Real Estate Law

The Process of Foreigners Purchasing Real Estate in Türkiye

Foreign natural persons can purchase residences, workplaces, plots of land and similar immovable properties in Türkiye, provided that they comply with legal restrictions. However, the same acquisition conditions may not apply to citizens of every country. The citizenship of the buyer, the region where the real estate is located, the nature of the real estate and the total surface area of ​​the real estate previously acquired by the foreigner in Türkiye should be checked before the transaction.

As a rule, a foreign person does not need to obtain a residence permit in advance in order to purchase real estate in Türkiye. However, purchasing real estate does not automatically grant a foreigner a residence permit or Turkish citizenship. Residence and citizenship transactions are subject to separate conditions and administrative evaluations than real estate acquisition. In connection with this topic Citizenship Process for Foreigners Purchasing Real Estate You can also review the content titled .

Main restrictions on real estate acquisition by foreigners

• The buyer must be a citizen of the country that is allowed to acquire real estate in Türkiye.
• The total area of ​​real estate that a foreign real person can acquire throughout Türkiye cannot exceed the legal limit.
• The total area of ​​real estate that foreigners can acquire in a district cannot exceed the rate determined for the privately owned district's surface area.
• It may not be possible to purchase real estate in military restricted zones, special security zones and areas closed to foreign acquisition.
• For agricultural lands, protected areas and real estate subject to special legislation, it may be necessary to obtain permission or a conformity opinion from the relevant institutions.
• In case of land or land acquisition without any building on it, an obligation to develop a project appropriate to the nature of the real estate may arise.

As a rule, the total area of ​​real estate that can be acquired by foreign real persons cannot exceed thirty hectares throughout the country. In addition, the total of immovable properties acquired by foreigners and independent and permanent limited real rights cannot exceed ten percent of the privately owned district's surface area. The President has the authority to impose additional restrictions in terms of country, person, region, real estate type and amount.

Stages of the real estate purchasing process

1. Buyer's acquisition conditions are examined: The buyer's citizenship, existing real estate in Türkiye and limitations on the right to acquire are checked.
2. The title deed record of the real estate is searched: Owner information, nature of the real estate, surface area, independent section number and annotations in the land registry are examined.
3. Legal and technical review is carried out: Zoning status, building permit, building permit, condominium ownership, municipal records and actual use are checked.
4. Sale conditions are determined: Sales price, deposit, payment method, delivery date, title deed costs and provisions to be applied in case of breach of contract are agreed in writing.
5. Valuation and foreign exchange transactions are completed: Valuation or amount determination documents required by the current land registry application are prepared and a Foreign Exchange Purchase Certificate is issued.
6. Deed application is made: The sales process is initiated through the Web Title Deed system, the relevant Land Registry Directorate or notary procedures permitted by the legislation.
7. Fees and transaction expenses are paid: Deed fee, revolving fund fee and other expenses related to the transaction are completed.
8. Official sales and registration are made: The sales contract is signed and the ownership of the real estate is registered in the land registry in the name of the foreign buyer.

Documents that may be requested from foreign buyers

• Passport or identity document issued by foreign country authorities,
• If necessary, notarized Turkish translation of the passport,
• Foreign identification number or tax identification number,
• Photo taken recently,
• The title deed of the real estate or the island, parcel and independent section information,
• Foreign Exchange Purchase Certificate,
• Real estate valuation or amount determination document depending on the nature of the transaction,
• Compulsory earthquake insurance policy for real estate in the nature of a building,
• Duty power of attorney if transaction will be carried out through representation,
• Bank approved payment receipts if purchasing for citizenship purposes.

Foreigners who do not speak Turkish may be required to perform transactions through a sworn translator in land registry or notary transactions. If an alphabet other than the Latin alphabet is used in the passport, it is important that the identity information is translated into Turkish accurately and consistently.

Can real estate be purchased from abroad with a power of attorney?

It is possible for a foreign buyer to purchase real estate through a lawyer or other representative without coming to Türkiye. The power of attorney must clearly include the authority to purchase real estate, pay the sales price, sign the title deed contract, request registration and submit the necessary documents.

A power of attorney issued abroad may need to be prepared at the Turkish consulate or, if issued by a foreign notary, must be apostille or consular certification. A notarized Turkish translation of the power of attorney in a foreign language may also be requested.

Legal Rights of Foreigners Who Buy Houses in Türkiye

A foreigner who legally purchases a house in Türkiye benefits from the powers provided by the right of ownership from the moment he is registered as the owner in the land registry. Malik; can use the house, rent it, sell it, donate it, establish a mortgage on it and leave it to his heirs within legal limitations.

The property rights of foreign owners are protected by the legal order, just like the property rights of Turkish citizens. Being a foreigner; It does not prevent the filing of title deed cancellation and registration, prevention of intervention, rental receivables, eviction, defective real estate or compensation cases.

Fundamental rights of foreign landlord

• Using the real estate as a residence,
• Renting the real estate to third parties,
• Selling the real estate according to market conditions,
• Establishing a mortgage or other limited real rights on real estate,
• Requesting prevention of intervention and usage fee in case of unfair occupation,
• Taking legal action in case of tenant's breach of contract,
• Exercising flat owner rights regarding common areas and site management,
• Filing a lawsuit against illegal title deed transactions,
• Leaving real estate by inheritance.

What can be done if the house purchased turns out to be defective?

If the real estate does not have the features specified in the contract, is delivered contrary to the project, the surface measurement is significantly different, there is a license or occupancy problem, or hidden building defects emerge, the seller's legal liability may arise.

Depending on the characteristics of the concrete incident, it may be requested to eliminate the defect, reduce the sales price, cover the damages or withdraw from the contract. If the seller is interested in real estate trade for professional or commercial purposes and the buyer is a consumer, the rights arising from consumer legislation may also need to be evaluated.

The current condition of the property during delivery should be recorded with photographs, videos and a delivery report. Incomplete manufacturing, damages, meter values, number of keys and items left on the property should be clearly shown in the report.

Rights regarding site and apartment management

A foreigner who purchases a house subject to condominium ownership is subject to the decisions and management plan of the apartment or site management. Flat owners have the right to participate in the board, to vote, to examine management accounts and to take legal action against unlawful board decisions.

Common expenses, dues, major repair costs and use of common areas are determined within the scope of the management plan and the provisions of the Condominium Law. Before purchasing, it would be useful to obtain information from the management about past dues, planned major expenses and ongoing disputes.

Does buying a house provide a residence permit?

Owning a house in Türkiye does not automatically grant a residence permit to a foreigner. Foreigners who own real estate can apply for a short-term residence permit if they meet the conditions required by current immigration legislation. Application; It is subject to administrative evaluation in terms of the nature of the real estate, its value, actual use as a residence, address and other conditions of the foreigner.

Things to Consider in the Title Deed Transfer Process for Foreign Buyers

Deed transfer is the most important stage of real estate purchase, but just seeing the title deed is not enough for a safe purchase. The legal status of the real estate in the land registry, its actual use, municipality and zoning records, the authority of the seller and the payment method should be examined together.

What information should be checked in the land registry?

• Who is the real owner of the real estate,
• City, district, neighborhood, island and parcel information,
• Independent section, floor, block and land share information,
• The registered nature of the real estate as a residence, workplace, land or field,
• Whether a condominium or floor easement has been established,
• Whether there is a mortgage, lien or precautionary measure on the real estate,
• Limited real rights such as usufruct, right of way, right of way or residence,
• Family residence, rent, promise of sale or buyback clauses,
• Management plan and other records affecting the use of the real estate.

The presence of a mortgage in the land registry does not mean that the property cannot be purchased in any way. However, the debt for which the mortgage was established, the current debt amount and how it will be removed during the sale must be determined in writing. Since there may be a risk that the mortgage will not be released if the sales price is paid directly to the seller, bank and title deed transactions should be carried out in coordination with each other.

Identity and representation authority of the seller

It should be checked whether the person making the sale is the person listed as the owner in the title deed. If the seller is acting by proxy, it must be verified that the power of attorney is current, valid and contains clear authority for the sale of the real estate. It should also be evaluated whether the power of attorney has been canceled and whether the transaction falls within the scope of power of attorney.

If the seller is a company, the company's current trade registry records, representation and binding authority, signature documents and necessary company decisions regarding the sale of real estate should be examined. Showing the real estate by a company employee or real estate consultant does not mean that they have the authority to collect the sales price or transfer the title deed.

Things to consider when making deposits and down payments

Making a large deposit or down payment before the title deed examination is completed may pose significant risks. Before payment, the identities of the parties, the open title deed information of the real estate, the total sales price and the conditions under which the payment will be refunded must be specified in the written contract.

The legal nature of the deposit must be clearly regulated. Accepting the amount paid as connection money, withdrawal money or a part of the sales price may result in different legal consequences. A signed document given only to a real estate consultant is not a valid sales contract providing the transfer of real estate ownership in any case.

Official sales contract and registration

In order for real estate ownership to pass, the sale must be made in the official manner prescribed by law and the buyer must be registered as the owner in the land registry. Real estate sales contracts can be made in land registry offices or can be prepared by notaries within the scope of the procedures and conditions stipulated in the legislation.

The real estate sales promise contract is a contract that provides the right to request a sale in the future. Concluding a sales contract alone does not transfer ownership to the buyer. In order to protect the buyer against third parties, annotation of the sales promise in the land registry should be considered.

How can payment security be ensured?

Instead of paying the sales price in person and without documentation, bank transfers should be used where the buyer and seller's information is clearly visible. Including the property's island, parcel, block and independent section information in the receipt description makes it easier to prove for which sale the payment was made.

In order to realize the payment and the title deed transfer simultaneously or interconnectedly, bank blocking, secure payment system or other assurance methods appropriate to the situation of the parties can be used. Payment of the entire sale price long before the title deed is transferred may pose a significant risk for the buyer.

Transactions to be carried out after the title deed transfer

• The title deed and transaction documents must be checked and kept.
• The actual delivery of the real estate must be made with a written report.
• Municipal and property tax records must be updated.
• Electricity, water, natural gas and internet subscriptions must be taken over.
• The change of owner must be notified to the site or apartment management.
• Compulsory and voluntary insurance policies should be reviewed.
• For real estate with a tenant, the rental agreement and deposit status should be examined.

Citizenship Process for Foreigners Purchasing Real Estate

Foreigners who purchase real estate of a certain quality and value can apply for Turkish citizenship exceptionally. Within the scope of current regulations, a naturalized real estate worth at least 400,000 US Dollars or the equivalent foreign currency must be purchased and a commitment not to be sold for three years must be entered in the land registry.

The fact that the real estate price exceeds 400,000 US Dollars does not alone mean that the citizenship application will be accepted. The nature of the real estate, its seller, previous ownership history, payment method, Foreign Exchange Purchase Certificate, bank receipts, investment amount determination and title deed commitment are evaluated together.

Which real estate can be used for citizenship?

In the current citizenship practice, the real estate to be purchased must be a condominium or an independent section with a floor easement established, or it must be a land with a permanent building in accordance with the legislation, with a building permit. Unstructured land, agricultural land and timeshare rights may not be used in the citizenship application.

In applications based on a promise of sale contract drawn up by a notary, real estate with condominium ownership or floor easement must be used. In the promise of sale method, the minimum price required by the legislation must be paid in advance and the contract must be annotated with the land registry with the commitment that it will not be transferred or canceled for three years.

Stages of applying for citizenship through real estate

1. The suitability of foreign investors is examined: Identity, citizenship, family and residence information are checked.
2. The suitability of the real estate for citizenship is investigated: The nature of the real estate, its owner, previous transfers and whether it has been used in the citizenship process before are evaluated.
3. Real Estate Investment Amount Determination Certificate is prepared: The value of the real estate that can be used as a basis for citizenship investment is determined through the official system.
4. Foreign Exchange Purchase Document is issued: Foreign currency related to the sales price is processed through the bank using the method stipulated in the legislation.
5. Sales price is paid via bank: An explanatory and bank-approved receipt showing the connection of the payment made from the buyer to the seller with the real estate is prepared.
6. Deed sale and three-year commitment are completed: The real estate is registered in the name of the foreign investor and the commitment not to sell is recorded in the land registry.
7. Investment determination process is completed: It is evaluated by the authorized institution that the investment meets the conditions required in the legislation.
8. Residence permit and citizenship applications are made: The investor residence permit and exceptional citizenship file are prepared and submitted to the relevant authorities.

How is the investment amount determined?

Only the sales price written by the parties in the contract is not taken into account in the citizenship application. The sales price declared in the official promissory note, Foreign Exchange Purchase Certificate, bank receipts and the amounts accepted in the Real Estate Investment Amount Determination Certificate must comply with the legislation.

The fact that the amount in one document is above the required limit does not always compensate for the deficiency in other documents. For example, although a high price is stated in the sales contract, if the payment made through the bank or the amount considered as basis for investment remains below the limit, this may negatively affect the citizenship process.

Can more than one property be used?

It may be possible to cover the required investment amount with more than one property that complies with the legislation. Each real estate must be eligible for citizenship, sales and payment documents must be prepared completely and the total amount must be verified by official determinations.

The purchase of a real estate in shares by more than one foreign investor does not mean that each investor can apply for citizenship on his own shares. Share acquisition for citizenship purposes may not be considered appropriate under current regulations.

Three-year non-sell commitment

A statement stating that the real estate purchased for citizenship purposes cannot be sold for three years is entered in the land registry. An earlier citizenship decision does not mean that the three-year period has ended. The commitment period must be adhered to and the investment's basis for citizenship application must be preserved.

Removal of the commitment before its due date, transfer of the real estate, or discovery of untrue information in the documents may lead to re-evaluation of the investment determination certificate and citizenship decision.

Does everyone who buys real estate gain citizenship?

The fact that the real estate meets the required amount provides the opportunity to apply; However, it does not mean that citizenship will definitely be acquired. The applicant's identity and family documents, public order and national security examinations and other conditions in the citizenship file are also evaluated by the competent authorities.

Legal Controls in the Sale of Housing to Foreigners in Türkiye

One of the most important risks that a foreign person may face when purchasing a house in Türkiye is that the property is evaluated solely on the basis of the information in the sales announcement. The advertisement, promotional brochure or statements of the real estate consultant do not alone indicate the official legal status of the real estate. Legal Controls in the Sale of Housing to Foreigners in Türkiye content explains other legal points related to this stage.

Before the sale, title deed, municipality, zoning, project, management and contract records must be examined together. Contracts signed or payments made without legal review may lead to consequences such as not being able to transfer the title deed and not being able to get back the price paid.

Land registration and property control

• It must be verified whether the seller is the owner in the title deed.
• Independent section and land share information of the real estate should be examined.
• Liens, liens, injunctions and other encumbrances should be investigated.
• It should be checked whether there is a sales promise or lease annotation.
• It should be investigated whether the real estate is the subject of an ongoing title deed lawsuit.
• It should be evaluated whether the seller's authority is restricted.

Zoning and building control

• Building permit and approved architectural project should be examined.
• It should be checked whether there is a building permit.
• The suitability of the actual use to the approved project should be investigated.
• It should be determined whether there is an illegal addition, blocked balcony or combined area.
• Condominium ownership or floor easement status should be examined.
• It should be investigated whether there is an urban transformation, risky building or demolition decision.

Actually different use of the independent section appearing as a residence in the title deed or changes contrary to the project may result in municipal sanctions and restoration liability. Therefore, it is not enough to just see the inside of the apartment; The approved project should be compared with the current situation.

Legal control in new and ongoing projects

In projects that have not yet been completed, the legal relationship between the land owner, the contractor and the selling company should be investigated. Whether the selling company has the authority to sell the relevant independent section should be checked through the construction contract in return for land share and the land registry records.

In prepaid or project house sales, at least the following issues should be clearly regulated in the contract:

• Clear title deed and project information of the real estate,
• Gross and net usage area,
• Total sales price and payment plan,
• Deed transfer and delivery dates,
• Material and technical specifications,
• Sanctions to be applied in case of delay,
• Conditions of withdrawal from the contract and refund,
• Common areas, social facilities and dues principles,
• Which party bears taxes, duties and other expenses.

Sales price and contract control

It is not sufficient to simply explain the contract verbally to a foreigner who does not speak Turkish. A translation must be prepared in a language that the recipient can understand and it must be checked whether there are any differences with the Turkish text. The text to be taken as basis in case of dispute should also be specified in the contract.

Provisions that give the seller the authority to unilaterally change the contract, postpone the delivery date indefinitely or increase the price indefinitely may pose significant risks for the buyer. The consequences that will be applied in case the real estate is not delivered, the title deed is not transferred and the project is not completed should be clearly written.

Inspections to be carried out in tenanted residences

If there is a tenant in the house to be purchased, the current rental agreement, rental fee, deposit, payment status and eviction commitment should be examined. Selling the real estate does not automatically terminate the existing lease agreement; As a rule, the new owner becomes a party to the lease agreement.

If the new owner needs to use the house for himself or his relatives listed in the law, he must comply with the notification and lawsuit periods specified in the Turkish Code of Obligations. The purchase decision should not be made based on verbal statements made by the seller or real estate consultant such as "the tenant will move out immediately".

Lawyer Esra Aslan carries out a pre-sale legal risk assessment for foreign buyers by examining the land registry, contract, zoning documents, payment plan and citizenship eligibility.

Is it Possible for Foreigners to Buy Plot or Land in Türkiye?

It is possible for foreign real persons to purchase land or plots of land in Türkiye, depending on legal restrictions and the nature of the real estate. However, the usage and project conditions governing real estate registered as "land", "field", "garden" or "olive grove" in the title deed are different from each other.

Introducing a real estate as "villa land" or "investment land" in a sales announcement does not mean that it is legally suitable for construction. Title deed quality, zoning plan, parceling status, road frontage, construction conditions and special protection decisions should be investigated separately.

Project development obligation in unstructured real estate

In case a foreign real person acquires a plot or land without a building on it, he may be required to develop a project appropriate to the nature of the real estate and submit the project to the relevant ministry for approval within the period specified in the law. Failure to submit the project on time or failure to realize the approved project may result in the liquidation of the real estate.

Therefore, the foreign buyer should evaluate the intended use and project liability before purchasing vacant land or field with the sole thought that it will gain value in the future.

Checks to be made when purchasing land

• The purpose of use of the real estate in the current zoning plan,
• Whether it is in the area of ​​residence, trade, industry, tourism or social facilities,
• Construction rate, floor height and drawing distances,
• Whether it is a zoning parcel or not,
• Whether it has a frontage on a cadastral or development road,
• Expropriation or regulation partnership share risk,
• Concentration and parcellation status,
• Infrastructure, water, electricity and sewage facilities,
• Whether it is in a forest, pasture, coastal or protected area,
• Whether there are floods, landslides or other natural risks.

Can agricultural land be purchased?

A foreigner's ability to purchase a field, vineyard, garden, olive grove or other agricultural land is subject to the special rules in agricultural legislation as well as the general limits on foreign acquisition. The indivisible size of the real estate, its agricultural integrity, its intended use and the opinions of the relevant institution are important.

Purchasing agricultural land does not mean that a residential or commercial building can be built directly on the land. For construction, permits required by zoning and agricultural legislation must be obtained. Failure to remove it from agricultural use or obtain a construction permit may result in the foreign investor not being able to realize the planned project.

Can land or field be used in citizenship application?

The ability of foreigners to purchase vacant land or fields in general real estate acquisition and the ability to use this real estate in citizenship investment are different issues. In current citizenship practice, immovable properties without structures and subject to project development obligations and agricultural lands may not be considered suitable for the purpose of acquiring citizenship.

An investor with citizenship intentions must confirm that the real estate meets the qualifications in the current citizenship guide before signing the purchase contract.

Deed and Tax Procedures for Foreigners Buying Real Estate in Türkiye

The title deed fee and other transaction expenses to be paid by foreigners when purchasing real estate are subject to the basic rules applied to real estate transactions of Turkish citizens. However, in sales transactions of foreign real persons, additional procedures such as Foreign Exchange Certificate, foreign identity or tax number and translation may be required.

How is the title deed fee calculated?

In real estate sales, the title deed fee is calculated on the declared actual sales price, which is not less than the property tax value. In legal practice, the buyer and the seller pay their share of the title deed fee separately.

Within the scope of the current general rate, a title deed fee of 20 per thousand is collected separately from the buyer and the seller. This rate corresponds to a cost of 4 percent in terms of the total sales price. Although the parties can decide who will bear the cost economically, the actual sales price must be declared in the title deed.

In case the sales price is shown lower than the real amount in the title deed, the missing title deed fee may be requested together with tax loss penalty and delay interest. In addition, a low price declaration may negatively affect the calculation of capital gains in subsequent sales and payment disputes between the parties.

What is a Foreign Exchange Purchase Certificate?

In sales transactions involving foreign real persons purchasing real estate in Türkiye, the foreign currency corresponding to the sales price must be sold to a bank by the method specified in the legislation and a Foreign Exchange Purchase Certificate must be issued by the bank.

It is important that the necessary records such as the foreign buyer's identity or passport information, real estate information, foreign currency amount and US Dollar equivalent are included correctly in the Foreign Exchange Purchase Document. The document must be prepared before the transaction is completed and in compliance with the title deed application.

Other expenses that may occur in the title deed process

• Land revolving fund service fee,
• Valuation or investment amount determination expenses,
• Sworn translator and notary translation expenses,
• Power of attorney arrangement and certification expenses,
• Compulsory earthquake insurance premium,
• Relevant notary fees for sales made at the notary office,
• Bank transfer and secure payment expenses,
• Lawyer and legal review expenses.

Property tax

Foreigners who own real estate may be responsible for the real estate tax accrued by the municipality where the real estate is located. Property tax is determined according to the type of real estate, tax value and the region where it is located.

Property tax can generally be paid in two installments. The first installment is paid in March, April and May, and the second installment is paid in November. After purchasing the real estate, it is important to check the municipal records and investigate whether there are any past debts.

Taxation of rental income

If a foreigner rents a residence or workplace in Türkiye, the rental income obtained may be subject to declaration and taxation within the scope of Turkish tax legislation. Whether the foreigner is resident in Türkiye, the type of real estate, the amount of rental income and double taxation agreements, if any, should be evaluated.

It is important to make rent payments through banks or financial channels accepted in the legislation in order to prove income and payment date.

Increase in value on the sale of real estate

If the purchase and sale of real estate is not within the scope of commercial activity, the gain arising from the sale of the real estate acquired for consideration within five years starting from the date of acquisition may be taxed as capital gains in line with the annual exemption and other conditions.

The calculation of the five-year period, the method of acquisition of the real estate, the actual purchase and sales prices and expenses may affect the tax result. In case of frequent and continuous buying and selling of real estate, it is also possible to consider the activity as commercial income.

Value added tax

The tax consequences of purchasing a second-hand real estate from a real person and purchasing a new residence or workplace from a commercial company are not the same. Value added tax may be on the agenda depending on the tax status of the seller, the type of real estate and its area of ​​use.

Although tax exemption may be applied under certain conditions for some residential and workplace deliveries made to non-resident foreigners in Türkiye, the price must be brought from abroad, the real estate must not be disposed of for a certain period of time and other conditions must be met. Tax exemption should be evaluated separately on the concrete transaction before purchasing.

Things Foreigners Should Pay Attention to When Making a Lease Agreement in Türkiye

There is generally no obstacle for foreign nationals to rent a residence or workplace in Türkiye. Lease agreements made between foreign tenants and Turkish citizens are basically subject to the provisions of the Turkish Code of Obligations. However, additional administrative conditions may arise for residences that the foreigner will use for address registration and residence permit purposes.

Lessor's ownership must be verified

Before signing the contract, the identity of the lessor should be compared with the owner information in the land registry. If the lessor is not the owner, a valid power of attorney or other authorization document showing the authority to rent the real estate and collect the rent must be requested.

Payment should not be made to the person who only has the key to the real estate and introduces himself as a real estate consultant or a relative of the owner. The rental fee and deposit must be sent to the authorized person's bank account with explanations.

Information that must be included in the rental agreement

• Clear identification information of the lessor and the tenant,
• The exact address of the real estate and, if possible, title deed information,
• Start and end date of the contract,
• Monthly rental fee and payment date,
• Bank account to which the rental fee will be deposited,
• On what basis will the rent increase be made,
• Deposit amount and return conditions,
• Which party the dues and ancillary expenses belong to,
• Purpose of use of the real estate,
• Sublease and transfer conditions,
• List of fixtures and goods,
• Termination and release provisions.

Can the contract be prepared in two languages?

The rental agreement can be prepared in Turkish or another language that the foreign tenant can understand. However, if two texts have the same content and there are differences, it must be stated which language text will be taken as basis.

If a foreign tenant signs a Turkish contract that he does not understand without translation, this may increase disputes regarding the implementation of the contract provisions. In particular, the provisions of release, penalty clause, deposit and common expenses should be explained in detail.

How much can the deposit be?

The security deposit requested from the tenant in residential and roofed workplace rentals cannot exceed three months' rent. If it is decided to give money as security, the bank account method prescribed by law should be taken into consideration.

If the deposit is delivered by hand, a signed delivery document must be obtained. In order to determine the damages that can be deducted from the deposit at the end of the contract, the initial condition of the property should be recorded with photographs and a delivery report.

How is rent increase determined?

Agreements of the parties regarding rent increases cannot exceed the upper limits specified in the current Turkish Code of Obligations and temporary regulations, if any. Just because a rate above the legal limit is written in the contract does not mean that this rate will be valid in all cases.

Whether the rental price can be determined in foreign currency should be further examined according to the residence status of the parties in Türkiye and the exceptions in the foreign exchange legislation. Current regulations should be checked before agreeing to rent in foreign currency.

Dues and side expenses

Electricity, water, natural gas and expenses arising from the ordinary use of the property are generally covered by the tenant. Taxes, compulsory insurance and major structural repair expenses related to the ownership of the real estate may be borne by the lessor, depending on the contract and legal regulations.

It should be clarified in the contract which services the site fees cover, whether there is a past dues debt, and who will pay the extraordinary maintenance expenses.

If the real estate is sold, will the lease agreement expire?

Selling the rented property does not automatically terminate the lease agreement. As a rule, the new owner becomes a party to the existing lease agreement. If the new owner needs to use the real estate for himself or his relatives specified in the law, he must follow legal notification and litigation.

The importance of documents in rental disputes

Rent fees must be paid via bank and with a statement. Not obtaining a signed receipt for payments made by hand may make it difficult for the tenant to prove that he has made the payment. It is important that termination, delivery, defect and repair notifications made with the lessor are made in writing.

In many disputes arising from the rental relationship, the mandatory mediation process may need to be completed before filing a lawsuit. The nature of eviction, rent determination, receivables and other contractual demands should be evaluated on a concrete case.

Real Estate Law Guide in Türkiye for Foreign Investors

For foreigners who will invest in real estate in Türkiye, the legal process does not start with the discovery of the real estate. The purpose of the investment, on whose behalf the real estate will be purchased, financing method, rental income, citizenship target and future sales plan should be determined before the investment.

Investment purpose must be determined correctly

The legal and tax consequences of a purchase made for personal residential use and an investment made for rental income or project development are not the same. The investor must clearly define which of the following objectives he pursues:

• Acquiring a personal residence in Türkiye,
• To obtain long or short term rental income,
• Buying a commercial workplace,
• Developing a project on the land,
• Applying for Turkish citizenship through real estate,
• To make a profit by selling the real estate after a certain period of time,
• Acquiring real estate for company activities.

Should the real estate be purchased in the name of an individual or a company?

Purchasing real estate on behalf of a foreign real person or a company established in Türkiye is subject to different rules. The possibility of foreign companies established abroad to directly acquire real estate in Türkiye may depend on the existence of special legal provisions.

Foreign capital companies established in Türkiye may acquire real estate in order to carry out their activities in their articles of association. Permission and notification procedures may come into question depending on the company's partnership structure, foreign share ratio and the region where the real estate is located.

In personal real estate investments to be made for citizenship purposes, the real estate must be acquired in the investor's own name. Real estate purchased on behalf of a spouse, child or company in which the investor is a partner may not be included in the personal citizenship investment amount.

Pre-investment legal review list

1. The buyer's conditions for acquiring foreign real estate should be checked.
2. The current title deed record of the real estate must be obtained.
3. The representation authority of the owner and the seller should be examined.
4. Mortgages, liens, injunctions and annotations should be investigated.
5. Zoning, license, settlement and project documents should be checked.
6. The actual status of the real estate should be compared with official records.
7. Municipal, dues and tax debts should be investigated.
8. It must be determined whether there is a tenant or another user.
9. The sales contract and payment plan should be examined from a legal perspective.
10. If there is a citizenship goal, a special eligibility check must be made.
11. Tax and future sales implications should be considered.

Evaluation of investment in terms of rental income

The estimated rental fee stated in the advertisements should not be considered as a definite and guaranteed income. Existing lease agreements, tenant's payment history, actual comparable rents in the area, dues expenses, taxes and maintenance costs should be calculated together.

If short-term rental is planned for tourism purposes, permit conditions should be separately investigated in terms of the building, site and region where the real estate is located. It may not be possible for every residence to be opened directly for daily or short-term rental.

After-sales investment management

After the title deed transfer is completed, protecting and managing the real estate also requires legal planning. Investor living abroad; It must ensure that dues, taxes, insurance, tenant relations and maintenance procedures are regularly monitored.

If a representative will be authorized to rent the real estate, the scope of the power of attorney must be clearly determined. The representative's powers to make a rental agreement, collect the price, carry out an eviction process or sell the real estate are separate from each other. Granting unnecessarily broad powers should be avoided.

Remedies that can be applied in real estate disputes

• Deed cancellation and registration cases,
• Requests for refund of the sales price or deposit,
• Lawsuits arising from defective real estate,
• Prevention of intervention and claims for unfair occupation compensation,
• Rent receivable and eviction procedures,
• Cases for dissolution of partnership,
• Condominium ownership and site management disputes,
• Compensation claims arising from construction and delivery delay,
• Lawsuits arising from real estate sales promise contracts.

Depending on the type of dispute, the mandatory mediation process may need to be completed before filing a lawsuit. The competent courts and procedures to be followed for title deed cancellation, rent, dissolution of partnership and condominium disputes are not the same.