit the concerned amounts to the bank account of Land Registry at a bank determined by the Registry itself.

    1 day TL 93.5 (registration fee) + 4% of declared transaction price (mortar dues) or 4% of the taxable value of the real estate (whichever is higher)
    7

    Transaction is completed at the registry office

    Agency: Land Registry office

    Once all the above Procedures are fulfilled, a text message sent from general IT office of land title registry that the parties should be present at the land registry office at the appointment hour decided previously by the Land Registry for the finalization of the transaction. The parties meet at registry office before the registry manager or his deputy at the appointment hour decided previously. The purchaser pays the consideration at that time. If it is already paid, the seller declares that it is fully paid. Then the parties both sign the land record sheet as well as the photographs of each other are attached to the document. Each person witnesses that he/she had made the transaction mutually with the person in the picture, the transfer of the title is then completed. The documentation shall include: payment receipts, ID cards

    1 day Already paid in Procedure 5

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 21.5
    Reliability of infrastructure index (0-8) 8.0
    What is the institution in charge of immovable property registration? Land Registry Office (Tapu)
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Single database 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 2.5
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Only intermediaries and interested parties 0.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://www.tkgm.gov.tr/sites/default/files/icerik_ekleri/tapu_islem_rehberi...
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://www.tkgm.gov.tr/sites/default/files/icerik/ekleri/2016_yayimlanmis_g...
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? Yes 0.5
    Number of property transfers in the largest business city in 2015: 239,767 (residential property transfers only)
    Who is able to consult maps of land plots in the largest business city? Freely accessible by anyone 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5
    Link for online access: http://www.tkgm.gov.tr/sites/default/files/icerik/ekleri/2016_yayimlanmis_g...
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 4.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 7.0
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Yes 0.5
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar.
    Is there a national database to verify the accuracy of identity documents? Yes 1.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? The Civil Court of First Instance of Istanbul
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 1 and 2 years 2.0
    Are there any statistics on the number of land disputes in the first instance? Yes 0.5
    Number of land disputes in the largest business city in 2015: Number of land disputes that were closed in 2014: 18196 Number of land disputes that were in court in 2014: 36036
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0