Real Estate Valuation Process in Citizenship by Investment

Real estate valuation process in citizenship by investmentensures that the market value of the real estate to be purchased to be accepted in the citizenship application is determined independently. It is not enough for the price demanded by the seller or the price written by the parties in the contract to exceed 400,000 US dollars. In connection with this topic Citizenship Law You can also review the content titled.

In order for the application to meet the real estate investment requirement, the valuation result, the bank payment and the sales price declared in the title deed must be compatible with each other. Therefore, valuation should not be seen as an ordinary formality after the purchase is completed. Also The Process of Obtaining Turkish Citizenship by Purchasing Real Estate should be evaluated together with the concrete case.

What Does the Appraisal Report Determine in the Citizenship File?

The valuation report determines the possible market value of the real estate on a certain date. This value; The price asked by the seller does not have to be the same as the property tax value in the municipality or the prices in internet advertisements.

The appraiser examines the legal and actual status of the real estate and determines the estimated value that it can reach under free market conditions. This determination plays an important role in creating the investment value based on citizenship.

How to Request an Appraisal Report?

For sales subject to citizenship, the valuation report request is created through the Web Tapu system. The sale option subject to citizenship should be used as the purpose of the request in the application.

In current practice, the reports to be prepared for citizenship purposes are prepared by GEDAŞ Real Estate Appraisal Inc. After the application created through the system, the fee information and request number are notified to the applicant.

After the fee is paid, an appraiser is appointed. The expert examines the real estate on site, searches the land registry and municipal records, and completes the report through the electronic system.

After the report is approved with an electronic signature, it is transferred to the TAKBIS system and can be viewed on the Web Tapu.

What Information Does an Appraiser Examine?

The value of the real estate is not determined only by the square meter calculation. The following factors are mainly evaluated by the expert:

• Location and environmental characteristics of the property,
• Quality, surface area and independent section information in the title deed,
• Zoning status, license and approved architectural project,
• Legal and current usage areas,
• The age of the building, the quality of construction and the level of completion,
• Comparable immovables located in the same region,
• Income and usage potential of the immovable,
• Legal or physical risks affecting value.

A difference between the actual condition of the real estate and the approved project may reduce the value. If the location, boundary or project information of the independent section cannot be determined, a valuation may not be made in some cases.

Three Separate Amounts Are Checked in Citizenship

It is not enough for just one of these amounts to exceed $400,000. For example, if the citizenship value of the real estate is determined as 370,000 USD despite the fact that the price equivalent to 420,000 USD is declared in the title deed, the investment requirement on a single real estate is not met.

Likewise, even if the valuation result is high, if the Foreign Exchange Purchase Certificate or bank payment is lower, the lower amount can be taken into account in the citizenship account.

Can Selling Expenses Add to Value?

The limit of USD 400,000 cannot be completed by adding the title deed fee, VAT, real estate agent commission, attorney fee, valuation fee and other transaction expenses to the real estate sales price.

The required investment amount must be provided directly over the sales price of the real estate and its value accepted as the basis for citizenship.

What Can Be Done If the Valuation Result Is Below $400,000?

If the valuation result is below the expected amount, it cannot be solved by printing a higher sales price in the report. The report must show the independent and actual market value.

In this case, the following options can be considered:

• To re-evaluate the purchase price and investment plan,
• Choosing another real estate suitable for citizenship,
• To purchase additional suitable real estate by sales method,
• If there is a clear material error in the report, to use correction and examination methods.

Conducting a preliminary legal and economic examination before purchasing the real estate reduces the risk of paying a deposit or sales price that is difficult to recover.

Can the Value of More Than One Real Estate Be Combined?

More than one eligible real estate can be used to apply for citizenship by sale. In this case, the total investment amount is determined by adding the US dollar values of the immovables based on citizenship. About the relevant aspect of the process How to Apply for Citizenship by Investment in Turkey? There is detailed information on the page.

However, each real estate must have its own valuation and payment documents. If the value determined for an immovable property is higher than the amount of the Foreign Exchange Purchase Certificate for that real estate, the low amount in the Foreign Exchange Purchase Certificate is taken into account, not the high report value.

It may not be possible to complete the missing price of the purchased immovables with a preliminary sales contract. The investment structure should be planned before trading begins.

How Long Is the Appraisal Report Valid?

The period of use of the valuation report to be used in title deed transactions is three months from the date of the report. The application for sale or promise of sale must be made within this period. Conditions for Applying for Turkish Citizenship by Marriage its content explains other legal points related to this stage.

If the three-month period passes, a new report must be requested. Even if the report period has not expired, if there is a significant change in the type, surface area, zoning status or land registry of the real estate that affects its value, a new valuation may be requested.

Are Appraisal Report, TTB and Certificate of Conformity the Same Thing?

The functions of these documents are different:

• Appraisal report: It determines the value of the real estate by examining its market and legal status.
• Amount Determination Document: It shows the amount of the real estate to be taken into account in the citizenship calculation and whether the minimum investment limit is met.
• Real Estate Investment Determination Certificate: It is issued upon the determination by the competent authority that the investment conditions, including sale, payment and commitment not to sell for three years, are met.

A high valuation report does not necessarily mean that the certificate of conformity will be issued. Other conditions regarding the seller, payment, title deed annotation and real estate history are also checked.

If there is an error in the valuation report

A report that is lower than expected does not in itself indicate that the report is incorrect. First, title deed information, location of the independent section, legal area, actual area and precedents used should be examined.

If there is a clear material error or incorrect real estate inspection, necessary notifications can be made through the system. Complaints, suggestions and requests regarding the transactions of the valuation institution can be forwarded to the Appraisers Association of Turkey.

If deemed necessary by TKGM, a control report may be requested. Receiving a new report does not necessarily guarantee that the value will increase.

Pre-Purchase Valuation Check

• The deposit agreement must include a withdrawal provision based on the valuation result.
• The title deed and project information of the real estate should be compared before the sale.
• The value said by the seller should not be accepted as the final report result.
• Report, payment and Foreign Exchange Purchase Certificate amounts should be planned together.
• The three-month report usage period should not be missed.
• For investments very close to 400,000 USD, exchange rate and impairment risk should be taken into account.

Frequently Asked Questions

Is valuation still necessary if the sale price is over $400,000?

Yes. The contract price alone is not enough; The value of the real estate based on citizenship should be determined separately.

Can the investor get the valuation report from the company he wants?

In transactions subject to citizenship, the report request is created via Web Tapu and forwarded to the relevant valuation institution according to the current authorization order.

If the report is low, will the problem be solved by increasing the sales price?

The citizenship account takes into account the independently determined value and the actual bank payment.

Can the values of more than one immovable be added together?

Yes. The citizenship values of eligible immovables acquired through the sale method can be combined with the necessary conditions.

How long is the valuation report?

The usage period in the title deed transaction is three months from the date of the report. If the time passes, a new report is required.

Can the real estate agent commission be added to the investment amount?

Commissions, taxes, fees and similar expenses are not included in the minimum real estate investment amount.

Legal information: This content has been prepared for general information purposes. Since valuation and citizenship practices may change, current TKGM regulations should be checked before real estate selection, payment or deposit.