Table=
of
Contents............................=
...........................................................................=
............ 1
Intro=
duction..........................................=
...........................................................................=
........... 8
Gener=
al Data
– Southern Turkey (2003 data).=
...........................................................................=
..................................................... =
8
Issue=
s as a
place to invest.....................=
...........................................................................=
...................................................................... 9
Posit=
ive..........................................=
...........................................................................=
...........................................................................=
.. 9
Negat=
ive..........................................=
...........................................................................=
...........................................................................=
9
Sex
Money=
..........................................=
...........................................................................=
...........................................................................=
...... 10
Price=
s..........................................=
...........................................................................=
...........................................................................=
....... 11
Law
Reali=
ty Check..........................................=
...........................................................................=
.................................................................... 11
Trans=
lations..........................................=
...........................................................................=
...................................................................... 12
The E=
uropean
Union (EU)..........................=
...........................................................................=
............................................................. 12
The E=
uropean
Economic Area (EEA).................=
...........................................................................=
................................................. 12
'Euro=
land'..........................................=
...........................................................................=
......................................................................... <=
/span>12
Schen=
gen
Countries...........................=
...........................................................................=
........................................................................ 13
Discl=
aimer..........................................=
...........................................................................=
......................................................................... <=
/span>13
Useful
Addresses & Telephone Numbers...=
...........................................................................=
.......................................................... 13
Why T=
urkey?..........................................=
...........................................................................=
.......... 14
Intro=
duction..........................................=
...........................................................................=
...................................................................... 14
Why T=
urkey?..........................................=
...........................................................................=
.................................................................... 14
Turki=
sh
History.............................=
...........................................................................=
...........................................................................=
.. 16
Turki=
sh
Culture.............................=
...........................................................................=
...........................................................................=
.. 16
Turke=
y &
The EU..............................=
...........................................................................=
........................................................................ 17
The P=
resent
Situation...........................=
...........................................................................=
................................................................. 17
The P=
rocess
of Admission........................=
...........................................................................=
............................................................ =
18
Turke=
y &
Islam...............................=
...........................................................................=
...........................................................................=
19
Where=
in
Turkey?.............................=
...........................................................................=
............ 21
Intro=
duction..........................................=
...........................................................................=
...................................................................... 21
Findi=
ng a
Property in Turkey..................=
........................................................................ 22
The N=
eed for
Preparation.........................=
...........................................................................=
.............................................................. 22
Why?<=
span
style=3D'mso-tab-count:1 dotted'>..........................................=
...........................................................................=
...........................................................................=
... 22
What
preparation should you make?........=
...........................................................................=
........................................................ 22
Which=
Area is
Right for You?......................=
...........................................................................=
.......................................................... 25
Perso=
nal
preference..........................=
...........................................................................=
..................................................................... 25
Getti=
ng to
know the areas......................=
...........................................................................=
............................................................... 26
Do yo=
u want
to let the property?................=
...........................................................................=
........................................................ 27
Clima=
te..........................................=
...........................................................................=
.......................................................................... =
28
Acces=
s..........................................=
...........................................................................=
...........................................................................=
. 29
Facil=
ities..........................................=
...........................................................................=
......................................................................... <=
/span>32
Terra=
in..........................................=
...........................................................................=
...........................................................................=
. 32
Price=
Guide..........................................=
...........................................................................=
.................................................................... 32
Which=
Type of
Property is Right for You?..........=
...........................................................................=
............................................... 33
Apart=
ment or
Villa?..............................=
...........................................................................=
................................................................. 33
Bewar=
e of
Cooperative Properties..............=
...........................................................................=
........................................................ 35
Beware of Shared Ownership...............................=
...........................................................................=
............................................... 35
Gener=
al Rules
of Thumb............................=
...........................................................................=
.......................................................... 36
Space=
..........................................=
...........................................................................=
...........................................................................=
... 37
Heati=
ng..........................................=
...........................................................................=
.......................................................................... =
37
Air
conditioning........................=
...........................................................................=
...........................................................................=
... 38
Parki=
ng..........................................=
...........................................................................=
...........................................................................=
38
New o=
r old?..........................................=
...........................................................................=
................................................................... =
38
Rental
Potential - Income..................=
...........................................................................=
.................................................................. <=
/span>40
Capit=
al
Growth..............................=
...........................................................................=
......................................................................... <=
/span>43
Findi=
ng
Property - Estate Agents Etc........=
...........................................................................=
........................................................... <=
/span>44
Turki=
sh based
agents..............................=
...........................................................................=
............................................................... 46
UK ba=
sed
estate agents.......................=
...........................................................................=
.................................................................. <=
/span>46
DIY s=
ales..........................................=
...........................................................................=
....................................................................... 47
Other=
Sources
of Property.........................=
...........................................................................=
........................................................... <=
/span>47
Semin=
ars..........................................=
...........................................................................=
........................................................................ 49
Aucti=
ons..........................................=
...........................................................................=
......................................................................... <=
/span>49
Renti=
ng
instead of Buying...................=
...........................................................................=
.................................................................... 51
Excha=
nges..........................................=
...........................................................................=
..................................................................... 51
Times=
hare..........................................=
...........................................................................=
...................................................................... 52
Part-=
ownership
schemes.............................=
...........................................................................=
.......................................................... 52
Inspe=
cting
Property............................=
...........................................................................=
....................................................................... 52
Do it
yourself............................=
...........................................................................=
...........................................................................=
... 53
Estate
Agent's Valuation & "Survey".....................................................................=
....................................................................... 57
Mortg=
age
Lenders Survey (note: Turkish mortgages are currently not generally availab=
le
for non-residents)............... 57
Turki=
sh
Builder.............................=
...........................................................................=
.......................................................................... =
57
Turki=
sh
Surveyor............................=
...........................................................................=
........................................................................ 57
Times=
cale..........................................=
...........................................................................=
...................................................................... 58
Contr=
acts
"subject to survey".......=
...........................................................................=
....................................................................... 58
Gener=
al..........................................=
...........................................................................=
...........................................................................=
58
Usefu=
l Names
& Addresses.....................=
...........................................................................=
................................................................. 58
Raisi=
ng
Finance to Buy a Property in Turkey.=
..................................................... =
59
UK Mo=
rtgages..........................................=
...........................................................................=
.................................................................. <=
/span>59
Turki=
sh
Mortgages...........................=
...........................................................................=
......................................................................... <=
/span>60
Gener=
al
concept.............................=
...........................................................................=
........................................................................ 61
The m=
ain
differences between an English and a French mortgage.................................................................=
........................ 61
The E=
xchange
Rate Risk...........................=
...........................................................................=
........................................................... <=
/span>61
Forei=
gn
Currency Mortgages..................=
...........................................................................=
.............................................................. 62
Savin=
g Money
on your Euro or Turkish Lira Repayments........................................................................=
............................... 62
The U=
K Tax
Trap................................=
...........................................................................=
................................................................... =
63
Other=
Loans..........................................=
...........................................................................=
...................................................................... 63
Usefu=
l Names
& Addresses.....................=
...........................................................................=
................................................................. 64
Who s=
hould
own the property?...................=
................................................................ 65
The o=
ptions..........................................=
...........................................................................=
........................................................................ 65
Sole
ownership...........................=
...........................................................................=
...........................................................................=
.. 65
Joint
Ownership 'as individuals in common'=
...........................................................................=
..................................................... =
65
Joint
ownership of property...............=
...........................................................................=
.................................................................. <=
/span>65
Addin=
g your
children to the title...............=
...........................................................................=
........................................................... <=
/span>65
Putti=
ng the
property in the name of your children only..........................................=
................................................................... =
66
Limit=
ed
company.............................=
...........................................................................=
..................................................................... 66
The u=
se of
trusts..............................=
...........................................................................=
...........................................................................=
67
Which=
is
right for you?......................=
...........................................................................=
...................................................................... 68
Usefu=
l Names
& Addresses.....................=
...........................................................................=
................................................................. 68
Buyin=
g a
Property in Turkey..................=
......................................................................... <=
/span>69
The L=
aw..........................................=
...........................................................................=
...........................................................................=
.. 69
Gener=
al
Procedure...........................=
...........................................................................=
......................................................................... <=
/span>70
Choos=
ing a
lawyer..............................=
...........................................................................=
....................................................................... 71
The N=
otary
Public ("Noter")..........................................=
...........................................................................=
....................................... 71
Turki=
sh
lawyers (“avokatlar=
221;)..........................................=
...........................................................................=
................................... 71
Engli=
sh
lawyers (solicitors)................=
...........................................................................=
.................................................................... 71
The
Description of the Property.........=
...........................................................................=
................................................................... =
72
The p=
rice..........................................=
...........................................................................=
...........................................................................=
. 73
How m=
uch
should be declared in the reservation contract of sale?.................................................................=
....................... 73
How m=
uch
should be declared in the preliminary contract of sale?.................................................................=
...................... 73
How m=
uch
should be declared in the official contract of sale (Tapu)?..................=
................................................................ 73
Why a=
re there
THREE contracts?....................=
...........................................................................=
.................................................. PAGE=
REF
_Toc82424074 \h <=
/span>74
Where=
must
the money be paid?..................=
...........................................................................=
...................................................... 75
Gener=
al
Enquiries and Special Enquiries.....=
...........................................................................=
...................................................... 75
Land =
Registry..........................................=
...........................................................................=
............................................................... 76
Techn=
ical
Services (Planning & Building Consent) (Fen
işleri=
)........=
...........................................................................=
............. 76
Land =
Use
Register (Kadastro)..........................................=
...........................................................................=
................................... 77
Museu=
ms &
Antiquities (Muze)..........................................=
...........................................................................=
................................. 77
Envir=
onmental
(Çevre ve bayindirlik).......=
...........................................................................=
......................................................... 77
Milit=
ary
Status (Askerli
Local=
Taxes (Emlak ve çop)..........................................=
...........................................................................=
....................................... 77
Enqui=
ries
about neighbouring land.............=
...........................................................................=
........................................................ 77
Other
Enquiries...........................=
...........................................................................=
...........................................................................=
. 78
Your =
Civil
State (medeni hal) and other personal details.................................................................=
.......................................... 78
Tax N=
umber..........................................=
...........................................................................=
...................................................................... 79
The c=
ommunity
of owners or Management Plan (Sit=
e or <=
span
style=3D'mso-bookmark:_Toc534097940'>Y&#=
337;netim Plani)........=
....................................................................... 79
Initi=
al
contracts...........................=
...........................................................................=
...........................................................................=
.... 80
Who p=
repares
them?...............................=
...........................................................................=
.............................................................. 80
If yo=
u are
buying a Finished Property..........=
...........................................................................=
...................................................... 80
You a=
re
buying an Unfinished Property.......=
...........................................................................=
..................................................... =
83
Key p=
oints
– a checklist.................=
...........................................................................=
....................................................................... 85
Steps=
between
signing the contract and signing the tapu..........................................=
................................................................... =
86
Obtai=
ning
Military Permission.................=
...........................................................................=
............................................................ =
86
Buying through a Turkish Limited Company.........=
...........................................................................=
......................................... 87
Power=
s of
Attorney (Vekaletname).......=
...........................................................................=
.............................................................. 88
Getti=
ng the
money to Turkey.....................=
...........................................................................=
.......................................................... 89
Excha=
nge
control and other restrictions on moving money.................................................................=
.................................... 90
Final=
checks
about the property..................=
...........................................................................=
........................................................ 90
Fixin=
g the
completion date.....................=
...........................................................................=
.............................................................. 90
Check=
list
– Steps before completion.....=
...........................................................................=
............................................................. 90
Key p=
oints
– property under construction.=
...........................................................................=
.......................................................... 91
Key p=
oints
– resale properties...........=
...........................................................................=
..................................................................... 92
Speci=
al
points – old properties.......=
...........................................................................=
........................................................................ 92
Speci=
al
points – rural properties.....=
...........................................................................=
...................................................................... 93
Speci=
al
points – city properties......=
...........................................................................=
........................................................................ 93
Speci=
al
points – apartments and houses sharing facilities.................................................................=
........................................ 93
Other=
things
to do when you buy a property.......=
...........................................................................=
................................................ 93
Usefu=
l Names
& Addresses.....................=
...........................................................................=
................................................................. 94
Livin=
g in Turkey..........................................=
...........................................................................=
.... 95
Gener=
al..........................................=
...........................................................................=
...........................................................................=
.... 95
Sourc=
es of
Help................................=
...........................................................................=
.......................................................................... =
95
Who d=
o you
approach for help?..................=
...........................................................................=
.......................................................... 95
Visit=
ing and
Residence...........................=
...........................................................................=
................................................................... =
96
Resid=
ence
& Citizenship...................=
...........................................................................=
.................................................................... 96
Visit=
ing
Turkey..............................=
...........................................................................=
......................................................................... <=
/span>96
Longe=
r Term
Residence in Turkey.................=
...........................................................................=
..................................................... =
97
Retir=
ing to
Turkey..............................=
...........................................................................=
.................................................................... 98
Setti=
ng up a
Business in Turkey..................=
...........................................................................=
........................................................ 98
Worki=
ng in
Turkey..............................=
...........................................................................=
................................................................... =
99
Some =
useful
background information – The Turkish Legal System.................................................................=
................... 100
Sourc=
es and
History of the Law..................=
...........................................................................=
......................................................... 100
Relig=
ion and
the Law.............................=
...........................................................................=
................................................................. 101
The B=
asis of
Turkish Law.........................=
...........................................................................=
............................................................ =
101
Sourc=
es of
Law.................................=
...........................................................................=
........................................................................ 102
The C=
ourts..........................................=
...........................................................................=
....................................................................... 102
Const=
itutional
Law.................................=
...........................................................................=
................................................................. 103
Grand=
General
Assembly............................=
...........................................................................=
....................................................... 103
Execu=
tive
Branch..............................=
...........................................................................=
.................................................................. <=
/span>103
Presi=
dent..........................................=
...........................................................................=
...................................................................... 103
Counc=
il of
Ministers...........................=
...........................................................................=
................................................................. 104
Prime
Minister............................=
...........................................................................=
.......................................................................... =
104
Artic=
les of
the Constitution....................=
...........................................................................=
............................................................ =
104
Admin=
istrative
Law.................................=
...........................................................................=
............................................................... 104
Public
Property............................=
...........................................................................=
......................................................................... <=
/span>106
Priva=
te Law..........................................=
...........................................................................=
.................................................................... 106
Civil=
Law..........................................=
...........................................................................=
..................................................................... 106
The L=
aw of
Obligations.........................=
...........................................................................=
............................................................. 111
Crimi=
nal Law..........................................=
...........................................................................=
.............................................................. 113
Priva=
te
International Law...................=
...........................................................................=
................................................................. 114
Learn=
ing
Turkish.............................=
...........................................................................=
....................................................................... 115
Bank =
accounts..........................................=
...........................................................................=
................................................................ 116
Who c=
an open
a bank account?.....................=
...........................................................................=
.................................................. PAGE=
REF _Toc82424144
\h 116
Which=
bank
should you use?.....................=
...........................................................................=
....................................................... 116
Which type of account?..........................................=
...........................................................................=
........................................... 117
"=
;Bad"
Cheques.............................=
...........................................................................=
........................................................................ 117
Your =
existing
UK account..........................=
...........................................................................=
........................................................ 117
"=
;Offshore"
Accounts............................=
...........................................................................=
............................................................... 117
Key Points..........................................=
...........................................................................=
................................................................... =
117
Taxes=
..........................................=
...........................................................................=
...........................................................................=
..... 118
Elect=
ricity,
gas, water & telephone bills....=
...........................................................................=
........................................................ 118
Elect=
ricity..........................................=
...........................................................................=
.................................................................... 118
TV..........................................=
...........................................................................=
...........................................................................=
...... 119
Gas
Telep=
hone..........................................=
...........................................................................=
................................................................... =
119
Water=
..........................................=
...........................................................................=
...........................................................................=
119
Cable=
/Satellite
TV..................................=
...........................................................................=
................................................................. 121
The <=
/span>Site
Prope=
rty
insurance...........................=
...........................................................................=
...................................................................... 121
Other
expenses............................=
...........................................................................=
...........................................................................=
.. 123
Takin=
g your
car.................................=
...........................................................................=
...................................................................... 123
Your Driving Licence..........................................=
...........................................................................=
................................................... PAGE=
REF
_Toc82424163 \h <=
/span>124
Takin=
g your
furniture...........................=
...........................................................................=
................................................................. 124
Takin=
g your
pet.................................=
...........................................................................=
...................................................................... 124
Health Care..........................................=
...........................................................................=
..................................................................... 125
Tourists & Temporary Visitors.........=
...........................................................................=
................................................................. 125
EU/EEA citizens visiting for over 90 days at a tim=
e.........=
...........................................................................=
............................ 125
Residents<=
span
style=3D'mso-tab-count:1 dotted'>..........................................=
...........................................................................=
..................................................................... 125
Who do you contact to receive medical care?=
.........=
...........................................................................=
...................................... 125
What do you have to pay?...............................=
...........................................................................=
................................................. 125
Pensi=
ons..........................................=
...........................................................................=
...........................................................................=
125
Welfa=
re
Benefits............................=
...........................................................................=
.......................................................................... =
126
Gener=
al..........................................=
...........................................................................=
........................................................................ 126
Livin=
g in
Turkey - What Turkish benefits can you claim?..................................................................=
.................................... 126
What =
UK
benefits can you claim?.............=
...........................................................................=
...................................................... 126
Cost =
of
Living..............................=
...........................................................................=
...........................................................................=
.. 128
Comin=
g back
to England..........................=
...........................................................................=
............................................................. 128
Buria=
l &
Cremation...........................=
...........................................................................=
.................................................................... 129
The T=
urkish
inheritance rules...................=
...........................................................................=
........................................................... <=
/span>129
Makin=
g a Will..........................................=
...........................................................................=
................................................................ 131
What =
if I
don't make a Will of any kind?......=
...........................................................................=
................................................... PAGE=
REF
_Toc82424182 \h <=
/span>132
Usefu=
l Names
& Addresses.....................=
...........................................................................=
............................................................... 132
Renti=
ng out
(letting) your Property in Turkey...=
........................................... 133
The r=
ight
area................................=
...........................................................................=
.......................................................................... =
133
Letting Agencies?=
..........................................=
...........................................................................=
....................................................... 133
Climate..........................................=
...........................................................................=
........................................................................ 134
Access..........................................=
...........................................................................=
.......................................................................... =
134
Tourist attractions..........................................=
...........................................................................=
..................................................... =
134
Other facilities<=
span
style=3D'mso-tab-count:1 dotted'>..........................................=
...........................................................................=
............................................................ =
135
The r=
ight
property............................=
...........................................................................=
...................................................................... 135
Can you let the property?...............................=
...........................................................................=
................................................... PAGE=
REF
_Toc82424192 \h <=
/span>135
Pick =
a pretty
home................................=
...........................................................................=
.............................................................. 135
Makin=
g it
attractive..........................=
...........................................................................=
................................................................... =
135
Equip=
ping the
property............................=
...........................................................................=
........................................................... <=
/span>136
The r=
ight
price...............................=
...........................................................................=
.......................................................................... =
137
Marke=
ting..........................................=
...........................................................................=
........................................................................ 138
UK ma=
rket..........................................=
...........................................................................=
.................................................................. <=
/span>138
Turki=
sh
market..............................=
...........................................................................=
....................................................................... 139
Other=
markets..........................................=
...........................................................................=
............................................................. 139
Inter=
net..........................................=
...........................................................................=
........................................................................ 139
Doing=
deals..........................................=
...........................................................................=
................................................................. 140
Manag=
ement..........................................=
...........................................................................=
................................................................... =
140
Furni=
shed or
Unfurnished?........................=
...........................................................................=
........................................................... <=
/span>141
The L=
etting
Agreement...........................=
...........................................................................=
............................................................... 142
Taxat=
ion of
Rental Income.......................=
...........................................................................=
............................................................ =
142
Usefu=
l Names
& Addresses.....................=
...........................................................................=
............................................................... 142
Taxes=
..........................................=
...........................................................................=
........................ 143
Intro=
duction..........................................=
...........................................................................=
.................................................................... 143
Are y=
ou
resident or non-resident for tax purposes?.....................................................................=
............................................. 143
The R=
ules
that determine Residence............=
...........................................................................=
.................................................... <=
!--[if supportFields]> PAGE=
REF
_Toc82424211 \h <=
/span>144
Tax R=
esidence
in more than one country............=
...........................................................................=
........................................... 145
Decisions you must make..........................................=
...........................................................................=
........................................ 145
Taxes payable in the UK..........................................=
...........................................................................=
.............................................. 145
Should you pay tax in Turkey?...............................=
...........................................................................=
............................................. 146
Introduction..........................................=
...........................................................................=
................................................................ 146
Payme=
nt of
Tax.................................=
...........................................................................=
.................................................................. <=
/span>147
Local=
taxes..........................................=
...........................................................................=
...................................................................... 148
Property Tax – Emlak Vergisi..........................................=
...........................................................................=
................................. 148
Environment Tax – Çevre Vergisi..........................................=
...........................................................................=
......................... 148
Other=
local
taxes...............................=
...........................................................................=
................................................................... =
148
Payme=
nt of
local property taxes................=
...........................................................................=
...................................................... 148
Other=
taxes
payable in Turkey - Non-residents...=
...........................................................................=
............................................ 148
Taxes=
on
income..............................=
...........................................................................=
................................................................... =
148
Taxes=
on
wealth – Varlık Vergisi......................................................................=
.......................................................................... =
149
Taxes=
on
capital gains.......................=
...........................................................................=
................................................................. 149
Taxes=
on
death...............................=
...........................................................................=
..................................................................... 149
Taxes=
payable
in Turkey - Residents...............=
...........................................................................=
................................................... PAGE=
REF
_Toc82424228 \h <=
/span>150
Tax o=
n income
– Gelir Vergisi........=
...........................................................................=
................................................................. 150
Taxes=
on
capital gains.......................=
...........................................................................=
................................................................. 152
Taxes=
on
death...............................=
...........................................................................=
..................................................................... 152
VAT
Other=
Taxes..........................................=
...........................................................................=
.................................................................... 152
New R=
esidents..........................................=
...........................................................................=
................................................................. 152
Double
Taxation Treaty.....................=
...........................................................................=
................................................................... =
153
Tax p=
lanning
generally...........................=
...........................................................................=
.............................................................. 153
Usefu=
l Names
& Addresses.....................=
...........................................................................=
............................................................... 153
Inves=
tments..........................................=
...........................................................................=
........ 154
The n=
eed to
do something........................=
...........................................................................=
.............................................................. 154
What =
are you
worth?..............................=
...........................................................................=
................................................................ 154
Who s=
hould
look after your investments?........=
...........................................................................=
................................................ 155
Where=
should
you invest?.........................=
...........................................................................=
............................................................ =
155
Keepi=
ng track
of your investments.................=
...........................................................................=
.................................................... <=
!--[if supportFields]> PAGE=
REF
_Toc82424243 \h <=
/span>156
Usefu=
l Names
& Addresses.....................=
...........................................................................=
............................................................... 156
Concl=
usion..........................................=
...........................................................................=
........... 157
Buying a property in
This does n=
ot mean
that buying property in
Indeed, in =
almost
every respect, dealing with
This should=
not put
you off buying property in
Flying time=
from
January MIN= IMUM temperature: = 3C
July MAXIMUM temperature: &= nbsp; 40C
Population:=
&=
nbsp; &nbs=
p; &=
nbsp; 68,109,469
(
Size: &=
nbsp; &nbs=
p; &=
nbsp; &nbs=
p; 780,580
square kms (
GDP: &=
nbsp; &nbs=
p; &=
nbsp; &nbs=
p; $489.7
billion (
GDP per cap=
ita: &=
nbsp; &nbs=
p; $7,300
(
Tourists pe=
r year: &=
nbsp; &nbs=
p; 13,000,000
– from
Almost all
investment in residential property made by foreigners is made in the strip =
of
coast in the south of
All in all,=
we
think that
The message=
of this
book is "buy property in
Before we s= tart the main content of this book there are a few preliminary points to deal with to save time later.
I am told this is always a good way to start a book or= , in this case, a section of a book. I am, of course, talking about nothing more vulgar than the unfortun= ate lack, in the English language, of a simple but neutral way of describing a person. The generic "he" can cause offence. &nb= sp; "S/he" seems contrived and, in any case, the method cannot= be extended to the "his/hers" choice. The use of "they" = for the singular is confusing. And in a world where printing costs and the writers fees are determi= ned by the thousand words, repeatedly saying " he, she or they" or &q= uot;his, her or their" is expensive as well as tedious for the reader. So I will generally use "he" or "him". Sorry!
As I write the Turkish Lira (pound) has stabilised aga=
inst
the major currencies over the past year. This is in sharp contrast to its
performance over the last twenty years when the Lira has regularly deprecia=
ted
by a double digit figure against the world’s principal currencies.
Because of this historical depreciation trend it has become the habit in Tu=
rkey
to express property prices in Euros (EUR), US Dollars (USD) or British &pou=
nd;s
Sterling (GBP).
That is just as well. as I am told that the British &#= 8211; for whom this book is mainly intended – have difficulty in understand= ing funny foreign money so I will generally give prices in Turkish Lira (TL) wi= th an approximate conversion into £ Sterling. Exchange rates, of course, v= ary wildly over time and in a few years the figures given will probably be trea= ted with either nostalgia or amusement. &= nbsp;
At the time of writing (August 2004) €1 =3D &pou= nd;0.63 approximately.
£1 =3D €1.5 approximately.
€1 is 1,671,500 Turkish Liras. Simple really!
It takes a bit of time getting used to dealing with Tu=
rkish
Lira. There are just so many
zeros! It is very easy to lose
count and to find that you have paid 10 times more than you expected for
whatever you are buying. We a=
re
also not used to dealing with "miliars" (1,000,000,000), "biliars" (1,000,000,00=
0,000)
or "trili=
ars"
and this is a commonplace in a
Fortunately, the situation is going to get better. Now that the government has appare= ntly stabilised the currency they propose to delete the last six zeros. Thus 6 million Turkish lira will b= ecome six Turkish lire. This should happen in January 2005, though my personal guess is that there will be slip= page because of the enormous complexity of doing this without changing the bankn= otes and the huge task of reprinting and distributing new notes for such a large population in such an enormous country.
Prices quoted are usually only rough estimates.
This book is intended primarily for people from
There are drink drive laws. Despite popular imagery and = the fact that the large majority of the population is Muslim, Turks – especially in the big cities – are just as prone to drinking and driv= ing as anyone else. And the laws = will be enforced as anywhere else. However the levels of drunken driving are considerably below those of western Europe.
A foreigner from the EU needs a residence card or perm=
it to
stay in
A person who stays for more than six months is liable =
to pay
tax in
A developer needs planning permission he can commence
construction of his project. =
He can
only build buildings of the category authorised on that land. Just as in
Things are changing.
The pace of this change will increase.
In
At the back of the book you will find a simple glossary
showing the English and Turkish equivalents of a variety of legal and finan=
cial
terms. Be careful. Words, when used in differin=
g contexts,
can mean radically different things. =
(My brother has an interest=
in a house in
Our great European motherland comprised (April 2004) <=
st1:country-region
w:st=3D"on">
In May 2004 the new member states joined the European
Union. These were
At the moment, talks are proceeding in respect of the
membership of
The status of
In 1999
A date for the commencement of negotiations for full membership is imminent.
This comprises the EU countries and a number of others=
. This whole list comprises
Otherwise known as the Euro zone. This is the group of countri=
es
that have replaced their old national currencies with the new single Europe=
an
currency, the Euro (€).
At present (January 2004) this comprises
These are the countries that were signatories to the <=
span
class=3DSpellE>Schengen agreement, essentially creating a series of =
common
entry formalities and allowing persons who have entered one Schengen
state to travel without further border formalities to and through the other
member states. At prese=
nt
(August 2004) this comprises
Although we have done our best to cover most topics of
interest to the buyer of a property in
At the end of each section I include a list of useful addresses and telephone numbers. &nbs= p; Any organisations referred to in the section should (with a bit of luck!) be in the list.
There has been an explosion in interest=
ed in
the property in
In fact, the interest in buying in
Accurate numbers are hard to come by.
Why has there are in this vast increase= are in demand? There are, I believe, 10 main reaso= ns.
=
For these and other reasons, there has =
been a
vast increase in demand for property in
Of course,
The most obvious lasting influences hav=
e been
the Roman (and, particularly, the later Byzantine) and the Ottoman. The combination of the characteris=
tics
of these two vast empires explains much of modern
Then, in 1923, the new Turkish state was
formed by Mustafa Kemal At=
atürk. The focus changed. The capital moved to
Since then the road has sometimes been rocky. There have been coups = and countercoups. The military ha= ve held power. There have been g= ood times and bad times. But the principles of secularisation and equality have held.
In 2002 a new government was elected wi=
th a
huge majority of the popular vote.
This was the government of Recep Tayyip Erdogan. He leads an Islamic party, the AK =
Party
(the Justice and Development Party),
but it is a party committed to change, to westernisation, to entry i=
nto
Because
At first glance,
This is not a surprise. But this is not the whole picture.=
So
The position of
The Turks see the European Union as imp=
ortant
for many reasons. Strangely, =
the
most important is perhaps not money.
It would, of course, be naive not to recognise that in a relatively poor country the prospect of free movement throughout Europe, further EU investment and EU spending in Turkey are all, also, important considerations.
From the point of view of the person bu=
ying a
holiday or retirement property in
From the point a few of a person buying=
in
investment property in
In a few of the important is of the que=
stion
of whether
In 1999, at the EU Helsinki summit,
In December 2002 at the European Council
meeting in
The European Commission stated in Augus=
t 2004
that it would say whether it would recommend opening EU accession negotiati=
ons
with
EU leaders are due to decide in December
whether or not to begin accession negotiations with
In April 2004 the Turkish President,
That process is similar to the one used=
for
the admission of the 10 new EU members on
The commission report will be presented= by outgoing European Commission president Romano Prodi who prepared it but his successor, Jose Manuel Durao Barroso, will be also briefed on it..
The report will then be submitted to EU foreign ministers who are expected to discuss it during one of their sessio= ns after early October.
It will then be presented to the EU mee= ting in December 2004 for a vote as to whether to accept the proposal.
If the proposal is to offer membership =
and it
is accepted then
Eventually, when progress has been
substantial enough, a date for annexation to the union is proposed. By that date
It is dangerous to make predictions but=
the
author's personal view is that
As I have already mentioned,
The writer has had the opportunity of w=
orking
not only in and with
It is, therefore, important to stress t=
hat
Yet Islam remains a very important elem=
ent in
Turkish society. It is as muc=
h an
intellectual as a religious cornerstone.&n=
bsp;
The influential Turkish Policy Quarterly in Spring 2004 contained the
following articles: The Quest of Islamic Migrants and of Turkey to Become
European; the Directorate of Religious Affairs in Turkey; Political Islam,
Governments and Democracy; the Compatibility of Islam and Democracy; Non-Mu=
slim
Minorities in Turkey; AKP and the Paradox of Islamic Europe Europhilia; The
Role of Religion in Turkish Reactions to Balkan Conflicts; Failure of Polit=
ical
Islamic in Turkey; Re-Socialising Religion; Can Religion Heal America's
Disadvantaged; The Unique Role of Religion in Middle Eastern Ethnic
Conflict. These are thoughtfu=
l and
fascinating articles. They gi=
ve
insight into the thinking of, at least a section, of the political class.
The
Wedding In 2003 the writer was lucky e=
nough
to be invited to a wedding in The cro=
ss-section
of people present was extraordinary.&=
nbsp;
There were simple village people of all ages, some traditional =
and
religious. There were yo=
ung
friends from There w=
as much
drinking of champagne, b=
eer
and spirits. The Muslims=
drank
as much as anybody else. There
was a discotheque, there was traditional village music and there was a
belly dancer! The guests
danced and some of the younger ones kissed on the dance floor. And nob=
ody
minded. Everybody =
had a
good time. This was mode=
rn
(NAVIGATOR – 12,000 words)=
The
Wedding In 2003 the writer was lucky e=
nough
to be invited to a wedding in
At the moment we are in a property "boom".
As a result of this people who are serious about buying
property in
The system of buying and selling property in
You cannot scour the whole of
It is to that process that I now turn.
This is not always as obvious as you might first think= . Once again the application of common sense can help inform your decision but, mercifully, the human spirit often ignores such considerations. &n= bsp; If you, or your spouse, falls in love with an abandoned homestead (<= span class=3DSpellE>çiflik) in the middle of the countryside whereas reason tells you that you ought to= be looking for an apartment near an airport you will probably buy the çiftlik. = ; And you will probably enjoy every minute of owning it.
This does not mean, however, that it isn't worth spend=
ing a
little time thinking about the type of property that would suit you best before
you travel to
As well as helping you to focus your ideas, thinking a= bout these issues will help you give any estate agents a clear brief as to what = you are looking for. This will he= lp them help you and avoid your time being wasted by them showing you totally inappropriate properties. Always discuss your requirements with the local agents who are helpi= ng you find a property rather than dictate those requirements to them. They may well say that what = to are asking for is not obtainable in their area – but that something very similar is, and at reasonable cost.
Do not be afraid to change your mind. It is quite common for peopl= e to start off looking at rural properties for restoration and to end up deciding that, for them, a new property is a better bet. Or, of course, the other way round. If you do change= your mind you must tell the estate agents you are working with. Better still, you should be discussing your developing views with them and getting their confirmation t= hat what you want is "doable".
A checklist of some of the issues to think about is se= t out in the section on selecting a type of property below.
Fix a budget for the operation. What is the maximum that you= are prepared to spend to end up with a house ready to live in? Include the cost of purchase, any essential repairs or improvements and the taxes and fees payable.
If you are buying a new property or one that does not = need major repair this is fairly simple.
If you are buying a house in need of repair fixing a b=
udget
is clearly more difficult.
You will always under estimate the cost of the repairs. No job ever finishes exactly=
on
budget! That is a=
s true
in
If you are buying a property that needs major work do not commit yourself until you have had a survey and builders estimates for the work sh= own to be necessary. If you are told that there is no time for this and that you will lose the prop= erty if you can't sign today/this week/before Easter, walk away.
Whatever you do, make sure that you get estimates from
reliable people. There are a =
lot of
"part time" builders in
Unless you are in the happy position that money is no object, do not exceed your budget. &n= bsp; It is too easy, after a good lunch and in the company of a silver-tongued estate agent, to throw your financial plans to the wind. "Only another £30,000&q= uot; is a statement you may later come to regret.
It will save you a lot of time and trouble – as = well as a lot of money – if you see your lawyer before you find a property. There are a n= umber of preliminary issues that can best be discussed in the relative calm before you find the house of your dreams rather than once you are under pressure to sign some document to commit yourself to the purchase. These issues will include:
· Who should own the property, bearing in mind= the Turkish and British tax consequences of ownership and the inheritance law in both countries. This step alone is likely to save you thousands of pounds in totally unnecessary taxes.
· Whether to consider mortgage finance and, if= so, how best to arrange it.
· Whether to have the property surveyed.
· What to do about buying the currency needed = to pay for the property.
· If you are going to be living in Turkey, sor= ting out the tax and investment issues that will need to be dealt with before your move if you are to get the best out of both systems.
· What will the process involve? Should you sign a reservation contract? Should you si= gn a preliminary contract? &nb= sp; Should you sign a notarised agreement? Should you buy in the = name of a Turkish company? S= hould you give power of attorney to the agent?
Only
The lawyer may also be able to recommend estate agents, architects, surveyors, banks, mortgage lenders and other contacts in the ar= ea where you are looking. =
A physical meeting is still the best way to start an important relationship. It ha= s a number of advantages. It allo= ws you to show and be shown documents and to wander off more easily into related topics. Most importantly, it = is usually easier to make certain that you have each understood the other in a face to face meeting. B= ut, these days, "seeing" your lawyer does not need to involve an actual meeting. If it is more = convenient to you it could be done by telephone conference call, by videoconference or over the Internet.
Who should be the owner of your new home? This is the most important decision you will have to make when buying a property. Because of the combination o= f the Turkish and British tax systems getting the ownership wrong can be a very expensive mistake indeed. It = can lead to totally unnecessary tax during your lifetime and on your death. Even on a modest property this unnecessary tax can amount to tens of thousands of pounds. This subject is dealt with m= ore fully later.
These days, with very low interest rates, more and more
people borrow at least part of the money needed to buy their home in
If you want to borrow money to finance your purchase i= t is better to get clearance before = you start looking at property.
Turkish mortgages =
are at
the moment extremely rare for foreigners purchasing property in
This situation is =
likely
to change soon. Several=
banks
are considering offering mortgage finance to non resident foreigners buying
holiday or investment property in
If you are going shopping for property = you will need to have access to some money to pay for it. As we will see later you will norm= ally need to put down either a reservation deposit of £2000 - £3000 = or a preliminary deposit of 10% or= more of the price of the property. How should you make this payment?
Some estate agencies, particularly those
operating from
Happily, the usual way of paying the de=
posit
is still via a British cheque for the £
There is, however, a further option that
people are increasingly using.
This is to leave the amount likely to be needed as a deposit with th=
eir
specialist lawyer in the
This has a number of advantages. It can take a lot of pressur= e off you. It makes it very h= ard for the agent to persuade you to sign a document, which has – in every case – far reaching consequences without getting it checked. From the agent's point= of view it means that he will receive the cleared funds within a couple of days rat= her than the two or three weeks it can take for your British cheque to pass thr= ough the banking system and be cleared into his account. This preliminary check by the lawyer, though useful, is limited. &n= bsp; He will not have seen proof of title or planning consents. He will not have inspected the det= ailed documentation relating to the construction of a new building. He will not have been able to carry out any checks on the property. But it is a great deal better than nothing.
This r=
eally
only works well if you have made contact with your lawyer before you go to =
look
at properties as he will need to understand something about your circumstan=
ces
before being able to give sensible advice about, for example, the special
clauses needed in the contract or who should be named as the buyer of the
property.
In the end, the choice of location and type of propert=
y is
down to personal preference.
You are probably buying a home in
Having said that, approaching the choice of area and t= ype of property on a rational basis means that you are less likely to buy entirely= the wrong property in entirely the wrong place. It is amazing how often the obviou= s is not obvious in the heat of battle or at the peak of your enthusiasm to buy = that "bargain" rundown cottage in the middle of nowhere.
=
Case
History – The Theatregoers Mr &=
Mrs
Smith, 55 & 53, were retiring abroad. They had both been succes=
sful
in business and enjoyed a busy social life in Their dr=
eam had
been to retire to the countryside. Neither =
spoke
the language. Neither had=
any
do-it-yourself skills. They fel=
l in
love with a rural property in a spectacular location with amazing
views. Unfortunately, it =
needed
substantial repair (the unkind would say rebuilding). Eventual=
ly,
after 18 months and way over budget, the building work was finished. Mr and M=
rs Smith
were surprised that there were no village social groups, amateur dramat=
ics
and the like. They will a=
lso
surprised that the nearby towns (each of them over an hour away) did not
have theatres, still less English language theatres. Mr and M=
rs Smith
felt disappointed and let down.
In fact, they had broken the cardinal rule of thinking thoroughly
before buying a rural property. &=
nbsp;
Written down like this, it seems obvious. It doesn't at the time. If
you are buying a property that is going to involve a substantial change=
in
your lifestyle, STOP. THI=
NK
AGAIN. THINK AGAIN. TAKE ADVICE. BUY. Always g=
et your
lawyer to check the position carefully.
The way that is most fun – and undoubtedly the b= est – is to travel extensively and to get to know the areas both in summer and in winter. The need= to know them in both seasons cannot be over emphasised. Some summer resorts close do= wn almost completely in the winter months.&nb= sp; The climate, which was so agreeable in June, can be bloody awful in January. The place that= was a tranquil twenty minute drive from town in May might well involve a two hour nose to tail ordeal in August.
Very few people – the writer included – kn=
ow the
whole of
Most people know within a few minutes of arriving in a=
town
whether it is somewhere they would like to live. A two-week self drive holida=
y,
using some of
Provided the initial look at prices doesn't make you f= aint, if you like the town mark it with a big aand move on to the next place. If it is not for you, mark the map with a big rand, likewise, move on.
Once you have short-listed your two or three most like=
ly
places visit them in both summer and winter. Spend a little time there.
Generally, when going to see property you will be
accompanied by the estate agent. &nbs=
p;
If you are dealing with a private seller (i.e. someone who is not us=
ing
an agent), when you do finally go looking at property, take a mobile
phone. If you don't hav=
e one,
buy one. Property in ru=
ral
There are two types of people who decide to rent out t=
heir
home in
For the first group this is a business. Just as in any business, the decisions they take about where and what to buy, how to restore the property and what facilities to provide will be governed by the wish to maximise pro= fit.
The second group will have to bear in mind most of the= same considerations, but will be prepared to compromise (and so reduce potential income) in order to maximise their enjoyment of the property as a holiday home. Just where they d= raw the line will be determined by their need to produce income from the proper= ty.
The choice of the right area is vital if you wan to le= t your property successfully. = See below.
Whichever group you fall in, you are most unlikely to cover all of = your expenses and both capital and interest repayments on a large mortgage from letting your property, however efficiently you do so.
Most British people buying in
Remember that temperature & rainfall charts do not= tell the whole story. Wind, = lack of shelter, altitude and other factors can greatly influence your perceptio= n of the climate, which is what really matters. A place where it rains for 2= 00 days per year will seem wetter than a place with the same amount of rainfall but where it only rains for 60 days. = Figures can also conceal substantial daily variations.
|
The British, Turkish & Other
Climates – a rough Comparison Average
Monthly Temperatures (Daily Maximum & Minimum) and Rainfall Source: |
||||||||||||
|
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C)=
|
7 |
7 |
11 |
13 |
17 |
20 |
22 |
22 |
19 |
14 |
11 |
8 |
|
Min Temperature (C)=
|
2 |
2 |
3 |
5 |
8 |
11 |
13 |
13 |
11 |
8 |
4 |
3 |
|
Rainfall (mm) |
61 |
36 |
51 |
43 |
46 |
46 |
46 |
43 |
43 |
74 |
46 |
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C)=
|
6 |
6 |
9 |
12 |
16 |
18 |
21 |
21 |
17 |
13 |
9 |
7 |
|
Min Temperature (C)=
|
1 |
1 |
2 |
3 |
6 |
9 |
12 |
11 |
9 |
6 |
3 |
2 |
|
Rainfall (mm) |
58 |
48 |
53 |
46 |
56 |
56 |
51 |
71 |
56 |
53 |
64 |
66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C)=
|
7 |
7 |
9 |
11 |
15 |
18 |
19 |
19 |
17 |
13 |
9 |
7 |
|
Min Temperature (C)=
|
2 |
2 |
3 |
4 |
7 |
11 |
12 |
12 |
10 |
7 |
4 |
3 |
|
Rainfall (mm) |
71 |
58 |
58 |
51 |
64 |
71 |
86 |
94 |
81 |
94 |
84 |
86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C)=
|
6 |
7 |
8 |
11 |
14 |
17 |
19 |
18 |
16 |
12 |
9 |
7 |
|
Min Temperature (C)=
|
1 |
1 |
2 |
3 |
6 |
9 |
11 |
11 |
8 |
6 |
3 |
2 |
|
Rainfall (mm) |
56 |
41 |
48 |
38 |
51 |
51 |
64 |
69 |
64 |
61 |
64 |
61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C)=
|
7 |
7 |
9 |
12 |
15 |
18 |
20 |
20 |
17 |
13 |
10 |
8 |
|
Min Temperature (C)=
|
3 |
2 |
3 |
4 |
7 |
10 |
12 |
12 |
11 |
8 |
5 |
4 |
|
Rainfall (mm) |
91 |
64 |
74 |
53 |
64 |
64 |
69 |
76 |
84 |
91 |
99 |
94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C)=
|
7 |
7 |
9 |
11 |
14 |
16 |
17 |
17 |
15 |
11 |
8 |
7 |
|
Min Temperature (C)=
|
4 |
5 |
6 |
7 |
9 |
12 |
13 |
13 |
11 |
8 |
6 |
5 |
|
Rainfall (Wet Days) |
23 |
21 |
26 |
20 |
18 |
19 |
21 |
23 |
21 |
22 |
21 |
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C)=
|
8 |
8 |
9 |
11 |
14 |
17 |
19 |
18 |
16 |
13 |
10 |
8 |
|
Min Temperature (C)=
|
3 |
3 |
4 |
5 |
7 |
10 |
12 |
12 |
10 |
8 |
5 |
4 |
|
Rainfall (mm) |
64 |
51 |
51 |
48 |
56 |
56 |
66 |
76 |
64 |
74 |
69 |
69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C)=
|
15 |
15 |
17 |
20 |
25 |
30 |
34 |
35 |
28 |
21 |
16 |
15 |
|
Min Temperature (C)=
|
5 |
5 |
7 |
10 |
13 |
20 |
22 |
23 |
20 |
15 |
10 |
8 |
|
Rainfall (Wet Days) |
12 |
11 |
9 |
7 |
6 |
3 |
2 |
2 |
3 |
11 |
13 |
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bodrum |
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C)=
|
10 |
10 |
14 |
19 |
25 |
30 |
33 |
34 |
30 |
25 |
16 |
11 |
|
Min Temperature (C)=
|
2 |
2 |
3 |
5 |
10 |
15 |
19 |
20 |
15 |
10 |
6 |
4 |
|
Rainfall (Wet Days) |
16 |
14 |
11 |
8 |
7 |
3 |
2 |
2 |
3 |
11 |
13 |
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marmaris |
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C) |
10 |
10 |
14 |
19 |
25 |
30 |
33 |
34 |
30 |
25 |
16 |
11 |
|
Min Temperature (C)=
|
2 |
2 |
3 |
5 |
10 |
15 |
19 |
20 |
15 |
10 |
6 |
4 |
|
Rainfall (Wet Days) |
16 |
14 |
11 |
8 |
7 |
3 |
2 |
2 |
3 |
11 |
13 |
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C)=
|
12 |
13 |
15 |
20 |
25 |
30 |
33 |
33 |
28 |
25 |
20 |
15 |
|
Min Temperature (C)=
|
5 |
5 |
6 |
10 |
15 |
20 |
22 |
23 |
20 |
15 |
10 |
8 |
|
Rainfall (Wet Days) |
13 |
11 |
9 |
8 |
6 |
3 |
2 |
2 |
3 |
6 |
8 |
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nice ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C)=
|
13 |
12 |
14 |
16 |
20 |
23 |
27 |
27 |
24 |
20 |
16 |
13 |
|
Min Temperature (C)=
|
4 |
4 |
7 |
9 |
13 |
17 |
19 |
19 |
16 |
13 |
8 |
6 |
|
Rainfall (Wet Days) |
7 |
8 |
7 |
9 |
8 |
6 |
3 |
3 |
6 |
9 |
7 |
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Max Temperature (C)=
|
17 |
15 |
18 |
20 |
24 |
27 |
30 |
30 |
28 |
23 |
20 |
17 |
|
Min Temperature (C)=
|
11 |
7 |
12 |
11 |
14 |
17 |
20 |
20 |
18 |
16 |
13 |
10 |
|
Rainfall (Wet Days) |
8 |
8 |
7 |
9 |
6 |
3 |
1 |
1 |
3 |
8 |
9 |
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[MERGE WITH NAVIGATOR 7000 WORDS]
Second only to climate in most people's decision proce=
ss
should be the question of access to the property. How will you travel there?
There is interesting research in the tourist industry = that suggests that if visitors have a journey of more than 1 hour by road at eit= her end of their flight, 25% will not bother to travel. More than 1½ hours an= d 50% won't bother. This may not co= ncern you but it is worth bearing in mind as far as family and friends are concerned. It is even more re= levant if you are thinking of letting your property.
Although it is theoretically possible to travel to
At the moment there are few low-cost airlines operatin=
g into
In any case, cheap fares are not always cheap! Sometimes, particularly if you nee= d to travel at a particular time and cannot arrange your travel either a long wa= y in advance or right at the last minute, BA & Turkish Airlines (THY) can of= fer competitive prices and take you to more mainstream destinations.
Not all places in This situation is likely to change for the better. The writer has been in negotiation=
s with
a number of airlines with a view to providing more direct services from Prices are comparable with flights to the These same southern airports are serviced by most of t=
he
main tour operators and their charter airlines. The these flights generally operat=
e only
in the summer months (April/May to October). Most people, however, will at the moment travel with T=
urkish
Airlines -- particularly if they fly from Flying time to
During the summer months there is a wider range of air travel options available.
If you are travelling to the southern airports you will
generally look to the low-cost airlines or charter operators unless you wis=
h to
travel via
During the summer months with flights are available fr=
om
many
At the moment, travel to southern
This has changed.&nbs=
p;
There are now quite large numbers of resident foreigners in
New high quality 'resort hotels' have also opened. These offer a year-round tourist s= eason.
These factors, in combination, are likely to lead to of
direct winter flights from the
[ADD NAVIATOR 1500 WORDS]
Once they have arrived in the
All of the main car hire companies and many local car =
hire
companies operate in
Be aware that, particularly on the south coast of
Public transport in major Turkish cities is nonexisten= t or extremely poor.
In the holiday destinations there are more plentiful b= uses and ample cheap taxis.
If you are buying a home for retirement, is it in a pl= ace that will still be accessible in 20 or 30 years time? Or will you be uncomfortable drivi= ng up the twisting mountain access road at age 85? Is there any public transport? There will be times when you will need it. Your car may need repair. &nbs= p; You may have broken a leg. &nb= sp; You may (with luck!) be invited to a boozy party.
Finally, how will your children/visitors travel when t=
hey
arrive in the area? Wil=
l they
have to/be able to rent a car?
Remember that many car hire companies have a minimum age limit of 25=
(Qustion mark for
A four hour flight=
from
the
For some people th=
is is an
important consideration.
Your future happiness with the home you buy will depen= d upon the facilities in the area. Each person will have different requirements.
Are you a golfer?&nbs=
p;
If so just one or two golf course in the vicinity is unlikely to sat=
isfy
you for long. Are you
thinking of retiring to the area? &nb=
sp;
If so you will need a major shopping centre within an hour or so by
car. Do you visit the t=
heatre
or opera? What is
available? Are you
sociable? Is this an ar=
ea
where you will find "your kind of (English speaking?) people"?
Most people prefer a property within about an hour's d= rive of a city or substantial town.
Each of us has our own preferences as far as the count= ryside is concerned. Is this really what you want, or i= s it a place that is beautiful but, ultimately, unsatisfying?
Much of
Will it still be accessible in a few years time?
Will you be comfortable about driving along the mounta= inous access roads?
There are various ways of keeping your eye on Turkish property prices generally. Take the various property magazines and magazines such as Homes Overseas. Search the internet. Attend proper= ty shows – particularly the larger events, where you can often attend the authors free programme of seminars.
Once you know the area you are interested in make cont= act with several estate agents in the area.
Remember that apparently similar properties can differ widely in price because of factors not known to you such as the property's state of repair, location, views and convenience.
Remember also, that this is a rapidly developing
market. This means that the o=
ld
certainties as to the value of property are much more difficult to apply.
These guideline figures still apply to a certain
extent. But there are much bi=
gger
variations then used to be the case.
Sometimes there are good reasons for the variation. Other times you are paying far too=
much
for the property. Be alert.
Property in prime locations can be much more expensive.
|
Location &=
; Type
of Property |
Typical
Prices |
|
Alanya – 2 bedroom apartment (100 M2) |
£50,0= 00 |
|
Alanya – 3 bedroom detached house (150 M2) |
£90.0= 00 |
|
Fethiye – 2 bedroom apartment (100 M2) |
£75,0= 00 |
|
Fethiye – 3 bedroom detached house (150 M2) |
£100,= 000 |
|
Dalaman – 2 bedroom apartment (100 M2) |
£35,0= 00 |
|
Dalaman – 3 bedroom detached house (150 M2) |
£60,0= 00 |
|
Bodrum – 2 bedroom apartment (100 M2) |
£55,0= 00 |
|
Bodrum – 3 bedroom detached house (150 M2) |
£90,0= 00 |
=
Just
as the area is vital, so too is the right choice of the type of property.
=
The
Ferrari Syndrome We are lucky enough to have a number of clients wh=
o can
afford a Ferrari. They ha=
ve
dreamed of owning a Ferrari from being seven years old. They have now been sufficiently
successful life to be able to buy one. Yet, when the time comes, they hesitate. If they bought a saloon they c=
ould
take the grand kids out. =
If
they bought an estate car they could help move their daughter's
wardrobe. If they bought =
a diesel
it would do 50 miles to the gallon. So they end up buying a Ford =
Mondeo
diesel estate. They hate
it. They feel they have w=
asted
their last opportunity to buy their Ferrari. DO WHAT YOU WANT.=
It is your money. =
You
have earned it. If he were
don't spend it your children will the moment you have died.
When it comes to thinking of somewhere = to live, most British people think in terms of a house and garden. Most continental people think of an apartment. Do not underestima= te the humble apartment. It can have= lots of advantages, particularly for someone wanting a holiday home or a home in which they will live for only part of the year.
If you are not ready for such a revolut= ionary change to your lifestyle there are a wide variety of types of house available. From small w= orkers cottages to luxury villas something will take your fancy and suit your pock= et. You will often be offered small linked villas. = These share many of the characteristics of an apartment.
|
Apartments - Advantages & Disadvantages |
|
|
Advantages |
Drawbacks |
|
Lock it and leave it. Apart from turning off the water= and electricity no preparations are required for either arrival or departure<= /span> |
You will have immediate neighbours, w= ho can prove noisy. |
|
Someone else looks after the repairs.= All major repairs to the buildin= g and major maintenance are likely to be the responsibility of the community of which the building is a part. Of course, you have to pay your share of the expenses but someone else will arrange it all. |
Until recently, sound installation wa= s not very good. |
|
Apartments can offer better security.= You will not be on a site that is isolated and, potentially, prone to burglary or squatters. Many apartment blocks have a sec= urity guard, especially as wages are low. |
There may not be a lot of storage spa= ce. |
|
There may be attractive communal gard= ens and facilities. |
There may be no private outside area.= |
|
You may have the use of a shared large swimming pool, tennis courts etc. These cost a lot of money to run and can be prohibitively expensive for someone using their property for only a small part of the year. They are a great advantage if yo= u want to let your property. |
You will, at best, have an undergroun= d car parking space some distance from your front door. |
|
The cost of upkeep is generally lower= than the cost of maintaining a house. |
You will have to pay your monthly or = annual contribution to the cost of the general maintenance of the block where you live. |
|
You have ready made neighbours who ca= n, for example, turn on the electricity before you arrive and put some milk and bread in the refrigerator. |
There can be "politics" inv= olved in the administration of your community.= If people cannot agree what they want or if some people do not pay their share of the expenses then it can get complicated. Your lawyer should check out the arrangements before you buy. |
|
Apartments are generally less expensi= ve than houses. |
Some people view Apartments as down-m= arket |
|
Villas - Advantages & Disadvantages |
|
|
Advantages |
Drawbacks |
|
Space |
You will have immediate neighbours, w= ho can prove noisy. |
|
Private garden, terrace or pool area<= /span> |
Possible lack of security. |
|
Private garage?<= /span> |
Higher maintenance costs – particularly if you have extensive gardens or a pool. |
|
Distance from neighbours, though not = always as much as you might expect. |
Worry about what is going on when you= are not there. |
|
Image |
|
Cooperative
properties are generally part of a complex of individual houses built by a
group of people. Sometimes the
houses are physically constructed by the people. Other times they merely contribute
together to the cost of construction.
In a country where it is difficult to obtain the finance for the
construction of a house this allows all of them to pool their resources, ei=
ther
constructing the properties one at a time or getting a better price for the
construction of all of the properties together.
There are se=
veral
downsides to this.
The most
significant, from the point of view of a later buyout of a cooperative
property, is that they tend to cut corners both in the construction process=
and
on the the legal side of the development.
The cuts on =
the
construction side are sometimes obvious.&n=
bsp;
Turkish houses are seldom finished to impressive standards when look=
ing
at the small details (although some developers excel at this). Other times, the cuts and savings =
are
less obvious. If you are thin=
king
of buying a cooperative property a proper survey is imperative.
On the legal=
side
the problem is tend to relate to planning.=
The project will have been given planning authority for the construc=
tion
of, say, 60 villas. And you w=
ill
find that the developers, illegally, construct 70 or 80. It is then almost impossible for t=
hose of
villas to obtain good individual titles at the end of the construction
process. This means that the =
villas
will remain in the ownership of the cooperative as a whole with the individ=
ual
occupants having a secondary right to occupy. This gives rise to dangers if the
cooperative itself is in financial difficulty, incurs debts or simply falls
apart and has to be wound up.
Special care=
is
needed if you are thinking of cooperative property. Generally, it is better to look
elsewhere.
I am referri=
ng
here to properties that are marketed as a joint venture between a local Tur=
kish
person and a foreigner. In ye=
ars
gone by this was commonplace because of the restrictions on the freedom of
foreigners to own property in
Some joint
ownership schemes are still being marketed on the basis that the local pers=
on
has such good contacts and is acquiring such a bargain that the project is a
good investment.
This is not =
always
the case. Sometimes the price=
and
the breakdown of expenses is not what it appears and you find that the outs=
ide
investor is putting in far more than his fair share of the development cost=
s. If this is the case it probably
indicates that the person is not trustworthy and that the future relationsh=
ip
is unlikely to be successful.
If you are
considering joint ownership of this kind you should be particularly careful=
and
seek proper advice about the financial structure of the arrangement and abo=
ut
the appropriate legal structures to put in place.
Nothing here
should in any way be taken as a criticism of joint ownership schemes betwee=
n,
for example, members of the same family or friends or neighbours who might
choose to buy a property in
Despite the fact that everything depend= s on your personal circumstances, there are some rules of thumb that we have, ov= er the years, developed as a starting point for making a decision.
First work out your likely retirement i= ncome and expenditure. You ma= y need some advice and guidance when doing this. =
If the income is in excess of your like= ly expenditure, buy the nicest house that you can afford. This will, typically, be a detached house or villa. Make sure you have plenty of space - including storage space, good heating and a= ir conditioning.
If your income is likely to be a little tight, decide how much you would like to dvert = from your home into investments in order to supplement your income. You will probably need to ta= ke advice at this point. B= uy the best house you can afford with the balance. This is, of course, a questi= on of compromising between your ongoing income and the quality of your accommodat= ion. You will, usually, be happie= r with a smaler house in a suitable area rather than m= oving to buy a bigger house in a less suitable area.<= /p>
If you can afford a detached villa or y= ou have young children, try to buy a villa. For most other people an apa= rtment makes a more sensible choice of holiday home.
If you want to let the property to defr= ay some of the expenses of your home, read the section on letting property and= buy accordingly. You will n= eed to decide to what extent you are prepared to sacrifice what you are looking fo= r in a holiday home in order to increase the letting potential of the property.<= /span>
In either case, where possible buy a pr= operty that has a substantial store room or cupboard in which you can lock your possessions when you are allowing others to use the property.
When buying an investment property you = need , first, to decide whether you are buying with a view to a quick sale (perhaps even before the house is built) or whether you are buying to let. =
If you are buying to let, read the sect=
ion on
Renting out your Property in
If you are buying to sell then the sect= ion on Renting your Property is still relevant. The sort of house you would = buy to let is likely to sell on well.
Think about both your current and future
requirements. In
Most people underestimate the space they will need in = their home overseas. This is becaus= e they underestimate how popular they will become once they have a villa in Bodrum= or Marmaris! = ; The combination of your own accommodation needs, the needs of visito= rs and the requirement for storage space means that, if the budget permits, it= is worth thinking of buying one more bedrooms than you first contemplated.
The south of
Some form of heating is essential for such days, howev= er few they may be.
Piped gas is rare, non existent in many areas. Bottled gas is too fiddly to= be genuinely convenient. Installing large tanks for Gas can be costly and problematic from a = town planning point of view. Solid fuel has all the drawbacks we forgot about 30 years ago. Solar heating – partic= ularly solar water heating - works well in sunnier areas but cannot be relied on as the sole form of heating. For many people this leaves oil and electricity as candidates. Look out for combined heatin= g and air conditioning units. These operate as heat pumps and can be very efficient.
Remember that, in rural and small town
Take advice.
Don't just assume that what was best in
Adding proper heating to the specification for a new property adds very little to the price.&nb= sp; This is much cheaper than doing it later. If you are buying a resale propert= y then it is much more convenient to install the heating system before you move in= .
=
Impressing
your Guests On one o=
f my
first visits to It was
March. It was Bodrum. It was cold. He decid=
ed to
take us for a good lunch at a fish restaurant that had spectacular views
over the coast. Unfortun=
ately,
it didn't have any heating.
Just as unfortunately, my colleagues and I had left our heavy wi=
nter
clothes back in We ate l=
unch
wearing all the clothing in our possession. I remember the cold. I don't remember the developme=
nts
and we didn't do any business.
Air conditioning still has the reputation of being a l= uxury item although it is becoming more the norm in office properties. Some of us think that giving= in to the heat and turning on the air conditioning is "sissy".
Summertime temperatures in southern
We recommend that everyone buying a home in southern <=
st1:country-region
w:st=3D"on">
For people buying a home for retirement, or with elder= ly relatives who will visit, it is worth remembering that, as we get older, we gradually lose our ability to adjust to extremes of temperature. A temperature that is unplea= santly hot for a 55 year old can be life-threatening for a 90 year old.
With portable heaters available for £300 - &poun= d;400 buying some type of cooling makes a lot of sense.
It is also worth thinking of other types of cooling.
Think about through flow ventilation. In other words, look for a property
which has both front and back windows.&nbs=
p;
Look for a property with high ceilings. It is not by accident that old hou=
ses
incorporated this feature. Th=
ink
about a house eight short distance inland in the hills, where you will be
likely to benefit from some breezes.
Think about installing ceiling fans which can often provide enough
cooling in a way that is more pleasant than the use of air conditioning.
If you have a nice car and want to keep it, secure par=
king
is an asset in any country.
Much property in
There is no right answer!
Traditionally the Turkish, except for the wealthy, have
scorned older, restored property in favour of new build. There are, however, wonderful
opportunities to acquire character properties in some of the interior parts=
of
These areas are not on the main tourist track and will
probably, at least in the short term, not perform as well in financial term=
s as
specialist new-build developments on the coast. In the long-term, though, they wil=
l give
you an entirely different lifestyle and will probably perform very well
financially as such properties are relatively rare and, by definition, you
can't build any more. Followi=
ng a
theme that
In addition to "ordinary" rural properties, =
again
like
If you are thinking of buying any kind of rural proper= ty and, as is usually the case, you wish to carry out some restorations to the property you need to be very careful that you will be permitted to do what = you want to do. This is particula= rly so if you want to change the external appearance of the property. If you wish to enlarge the propert= y you need to be equally careful to ensure that the enlargement will be permitted. There are maximum permitted building densities and so, if your plot is relatively small, you = may find that you will not be able to enlarge the house. There can also be restrictions on = your ability to put in a swimming pool.
The presence of vast tracts of attractive and
undeveloped land on
The choice arises in your case. The decision between new and=
old
is, in
|
New & Old Property in |
|
|
New Property |
Older Property |
|
Advantages<= o:p> |
Advantages<= o:p> |
|
The technical specification and design will be bette= r than in an older property. This is particularly so in areas such as insulation and energy efficiency |
The property has "character". Its design may be classica= lly beautiful and the detailed workmanship will probably be superior to today= 's product |
|
It will have been inspected and built to known stand= ards |
The garden will be mature |
|
Most people prefer new kitchens, which get more sophisticated each year |
It may occupy a better site than a newer property &#= 8211; on the basis that the best were often built on first |
|
It will probably have a reasonable heating system |
It may be a more attractive rental proposition than = a new property, especially in rural areas |
|
Electrical and plumbing installations will be to a superior standard |
You will feel that you are living in a property in <=
st1:country-region
w:st=3D"on"> |
|
Few people will have used the bathrooms! |
What you see is what you get. You turn on the taps, ther= e is water. You can see the room= sizes and how the sun lies on the terraces. You can see the views and = the distances to adjacent properties |
|
Provision will probably have been made for car parki= ng |
It may be cheaper than a comparable new property |
|
You may share common resources such as pools or tenn= is courts with other people |
It will probably have more land than a comparable new property |
|
The building will require less maintenance than an o= lder property, certainly for the first few years |
|
|
It should be cheaper to run |
|
|
You can design your own property or, at least, often= fine tune the existing design to your special requirements |
|
|
The fabric will be guaranteed |
|
|
If you bought "off plan" you may well see = some pre-completion growth in value |
|
|
|
|
|
|
|
|
Disadvantag=
es |
Disadvantag=
es |
|
The building will be new and brash, not mellow |
Older properties can need a lot of maintenance and l= oving care |
|
It can be hard to envisage what you are going to get= from a plan and specification |
It will be more expensive to heat and run |
|
You will have to sort out all the small snags inevit= able in any new building. You may spend all your holidays chasing the builder or doing this. You don't speak Turkish. |
You may need to spend significant sums on, say, the kitchen and bathrooms to bring the property up to modern standards |
|
You will have to sort out the garden |
|
|
You may have to decorate |
|
|
Although technical design may have improved the aest= hetic appeal may be less than that of an older property and the detailed workmanship less rewarding than that of a time when labour was cheap |
|
|
As a rental property most (British) people prefer ei= ther a property with close access to golf or entertainment or a villa with a poo= l. |
|
The most important thing to understand i=
s that
there are thousands of properties in
In general terms, the rental market for
privately owned villas and apartments in
At the moment, the tourist season in
For the time being, we suggest that a se=
nsible
budgeting estimate of potential weeks to be let during the year if you have=
a
property in a tourist destination would 12 to 16 weeks. It would be lower than this =
for a
rural property far from any facilities. This compares to about=
20 -
25 weeks for a similar property in
Assessing rental potential is a skill th=
at
takes time to acquire. =
There
are, however some good indicators of property that is likely to let well.
1. &n= bsp; Is it pretty?
Most people will be renting your propert=
y from
a small photograph in a brochure or listings guide. If your house looks pretty y=
ou
will get a massively better response. People who are going on holi=
day to
2. &n= bsp; Is it near a village or town?
Most people like to be able to walk to a village or town – ideally one with a bar and restaurant as well as a supermarket, baker and other amenities.&nb= sp; If you cannot walk to a village the village should be no more than a short car ride away
3. &n= bsp; Is it accessible?
Who is your target audience? Do you want to rent to the British, other foreigners or to local people? How will they get to t= he area? Will they be able= to find you? Will they wan= t to drive to you?
The British audience will arrive by air = via a major airport (see "Which Type of Property & Area Will Suit You&qu= ot; above)
Ideally you should be within 1 hours dri= ve of these access points, but in practice the shorter the distance the better – unless yours is a superbly located and particu= lalry attractive property.
Clear directions – so that people = don't spend 2 hours covering the last half mile – and a clear signpost to s= how they have arrived will encourage repeat visitors.
4. &n= bsp; Are there attractions to bring people to your area?=
There are thousands of tourist attractio=
ns inTurkey, from white water rafting to sailing to visi=
ting
historic sites to lazing on the beach. What is important is to be i=
n an
area that has a number of attractions. The attractions will attract
people and people will rent your property.=
To find out the tourist attractions in the area you are thinking of =
buying
contact the Turkish Tourist Office and/or study the tourist guides to
It may be enough to have one major
attraction which brings many
visitors but there will be lots of competition to provide accommodation.
Remember that facilities such as golf or access to first class beaches are themselves tourist attractions. Remember too that something very l= ocal, such as the lady in the village who runs pottery or cooking classes, could provide all the visitors you ever need, provided you strike a deal whereby = she refers visitors to you. 20% of rent received should do the trick!
The attractions near to you will not only determine the number of visitors but the type of visitor. Your property should be gear= ed to deal with them. So, for example, if you are near an area famous for windsurfing your property shoul= d be furnished robustly enough to cater for the young enthusiasts, should have somewhere to store their gear and somewhere to dry off wet clothing. This will help attract people choosing between your property and that of your neighbour and will bring re= peat visitors.
A property miles from any attractions wi= ll appeal only to a very small clientele, however pretty the property and howe= ver lovely the countryside.
5. &n= bsp; Does the property have all the required facilities?=
Different markets require different facilities. Think what,= for you, would make the place special and do a bit of market research by asking people similar to those you want to attract what they would like.
The biggest issue is whether to have a
pool. If you are cateri=
ng to
a family market in rural
6. &n= bsp; Are you prepared to forgo using the property during peak periods?
If you can make it available for rental = July, August and early September (particularly August) and also at Easter you will dramatically increase your rental income.
7. &n= bsp; Are you going to use the services of a managing age= nt?
This is someone who will look after the letting of the property, deal with the cleaning and handovers, pay the bill= s, look after repairs etc. They will typically charge about 20% of rental income received as their fee. Management companies general= ly operate only in popular areas where there is enough demand to keep them in business.
If you do not use a managing agent you w= ill still (usually) need to employ a cleaner and someone to deal with handovers. This could b= e the same person and, in rural areas, would probably be a neighbour.
In our experience it is seldom sufficien= t to rely on a management company if you want to let the property to its full potential. Owners, thro= ugh family, friends, work mates and other contacts, are usually better at filli= ng the off season weeks than a management company is. The management company, howe= ver, will capture passing trade that you would not pick up and can redirect visi= tors from over-booked property to yours.
In our experience the people who make th= e most money from rental income are those who do not use a management company but = deal with these things themselves. This does not mean you should not use a company! You may have neither the tim= e nor the inclination to do this work yourself.
If your property is well located, attrac= tive and clean you should expect about 30% repeat visitors in most areas. Generally it takes 4 or 5 ye= ars for a rental property to reach its full potential.
Having said all of this, what can you ex= pect to generate by way of rental income?
In our experience a reasonably diligent person, doing their best to find tenants and not relying wholly on a manage= ment company but not totally obsessive about the property – can expect to produce roughly the following results:
|
Renting out your property –
Performance Targets |
||
|
Area & Type of Property |
Target Weeks |
%age return |
|
|
35 |
6 |
|
Fethiye/Bo= drum – Small house or apartment |
14 |
5 |
|
Alanya - S= mall house or apartment |
14 |
5 |
|
Fethiye/Bo= drum – larger house |
12 |
4 |
The Target Weeks is the number of weeks = you could expect to let an average property provided you did not use it for Jul= y or August.
The %age return is the amount you should expect to generate as a percentage of the value of the property, after paym= ent of all agents fees, water, electricity, cleaning and other outgoings relate= d to the rental period but before taking into account your own personal tax liability.
THESE ARE GENERAL GUIDES ONLY and will v= ary significantly from property to property, management company to management company and owner to owner.
If you are thinking about renting out yo=
ur
property it is VITAL that you get legal advice from a lawyer who understands
both the Turkish and English law and tax systems. A few properties in
See the section on renting out your prop= erty.
One of the great attractions of owning a property is the potential for the asset growing in value whilst, at the same time, you enjoy the use of it. Few would say that you get as much fun out of 10,000 Tesco shares as you do out = of a flat in Bodrum! The flat is a= lso less likely to go bust, or to be taken over and lose half its value overnight. In case ther= e are any libel lawyers reading, I am not suggesting that Tesco is likely to go b= ust or be taken over and lose half its value!
For some people the choice of place to b= uy a property – or the selection of which of several places to choose R= 11; is governed entirely by likely capital growth.
The British view property as an investme=
nt as
well as a home. We expect our=
house
to rise in value, if not year by year, at least over time. Given the high levels of infl=
ation
and the depreciation in value of the Turkish currency in recent years, the
Turks have also viewed the ownership of real estate as an investment. It has not lost its val=
ue in
the same way as other assets.
The home in
Recent =
changes
in Turkish law now make it possible for foreigners to own land in Turkish
villages as opposed to the big cities and the tourist resorts. The potentia=
l of
this market is as yet both huge and underdeveloped. It opens up vast expans=
es
of inland
In popular areas – and, in particu=
lar,
in popular tourist areas – there have been large amounts of property
inflation. In recent ye=
ars
this has been in the region of 10 – 20% per year. How much depends on the type=
of
property bought and, above all else, the place where it is located. There is, of course, no guar=
antee
that property prices will continue to increase at this rate. There is an economic cycle a=
nd
prices rise and fall over time.
But over the mid to long term they generally increase.
Most British people buying a property in
Often developers will sell directly, as well as through agents. In this case it= is worth checking that you are not paying any more by using the agent than you would be if you bought from the developer direct. If you want a resale propert= y you will almost certainly use an agent.
In
a) That the agent actually has the authority to offer the property for sale. He may well be 'flying a kit= e' in the hope of attracting a potential buyer whom he can tout to the Seller and= so negotiate a commission
b) That
the price shown in the window is the price you will be charged. The prices may not be up to date
c) That
there is no room for negotiation d) That
the property has not already been sold to someone else Some agents, of course, are much better than others.
At one level, of course, it doesn't matter. The agent is introducing the=
Buyer
to the Seller and being paid for doing so. If there is something =
wrong
with the property or the title that is not something you would expect the a=
gent
to know about in
Whichever agent you use, and wherever they are based, = please remember that they are being paid by the seller to sell the property. They are not being paid by y= ou to look after your interests. However helpful and professional they may be, if you do not sign a contract to buy then they do not receive their commission and their childre= n will starve – or they won't be able to afford their new Porsche!. They therefore have their own interests to look after, which broadly coincide with those of the sellers b= ut which might not coincide with yours.
=
Case
History – The Disappearing £20,000 Mr &=
Mrs
Smith were buying an apartment in Bodrum. They had agreed to pay £=
70,000
for a large two-bedroom apartment with the spectacular sea views. Whether
paperwork arrived we were slightly surprised to see that the price was =
only
£50,000. At first we
thought that this was because the developer was not going to declare the
true value of the property for tax purposes. This is a common (but illegal)
practice in Fortunat=
ely,
there was a happy ending. Mr
& Mrs Smith were able to buy their house direct from the developer,
cutting the agent out of his illegal £20,000. This sor=
t of
behaviour by the agent arises because the agents are unregulated and
because the rapidly rising prices in the marketplace give the unscrupul=
ous
the opportunity of making a quick — and illegal — buck. Always g=
et your
lawyer to check the position carefully.
Despite this the estate agent can be a mine of useful
information, knowledge about the area and practical help. The large majority is genuin=
ely
enthusiastic about property in
Some agents will tell you that you do not need to use a
lawyer. That the servic=
es of
the local Notary Public (noter)
and the Land Registry Officer will suffice. Ignore that advice. It is quite true that =
the
average Turkish person would not use the services of an independent lawyer =
when
buying a house unless there was something complex about the transaction or
about their own circumstances.
For a foreigner, however, this is generally not good enough. There are many issues on whi=
ch you
will need guidance that it is no part of the notary's or the Land Registry
Officer's duty to provide.
The role of the Turkish estate agent (emlakçı) is similar to the role of the British estate agent. Their job is to find buyers = for properties entrusted to them by a seller. But there the similarity end= s.
In
It is normal for the estate agent (emlakçı)
in
In order to protect his substantial commission the age= nt may ask you to sign a document before he takes you to see the property. This is a statement that it = is he who has introduced you to the property, so avoiding later arguments about w= ho should be paid the commission due.
There are other significant differences from English
practice. Generally age=
nts
are rather less proactive than they are in
You are probably best off starting to look for propert=
y by
using an estate agent in the immediate vicinity of the place where you are
looking. Many rural age=
nts
will only cover an area about 40km in diameter. If you are still uncertain w=
here
precisely you intend to buy, try several adjoining agents or, if there is o=
ne
in your area, one of the big chains. =
Local newspapers will give you an indication of which agents are
advertising, and so active, in your area.&=
nbsp;
Some agents also advertise in both the Turkish and
Estate agents also often operate as property management companies and as property letting agents.&= nbsp;
There are growing numbers of people based in the
They very often work in association with one or more T= urkish agents or developers, generally covering a wider area than a single Turkish agent or developer would cover. They advertise or market the properties through exhibitions etc and = then act as an intermediary between the potential buyer and the Turkish estate a= gent or developer – who may not speak English. Because they deal with Briti= sh buyers all the time they should be able to anticipate some of the common problems that can arise and smooth the progress of the transaction.
Surprisingly, only a few speak Turkish or have Turkish speaking staff in their offices.
Generally they should share the commission of the Turk= ish agent – who is very pleased that they can expand his potential buyer = base by introducing foreign buyers – or be paid by the developer. Thus, although they can be on substantial commissions, their services should cost you nothing extra.
These people can be very useful, particularly if you h=
ave
little experience of dealing with
Unfortunately, it is not as simple as that. Some charge substantial amou=
nts of
extra commission for their services. =
Often they do not disclose that commission to the buyer. There is nothing wrong with =
paying
someone who is doing a useful job some commission, but you should be told t=
hat
you are expected to do so. Yo=
u can
then decide whether the convenience of dealing with someone in
In
Individuals place advertisements in the "For Sale= " section of the local paper. Once again, the ability to speak Turkish is an advantage!
In some popular tourist areas there are free local
newssheets, similar to those in the
In some areas there are specialist magazines which exi= st primarily to carry advertisements from developers and estate agents and fro= m private individuals selling their property. Most have just a local coverage. Go and browse through a couple of newspaper kiosks and see what is on offer. Buy them all. They will give you a good ge= neral guide to prices.
There are also several more "glossy" lifesty= le publications, covering property (particular more expensive property) in main tourist areas such as Marmaris and Bodrum. Again, buy the lot. They will be full of useful information.
Developers, Agents and Private individuals advertise i=
n the
main specialist British property press such as Homes Overseas. Also try more general publications=
such
as Daltons Weekly and Exchange & Mart, especially for cheaper property.=
You may also find advertisem=
ents
from private sellers in The Sunday Times, Weekend Telegraph &
Many agents and developers have their own websites, ma= ny in English. There is also a huge amount = of property available for private sale on the internet.
Finding it can sometimes be tricky. Remember that you should sea= rch in Turkish as well as in English. The following combinat= ions in the Google search box have been proved to work:
+property +"for sale" +
+house +"for sale" +
+apartment +"for sale" +
You can further limit the geographical area where the property is located by typing in the name of the place where the property is located, but this has very mixed results because of the very different ways people enter the details of the property they are selling. The best bet is probably to = use the province or, if you are looking in a city, the city as the delimiter:
+apartment +"for sale" +Fethiye
+house +"for sale" +Mug= la
You can, of course, search in Turkish but don't be sur= prised if the results come up in Turkish. &n= bsp; This is not as much of a problem as it might at first seem as the pr= ice and telephone number are both usually pretty obvious and you can tell wheth= er the place is of any interest from the picture that (usually) appears on the page.
Be extra careful when buying over the internet.
Be warned: All too often you will find that the property has been sold and not removed from the Net.
There are shows held every weekend. Most parts of the
It is generally only the larger shows that have an ext=
ensive
range of property in
Some of the international property shows have a section where private individuals can post details of property for sale.
Some of the shows, particularly the Homes Overseas sho= ws, also offer comprehensive seminar programs to explain the ins and outs of bu= ying property in the various countries they cover. The author is a regular presenter at these shows. Contact the show organisers for details.
These shows fall into 3 categories.
The first promote properties in many countries. They are generally large
events. They usually ha=
ve a
number of exhibitors offering property, legal, financial and other services
relating to many countries. &nb=
sp;
Look out for the Homes Overseas shows, run by Homes Overseas
magazine. These are gen=
erally
held in
The second type of show focuses on
The third category of show is the event run by a sole
developer or estate agent.
These occur almost every weekend and travel from one smaller city or
large town to another. =
Even if you intend to go to
Some shows are free.&= nbsp; Most charge an entry fee of £4 - £10 per person.
This topic logically belongs elsewhere in this book, b= ut I include it here for ease of reference.
However magnificently and clearly a book of this kind = may be written there is no substitute for an explanation given by a human being wh= om you can question about the bits you don't understand.
Fortunately, throughout the year there are various sem= inars – generally run by experienced lawyers or financial advisers – = who will cover various topics included in this guide, often in more detail.
These are sometimes run in conjunction with the major property shows – See Homes Overseas and World of Property. On other occasions the lawyers or financial advisers run them themselves. Some are run in conjunction = with one of more developers or agents, so you can get the information and find details of property at the same time. See the author's website = 211; www.europelaw.com for details.
These seminars are well worth a visit and can help
considerably in the clarification of your thoughts about buying a home in <=
st1:country-region
w:st=3D"on">
Property in
Some auctions are voluntary, others run by court order= .
Prices can be very attractive. Auctions usually offer = less spectacular bargains but can still be attractive. This is because, particularl= y in many judicial auctions, the process is intended first and foremost to recov= er someone's debt. Once that and= the considerable costs have been covered there is little reason to press for a higher price, even though the owner will ultimately receive the excess.
Buying a property at auction is not simple for someone= who does not live in the area and it is vitally important that you have taken a= ll the normal preparatory steps – including seeing a lawyer – befo= re you embark on the process.
The procedure leading up to the auction is basically t= he same whether the auction is a judicial auction or a voluntary auction.
First, you must know that the auction is taking place.= They are usually advertised = 6 to 8 weeks in advance. Aucti= ons ordered by the court will be advertised by order of the court in the local press. Notices will als= o be posted in the area.
Second, you must find out what is in the auction. Brief details of the propert= y to be sold are published. = These details of the property will mean nothing to you. The place could be derelict or nex= t door to a nuclear power station – or both. You will need to inspect the property and decide whether it is of interest. This is a time consuming and poten= tially costly process. Remember that= you could have to inspect twenty properties to find three you might like and th= en you might be outbid on all three. &nb= sp; An alternative to personal inspection is to get someone to do it for you. This is not as satisfactory but a local estate agent will, for a fee, go to look at the property and give you a description of it. If you're lucky he might pos= t or email you some photographs. His fee, about £200 if the property is close to his office, wi= ll probably be less than the cost of travel. Some people buy blind. This is for real poker players.
Thirdly, you will need to check out the legal situatio= n of the property before the date of the auction. Most of the steps needed in = an ordinary purchase will be required (see below).
Fourthly, many properties on sale by auction are not i= n the best of condition. You will therefore need to get estimates as to the likely cost of repairs or improvements so as to make sure that the price you bid is not so high as to make the project non-viable.
Fifthly, you will have to appoint a lawyer to act on y= our behalf at the auction. = You would be brave or foolish not to be represented. The lawyer will explain precisely = what will need to be done for this particular auction. You will have to tell him the maximum price you want to offer and pay him the bidding deposit – a refundable deposit levied by the auctioneer in order to allow you to enter a bid. Your will also have to g= ive him your personal details (marital status, occupation, nationality, passport number etc) and a deposit of (usually) 10% of the price you are offering, less the bidding deposit. The full depos= it is paid across at the time your bid is accepted.
You do not need to attend the auction – the lawy=
er
will be able to do so for you. He
will probably require a power of attorney for that purpose. He will, of course, charge y=
ou for
this work. Get an estimate.
Even though you do not need to be present, an auction
(especially a judicial auction) is a most interesting event, so you might w=
ant
to go along. Although the prices at auction can be very attractive =
you
must bear in mind that you will face additional costs over and above those =
on a
normal purchase. These =
are
likely to raise the overall costs of buying from the normal 10% – 11%=
of
the price to perhaps 13% - 15% of the price paid. The extra costs include the =
fees
paid to your lawyers for dealing with the auction. Remember, if you are thinking of buying in this way, t=
hat
you will probable have to kiss a lot of frogs before you find your prince.<=
span
style=3D'mso-spacerun:yes'>
If you are retiring there is a lot to be said for
temporarily renting a place in the area where you are thinking of living.
If you rent you are less likely to commit yourself to a
purchase in an area you turn out not to like. It also avoids the expensive proce=
ss of
having to sell the property and buy another, either in
There are drawbacks to renting:
1. In the recent past property prices in many areas have risen rapidly. For example, if 2 years ago = you had been buying in Bodrum then delaying 18 months would probably have cost = you over 20% in increased property cost. This is a lot mor= e than your money would have made if invested, so the delay would have cost you mo= ney.
2. The rent you paid out is dead money. &nbs= p; This would probably be about 5% of the value of a property per annum= .
3. You want to get on with your life, especially if you have just retired.
4. Moving is stressful. You will = have to do it twice rather than once.
5. Moving
into temporary accommodation can produce a lack of attachment to the area,
which can mean that you don't commit to it and give it a fair try. You are always looking back over y=
our
shoulder at
6. It can be hard to find good accommodation available on an 18 month let.
If you are thinking of a holiday home it can also make=
sense
to rent rather than buy. The
biggest drawback to owning a property overseas is that you feel compelled to
take all your holidays there.
You are paying for it so you should use it! If you invested the mo=
ney
spent on the home it would generate a good income, which would pay for a
holiday anywhere in the world.
Of course, renting is never as good as owning your own home. You do not know the quality =
of
what you will find on arrival. You
won't be able to leave your clothes there and so travel light. You won't have friends there=
and
so feel part of the community.
You won't be able to offer the use of the property to family and
friends. You may find that yo=
ur
investment of the cash saved has performed less well than the house would.<=
/p>
Why not spend your holidays in someone else's home =
211;
free of charge? If you have an attractive property in Timeshare is a great product, too often sold by crooks=
. The accommodation is almost always first class and, of=
ten,
the annual usage charges are reasonable.&n=
bsp;
The problem is that the purchase price is usually out of all proport=
ion
to the value of the property.
But, if you buy second hand you can pick up timeshare weeks for
£750 that will enable you to swap in and out of resorts all over the
world. It is not like o=
wning
your own property. It w=
on't
go up in value. But if =
you
only have 3 or 4 weeks overseas holiday per year it is very flexible and wo=
rth
a thought. Be VARY CARE=
FUL
who you buy from.
Where possible deal directly with a private seller. If you are going to deal wit=
h a
company ONLY deal with a resale company that is a member of OTE (The
Organisation for Timeshare in Good sources of resale timeshare direct from the owner
include your supermarket notice board (WANTED: Timeshare week in one bedroom
apartment in We would strongly advise you not to deal with so called
"Holiday Clubs". There is, as yet, limited timeshare available in This is not timeshare. It is a scheme whereby sever=
al
people buy a home for their joint use. Those people could be you an=
d your
children, you and your neighbours or friends or complete strangers. The property is normally own=
ed
through a company. You own a
percentage of the shares of the company proportionate to your agreed usage =
of
the property and those share generally carry the right to use the property =
for
.a certain period of time. For example, you may buy the right to use an apartment=
in
Bodrum for 2 months per year.
The apartment may be worth £100,000. You may have paid £20,=
000
for the right to use it for August and £5,000 for the right to use it=
for
November. You would own=
2 out
of 12 shares in the company. =
You
would pay 2/12ths (16.66%) of the annual running costs of the property. You would either appoint a
professional manager or, if you were friends, get together every year to de=
cide
about furnishing, repairs etc.
You can (subject to the rules of the group) either use the property
yourself during your period of entitlement, allow friends to use it or rent=
it
out. It can work very well. You get all the holiday you
need. You don't have to=
worry
about finding tenants or the property being empty. You only pay for what you
use. You should see a
long-term growth in the value of your investment as you own the house that =
lies
below the company structure.
With luck, you become friends and therefore can leave property in the
house and furnish it to a better standard than you would find in rental
property because you trust each other. If you are thinking about going into such a scheme you=
MUST
take advice from a lawyer familiar with Turkish law AND the law of the coun=
try
where the scheme has been constituted. There are a number of tax issues arising out of this t=
ype of
structure. Take advice. Whatever property you are thinking of buying you should
think about having it inspected be=
fore
you commit yourself to the purchase. =
It can cost nearly just as much and causes just as much disruption to
repair property in In fact – foolishly – very few buyers of
property in A new
property will be covered by a short guarantee running from the date of hand=
over
and covering minor but not trivial defects in a new property. The property will also benef=
it
from a guarantee in respect of major structural defects that will last for 5
years. As a subsequent purcha=
ser
you assume the benefit of these guarantees. After 5 years you are on your
own! For property more than 5=
years
old (and, arguably, for younger property too) you should consider a survey.=
If you decide on a survey there are a number of options
available to you. There are several things that you can do yourself. These will help you decide when to
instruct a surveyor to do a proper survey and help direct him to any specif=
ic
points of interest. Checklist – Do-it-yourself=
inspection
of property Task 4 Title &n=
bsp; Check
that the property corresponds with its description in the title &n=
bsp; =
; number
of rooms &n=
bsp; =
; plot
size Plot &n=
bsp; Have
the Seller physically identify the boundaries of the property &n=
bsp; =
; If
not possible, try to identi=
fy the
physical boundaries of the plot yourself &n=
bsp; Is
there any dispute with anyone over these boundaries? Are there any obvious f=
oreign
elements on your plot such as pipes, cables, drainage ditches, water tanks
etc? Are there any signs of =
anyone
else having rights over the property? Footpaths, access ways,
cartridges from hunting etc? Garden/Terrace &n=
bsp; Are
any plants, ornaments etc on site not being sold with the property Pool &n=
bsp; Is
there a pool? If so:<=
/p>
&n=
bsp; =
; What
size is it? &n=
bsp; =
; Is
it clean and algae free? &n=
bsp; =
; Do
the pumps work? &n=
bsp; =
; How
old is the machinery? &n=
bsp; =
; Who
maintains it? &n=
bsp; =
; What
is the annual cost of maintenance? &n=
bsp; =
; Does
it appear to be in good condition?=
=
; Walls - Stand back from property and inspect from ou=
tside &n=
bsp; Any
signs of subsidence? &n=
bsp; Walls
vertical? &n=
bsp; Any
obvious cracks in walls? &n=
bsp; Are
walls well pointed? &n=
bsp; Any
obvious damp patches? &n=
bsp; Any
new repairs to walls or re-pointing? Roof – inspect from outside property &n=
bsp; Does
roof sag? &=
nbsp; &n=
bsp; Are
there missing/slipped tiles? &n=
bsp; Do
all faces of roof join squarely? &n=
bsp; Lead
present and in good order? Guttering & Down-pipes – inspect from outs=
ide
property &n=
bsp; All
present? &n=
bsp; Securely
attached? &n=
bsp; Fall
of guttering constant? &n=
bsp; Any
obvious leaks? &n=
bsp; Any
recent repairs? Enter Property &n=
bsp; Does
it smell of damp? &n=
bsp; Does
it smell "musty" &n=
bsp; Does
it smell of dry rot? &n=
bsp; Any
other strange smells? &n=
bsp; Does
it smell "clean" Doors &n=
bsp; Signs
of rot? &n=
bsp; Close
properly – without catching? &n=
bsp; Provide
proper seal? &n=
bsp; Locks
work? Windows &n=
bsp; Signs
of rot? &n=
bsp; Close
properly – without catching? &n=
bsp; Provide
proper seal? &n=
bsp; Locks
work? &n=
bsp; Excessive
condensation? Floor &n=
bsp; Can
you see it all? &n=
bsp; Does
it appear in good condition? &n=
bsp; If
wooden, is there any sign of cracked or rotten boards If not a solid floor, &n=
bsp; Can
you get access under the floor? &n=
bsp; If
so, is it ventilated? &n=
bsp; Is
there any sign of rot? &n=
bsp; How
close are joists? &n=
bsp; Are
joist ends in good condition where they go into walls? &n=
bsp; What
is maximum unsupported length of joist run? &n=
bsp; Is
there any sign of damp or standing water? Roof Void (if any) &n=
bsp; Is
it accessible? &n=
bsp; Is
there sign of water entry? &n=
bsp; Can
you see daylight through the roof? &n=
bsp; Is
there an underlining between the tiles and the void? &n=
bsp; Is
there any sign of rot in timbers &n=
bsp; Horizontal
distance between roof timbers &n=
bsp; Size
of roof timbers (section) &n=
bsp; Maximum
unsupported length of roof timbers &n=
bsp; Is
roof insulated – if so, what depth and type of insulation? Woodwork &n=
bsp; Any
sign of rot? &n=
bsp; Any
sign of wood boring insects? &n=
bsp; Is
it dry? Interior walls &n=
bsp; Any
significant cracks? &n=
bsp; Any
obvious damp problems? &n=
bsp; Any
sign of recent repair/redecoration? Electricity &n=
bsp; Check
electricity meter. &nbs=
p;
&n=
bsp; =
; How
old is it? &n=
bsp; =
; What
is its rated capacity? &n=
bsp; Check
all visible wiring. <=
/p>
&n=
bsp; =
; What
type is it? &n=
bsp; =
; Does
it appear in good physical condition? &n=
bsp; Check
all plugs &n=
bsp; =
; Is
there power to plug? &n=
bsp; =
; Does
plug tester show good earth and show "OK" &n=
bsp; =
; Are
there enough plugs? &n=
bsp; Lighting &n=
bsp; =
; Do
all lights work? &n=
bsp; =
; Which
light fittings are included in sale? &n=
bsp; =
; What
is their general condition? Water &n=
bsp; Is
there mains water? &n=
bsp; =
; If
not, what are the arrangements? &n=
bsp; =
; How
far a way is the mains water supply? &n=
bsp; =
; If
you are supplied by a well, is it certified? &n=
bsp; =
; If
you are supplied by a water tank, &n=
bsp; =
; &n=
bsp; How
big is it? &n=
bsp; =
; &n=
bsp; What
does it cost to fill? &n=
bsp; =
; &n=
bsp; Who
fills it? &n=
bsp; Is
there a water meter? &n=
bsp; Is
there a cut off valve? &n=
bsp; =
; Does
it work? &n=
bsp; Do
all hot and cold taps work? &n=
bsp; Is
flow adequate? &n=
bsp; Do
taps drip? &n=
bsp; Is
there a security cut off on all taps between mains and tap? &n=
bsp; Do
they seem in good condition? Hot Water &n=
bsp; Is
hot water "on"?
If so, does it work at all taps, showers etc? &n=
bsp; What
type of hot water system is fitted? &n=
bsp; Age? Gas &n=
bsp; Is
the property fitted with city (piped) gas? If so: &n=
bsp; =
; Age
of Meter &n=
bsp; =
; Does
installation appear in good order? &n=
bsp; =
; Is
there any smell of gas? &n=
bsp; Is
the property fitted with bottled gas? If so: &n=
bsp; =
; Where
are bottles stored? &nbs=
p; &n=
bsp; =
; Is
it ventilated to outside of premises? &n=
bsp; =
; Who
supplies the bottles? &n=
bsp; =
; Is
there any smell of gas? &n=
bsp; Do
all the gas appliances work? &n=
bsp; Are
there any gas appliances not included in the sale? Central Heating &n=
bsp; Is
the property fitted with central heating? If so: &n=
bsp; =
; Is
it "on"? &n=
bsp; =
; Will
it turn on? &n=
bsp; =
; What
type is it? &n=
bsp; =
; Is
there heat at all radiators/outlets? &n=
bsp; =
; Do
any thermostats appear to work? &n=
bsp; =
; Are
there any signs of leaks? Fireplaces &n=
bsp; Is
property fitted with any solid fuel heaters? If so: &n=
bsp; =
; Any
sign of blow back from chimneys? &n=
bsp; =
; Do
chimneys (outside) show stains from leakage? &n=
bsp; =
; Do
chimneys seem in good order? Air conditioning &n=
bsp; Which
rooms are air conditioned? &n=
bsp; Are
units included in the sale? &n=
bsp; Do
the units work (deliver cold air)? &n=
bsp; What
type of air conditioning is it? &n=
bsp; How
old is it? Phone &n=
bsp; Does
it work? &n=
bsp; Number &n=
bsp; If
no phone, can you get a line? &n=
bsp; Is
there high speed internet access in the property? &n=
bsp; =
; If
not, is it available in the area? Satellite TV &n=
bsp; Does
it work? &n=
bsp; Is
it included in the sale? &n=
bsp; Who
supplies the service? Drainage &n=
bsp; What
type of drainage does property have? &n=
bsp; If
septic tank, how old? &n=
bsp; Who
maintains it? &n=
bsp; When
was it last maintained? &n=
bsp; Any
smell of drainage problems in bathrooms & toilets? &n=
bsp; Any
smell of drainage problems outside the proeprty? &n=
bsp; Does
water drain away rapidly from all sinks, showers and toilets? &n=
bsp; Is
there any inspection access through which you can see drainage taking pla=
ce &n=
bsp; Is
there any sign of plant ingress to drains? &n=
bsp; Do
drains appear to be in good condition and well pointed? Kitchen &n=
bsp; Do
all cupboards open/close properly? &n=
bsp; Any
sign of rot? &n=
bsp; Tiling
secure and in good order? &n=
bsp; Enough
plugs? &n=
bsp; What
appliances are included in sale? &n=
bsp; =
; Do
they work? &n=
bsp; =
; Age
of appliances included? &n=
bsp; What
type of cooker? Bathroom &n=
bsp; Security
and condition of tiling? &n=
bsp; Ventilation? &n=
bsp; Condition
of suite? &n=
bsp; Signs
of leaks? Appliances &n=
bsp; What
appliances generally are included in sale? &n=
bsp; What
is NOT included in the sale? Furniture &n=
bsp; What
furniture is included in sale? &n=
bsp; What
is NOT included in the sale? Repairs/Improvements/Additions &n=
bsp; What
repairs have been carried out in last 2 years? &n=
bsp; What
improvements have been carried out in last 2 years/5 years/10 years? &n=
bsp; What
additions have been made to the property in last 2 years/5 years/10 years=
? &n=
bsp; Do
they have builders' receipts/guarantees? &n=
bsp; Do
they have building consent/planning permission for any additions or
alterations? &n=
bsp; Do
you intend to carry out any alterations or additions? &n=
bsp; =
; If
so, does seller think they will be permitted (well, it's worth asking!)
Defects &n=
bsp; Is
seller aware of any defects in the property? &n=
bsp; Is
the Seller aware of any nearby developments? &n=
bsp; Is
the Seller aware of any disputes about the property or with neighbours?
It may be possible to arrange for another local estate=
agent
to give the property a quick "once over" to comment on the price
asked and any obvious problem areas. =
This is far short of a survey.
It is likely to cost about £200. This is no substitute for a proper survey. Many lenders do not ask for =
one
and, where they do, it is normally fairly peremptory, limited to a check on
whether it is imminently about to fall over and whether it is worth the mon=
ey
the bank is lending you. If you are going to do a virtual demolition and rebuil=
d then
it might make more sense to get a builder to do a report on the property.Exchanges
Timeshare
Part-ownership
schemes
Inspecting Property
Do it
yourself
Estate
Agent's Valuation & "Survey"
Mortgage
Lenders Survey
(note: Turkish mortgages are currently not generally available for
non-residents)
Turkish
Builder
Your lawyer can put you in touch with the right people= . In most rural areas there wi= ll be limited choice. The cost of a survey is typically £500 - £1500.=
You will find that the report is different from the so= rt of report you would get from an English surveyor. Many people find it a little "thin", with too much focus on issues that are not their primary concern. It will, hardly surprisingly, usually be in Turkish. You will need to have it translated unless you speak very good Turki= sh and have access to a technical dictionary. Translation costs amount to = about £60 - £100 per thousand words, depending on where you are locat= ed and the complexity of the document. &= nbsp; Incidentally, always use an English person to translate documents fr= om Turkish into English. An alternative to translation of the full report would be to ask your lawyer to summarise the report in a letter to you and to have translated any areas of particular concern.
Most surveys can be done in 7 – 10 days.
This is unusual in
Whichever report you opt for its quality will depend i=
n part
on your input. Agree cl=
early
and in writing the things you expect to be covered in the report. If you to not speak Turkish (and t=
he
surveyor doesn't speak good English) you may have to ask someone to write on
your behalf. Your
|
Checklist – Things you may=
ask
your Surveyor to do |
|
Task |
|
Electrical condition and continuity check |
|
Drains check including assessment of drain to point = where they join mains sewers or septic tank |
|
Septic tank check |
|
Rot check |
|
Check on cement quality in a property constructed ou= t of cement |
|
Check of under floor areas, where access cannot easi= ly be obtained |
|
Check on heating and air conditioning |
|
Check on pool and all pool related equipment and hea= ting |
|
Wood boring insect check. |
|
Establish physical boundaries of the property |
In these days of low interest rates many more people a= re taking out a mortgage in order to buy property in abroad.
If the property is viewed simply as an investment a mo= rtgage allows you to increase your benefit from the capital growth of the property= by "leveraging" the investment. If you buy a house for &poun= d;200,000 and it increases in value by £50,000 that is a 25% return on your investment. If you had = only put in £50,000 of your own money and borrowed the other £150,000 then the increase in value represents a return of 100% on your investment.<= span style=3D'mso-spacerun:yes'> If the rate of increase in t= he value of the property is more than the mortgage rate you have won. In recent years property in = most popular areas has gone up in value by much more than the mortgage rate. The key questions are whethe= r that will continue and, if so, for how long.
If you decide to take out a mortgage you can, in most =
cases,
either mortgage (or extend the mortgage on) your existing
Turkish mortgages can be obtained (often with some
difficulty) by foreigners officially resident in
Mortgages or revolving credits can be obtained (again,=
often
with some difficulty) by foreign owned Turkish companies buying property in=
At present mortgages for non resident foreign buyers of
property in
Many people buying property in Turkey will look closel= y at fixed rate mortgages so they know their commitment over, say, the next 5, 1= 0 or 15 years. Again there are advantages and disadvantages.
By a
It is outside the scope of this book to go into detail=
about
the procedures for obtaining a
|
Mortgaging your |
|
|
Advantages |
Disadvantages |
|
The loan wi=
ll
probably be very cheap to set up You will probably a=
lready
have a mortgage. If y=
ou
stay with the same lender there will be no legal fees or land registry fe=
es
for the additional loan.
There may not even be an arrangement fee. If you go to a new = lender many special deals mean that the lender will pay all fees involved. |
You will=
pay Make sure you compa=
re the
overall cost of the two mortgages. =
Crude rates (which, in any case, may not be comparable as they are
calculated differently in the two countries) do not tell the whole tale.<=
span
style=3D'mso-spacerun:yes'> What is the total monthly =
cost
of each mortgage, including life insurance and all extras? What is the total amount
required to repay the loan, including all fees and charges? |
|
The loan re=
payments
will be in £s If the funds to rep=
ay the
mortgage are coming from your £ Equally, if the &po=
und; |
If the &pou=
nd; Your loan of €=
;60,000
(now worth about £37,000 at
€1 =3D £0.62p) would only cost about £30,000 to pay off=
if
the Euro rose 20% to about £0.50. |
|
You will be
familiar with dealing with British mortgages and all correspondence and
documentation will be in English |
If you are =
going to
let the property it will be difficult or impossible to get Turkish tax re=
lief
on the mortgage interest See "Renting Y=
our
Property" |
|
You can tak=
e out an
endowment of PEP mortgage or Pension Mortgage or Interest Only mortgage, =
none
of which are available in Normally only repay=
ment
mortgages are available in |
Many people=
do not
like the idea of mortgaging their main home – which they may only j=
ust
have cleared after 25 years of paying off an earlier mortgage! |
|
You will pr=
obably
need no extra life insurance cover This can add consid= erably to the cost of the mortgage, especially if you are getting older.<= /p> |
Some academ=
ics
argue that, in economic terms, debts incurred to buy assets should be sec=
ured
against the asset bought and assets in one country should be funded by
borrowings in that country |
All in all, we believe that a
By a Turkish Mortgage I mean a mortgage taken out over=
your
Turkish property. This =
will
either be from a Turkish bank or from a British or other overseas bank that=
is
registered and does business in
As previously stated however, house purchase finance f=
or
The basic concept of a mortgage is the same in
It is (usually) a loan secured against land or
buildings. Just like in
Mortgages in
The main differences are:
·
Turkish mortgages are almost always created =
on a
repayment basis. That is to s=
ay,
the loan and the interest on it are both gradually repaid by equal instalme=
nts
over the period of the mortgage. &nbs=
p;
Endowment, PEP, Pension and interest only mortgages are not known in=
·
The formalities involved in making the
application, signing the contract subject to a mortgage and completing the
transaction are more complex and stricter than in the
·
Most Turkish mortgages are granted for 15 ye=
ars,
not 25 as in
·
The maximum loan is generally 70% of the val=
ue
of the property. Valuat=
ions
by banks tend to be conservative – they are thinking about what they
might get for the property on a forced sale if they had to repossess it.
·
Fixed rate loans – with the rate fixed=
for
the whole duration of the loan – are more common than in
·
The way of calculating the amount the bank w=
ill
lend you is different from in
· There will usually be a minimum loan (say £20,000) and some banks will not lend to foreigners at all on property less than a certain value. Some will not lend to foreigners in rural areas
· The paperwork on completion of the mortgage = is different.
As such mortgages are, at best, available only to offi=
cial
residents of
If the funds to repay the mortgage are coming from your
£
Equally, if the £
Of course, if £
It is possible for Turkish residents to mortgage their=
home
in
There may be some attractions in borrowing in £ =
This option is mainly of interest to people who either=
do
not have sufficient equity in their
Your mortgage will usually be paid directly from your =
Turkish
bank account. Unless yo=
u have
lots of rental or other local income going into that account you will need =
to
send money from
Every time you send a payment to There are steps that you can take to control both of t=
hese
charges. As far as the exchange rate is concerned you should be
receiving the so-called "commercial rate", not the tourist rate
published in the papers. The
good news is that it is a much better rate. The bad news is that rates vary fr=
om
second to second and so it is difficult to get alternative quotes. By the time you phone the se=
cond
company the first has changed!
In any case, you will probably want to set up a standing order for p=
ayment
and not shop around every month. &nbs=
p;
Unfortunately, even the commercial rate for transactions of a few
hundred pounds is not good. There are various organisations that can convert your
£ As far as the bank charges are concerned, differing ba=
nks
make differing charges. This
applies both to your UK bank and to your local Turkish bank. Discuss their charges with
them. In the case of your UK =
bank
there is usually room for some kind of deal to be done. In the case of the Tur=
kish
bank the level of these charges will probably – after the ability to
speak English – be the most important reason for choosing one bank ov=
er
another. Some Turkish l=
enders
may offer you a facility to pay the monthly payments into their If you are using a currency dealer to convert your &po=
und; Another possibility for saving money arises if you &qu=
ot;forward
buy" the currency that you are going to need for the whole year. It is possible to agree with=
a
currency dealer that you will buy all of your Euros for the next twelve mon=
ths
at a price that is, essentially, today's price. You normally pay 10% down an=
d the
balance on delivery. If=
the currency
rises in value you will gain, perhaps substantially. If the currency falls in value =
211; c'est la vie! &=
nbsp;
The main attraction of forward buying is not so much the possibility=
for
gaining on the exchange rate – though at the moment this seems highly
likely – but the certainty that the deal gives you. You will know precisely what=
your mortgage
costs are going to be and, therefore, not constantly worried about the effe=
ct
of a collapse in the value of the £ Sterling. Only enter into these agreem=
ents
with a reputable and, if possible, bonded broker. Bearing in mind the cost of conversion and transmissio=
n of
currency it is better to make fewer rather than more payments. You will have to work out wh=
ether,
taking into account loss of interest on the funds transferred but bank char=
ges
saved, you are best sending money monthly, quarterly or every 6 months. In certain circumstances your Turkish mortgage can giv=
e rise
to a liability to This is not a common problem, but check the position w=
ith
your lawyer or accountant. Generally speaking, French Euro mortgages will suit pe=
ople
letting their property on a regular basis. Many people may not need to incur the expense of mortg=
aging
their property in It is probably unnecessarily complicated to mortgage t=
he UK
home for such a short period, and indeed, it could be difficult to do so if=
the
bank knows you are selling and if you are, say, 65 years old and not
working. In this case it is often simplest to approach your ban=
k for
a short-term loan or overdraft.
This might be for the £20,000 shortfall or it could be that yo=
u don't
really want to sell some of your investments at this stage and so you might=
ask
for a facility of, say, £50,000. Some people choose to take out formal 2 or 3 year UK l=
oans
for, say, £15,000 each whilst still resident in the UK prior to leavi=
ng
for Turkey to cover a gap such as waiting to receive a pension lump sum.The
Other
Loans
There are m=
any ways
of structuring the purchase of a home in
In some cas= es it could be sensible to put the property in the name of one person only. If your husband runs a high-= risk business, of if he is 90 and you are 22 this could make sense. It is seldom a good idea fro= m the point of view of tax or inheritance planning.
If two peop= le are buying together they will normally buy in both their names.
In most of
continental
Your half i= s yours and your fellow owner's is theirs. &n= bsp; On your death your half will (subject to the requirement of your matrimonial regime – see below ) be disposed of in accordance with Turkish law (see below). A person who owns in this way, even if they own by virtue of inheritance, can usually insist on the sale of the property. So if your stepchildren inhe= rit from your husband they could insist on a sale of your home.
If you deci= de to buy together then, in certain cases, it can make sense to split the ownersh= ip other than 50/50. If, f= or example, you have 3 children and your wife has 2 then to secure each of tho= se children an equal share on your death you might think about buying 60% in y= our name and 40% in your wife's name. &nb= sp;
It is very
important to seek clear advice from your lawyer about the form of ownership
that will suit you best, both with regard to the consequences in
This is the=
system
most commonly adopted in
Joint ownership (in the English sen=
se) of
property in
If you give= your children the money to buy part of the property and so put them on the title= now you may save quite a lot of inheritance tax. On your death you will only = own (say) one fifth of the property rather than one half. Only that part will be taxable. It may be such= a small value as to result in a tax free inheritance. This only works sensibly if = your children are over 18. Of course, there are drawbacks. For example, if they fall out with you they can insist on the sale of the property and receiving their share.
If you put = the property only in the name of your children (possibly reserving for yourself= a life interest – see below) then the property is theirs. On your death there will be = little or no inheritance tax and there will be no need to incur the legal expenses involved in dealing with an inheritance. This sounds attractive. Remember, however, that you = have lost control. It is no longer= your property. If your child= ren divorce their husband/wife will be able to claim a share. If they die before you witho= ut children of their own, you will end up inheriting the property back from th= em and having to pay inheritance tax for the privilege of doing so.
A life inte= rest is the right to use the property for a lifetime. So, on your death, your righ= ts would be extinguished but your second wife or partner, who still has a life interest, would still be able = to use the property. Only = on their death would the property pass in full to the people to whom you gave = it years earlier. This dev= ice can not only protect your right to use the property but also save large amo= unts of inheritance tax, particularly if you are young, the property is valuable= and you survive for many years. As ever there are also drawbacks, not least being the fact that after the gift you no longer own the property. If you wish to sell you need= the agreement of the "owners", who will be entitled to their share of= the proceeds of sale and who would have to agree to buy you a new house.=
If you wish to do this you must structure the g=
ift carefully. Otherwise it could be taxabl=
e at
once in
For some pe=
ople
owning a property via a limited company can be a very attractive option.
Ownership i= n the form of a limited company can have a number of advantages — mainly because the company never dies and because when you sell the house you can = sell the company (and so the house it owns) instead of transferring legal title = to the property. These ste= ps can save tax.
Ownership v= ia a Turkish company also allows you to proceed with your purchase without waiti= ng for the ‘military permission’ needed for an individual foreign buyer – which can take several months.
To balance = against this is:
1.&n= bsp; the cost of setting up and maintaining the company<= /span>
2.&n= bsp; the risk of being assessed by the British tax man, = as enjoying a "benefit in kind" from the company by virtue of your r= ight to use the property. This cou= ld be taxable at your highest British tax rate. The value of your benefit is likely to be assessed as the rental value of the property for the period du= ring which you were entitled to occupy it – not the period during which you actually did occupy it. If it is available for your use all year round this could be a lot of money. I will return to this import= ant point later.
Ownership v= ia a company will mean that the income from letting the property is taxed in the= way usual for companies – basically, you pay tax only on the profit made.= This can reduce your tax bill.
There can be marginal advantages of land ownership through a company rather than an individual. These are for tax reasons. Taxation applies principally to two aspects of income from land: income from rental and gains resulting from pr= ofit on re-sale of the profit, i.e. capital gains. Under Turkish tax law, individuals will be taxed on these two sources of income under the income t= ax rules. The rate of tax applicable to such income will depend upon the individual’s total inc= ome tax liability. Income tax rates for income sourced other than through employment range from 20-45%.
Corporate t= axation is levied on company income at a rate of 30%. Withholding tax payable on dividends means that the effective rate of corporate tax is 37%. Additional= ly, companies may offset against their tax liability certain expenses such as start-up costs, previous year's losses, depreciation of fixed assets and ce= rtain other items that are more generous than the items permitted to individuals.= .
The downsid= e is that selling a property owned by a Turkish company is much more difficult t= han for an individual, more paperwork and permissions are needed.
Ownership i= n the form of a company also gives rise to certain expenses. Accountancy, filing tax retu= rns etc.
It also has= other advantages – primarily the ability to buy property without obtaining = the military permission needed by a foreign buyer. Some properties will not be granted such permission – so buying in this way can expand the range = of property available to you. On other occasions the Seller will not wait the several months needed to obtain the permission. I= f you are thinking of buying through a company for this reason, seek legal advice= .
Buying thro= ugh a Turkish company always gives rise to a host of potential problems as well as benefits. The plan needs to be studied closely by your advisers so that you can decide whether= it makes sense in the short, medium a= nd long term.
It is rare =
for a
purchase through a
This has mo=
st of
the same advantages and disadvantages as ownership by other types of compan=
y,
but with additional expenses and drawbacks. For someone tax resident in =
the UK
and using legitimate UK tax paid money it is likely to be of little
interest. A 93 ye=
ar old
buying a £10,000,000 property, or someone who wishes to be discrete a=
bout
the ownership of the property might think the price is a small price to pay=
for
the avoidance of inheritance tax or privacy respectively. Someone who is not tax resid=
ent in
the
As a vehicl=
e for
owning a property trusts are of little direct use. In Turkish law, the concept o=
f the
trust is much more restricted than either the
Some people= will, however, want to take this opportunity of restructuring their affairs gener= ally by means of a trust. Su= ch an arrangement can prove very beneficial for both asset protection and tax reduction. Trusts are u= sually quite expensive to set up and so are usually only of interest to people buy= ing higher value properties or where they have substantial savings and investme= nts — say, as a rough guide, over £350,000. They are particularly useful= if you are thinking of living overseas.
The trust w= ill usually own through the medium of a limited company.
The choice =
is of
fundamental importance. If you
get it wrong you will pay massively more tax - often many thousands of pounds &#=
8211; than
you need to, both during your lifetime and on your death. The tax consequences arise n=
ot
only in
For each Bu=
yer of a
home in
The trouble= is, it is not obvious which is the right choice! You need in every case to ta= ke advice. If your case is simple so will be the advice. If it is complex the time and money spent will be repaid many times over.
As you would expect, this is complicated. A basic textbook on Turkish property law might extend to 500 pages.<= span style=3D'mso-spacerun:yes'> There are certain basic prin= ciples that it is helpful to understand.
1.&n=
bsp;
The main legal provisions relating to property law =
are
found in the Civil Code, which was introduced in 1926 but modified since.
2.&n= bsp; Although Turkish law has maintained certain discriminations between Turkish nationals and foreigners, recent legislative amendments have removed virtually all of these. In the central field of property ownership, foreigners are now treated on a par with Turkish nation= als.
3.&n=
bsp;
4.&n= bsp; Turkish law divides property into two classes ̵= 1; moveable property (menkul mal) and immovable property (gayrımenkul = mal). The whole basis of own= ership and transfer of ownership depends on which classification property belongs to. The distinction is simila= r to the English concept of Real and Personal property but it is not exactly the same. Immovable property includes = land and buildings, but not the shares in a company that owns land and buildings= .
5.&n=
bsp;
The sale of immovable property (gayrımenkul
mal) located in
6.&n= bsp; The form of ownership of land is used to be absolute ownership. This is similar to what we would ca= ll freehold ownership. The= re has been a move in recent years to limit this absolute form of ownership in fav= our of the pubic interest. Purchases from the government therefore tend to be on the basis only= of a lease of 60 years, after which time the property reverts to the state.
7.&n= bsp; It is possible to own the buildings – or even parts of a building – on a piece of land separately from the land itself. This is of part= icular relevance in the case of flats, which are generally owned "freehold&qu= ot;.
8.&n= bsp; Where two or more people own a piece of land or oth= er property together they will generally own it in undivided shares (iştirak halinde mülkiyet). That is to say the piece of = land is not physically divided between them. Each owner may mortgage or sell his share onl= y with the consent of the others. Beware that some properties are offered for sale on this basis, whic= h is usually dangerous as the debts of one owner can be registered and claimed against a property that belongs to several other (innocent and debt free) individuals.
9.&n= bsp; Where a building or piece of land is physically div= ided between a number of people a condominium (site) is created. The land is divided into pri= vately owned parts – such as an individual flat – and communally owned areas. The management o= f the communally held areas is up to the owners of the privately held area, but c= an be delegated to someone else.
10.&= nbsp; In the case of a sale of land certain people may have a right of pre-emption.<= span style=3D'mso-spacerun:yes'> One is the co-owner mentioned above. Others are (in each ca= se only in certain circumstances) the municipality or a sitting tenant and cer= tain statutory bodies.
11.&= nbsp; Transfer of ownership of gayrimenkul mal is usually by simple agreement. This need not be in writing, but usually is. That agreement binds both the parties to it but is not effective as far as the rest of the world is concerned, who are entitled to rely upon the content of the land register (= tapu sicil)= . Thus as between buyer and se= ller ownership of land can be transferred, for example, by signing a sale contra= ct (satış sö= ;zleşme) even if the seller remains in possession and some of the price remains unpaid. But that owners= hip would not damage the interests of someone other than the buyer or seller (s= uch as someone owed money by the seller) who is entitled to take action against= the person named as owner in the Land Registry. Ownership can also be acquir= ed by possession, in certain circumstances usually after a minimum period of 10 or 20 years undisputed occup= ancy.
12.&= nbsp; Other rights – short of ownership – can exist over land. These include rights of way, tenancies, life interests, mortgages and option contracts. Most require some sort of formalit= y in order that they are valid against third parties but are always binding as between the people who made the agreements.
13.&= nbsp; There are TWO land registers. Each municipality maintains a regi= ster (kadastro). In this all the land in the district is divided into plots and assessed for tax purposes. The second register is= the deed and mortgage register (tapu sicil). &nb= sp; Not all land is registered here. The entries (size, boundarie= s etc) usually correspond in the two registries – but not always. Be careful if they do not.
Enough of that. Now for the practical s= tuff.
The general
procedure when buying a property in
In most cas= es, for a new property, the basic procedure is this:
Along the way there are, of course, other steps to be taken. Normally a POWER OF ATTORNEY= will be needed. Military permission to buy is required. = In some cases a company will have to be set up. Taxes must be paid. But these are the main steps= .
The steps will be different if you are buying a resale property or if you are buying either a new or a resale property via a Turkish limited company.
Work on the basis that the system = is totally different from what you are used to..
The notary is a special type of lawyer. He is in part a public offic=
ial
but he is also in business, making his living from the fees he charges for =
his
services.
Notaries also exist in
Most Turkish people buying a home in
Turkish lawyers are 'lightly' regulated. There is little practical re= dress if they make a mistake.
Turkish lawyers do not generally have designated client accounts (protecting clients funds in their possession) or professional indemnity insurance (protecting clients in the case of negligence on their part).
Few have any real experience of property transactions,=
which
are not in
Few Turkish lawyers speak or write fluent English.
Nonetheless there are good Turkish lawyers, who can of= fer assistance when buying a property. &n= bsp; Get recommendations from people who have already used their services= .
English people will often require advice about inherit=
ance
issues, the UK tax implications of their purchase, how to save taxes, surve=
ys,
mortgages, currency exchange etc which is outside the scope of the service =
of
the Notary. They should
retain the services of a specialist
The Buyer's usual solicitor is unlikely to be able to = help as there are only a handful of English law firms with the necessary expertise. One, of cour= se, is the author!
Ideally, the full title description of the property sh= ould be included in the contract. = If it is not this can give rise to later difficulties in identifying precisely wh= at you have agreed to buy.
Layman's description of the property – e.g. &quo= t;3 bedroom 2 bathroom apartment known as G2, Seaside, Fet= hiye, Mugla, Turkey"
Address:
Village:
Town:
City:
District:
(These details fully describe the address of your prop= erty)
Land Registry:
Zone:
Plot:
Parcel:
Boundaries :
Land Classification:
Record No. :
Book No.:
Page No.:
(These details describe to the authorities the official geographical location of the property)
Date Registered:
Value on Deed:
(This is the current owners' date of registration and officially declared value)
Plot Classification:
Plot Allocation:
Block No.:
Floor No.:
Independent Plot No.:
(This section identifies the location of the easement = and its status)
Acquisition Details:
Present Owner:
Unfortunately, these full details seldom appear in the= draft contracts that we receive.
We recommend in all cases that, unless you are absolut= ely sure of your boundaries and you are certain that everyone else is equally c= lear as to the extent of your property, you have a registered surveyor conduct a survey and peg out the physical boundaries of your property. This will typically cost abo= ut £200, including providing you with a summarised translation of his report.
This can be freely agreed between the parties. Depending on the economic cl= imate there may be ample or very little room for negotiating a reduction in the asking price.
The present explosion of property prices in
If the price is to be paid, in part. By stage payments=
these
must be clearly stipulated.
Pay particular attention to agreeing the bank account to which they
should be paid.
The full price that you are paying.
Generally, the full price that you are paying. It is dangerous for the Seller to declare any other price as might try to for contract at the lower price. Equally, it is dangero= us for the Seller to declare the full price as you can then use that as a lever wh= en insisting that the full price is declared in the final title document. Such are the problems generated by= the culture of under declaration.
There is still a tradition in
Often the price declared is only 25% of the price actu= ally paid. Magic!
There are drawbacks to this. It is illegal. It is likely to give rise to=
a
much higher tax bill when you sell the property – both in
Under declaration can be an advantage to your seller.<=
span
style=3D'mso-spacerun:yes'> His share of the stamp duty will be
reduced a little bit but, much more importantly, if he is liable to Turkish
capital gains tax is capital gains will have been reduced substantially.
The under declaration is generally much less of an adv= antage fail the buyer. It is true th= at it will save the buyer some property transfer tax. This is 3% of the value of the pro= perty, of which half is generally paid by the buyer and half is paid by the seller. This is a modest saving. To set against it is = the potential and substantial increase in capital gains tax to be paid when the property is sold.
This additional capital gains tax liability arises in = two ways.
Firstly, there is Turkish tax. As you will see in the section on =
tax
later in this book tax is paid in
The second tax liability arises in the case of people =
who
are resident for tax purposes in the
So, generally, saving a little bit of tax now creates a large potential tax burden in the future.
The under declaration is also illegal.
So why do people not to declare the full price? Generally, because the Seller's re= fuse to do so. They will simply no= t sell to you if you insist on declaring the full value. This is true not only in the case = of private individuals but in the case of some major construction and developm= ent companies.
Fortunately, some of the Seller's will be prepared to = allow you to declare the full price provided you pay the extra tax due. Amazingly, they often think only o= f the extra property transfer tax and ignore completely the extra tax liability on their profits (in the case of a company Seller) or capital gains (in the ca= se of a private Seller) generated by showing the extra income. In the author's view it is always = worth declaring the larger amount if you can negotiate this with the Seller.
Seek advice from your lawyer.
There are several reasons.
Firstly, the reservation contract is accused simply to justify the Seller taking the property off the market for a limited period during which you can check that everything is in order. It is little more than a gesture o= f good faith on your part. You and a relatively small sum to show you mean business.
The preliminary contract is generally only needed eith= er by a private individual buyer (who needs to get the military permission to buy= the property before he can sign a full contract at the Land Registry) by a priv= ate individual buyer or company buyer buying a new property still in the course= of construction. If the case of = the property you will not be able to sign the full contract at this stage becau= se the property will not have been finished and it may not yet have any independent title. For a comp= any buying a resale property the preliminary contract can often be dispensed with. Sometimes, however, eve= n in this case you will need the preliminary contract to record the true price of the property.
The third -- or full -- contract is, in many respects,=
the
equivalent of our conveyance or property transfer form. It is this contract that is record=
ed at
the Land Register Office to show your official ownership of the property.
The price, together with the taxes and fees payable, is
usually paid by the Buyer to the Seller in front of the Land Registrar alth=
ough
this is not compulsory. It is
also possible to make the payment from a bank in the
You should be aware that in
In fact, amazingly, the most popular means of paying f=
or a
house in
Times are changing and we are now seeing more purchase= s paid for by bank transfer but, of course, payment by bank transfer is no good if= the person wants to conceal the money.
Try to avoid arrangements, usually as part of an under-declaration, where part of the money is handed over in cash in brown-paper parcels. It= is dangerous at a practical level. Buyers have lost the bundle - or been robbed on the way to the Land Registry. Sometimes the= re is a suspicion that the Seller, who knew where you were going to be and when, could be involved.
Certain enq= uiries are made routinely in the course of the purchase of a property.
These inclu=
de, in
appropriate cases, a check on the planning situation of the property. This
If you want=
to know
whether the authorities are going to put a prison in the village or run a n=
ew power
line through your back garden (both, presumably, bad things) or build a
motorway access point or railway station 3 km away (both, presumably, good
things) you will need to ask.
There are various organisations you can approach but, just as in
Normal enqu= iries also include a check that the seller is the registered owner of the property and that it is sold (if this has been agreed) free of mortgages or other charges.
Depending o= n the type of property you are buying, where it is located and whether it is new = or old they are will probably be other enquiries to make.
This search= reveals the registered ownership of property and certain debts or charges registered against it.
It will als= o show whether the property enjoys full title or a more limited type of title know= n as kat= irtifak
As already
mentioned, property ownership in
The Promiss= ory Deed of Easements or kat irtifak title is a document by which the owner of land promises to transfer full title on= ce the project is completed and a habitation certificate has been granted. Until that time, even though= the kat irtifak <= /i>has been signed in your favour he can still mortgage or, in some circumstances, sell the property to another person. = This document is, therefore, of little practical use as a guarantee = of your rights UNLESS those rights are also protected by your taking a formal charge over the property. These titles are inevitable when buying a new property but you should, nonetheles= s, proceed with caution.[
This search= will also show whether there are mortgages, debts or charges shown registered against the property.
This search= shows us the current planning status of the property – e.g. whether permiss= ion to build has been granted and whether it is still current, whether a habita= tion licence has been granted, etc.
In
Many other = older properties, built after 1965, do not have a certificate. In the case of such older properties the lack of a certificate may not, in practice, pose a problem.<= span style=3D'mso-spacerun:yes'>
In new or f=
airly
new properties you should insist on a certificate. There are a number of reason=
s for
this. These include tha=
t,
technically, a property cannot be connected to the water, electricity or ot=
her
services without a certificate, although (being
Remember th= at, even if you do not think the certificate important, the person to whom you want = to sell in a few years time may want the certificate and not buy without it.
Obtaining a certificate where none exists can be time consuming and expensive, although= it is not always so. Witho= ut making some detailed enquiries we cannot estimate the likely cost
In the case= of new properties still in the course of construction the builder often proposes completion before the certificate is granted. Such arrangements often work well. You need to be aw= are, however, that if – for any reason – the certificate is not issu= ed by the authorities you will be faced with the inconvenience and cost of sor= ting the problem out. In the= worst case you may have to do this from a property without water or electricity.<= span style=3D'mso-spacerun:yes'> We would always therefore recommend that, where possible, completion be deferred until the certificat= e is available. This is ofte= n not acceptable to the builder.
This search= shows us the official plan of the plot, maximum build density (subject to suitable planning permission), projected new roads in the area etc.
This search=
shows
us whether the land or building is listed or of archaeological importance.<=
span
style=3D'mso-spacerun:yes'> If the land is controlled th=
ere
are severe restrictions on what you can do on it.
This is not= an environmental search in the western European sense of showing toxic waste t= ips etc. Instead it shows n= ature reserves, areas liable to flooding etc.
This search=
is
intended to reveal whether the property lies in a militarily sensitive area
and, as a result, cannot be purchased by foreigners. This information will be dis=
closed
when your application to buy land is processed. That takes about 3 months.
This search=
shows
us amount of local taxes payable and, with a bit of luck, whether there are=
any
outstanding taxes that could attach to the property. That information is,
theoretically, confidential but can sometimes be discovered. This search is only availabl=
e in
certain areas.
If this is = a new property no local property taxes will yet be payable. The property will later be assesse= d for tax purposes and a demand will be issued.
The Seller = of an existing property will have to produce proof of payment or the local taxes = when transferring title to you. Often he will try to shift the burden for payment of any unpaid taxes onto you! The sums are, generally, small.
As in
If you have reason to suspect that any such
developments may be afoot let your lawyer know. He can then carry out such f=
urther
investigations as are agree between yuo.
In order to= advise you what special enquiries might be appropriate your lawyer will need to be told your proposals for the property. Do you intend to rent it out= ? If so is it on a commercial basis?= Do you intend to use it for busine= ss purposes? Do you want to extend or modify the exterior of the property? Do you intend to make interi= or structural alterations?
There is no equivalent to the local search =
(an
investigation into the entries relating to the property in the local land
charges register and general enquiries at the town hall) for transactions i=
n
Equally, it is not the custom in
Agree in ad= vance the additional enquiries you would like to make and get an estimate of the = cost of those enquiries.
This is som=
ething
you will have given no thought to. &n=
bsp;
For most of the time it is a matter of unimportance in
When prepar=
ing
documents in
Where the parties do not state a preference as to system at the time of the marriage (after 2002), the parti= cipatory regime is to apply.
If you are not a Turkish citizen and you marry o=
utside
To own a pr=
operty
in
This is a d=
evice familiar
in continental
The basic i= dea is than when a number of people own land or buildings in such a way that they = have exclusive use of part of the property but shared use of the rest then a = site is created. Houses on t= heir own plots with no shared facilities will not be a member of a site.<= span style=3D'mso-spacerun:yes'>
In a sit= e the buyer of a house or an apartment owns his own house or apartment outrig= ht – as the English would say, "freehold" – and shares t= he use of the remaining areas as part of a community of owners. It is not only the shared po= ol that is jointly owned but (in an apartment) the lift shafts, corridors, roo= f, foundations, entrance areas, parking zones etc.
The members= of the site are each responsible for their own home. They, collectively, agree the works needed on the common areas and a budget for those works. They then become responsible for p= aying their share of those common expenses, as stipulated in their title.<= /p>
The communi= ty is managed by an elected committee with appointed officials who are residents = in the community. <= /p>
Day to day management is usually delegated to an administrator, who need not be a resi= dent in the community.
The charges= of the site are divided in the proportions stipulated in document creating the site<= /i>. You will pay the= same site fees whether you use the place al= l year round or only for two weeks holiday. = Of course, your personal bills (water, electricity etc) will vary wi= th usage.
The site= should provide not only for routine work but, through its fees, set aside money for periodic major repairs. If they do not – or if the amount set aside is inadequate – the general meeting can authorise a supplemental levy to raise the sums needed.
The rules s=
et by
the site are intended to=
improve
the quality of life of residents. &nb=
sp;
They could, for example deal with concerns over noise (no radios by =
the
pool), prohibit the use of the pool after
In
Generally the preliminary contract is prepared by the = estate agent or by the developer of new property.
Estate agent's contracts are often based on a pre-prin= ted document or word processed document in a standard format.
Many contracts coming from Estate Agents are legally m= uddled and not properly thought through. &nb= sp; They can blur or mix different types of contractual obligation, often referring to mutually exclusive concepts in the same document – for example, referring to it as a contract of sale and an option contract.
Sometimes the contracts are extremely one sided, giving their client – the Seller – all of the rights and taking away a= ll of the rights of the Buyer.
It is very important that these contracts are not just accepted as final. In e= very case they will need to be modified. &= nbsp; In some cases they will need to be modified extensively.
In fact, in many cases, when acting for the buyer, we = end up preparing the preliminary contract and seeking agreement of the Seller to it. This is because the docum= ent submitted by the Seller is so defective it is easier and cheaper to start f= rom scratch.
You will be invited to sign one of four different documents. Each has dif= ferent features. Each has diff= erent legal consequences. Each is appropriate in certain circumstances and inappropriate in others.
This is, technically, not a contract at all. It is a formal written offer=
from
the potential buyer to the potential seller. It will state that you wish to buy=
the
stated property for a stated price and that you will complete the transacti=
on
within a stated period. The
offer will normally be accompanied by the payment of a deposit to the estate
agent or Seller. The de=
posit
is not fixed but will usually range from 10% to 20% of the price offered.
This document binds you. It is not a mere enquiry as to whe=
ther
the seller might be interested in selling. If he says that he accepts t=
he
offer then you (and he) become legally bound to proceed with the
transaction. Generally we do not like offers. We prefer=
the
idea of making a verbal enquiry as to whether the seller would accept a cer=
tain
price and, once he says yes, for a binding bilateral contract of sale (satış sö=
;zleşme)
to be signed. This is a written document in which the seller offers =
to
take a stated property off the market for a fixed period and to sell it at a
stated price to a stated person at any time within a stated period. The seller will usually require that any person taking=
up
his offer pays him a deposit. This
is a usually a relatively modest sum such as £2000 or £3000. You will see that this is similar to an English "=
Option
Contract". If you =
want
to go ahead and buy the property you can but you are not obliged to do so.<=
span
style=3D'mso-spacerun:yes'> Reservation/Option Contract
The contract could contain special "get out clauses" stipulating the circumstances in which the buyer will be enti= tled to the refund of his deposit if he decides not to go ahead. The drafting of these clause= s is of vital importance. See your lawyer.
If you do want to go ahead you can exercise the option= at any point up to the end of the agreed period.
If the Seller refuses to go ahead the buyer is entitle= d to claim compensation.
Because the sum paid over on signing the Reservation contract is modest and because the whole purpose of the contract is to secu= re the property for a period and so to allow your lawyer to carry out the necessary inquiries, most people will sign a Reservation contract and pay o= ver the money without making any prior inquiries. There is nothing wrong with this b= ut it is a good idea to have your lawyer look at the contract you are proposing to sign to make sure that it is, indeed, only a Reservation contract (and not a full purchase contract) and that it does not contain any unfair terms. Please note that the mere fact tha= t it says "Reservation Contract" at the top of the document does not m= ean that it is truly only a Reservation contract. The Turkish version of the documen= t to differ, sometimes significantly, from the English version if one is supplie= d. Generally, the Turkish version is = the binding version. For this rea= son too, it is worth having the document checked briefly before you sign it.
It is, in most parts of
It is an agreement that commits both parties. The seller must sell a stated property at a stated price to a stated person on the terms set out in the contract. The buyer mus= t buy.
This is the most far reaching of the three documents a= nd so it is particularly important that you are satisfied that it contains all of= the terms necessary to protect your position. Take legal advice.
The contract will contain a variety of "routine&q= uot; clauses.
· The seller and buyer should both be stated fully.
· The property should be described fully, both= in an everyday sense and by reference to its land registry details.
· A statement will be made as to when possessi= on will take place – normally, on the date of signing the title.
· The price is fixed.
· A receipt for any deposit is given.
· The property should be sold with vacant poss= ession.
· The property should be sold free of any char= ges, debts or burdens and all bills should be paid up to date before signing the= tapu which transfers the ownership of t= he property.
· It will provide for who is to pay the costs = of the purchase.
· It may confirm the details of any agent invo= lved and who is to pay his commission.
· It will set out what is to happen if one or = both of the parties break the contract. <= /span>
· It will establish the law to cover the contr= act and the address of the parties for legal purposes.
If the buyer or seller drops out of the contract or otherwise breaks it various arrangements may be made.
A special deposit (depozit= ) might be payable by the Buyer. If he fails to complete he will lose the deposit. If the Seller fails to compl= ete he will have to return the deposit paid.
Alternatively the contract may provide for a deposit t= o be paid as a simple part of the price of the property. The contract can provide for= all or part of this deposit – and any other sums paid up to the relevant moment – to be lost if the Buyer does not proceed.
If the parties fail to comply with their obligations t= here is the ultimate remedy of seeking a court order. As in any country this is very muc= h a last resort as it is costly, time consuming and (as in any country) there i= s no guarantee of the outcome of a court case. If a court order is made in = your favour this order can be registered at the land registry.
This preliminary contract can be a purely private cont= ract, simply signed by the parties, or it can be a contract signed in front of a notary. Signing in front of a notary increases the cost of the purchase but does give additional protecti= on in that the contract can then be enforced, in most cases, not only as a pri= vate right against the individual who signed it but also against the land to whi= ch it relates. In other words, s= igning in front of a notary can give the buyer the possibility of making a direct claim against the land if the Seller does not comply with his obligations.<= span style=3D'mso-spacerun:yes'> This is a slightly complicated top= ic and one which you should discuss with your lawyer's to see whether the addition= al expenditure is going to be justified in your case.
Even if the contract is to be signed as a purely priva= te document it is important to obtain proof of the identity of the seller and,= if the seller is signing on behalf of a company or person, proof of their authorisation to do so.
This contract should, if possible, either being in a t= wo column format (in English and Turkish) or a should be supplied with a translation. You needed to be= aware that the translations are not always accurate.
This is the final stage in buying a property in
The final contract contains many of the same provision= s as you would expect to find in the preliminary contract.
It will be in Turkish.
It is signed in front of the local Land Registry Officer. Note and slay will be supplied unless you specifically arrange it although the Land Registry Offi= cer may well insist and the official translator being present at the time of the signing if you do not speak adequate Turkish or you are not represented by someone holding a Power of Attorney who does speak Turkish.
Usually in these cases there is a reservation contract (see above).<= span style=3D'mso-spacerun:yes'> This allows you to reserve a= plot when you see it and allows you time to sign one of the other types of contr= act when you have made the necessary enquiries.
There are three possible types of contract in this case.
You sign a contract agreeing to sign title deed in res= pect of the land – and anything the Seller has so far built on it – now. This involves payi= ng for the land and work so far undertaken in full at this stage. At the same time you enter i= nto a contract to build your house on the land.
As the building continues it automatically becomes the property of the buyer. = The Buyer, of course, has the obligation to pay the agreed price, usually by instalments dependent upon the progress of the building work.
This has the great advantage of securing the money you=
pay
to the builder. I=
f the
builder goes bust you own the land and everything built on it. It only really works for pro=
perty
built on its own plot rather than, say, apartments. It can be tax and cost
inefficient. The disadv=
antage
is that (unless you bought in the name of a limited company) you would have=
to
wait 1-2 months for the military permission to be granted which is a requis=
ite
for any foreigner purchasing property in
You agree to buy a property once it has been built and= agree to make payments in stages as the construction progresses. Sometimes the payments are dependent upon the progress of the building works. On other occasions they are due on= set dates. The latter are n= ow the more common, though less attractive to the Buyer.
Once the property has been built you will sign the dee= d of sale and pay the balance of the price. It is only then that you bec= ome the owner of the property and register your title. Until then if the builder go= es bust you are simply one of many creditors.
One potential solution to that risk is for the purchas= er to obtain some form of security from the seller. A bank letter of guarantee, whilst being most suitable from a purchaser’s point of view, is usual= ly unsatisfactory for the seller and is almost never available. This is because under Turkish law, banks are required to collateralise in full the amount of the guarantee. A seller= is unlikely to be able to freeze many of his assets in this way. As a substitute, the se= ller is most likely to offer a senet &= #8211; promissory note – to the Buyer by way of security. This is much less favou= rable from the point of view of the purchaser. The senet<= /i> is only as good as the provider. You will be taking the Seller’s personal risk. A senet only gives a right of court actio= n to recover the amount of the debt from the Seller’s personal assets shou= ld the seller default. It gives no direct rights against the land. A se= net should only be considered if you know the seller very well, trust him a= s a very reliable business person and are sure that he has more than ample pers= onal assets to cover the money you are investing.
Turkish law has attempted to give some protection to t=
he
purchaser in such a situation by the device of the =
gayrimenkul
satış vade –
deferred sale contract. Under this device, the
parties sign a contract detailing the specifications of the building to be
constructed, the construction timetable and the schedule of payments by the
purchaser. This contract is signed in front of the notary public, notarised=
and
inscribed on the Land Registry entry relating to the property. This then constitutes notice =
to
third parties of the purchaser’s interest in the property. In the eve=
nt
of default by the seller, the purchaser will rank as a preferential creditor
with a claim on the property against monies given to the seller. This is an attractive way of proce=
eding
but, unfortunately, there are differences of opinion about whether such a
contract can be registered in the name of a foreigner prior to that foreign=
er
obtaining the necessary military permission required to buy property in
Alternatively, the Seller can grant a mortgage over th= e land in favour of the Buyer. The mortgage would be for the amount of the money paid. The mortgage can be registered by = the Buyer. The buyer would theref= ore enjoy priority over most other people who could make any claim against the = land and the existence of the mortgage would act as a deterrent to the seller fraudulently selling the land to a third-party or to that third-party buying the land.
The question of se=
curity
is obviously important. However many sellers/developers in
Remember that big compa=
nies and
honourable men go bust. Rolls
Royce. Barings Bank.
It is worth discussing =
the
question of what protection you will enjoy when buying the property in some
detail with your lawyer. The
chances of something going wrong are relatively small but the cost to you i=
f it
does go wrong can be a lot of money.
You agree to buy a plot of land and building. You agree to pay once it has= been built. Simple! You take title and pay the m= oney at the same time. This = is really the same as buying a resale property. This type of contract is lit= tle used. This type of contract, = whilst being wonderful for the Buyer who will pay nothing during the construction period but enjoy all of the capital growth on the property during that peri= od, is pretty dreadful for the seller who will receive no cash flow from which = to build the property.
Has the property got planning permission/a building li= cence?
Is the property built in an area so that for individual private housing?
What guarantees will be supplied upon completion?
You should be given a full specification for the prope= rty.
Also ask for a copy of the community rules/management = plan and the constitution if the property shares common facilities and a copy of= any agreements you have entered into regarding ongoing management or letting of= the property.
All these are important documents.
Pay particular attention to the specification. It is not unknown for the sh= ow flat to have marble floors and high quality wooden kitchens but for the specification to show concrete tiles and MDF.
=
Case
History – The Hotel Mr &=
Mrs
Smith were buying an apartment in When the
searches were undertaken it turned out that the property was subject to
debt but, much more importantly, it was being built on land that was zo=
ned
as a hotel using planning permission for the construction of holiday/ho=
tel
accommodation not for permanent residence. The Sell=
er was
unable to grant individual titles to the individual Buyers as there was=
one
title for the whole hotel complex.&nbs=
p;
This would have meant that the Buyers would be exposed to the ri=
sk
that if any other buyers on-site suffered any claims the whole of the s=
ite
could be charged with those claims.&nb=
sp;
This was unsatisfactory. The Sell=
ers
stated that they were intending to change the use of the land but they =
had
no indication of whether they would be able to do so or when it was lik=
ely
to happen. The Buye=
rs
decided to cancel their contract and to buy in another location where t=
he
position was more secure. Always g=
et your
lawyer to check the position carefully.
|
Checklist – Signing a cont=
ract |
|
|
Property i=
n the
course of construction |
Existing P=
roperty |
|
Are you c= lear about what you are buying? |
|
|
Have you = taken legal advice about who should be the owner of the property? |
|
|
Have you = taken legal advice about inheritance issues? |
|
|
Are you c= lear about boundaries? |
|
|
Are you c= lear about access? |
|
|
Have you = seen the seller's tap= u (title)? |
|
|
Have you = seen an up to date land registry extract? |
|
|
|
Are you sure you can change property as you want? |
|
|
Are you sure you can use property for what you want?= |
|
|
Connected to water, electricity, gas etc? |
|
|
Have you had a survey done? |
|
Have you = made all necessary checks OR arranged for them to be made? |
|
|
Have you = included "get out clauses" for all important checks not yet made? |
|
|
Is your m= ortgage finance arranged? |
|
|
Is the se= ller clearly described? |
|
|
If the se= ller is not signing in person, have you see a Power of Attorney/Mandate to author= ise the sale? |
|
|
Are you f= ully described? |
|
|
Is the pr= operty fully described? Identification? Land Registry details? |
|
|
Is the pr= ice correct? |
|
|
Are any p= ossible circumstances in which it can be increased or extras described fully? |
|
|
Are the stage payments fully described? |
Does contract say when possession will be given? |
|
Are arrangements for stage payments satisfactory? |
Is there a receipt for the deposit paid? |
|
Is the date for completion of the work agreed? |
In what capacity is deposit paid? |
|
Does the property have planning permission/licence to build? |
Does property have a habitation licence? |
|
Is the da= te for signing the = tapu agreed? |
|
|
Does cont= act provide for the sale to be free of charges and debts? |
|
|
Does cont= ract provide for vacant possession? |
|
|
Is the es= tate agent's commission dealt with? |
|
|
What happ= ens if there is a breach of contract? |
|
|
Are all t= he necessary special "get out" clauses included? |
Any
foreign individual buying a property in
Generally,
obtaining such permission is not a problem but it can be in some cases.
The
application for the permission is made once you have signed the preliminary
contract. A copy of the contr=
act is
attached to the application for permission. The application for permission is
generally made by the Seller (who is applying for permission for his proper=
ty
to be transferred into the name of a foreigner) rather than by the foreigner
himself.
The
permission has several components.
It is not exactly what its name suggests.
Firstly,
the obtaining of the permission involves the authorities in
The
second component relates to the location of the property. Property that is militarily
insignificant will probably not be authorised for transferred into the name=
of
a foreigner. The Turkish conc=
ept of
what property is militarily significant may seem a rather strange. Much property on the coast, partic=
ularly
elevated property with view over the Greek islands, it is -- perhaps not
surprisingly -- considered significant.&nb=
sp;
Some land on the coast with no fuse at all is also considered
significant. So, too, can be a
house next door to where an admiral lives or, possibly, where an admiral us=
ed
to live 10 years ago.
Sometimes
permission will be granted for the sale of a small plot of land but not for=
the
sale of the larger plot. So in
application made in respect of, say, 10,000 square metres for development c=
ould
fail when the application to buy the individual 500 square metre plots carv=
ed
out of that development land might well succeed.
The
process of obtaining military permission is quite slow. In there is a little from place to
place. Typically it will take=
about
four months. This. It seems to be getting longer. This is a reflection of the much l=
arger
number of foreigners now buying property in Turkey and, thus, of the much
larger number of applications being made to the same number of processing
staff.
There
are persistent rumours that the necessity for the military permission will =
be
removed, at least for citizens of the European Union. This would be a logical step and i=
n line
with the many changes in the law being introduced by
The only exception to the need to obtain this permission is if you intend to buy the property through the vehicle of a Turkish limited company. Note that if you intend to buy thr= ough a British or offshore company or a company of any other nationality widely different kind will be needed. The reason why no permission is needed for a Turkish company is that a Turkish company is Turkish and, therefore, not considered to be foreign. This is so even if you are the only shareholder in that company and you are the only director of that company.<= o:p>
There
are number of different types of Turkish company. There are a number of formal=
ities
involved in the creation and running of each type of company. There are also, inevitably, certain
costs. You should take advice=
about
how these will affect you before you make your decision as to whether vto use a company and which type to use.
Typically,
the cost of setting up a Turkish company will be about £1500. Companies in
In
addition to you is costs in
If
you have used the property for, say, six weeks in the year the tax man is
unlikely to treat the benefit as the rental value of the property for those
weeks. So, for example, if yo=
ur
property would rent out for £600 per week you will have received a
benefit of, say, £3600 and you will pay tax (probably at 40%) of that
amount. This would be
£1440. Ouch! If you used the property or the ma=
jority
of the year then the tax man will probably treat the use of that the more <=
span
class=3DSpellE>favorable basis of a long-term letter, which is gener=
ally
at a lower weekly rate.
Unfortunately, of course, although the weekly rate is lower the numb=
er
of weeks for which you have occupied the property will mean that the taxable
benefit will still be substantial.
If you do not declare this benefit and get caught there are substant=
ial
penalties.
There
are ways in which this tax can be reduced.
If
you are buying a property primarily as an investment, to be rented to the f=
ull
extent possible and you use it yourself only for a week or two per year then
the problem can be reduced substantially all, in some cases, eliminated
entirely.
Detailed
examination of which type of company to use and the means of setting up tho=
se
companies is beyond the scope of this book.
This
issue requires careful consideration with your legal advisers when you are
making your decision as to whether to use a Turkish company and which type =
of
company to use.
Very often it will not be convenient for you to have t=
o go
to
Just as often you will not know whether you will be available to sign in person. Completion dates on Turkish property are notoriously fluid and so you could plan to be there but suffer a last minute delay to the signing that m= akes it impossible.
The solution to this problem is the Power of Attorney.= This document authorises the person appointed (the vekil) to do whatever the document authorises on behalf of the person granting the Power (the vekil veren).
The most sensible type of Power to use will be the Tur=
kish
style of Power that is appropriate to the situation. The power will be signed in =
front
of a notary, either in the
The type of Turkish Power of Attorney that you will ne= ed depends on what you want to use it for.&nb= sp; Your specialist English lawyer can discuss your requirements with you and prepare the necessary document. &= nbsp; Alternatively you can deal directly with the Turkish notary who will= ultimately need the Power.
In theory an English style Power should be sufficient,= but in practice the cost and delay associated with getting it recognised are li= kely to be unacceptable.
Even if you intend to go to
Even if you have granted a Power of Attorney, if you g=
et the
opportunity to go to
There are a=
number
of ways of getting the money to
The most pr=
actical
is to have it sent electronically by SWIFT transfer from a UK bank directly=
to
the recipient's bank in
In February=
2004
banks worldwide introduced unique account numbers for all bank accounts.
You can sen= d the money from your own bank, via your lawyers or via a specialist currency dea= ler.
For the sum=
s you
are likely to be sending you should receive an exchange rate much better th=
an
the "tourist rate" you see in the press. There is no such=
thing
as a fixed exchange rate in these transactions. The bank's official inter ba=
nk
rate changes by the second and the job of the bank's currency dealers is to
make a profit by selling to you at the lowest rate they can get away with!<=
span
style=3D'mso-spacerun:yes'> Thus if you do a lot of busi=
ness
with a bank and they know you are "on the ball" you are likely to=
be
offered a better rate than a one off customer. For this reason it is often =
better
to send it via your specialist
You or your=
lawyers
might use a specialist currency dealer to make the transfer of funds instea=
d of
a main UK bank. Such de=
alers
often give a better exchange rate than an ordinary bank. Sometimes the difference can=
be
significant, especially compared to your local branch of a high street
bank. The author recent=
ly
carries out a spot check. His
secretary, anonymously, asked a major high street bank to convert £50=
,000
into Euros and send it to
Although th= ese dealers use major banks actually to transfer the funds you need to make sure that the dealer you are dealing with is reputable. Your money is paid to them, = not to the major bank, as so could be at risk if the dealer was not bonded or otherwise protected.
However you=
make
the payment make sure you understand whether you or the recipient is going =
to
pick up the receiving banks charges. =
If you need a clear amount in
The bank in=
You can arr=
ange for
your UK bank to issue you with a bankers' draft (bank certified cheque) whi=
ch
you can take to
Generally t=
his is
not a good way to transfer the money. It can take a considerable t=
ime
– sometimes weeks – for the funds deposited in
This is not
recommended. You will n=
eed to
declare the money on departure from
Don't do it= .
For EU nati=
onals
there is no longer any exchange control when taking money to or from
When you se=
ll your
property in
All of the = points outstanding must be resolved = to your satisfaction, as must any other points of importance to you.
The date st=
ated in
the contract for signing the tapu could,=
most
charitably, be described as flexible or aspirational. Often it will move, if only =
by a
day or so. Sometimes it=
will
move by weeks or months. For
this reason it is not sensible to book your travel to
|
Checklist
– Steps to be taken before signing the tapu=
|
|
|
Property in the course of construct=
ion |
Existing Property |
|
Prepare Power of Attorney |
|
|
Check what documents must be produce=
d on
signing tapu |
|
|
Confirm all outstanding issues have = been complied with |
|
|
Confirm all other important enquirie= s are clear |
|
|
Confirm arrangements (date, time, pl= ace) for completion with your lender if you have a mortgage |
|
|
Confirm arrangements (date, time, pl= ace) for completion with land registrar |
|
|
Confirm arrangements (date, time, pl= ace) for completion with Seller |
|
|
Send necessary funds to |
|
|
Receive rules of community/managemen= t plan |
|
|
Any necessary final searches?= |
|
|
Insurance cover arranged? |
|
|
Sign off = work or list defects |
Proof of = payment of community fees |
| <=
/span>
|
Proof of = payment of other bills |
Property Transfer Tax
This is charged instead on properties bought from priv= ate individuals. The rate i= s 3% which is usually split equally between the buyer and the seller, each party paying 1.5%
This is
not payable for most purchases in
Normally not likely to exceed £100 for an ordinary property.
If an estate agent has sold the property the seller pl= us the purchaser usually pay his fees. This can be varied by agreement. See "Estate Agents" above.
Architect's fees, Surveyors fees,
There are several issues that arise in the case of new properties.
The first is the risk that if the developer goes bust =
before
delivering the property to you, you can lose your money. In some countries there is a syste=
m of
bank guarantees to guard against this risk but these do not, generally, exi=
st
in
If the developer is substantial and/or the house is far advanced in construction, the risk is minor but not non existent. If the developer is small and/or t= he house has not yet been started the risk is, obviously, much more substantia= l.
When buying a new property the key points to look out = for are:
· Make sure you understand exactly what you are buying. How big is the property? What will it = look like? How will it be finished? What applianc= es are included? What facilities wil= l it enjoy?
· Think about who should own the property so a= s to minimise tax and inheritance problems
· Don't assume that the title and planning permission will be in order. Often they are not.
· Make sure the contract has all of the necess= ary clauses required to protect your position
· Will there be any form of guarantee if you a= re buying "off plan"
· Be clear about the timetable for making paym= ents
· Think about whether you should forward buy currency
· When you take delivery of the property consi= der carefully whether it is worth incurring the expense of an independent surve= y to confirm that all is in order with the construction and to help draft any "snagging list".
When buying a resale property the key points to look o= ut for are:
· Make sure you understand exactly what you are buying. Are the boundar= ies clear? What furni= ture or fittings are included?
· Think about whether to have the property surveyed, especially if it is nearly 10 years old and your statutory guaran= tee will soon be expiring
· Think about who should own the property so a= s to minimise tax and inheritance problems
· Make sure the contract has all of the necess= ary clauses required to protect your position
· Think about whether you should forward buy currency
· When you take delivery of the property make = sure that everything agreed is present
When buying an old property – by which I mean a property built more than, say, 50 years ago, there are one or two additional special points to look out for:
· Are you having a survey? Not to do so can be an expensive mistake.
· Are you clear about any restoration costs to= be incurred? Do you have estimates for th= ose charges?
· Are there any planning problems associated w= ith any alterations or improvements you want to make to the property?
· When you take delivery of the property make = sure that everything agreed is present
· Such properties have often acquired a number= of rights and obligations over the years. Are you clear about any obligations you might be taking on?
· You are probably buying for peace and quiet = and the rural idyll. Are yo= u sure that nothing is happening in the vicinity of your property that will be detrimental?
· If you have any plans to change the property= or to use it for other purposes, will this be permitted?
· If you intend to build on the site be very c= lear about minimum permitted plot sizes – which can vary up to 25,000 M2 – and other planning limitations. For example, foreigners are a= llowed to own up to 30 hectares (75 acres) of land. Amounts in excess of this requ= ire government approval.
· City properties will usually be apartments, concerning which see below.
· Unless you are used to living in a city R= 11; and, in particular, a continental city – do not under estimate the no= ise that will be generated nearby. If you are in a busy area (and you are likely to be) this will go on until late at night. Ho= w good is the sound insulation?
· Are you above a bar?
· Are your neighbouring properties occupied by full time residents, are they weekday only "pieds= à terre" or are they holiday homes.= Think about security issues.=
· If you intend to use a car, where will you p= ark?
· Have you thought about a survey of the property? Will it include the common parts? This can be expensive.
· Make sure you understand the rules of the community – see below.<= /p>
· Make sure you understand the charges that wi= ll be raised by the community.
· Make contact with its administrator. Ask about any issues affecti= ng the community. Are there any major works approved but not yet carried out? Make sure that the contract = is clear about who is responsible for paying for these.
· Make contact with owners. Are they happy with the community = and the way it is run? Reme= mber that no-one is ever fully happy!
· Understand how the community is run. Once you are an owner try to attend the general meetings of the community.
· Insure the property and its contents.
· Make a full photographic record of the property. This is usefu= l in the event of an insurance claim and for your scrap book.
·
Make arrangements for your bank to pay your =
emlak vergisi
(local property tax), çevre
·
Make a will covering you’re your asset=
s in
· Appoint a Fiscal or Tax Representative. This is your point of contac= t with the Turkish tax office. He will also usually complete and file your annual tax return. Your lawyer may provide this service or should be able to suggest a suitable person.
A Turkish person living in
Getting to know the system in one of the biggest chall= enges when moving to as new country and is quite a challenge even for the owner o= f a holiday home.
Sources of help are few and far between. They are, all too often, not=
fully
accurate. This is not a=
lways
their fault. The rules =
change
frequently and are complex. A
general explanation will not cover every set of circumstances. In countries such as
Reading a book like this is a good start. Attending some of the semina= rs run up and down the country is another good move. Both will give you an overview.
Check the Internet for official websites in English.
Read the local English language press – though i= t will seldom be very helpful.
In major tourist areas, some town halls offer advice services, usually limited to the services they provide.
If you have neighbours in
More issues of substance, it is better to take profess= ional advice. Your lawyers ar= e a good starting point. Th= ough your lawyers may not deal with this type of thing themselves they will prob= ably be able to recommend someone who does.
Most importantly, learn some Turkish! This will open up a whole ra= ft of good quality sources of information at low cost, including specialist books= and magazines – though you must be aware that they will, of course, be viewing problems from the perspective of local people and that the rules and procedures applicable to foreigners could well be somewhat different.
Any foreigner entering
Many clients confuse the issue of visas & residence
permits with the issue of citizenship.&nbs=
p;
As an English person (or, come to that, any other nationality) you a=
re
entitled to retain your nationality for as long as you like, even though you
are living in Turkey. Most Br=
itish
people who have settled in
The granting of a residence permit of whatever type ma=
kes no
difference whatsoever to your nationality.=
You will remain English but will be recognised in
Nor does your residence status, necessarily, make any difference to your tax residence or tax status, which will be calculated in accordance with the rules set out in the chapter on taxation.
Finally I must say a word about "illegals". Many foreigners went to live in
For a British person seeking a residence permit in
If you wish to work in
People of most
nationalities, including the British, require a visa before entering
In the case=
of the
British, most other European people and all EU nationals, the visa is not a
visa in the normal sense of the word.
It is more a not-so-subtle means of collecting taxes. The visa is simply applied for at =
the
airport. No checks are made.<=
span
style=3D'mso-spacerun:yes'> The stamp is placed in your passpo=
rt in
return for a small payment of £10.&n=
bsp;
The visa is a multiple entry visa and remains valid for three months=
, at
the end of which time you simply apply for another next time you arrive in =
the
country.
If you wish=
to stay
in
The process=
of
applying for the extension is a classic example of Turkish bureaucracy. It involves dealing with a number =
of
different people in a number of different departments, commonly over several
weeks. It is usually simpler =
simply
to leave the country (for example, by going to
If you trave=
l to
If, at the e=
nd of
your three months tourist visits, you are uncertain about whether you inten=
d to
remain on a long-term basis or whether you intend to spend only a little mo=
re
time there you can apply for the extension of your tourist visa (see above)=
and
then, once you have decided to stay in Turkey, you can apply for your resid=
ence
permit at any point during that extra three month period. Frankly, this would generally be a=
bit
of a waste of time because you would end up having to go through much the s=
ame
paper work twice at double the cost.
If you wish =
to
apply for a residence permit, you have a choice of ways to do it. You can either apply whilst still =
in
your own country or you can apply it from within
If you wish =
to
apply from within
If you wish =
to
apply from your home country you make the application to the Turkish Consul=
ate
nearest to where you live. Th=
e same
paper work is required. The p=
rocess
will, typically, be a little quicker but this is not guaranteed. Once your application has been pro=
cessed
you will be given what amounts to a provisional permit, which you can use to
enter
The end resu=
lt of
your application should be a residence permit authorising you to live in
When that ex=
pires
you can apply for an extension. You
can do that in
As the rules=
to
change it is worth checking up on the government's website to download the
application form and sees the current regulations, which are reproduced in
English.
A residence permit is what it says.=
It is a permission to live in the country. It does not authorise you to seek
employment in the country or to work on your own behalf in the country. If you wish to do either of those =
things
you will need a different type of permit in addition to your residence perm=
it.
By retiremen=
t we
mean the state of living without being to the active. That is to say, living without eit=
her
being employed or self-employed. To
be retired you do not need to be over state retirement age in the country w=
here
you come from all the country where you are now living. We have a number of clients who ha=
ve
'retired' at the age of 45 or 50.
This does not mean to say that they do nothing. They may be quite active in managi=
ng
their own investments or in activities in the community but they cannot leg=
ally
work in a paid capacity, whether for somebody else all for themselves.
A person wis=
hing
to retire to
They need to=
the
same permit whether they intend to spend the whole year in
Many people =
spend
a lot of the year in
Although obt=
aining
the necessary paperwork can be a pain it is definitely worth doing it you
intend to spend time in
Like most
countries,
Starting a
business in any country is a complex procedure. The steps required are beyond the =
scope
of this book.
The most imp=
ortant
step to take it is to take expert advice as soon as possible. This should be as quickly as possi=
ble
after you have had the business idea and before you spend a lot of time or
money developing it. This is =
because
we, quite often, find that the idea of our client is either going to be ill=
egal
in the country where he wishes to implement it or almost impossible to
implement successfully because of various local conditions of which our cli=
ent
was, perhaps, not aware. Such
advice is not expensive and can save you a fortune.
=
Case
History – The Ice Cream Man Mr Smith
wanted to start a business selling ice cream from ice cream vans. As it happens, it wasn't in He did a=
lot
of research. He decided o=
n the
best type of van and bought four of them. He found a supplier of i=
ce
cream. He decided or free=
zers
he required and bought them. He
bought a warehouse and the yard in which to store his ice cream and van=
s. Eventual=
ly he
contacted us because he was having difficulty importing the vans into <=
st1:PersonName
w:st=3D"on"> It quick=
ly
became clear that the problem was more complex than he thought. Basically (at least at that ti=
me) it
was illegal to sell ice cream from mobile shops or vans. By this =
stage
our client had spent about €400,000 on the vans, the premises and=
the
equipment. He was left to
salvage what he could from the operation. All of t=
his
could have been avoided if he had taken some preliminary advice at a ve=
ry
early stage.
A person wis=
hing
to work in
The rules are
strict. The government is, not
surprisingly, keen to protect its own people from an influx of foreign
workers. They are not constra=
ined
by the restrictions in the other EU countries where European law gives (with
very few exceptions) all European Union citizens the right to work in any o=
ther
European Union country.
Some jobs can
only, legally, be carried out by people of Turkish nationality. These are set out in in the Code of Arts & Services, which dates back =
to
1932, and to various other bits of legislation. Some listed jobs are not surprising -judges, lawyers, pilots and so on=
, but
there are some surprising inclusions in the list. Barber, Photographer & D=
river,
to name but three!
Obtaining a =
work
permit can be time-consuming and, sometimes, tricky but it is seldom imposs=
ible
with a certain amount of ingenuity and application.
The permit s=
hould
be obtained before you leave your own country. It is obtained not buy you but by =
your
employer -- though in some cases the employer will pass the burden of deali=
ng
with the paperwork to you. In
order for you to obtain a permit you need to show that you have been offered
employment, that the skills you have to offer are not available within
You cannot o=
btain
a work permit from within
If you are g=
ranted
a work permit and commence work legally you will, of course, be expected to=
pay
taxes in
Many people,
however, simply do not bother.
Especially in the tourist areas and in
Surprisingly=
, some
reputable organisations offered employment on this basis.
These people=
will
leave the country every three months or so and returned to obtain a new tou=
rist
visa. As with the case =
of
retired people who have decided to stay in the country without a residence
permit, they will sometimes be stopped and told that next time they really =
must
apply for the residence permit if they wish to be readmitted to
They will us=
ually
be paying neither tax nor social security. They are at risk of the
denouncement by their enemies or competitors, detention, fine or deportatio=
n.
Few English people understand anything about Turkish Law. A number of our clients = have been worried that the Legal System might be “exotic” or primitive. This deters = them from buying property there. To complicate matters further, there are very few materials about Turkish Law written in English – or at least in intelligible English.
For this reason, and rather strangely for a book of th=
is
kind, we are going to set out a brief description of some key parts of Turk=
ish
Law. Obviously, any person wh=
o buys
a house in
The Law is a complicated subject. A textbook on Turkish Law would ru=
n to
many hundreds if not thousands of pages.&n=
bsp;
Therefore this very brief guide should be treated as no more than th=
at
and certainly should not be treated as the basis for making any decisions a=
s to
action to be taken or not to be taken in any given set of circumstances.
Ever since human beings began to gather together in so= cial groups ten thousand years or more ago there have been rules or laws. Such communities cannot function i= n the absence of Law. If there is n= o Law there is chaos and constant dispute.
To begin with the laws were simple and customary. In other words they were not forma= lised and often not written down. <= /p>
Gradually these laws became more formal and were recor= ded in codes.
With the advent of the Nation State the power to make = laws became the sole province of the State although some of the older or customa= ry laws were either incorporated into the State’s new laws or were recognised as ancillary to those laws.
Part of the earliest Law – and a major part R=
11;
were the rules of religion. R=
eligion
lays down certain principles of conduct (whatever the religion might be) and
those principles are often the first manifestations of Law. The position of religion in Turkish
society is interesting, particularly since the new
All major religions have their set of religious requir= ements which become religious laws. = In most cases they are static. T= hat is to say, they do not develop over time.&nbs= p; They are treated as the word or the direction of God and, therefore,= as being immutable. They also ha= ve the peculiarity that they are one sided. This means that they impose duties upon you but do not give you righ= ts to ensure that either God or your fellow man complies with his obligations.
When the
As a consequence partly of this and partly of the time=
s in
general, the new
Although we still talk about the Turkish Constitution =
and
the
The first Turkish Constitution of modern times goes ba=
ck to
1839, a time when the whole of
It was amended in 1876 at which time it still embodied=
the
monarchist and theocratic ideals of the
The Constitution was further revised in 1921 and then substantially revised, as a result of the War of independence, in 1923.
This new Constitution declared
In short, it was remarkably like most other constituti= ons built on the classic C19th French 'liberté, égalité, fraternit= é' model – though in this case the major influence was, in fact, the Swi= ss constitution which had, in its turn, been based upon the French model.
A second republican Constitution was implemented in 19= 61, after a further revolution, and a third was implemented in 1982 after a military coup.
That 1982 Constitution has been subject to further ame=
ndment
over the years, but is the basis of the
In
These are arranged in a hierarchy.
Any rules directly applicable to your situation in a h= igh level source override any rules that may conflict with that rule in a lower level source.
The primary source is the Turkish Constitution.
Below that (and in descending status) you have codes &= #8211; such as the Civil Code which are laws passed by parliament, Ordinances - wh= ich are laws passed by the Executive, Regulations – which are rules made under the provisions of a general power in a particular code, By Laws which= are rules made at a local level in order to enforce a code and the “unified” decisions of the Supreme Court. These are published officially and acquire the same legal power as statutes.&= nbsp; These unified decisions are decisions that have been made in the var= ious parts of the Supreme Court of Appeal and which are either all to the same effect or, where there have been differences of opinion, where those differences have been reconciled and one version has been declared to be the correct interpretation of the law. <= /span>
The courts in
Each of those groups of courts has a Central (Supreme)= Court and local Courts.
Local Courts deal with all cases for the first hearing= . The Supreme Courts, with few excep= tions, deal with cases on appeal.
There is generally only one level of appeal rather tha=
n two
as in
The courts are, of course, required to apply the law.<= span style=3D'mso-spacerun:yes'> Article 1 of the Turkish Civ= il Code states that the code must be applied in all cases that fall within it. If no prevision exists ab= out a particular set of circumstances the judge dealing with the case must decide= it as if he himself was the legislator making the Law and do so in accordance = with Legal Doctrine and Case Law. =
This means that the judge will apply the direct instru= ctions of the Constitution, the rules in the Civil Code, the direct instructions of other written sources of Law (Statutes, Regulations etc.) in descending ord= er of importance, and only if none of those covers the situation (which is hig= hly unlikely) does he fall to consider any of the old Customary Law.
The 1982 Constitution is interesting in a number of respects.
Sovereignty belongs to the people.
The supreme governing entity is the Grand National Assembly.
From the members of that Assembly are appointed a Coun= cil of Ministers and the Prime Minister.
The Grand National Assembly comprises 550 members. Members must be aged at least 30 a= nd must have been though at least primary school education and have completed their compulsory military service. They cannot be elected to the members of the Assembly if they have b= een convicted of serious criminal offences.&nb= sp; They sit for five years. They are directly elected by the voters.
The Grand National Assembly’s main job is to mak= e and pass laws.
In common with most common continental constitutions t= here is also a separate Executive.
The Executive is headed by the President of the Republic. He is elected by the Grand National Assembly for seven years.&n= bsp; He can only serve for one term of office. The person elected must be at leas= t 40 years old and have an education up to at least degree level.
The functions of the President are to represent the St= ate and to appoint diplomatic representatives.= He or she “signs off” laws passed by the Grand National Assembly. He or she has the p= ower to reject those laws once and to send them back for reconsideration.
The President also appoints the Prime Minister and pre= sides over the Council of Ministers.
The Council of Ministers is elected from the members o= f the Grand National Assembly. It c= arries out much of the day to day government and Law making.
The Prime Minister has the power to appoint limited nu= mbers of ministers other than form the Assembly.
Firstly it clarifies the ideas surrounding Turkish nationalism and nationality to make it clear that nationalism does not perm= it preferential treatment on the basis of racial identity or racism. In other words, nationalism has be= come nationalism on the Scandinavian model of humanist, peaceful national identi= ty.
The Republic is a State governed by the Law.
The State must respect Human Rights (Article 12). This, of course, is an area in whi=
ch
Administrative Law is something which we do not have in
profusion in the English Legal System.&nbs=
p;
It is the body of Law that governs the conduct of the Government.
Administrative Law is one of the least satisfactory as= pects of Turkish Law because it has not yet been fully codified. More is comprised of principles, d= rafted by the Law makers, and the Case Law established by the Administrative Court= s in their decisions.
Administrative Law is not directly tied into other asp= ects of the Law. It is an entirely independent system of Law. It is therefore not bound by the decisions of the other courts. Thus, for example, if a term is de= fined in the context of Civil Law then that does not mean that the same term will have the same definition in the context of Administrative Law.
Administrative Law developed later than other aspects = of Turkish Law and is still in a state of continuous development.
There are some key elements to Turkish Administrative
Law. I will deal with these i=
n some
detail because they are aspects of the Law that are likely to be of direct
application to foreigners owning property in
The main principle of Administrative Law is the recogn= ition of the concept that the State is subject to the Law. In other words, any action of the = State can be challenged via the legal system.&nb= sp;
This supremacy of the Law is exemplified by the right =
of the
citizen to go to the Administrative Courts to protect their Human Rights, to
protect their entitlements to benefit under the “
Any action of an Administrative authority (including t= he signing of contracts, the making of decisions and the performance of its pu= blic duties) is an “Administrative Act”.
Some of those actions are treated on the basis that the Administration has such overwhelming power that the individual has to be protected from the abuse of that power.&nb= sp;
Other administrative acts – including business contracts – are treated on the basis that the Administration and the person entering the contract on behalf of the business have agreed to do so= on free and equal terms. Contrac= ts where the Government is deemed to have excess power are subject to Administrative Law. Contracts deemed to be between equal parties are subject to ordinary Private Law.
Administrative Acts can be challenged by the individua= l on a number of bases. They can be challenged because they have been taken without legal justification. They can be challenged on the basi= s they have been taken without legal authority and they can be challenged on the b= asis that they are not in the right form.
If they are challenged they can be declared null and v= oid – i.e. as if they had never happened – or they can be cancelled= but remain in effect until the moment they were cancelled.
Any actions in respect of Administrative Acts are made
through the Administrative courts.
The first hearing is at regional level and, on appeal, you go to the=
Municipal Public Administration exists in all districts having a population of more than about two thousand people. They have certain powers delegated= to them from the Central Administration.
Village Administration applies in towns and villages w=
ith a
population of less than two thousand people. It then has a General Village Meet=
ing
(which is the supreme deciding body) which in turn votes for the mayor (
An important concept in
Some of it is public property at the national level an= d some is Public Property at the local level.
At the national level public property includes, most importantly, any property without an owner. Some categories of property are de= emed not suitable for private ownership and, as a consequence, automatically bel= ong to the State. Occasionally the State authorises the private sale of part of this property. This is giving rise to a lot of development on the coast at the present time.
The land that is the property of the State includes al= l land that is unsuitable for agriculture (basically mountainous areas and rocky or marshy areas) the sea shore, forests (other than a few private forests) and historical cultural and similar buildings or sights.
In addition the State also owns the so called “C= ommon Property” which is property designed to be used by everybody, this wo= uld include for example, roads, market squares, cemeteries etc.
This public property cannot pass into private ownership. Most public proper= ty cannot be registered at the Land Registry.= The damaging of public property is the more seriously punished than = the damaging of the private property.
This issue is particularly important if you are thinki= ng of acquiring land or a building built upon land which has been in the public ownership but which has now been passed into private ownership. It is necessary to make sure that = that passing of ownership has been properly undertaken. Alternatively, and more frequently= , land that is in public ownership will not pass into private ownership but will be leased to a private operator for a period of, usually, 60 years. Thus if you buy a property on such leased land at the end of the 60 year period your property will revert to t= he Government.
Private Law is the law that applies to the private individual. Basically it is everything that does not fall within Constitutional or Administrative Law.<= span style=3D'mso-spacerun:yes'> It includes the law that applies to individuals dealing with the State in circumstances where the Administrative Law says that their, for example, contract has to dealt with as a private a= ct.
Civil Law is the main part of the Private Law. It is set out mainly in the Civil Code. That was updated in 2002. It was originally based= on the Swiss Civil Code but has since drifted away from it in certain respects. It is divided into = sections on some general principles, the Law relating to people (persons), Family La= w, the Law of Succession and the Law of Property.
Article 1 of the code lays down the various sources of= Law to which I have already referred.
Article 2 states that a person must act in good faith = when giving !!!!!!!( possible word missing) effect to= his rights and that the Law does not protect the person who abuses rights and unjustly inflicts harm upon others. This concept of abusive rights is important in Turkish Law and can overturn otherwise clear principles or rules. For example, the owner of a proper= ty must use his property in such a way so as not to interfere with the rights = of others (Article 737). He cann= ot, therefore, build a wall around his garden which interrupts the sight of the= sea previously enjoyed by his neighbours. The neighbours will be entitled to the courts for the demolition of = the wall. This concept obviously involves a balancing of the interests of the two parties.
Article 6 of the Civil Code says that the burden of pr= oof is always upon the person who alleges something.
This is divided into two parts. There is the legal capacity to enj= oy rights and be subject to obligations and there is the capacity to act in any particular set of circumstances.
All persons are deemed to have full legal capacity.
The capacity to act can be taken away from you by orde=
r of
the court. For example, if yo=
u have
been in prison for more than one year you lose some of your legal rights.
Capacity to act is recognised in all contracts and is = an important preliminary to the effectiveness of the contract.
People of full capacity can enter transactions on thei= r own and be fully legally bound by the transaction.
Some people have a limited legal capacity. For example, a married couple only= have limited capacity on their own to dispose of the assets that belong to them both. This is again important= if you are dealing with a contract of sale from a married couple where only on= e of the parties is proposed as the signatory to that contract.
Women have exactly the same legal rights as men.
Every year a large number of English people marry Turk= ish people.
A somewhat smaller number co-habit with Turkish people= .
Both of them will come into contact with Turkish Famil= y Law.
Their position is governed by the third book of the Ci= vil Code.
Turkish Family Law is based upon the notion of the aut= hority of the chief of the family an, at first sight in contradiction to the princ= iple of equality of treatment, the husband is deemed to be the chief of the fami= ly.
The minimum age of marriage is 17. Parties under 18 can only marry wi= th the consent of their parents or guardian. In “necessary circumstances” parties can marry at the ag= e of 16 with the order of the court. This is normally when the woman is pregnant.
Turkish Law provides only for monogamous marriage. You can therefore not marry somebo= dy else until your first or former marriage has been brought to an end by deat= h, divorce or nullity.
A woman cannot re-marry within 300 days of her divorce= or widowhood unless she can prove that she is not pregnant or incapable of bei= ng pregnant.
Same sex marriages are not permitted.
Divorce is permitted in
Grounds for divorce are:
a) Adultery
b) Attempt against the life of your spouse or extreme cruelty to your spouse
c) Commission of a felony (serious crime) by your spouse, the leading of a dishonourable = life by your spouse
d) This is a lifestyle that offends against public morals
e) The usual example of this is homosexuality
f) = Desertion for more than six months
g) Incurable insanity
h) Severe incompatibility – have to show that the prospects of future happiness have been lost completely.
Divorce by consent is permitted if the parties have be= en married for at least one year providing they have agreed the legal conseque= nces of their divorce, such as the division of property.
Succession is covered by the fourth book in the Civil Code.
For Turkish people the law lays down who has to inherit what.
If the deceased did not make a will the law passes all=
of
his property to the people named in the law as his intestate successors.
If the deceased did make a will then the law will pass= a percentage of his property to those who are set out in the law as his heirs= but he will be free to leave the balance of his property to those whom he names= in his will.
The general principle of succession is that of “universal succession”. This means that you take not only the assets but also the liabilities. It also means th= at all of the deceased rights pass by succession.
I will not deal here with the Turkish rules on success=
ion
because I have done so elsewhere.
Foreigners are bound by the law of their own nationality rather than=
by
Turkish Law. In the case of E=
nglish
people there are very few constraints on what they can do on their death and
therefore, in effect, they can leave their property in
The Law of Property deals with rights and obligations = in respect of land and buildings.
These are known as Real Rights or Rights In Rem. These are contrasted with Personal Rights or Rights In Personam, which arise in th= e case of, for example, the possession of a car or stocks and shares.
Real Rights are enforceable against everybody. Even somebody who is not party to = the transaction. For example, a r= ight of way passing over a property is enforceable by anybody against the owner = of that property.
Notice that letting contracts are not Real Rights. A tenant only has a right against = the person who granted the tenancy. If the land is sold then the tenant will not have any rights against the new o= wner of the land – subject to one or two exceptions.
Real Rights are divided into two groups. There are so called Absolute Real = Rights and there are more limited Real Rights.&nb= sp;
The Absolute Real Right gives the person the complete freedom to use, dispose of or deal with the property. This is the Mulkiyethakki.
More limited Real Rights include mortgages over proper= ty, Servitudes (such as rights of way) over property or Encumbrances of property.
Real Rights are not brought to an end by the passage of time, however long that time might be.&nbs= p; Lesser rights are.
Real Rights are only fully effective if registered at = the Land Registry.
The Real Rights in respect of property are broken into= three parts. They will sometimes pa= ss together and at other times can be separated. There is the right to use the prop= erty (Usus). = There is the right to enjoy the benefit of the property (Fructu= s) and there is the right to sell or dispose of the property.
It is possible and in some cases advantageous to conve= y the ownership to one person and the right to enjoy the property to another. For example, you could have your s= on have the legal ownership of the property but you might have the right to en= joy it for your lifetime. This wo= uld, in some circumstances, significantly reduce your tax bills.
Foreigners cannot enjoy Real Rights over property in <=
st1:country-region
w:st=3D"on">
The limited Real Rights referred to above are capable = of being enjoyed by foreigners without permission.
The first of those limited rights is the Servitude.
Servitudes in turn can be either Real Servitudes (capa= ble of registration) or mere personal rights.&nbs= p; A Real Servitude continues unabated after the death of either of the parties (in most cases) whereas a personal Servitude does not. Third parties can also be given Servitudes. If it lasts for a= t least 30 years then that Servitude might be registered, for example, it might be a situation where a third party grants a loan in respect of the property or w= here a development is being constructed under a contract giving rights of construction and granting power to dispose of the properties so constructed= .
Mortgages are a separate category of limited Real Right. The detail of rules as= to the content of mortgages are quite complicated and must be complied with strictly. The mortgage right = can be registered.
Other encumbrances can also give rise to limited legal rights. For example, a charge= put on the property to secure compliance with some obligation.
The way of acquiring real rights is set out in the ear= lier chapter of this book.
Although rights in respect of Real property last forev= er this is subject to the provision that prescription (limitation) applies in connection with the acquisition of Real property.
If a person requires a movable property (for example a= car) from a usual place of business and holds it for at least five years without dispute he becomes the owner of it.
If a person acquires Real property form another person= who is the overt owner of that property and continues in possession of it for t= en years without interruption or dispute he becomes the valid owner of the property. There are some limitations to this doctrine.
The ownership of land carries with it the ownership of things under the land down to a reasonable depth and the airspace above the land up to a reasonable height.
It also carries with it the ownership of anything atta= ched to the property as a component part. Though, for example, fitted wardrobes will pass with the land. Anything that can be separated fro= m the property without giving rise to harm or significant damage to the property = is permitted to be removed.
Unless otherwise agreed a spring on your land makes th= e land owner of the water coming out of it.
The Law of Obligations breaks down into three parts.
In Turkish Law obligations between private individuals=
or
between a private individual and the administration where the two parties a=
re
deemed to be equal participants in the venture are governed by this Law.
If a transaction violates those legal limits then it w= ill be null and void.
Some transactions are deemed illegal. A contract to perform a criminal or immoral act, for example, would be illegal and therefore null and void. Similarly a contract for the trans= fer of ownership of land must be made before the Land Registry for it to have legal effect.
Pre-imposed upon whatever the parties may have agreed = is the concept of equity. If, for ex= ample, one of the parties to a contract does not specify a clause to cover a particular situation the court will decide what is fair and reasonable in t= he circumstances. This, of cours= e, is not substitute for having a proper clause in the first place as the outcome= of that deliberation can never be guaranteed.=
Obligations are normally enforceable through the courts.
Legal transactions are generally, but not always, bila= teral transactions. That is to say transactions into which two or more people agree to take a particular cours= e of action.
In these transactions the interests of the two parties= are essentially opposed. I have t= he obligation to pay the price of the property to you. You have the duty to deliver the property to me. T= hese bilateral contracts are enforceable through the courts.
They are enforceable in a number of ways.
Enforced by an order that the person does what he cont= racted to do (Execution) or by an order that the person pays compensation.
The validity of a contract in
A verbal offer lapses immediately if it is not accepted. A written offer lap= ses, if not otherwise stipulated, within w reasonable period or when it is rejected.
This is important if you are putting in an offer to bu= y a property. Generally however a= ny such offer should be drafted carefully by your lawyers because you would not want to rely upon a general provision of this kind. Contracts are considered in terms = of debtors and creditors even where the performance of the contract does not involve the payment of money. Thus the person who has to do something is the debtor and the person to whom the obligation is owed is the creditor. A contract where each party has an obligation to the other and recei= ves and gives something (such as the purchase of a house) is called a Syanallagmatic contract. This is an important distinction b= ecause if one of the parties does not perform his obligation the other party is entitled to suspend performance of his related obligation. If one party only partially perfor= ms his obligation the other party is entitled to respond reasonably.
This is the sort of contract with which we will deal m= ost of the time.
When two or more people enter a contract as either the Seller or the Buyer unless stipulated to the contrary, then they are liable= in equal shares to perform their obligations.= So if one person fails to perform because, for example, he goes bank= rupt you will only have the right to collect half of the money from the other pe= rson. This can be varied by making both parties jointly and severely liable for performance of the contract in which case you can recover the full amount from either party – but, of cour= se, not from both. Contracts beco= me effective the moment that they have been agreed. This is unless the contrary is stipulated.
They can be suspended until a certain action has taken place. These suspensive conditions are very useful if, for example, a person wishes to buy a proper= ty and make sure that it is in good condition by way of a survey before finally committing himself.
If a contract imposes a condition that is a penalty condition that punishes non-performance of the contract a judge can vary the terms of that penalty if he considers it to be unfair.
Certain types of contract have special formalities.
As the name suggests these are obligations that arise = other than by way of a contract.
Torts are wrongful or unfair acts causing injury or da= mage to another person. They are governed by Article 41 of the code of obligations.
Most result form the wilful intention or negligence of= the person committing the damage.
A Tort only arises in circumstances where there is no contractual relationship between the parties.
The action that gives rise to the tort can be either positive or negative. A posit= ive action would be when you did something that positively caused damage – for example, breaking a window. A negative action is when you remain inactive in circumstances where you shou= ld have taken some action to prevent harm – for example, taking no actio= n to help a victim of a road accident.
A Tort is only going to give rise to a claim for compensation if the action taken is not authorised by the Law.
A Tort is also only going to give rise to a claim for compensation or other remedy if damage was caused. Damage may not be physical damage = but could be financial damage or emotional damage.
The action will only give rise a claim for compensatio=
n if
the action caused the damage. This
is defined in several ways. T=
he
definitions generally follow common sense.=
You will see that the law of Tort in
This concept gives a person who has suffered loss as a result of the actions of another person who acted unreasonably or unlawfull= y to seek compensation.
If a person wilfully sells something to another at four times its true value and conceals the status from the Buyer then this could give rise to a claim. If a pe= rson seeks compensation for the payment of a debt and is paid twice that would be unlawful enrichment. If a bank accidentally takes the money twice from someone’s bank account then <= span style=3D'color:red'>you (possibly should be they, as in the bank)wou= ld have to return the excess taken because otherwise there would be unlawful enrichment.
Crimes are actions that are specifically stated to be = crimes and to which a penalty attaches. This is to distinguish them from actions which, although considered = to be wrong (for example, unjust enrichment) are not stigmatised i.e. being ca= lled crimes.
Crimes differ from Torts.
Crime is almost always the result of an intentional act rather than a negligent act. =
In
a) Nobody can be punished for something that was not a criminal offence at the time w= hen he did it.
b) The penalty imposed can only be that laid down by the Law.
c) Nobody is guilty of a crime until their guilt has been determined by a court.
d) Nobody can be compelled to incriminate himself by statement.
e) Nobody can be tried for something done by somebody else.
Crimes are divided into categories. Under the Criminal code there are:=
a) Crimes against the State. These incl= ude the embezzlement of public funds or damage to public property.
b) Crimes against society. These include forgery.
c) Crimes against public order. These i= nclude inciting someone to commit a crime.
d) Crimes against public safety. These include, for example, arson or negligence causing an accident with an aerop= lane.
e) Crimes
against public decency. These
include rape, indecent assault and, until recently, adultery. Adultery was declared by the
f) = Crimes against a person. These inclu= de assaults, murder etc.
g) Crimes against property. These inclu= de fraud, theft and – interestingly – kidnapping for ransom.
Under the Turkish Penal Code there are various categor= ies of punishment. Capital punishment still exists but abolition is being discussed. The nature of the penalty depends = upon the nature of the offence. So= me offences are defined as serious offences (felonies) and they are punished as follows:
a) Heavy imprisonment is a special category of imprisonment which involves imprisonm= ent until the death of the person concerned.&n= bsp; This is normally substituted for capital punishment.
b) Heavy imprisonment is often applied in specific circumstances set out in the legislation. For example, mur= der which is normally punishable by death can be punishable by heavy imprisonme= nt if there was provocation.
c) Imprisonment is imprisonment up to twenty years.
d) Heavy fine is fine up to an amount specified from time to time by the system.
e) Disqualification from public service.
Lesser offences (what we would call misdemeanours) are punishable by light imprisonment for up to two years, a small fine or a disqualification from exercising some trade or profession.
The punishments can generally be applied either indivi= dually or together.
As in all other countries
It covers what happens when a private individual is in= volved in a situation where they can potentially be covered by the law of two countries.
It is an immensely complex subject.
The Turkish Code of Private International Law and proc= edure dates back to 1982.
It covers the rules of Private International Law and t= he ways in which those rules should be enforced internationally.
It has some general principles.
The applicable law is generally determined by the place
where the action took place. =
Unless
the parties have agreed to the contrary a Turkish person and a French person
who enter into a contract in
Torts are dealt with in accordance with the laws of the place where they were committed.
Personal matters are usually dealt with by the law of =
your
nationality. So, for example,=
the
capacity to marry or to inherit is dealt with in accordance with the law of=
the
country of which that person is a citizen.=
This is why generally, a British person can leave his assets in
Family relationships are dealt with, ideally, in accor=
dance
with the national law of both of the parties. Where, however, a marriage is cele=
brated
in
Which ever c=
ountry
you go to live in or in which you decide to buy a holiday home it is always=
a
great idea to learn the language.
Even a few words will make your life much easier and the ability to =
have
a proper conversation with your neighbours, with government officials, in t=
he
bank or in the supermarket transforms your life.
If you are g=
oing
to live in the country it becomes even more important.
This is
particularly true in
Despite this,
relatively few English people who live in
If you going=
to
the language they no doubt that the best and fastest way is to find a Turki=
sh
boyfriend or girlfriend. If y=
our
wife objects to that then you can get almost the same result by going on an
immersion course. This is a c=
ourse
over, typically, two or three weeks when you do nothing but speak Turkish a=
nd
where you should emerge with a grasp of the basics upon which you can then
build. These courses tend to =
be
provided mainly for business people and, therefore, can be quite expensive.=
Most are in
A substitute=
for
the official immersion course is a period of intensive one-to-one training =
with
a native Turkish speaker as soon as possible after your arrival in
If you are g=
oing
to learn the language you have to persevere. Few of us are natural linguists.
In parallel =
with
or following your training you should be reading, listening and -- most
important of all -- using the language at every opportunity.
There are se=
veral
steps you can take before even going to
Do try. Do persevere. Even if you do not become an expert
Turkish speaker you will enjoy yourself a lot more in your time in
Anybody. You will need to prove that you ar=
e over
18 and provide the bank with proof of your identity, your address in
The type of bank=
account
that you will open will depend upon whether you are resident on non-residen=
ts
in
Banking needs vary dramatically from person to person.=
If you are retiring to
We believe that =
it is
important to deal with your local bank if at all possible. It will make you feel part of a lo=
cal
community and, more importantly, will make the local community feel that you
want to be part of them. Who =
knows,
your bank manager might even take you for lunch!
If you have the =
luxury
of a choice between various convenient banks that speak English, perhaps the
most significant factor to take into account would be the bank's charging
structure for receiving money.
Turkish banks charge for absolutely everything. Some charge a lot more than others=
for
the simple task of receiving money that you sent from
If you choose to=
use
HSBC or another "British" bank, remember that they are a separate
Turkish entity and that you are likely to receive the same service as from =
any
other Turkish bank.
Most Turkish ban=
ks offer
excellent – and, for non-residents, really useful – Internet
banking facilities.
Most people will=
operate
a simple current account (vadesiz) and w=
ill
ask the bank to make payments of the electricity, water and other bills by
direct payment from that account. There are no cheque
guarantee cards in
Turkish banks ge=
nerally
pay very little interest on current accounts. Say 0.1%. No change there then. It is therefore sensible als=
o to
have a deposit account. Most =
banks
will arrange for the balance on the current account over a certain sum to be
transferred automatically into an interest bearing account. Interest rates in
If your needs ar=
e more
sophisticated than this, study carefully the various types of account avail=
able
to you. These, and the terms =
of
conditions of use, differ substantially from the accounts you may be famili=
ar
with in
Do not even thin=
k about
writing a cheque on your Turkish bank account if there are not sufficient f=
unds
in that account to cover the value of the cheque. This is a criminal offence.<=
span
style=3D'mso-spacerun:yes'> Bounced cheques also l=
ead to
substantial bank charges and later problems with your bank and others.
There is no reason why you should not retain this acco=
unt
when you move to
These are the su=
bject of
considerable mystique. Many p=
eople
resident in
Whichever bank y=
ou use
and whichever account you open the two most important messages are:
· =
&nb=
sp;
Learn =
to
write the date in Turkish and use the Turkish 7 rather than the English 7 w=
hen
writing cheques.
· =
&nb=
sp;
Rememb=
er
that in
· =
&nb=
sp;
Keep a=
close
eye on your bank statements and reconcile them to the payments you sent to =
· =
&nb=
sp;
Make s=
ure
that you do not write cheques when there are insufficient funds in the acco=
unt
to cover those cheques.
See the section =
on
taxation for more details.
Electricity is s=
upplied
by the state electricity company, TEDAS.
It is cheap by <=
st1:country-region
w:st=3D"on">
When you buy a n=
ew
property it will have to be connected to the electricity supply. You will sign a contract with TEDAS. In some areas you will stipu=
late the
amount of electricity you want (the peak Wattage that you think that you wi=
ll
need) and the tariff you want to subscribe to. Do not under estimate the amount of
power you may consume, particularly during the winter months. If you contract for too little pow=
er
then your supply will keep on cutting out at times of the demand - which is
precisely when you needed most. The
extra cost of contracting for, for example, 15 kW instead of 12 kW is well
worth spending. This wo=
uld be
enough to run to electric fires, a washing machine, an electric cooker and =
the
few lights at the same time. =
It is
adequate for most medium-sized homes. Some holiday homes have
ridiculously limited wattage.
When you take ov=
er an
existing property you will take over the supply that is already connected to
it. You will have to ask the
electricity company to put the supply into your name and in order to do this
will need to produce all of your usual documents (passport, details of civil
status, proof of residence, bank account details etc.) and complete applica=
tion
form. This is hardly done in the big cities when Turks move into a new
property. In the main tourist=
areas
this is a well trodden and painless path. There is a small fee for
this. If you feel that =
the
supply connected to the property is not going to be adequate for your needs
then you can at this stage ask for it to be upgraded. There will be an additional fee to=
pay.
This is all well worth doing in order to avoid any problems in the future.<=
span
style=3D'mso-spacerun:yes'> Any 'old' bill will have to =
be
paid off before you can take over the account.
You can ask your=
local
electricity office to make a special reading of the meter when you take over
the property. The offic=
e, in
rural areas, may be located in the Town Hall
If your house is=
not
already connected to the electricity supply make sure that you get a quotat=
ion
for collecting the property before you commit yourself to the purchase. The cost can be considerable,
particularly if the nearest supply is some distance away..
You will be billed, typically, every month. You will need to make arrang=
ements
for the meter reader to get access to the meter. Electricity bills are usuall=
y paid
in cash at the company's offices. There is a penalty if you pay more =
than
10 days after the date of issue of the bill. The Electricity Company is q=
uite
quick to cut-off non-payers. &n=
bsp;
As the inconvenience of arriving at your house late at night to find=
you
have been disconnected is considerable, make sure that the bills are paid.<=
/span>
Electrical wirin=
g in
Almost all prope=
rty in
These are surprisingly common, including main cities a= nd major tourist areas. Th= ings are getting better. Cut= s can vary from a split second to many hours.
Get a UPS (uninterruptible power supply) to protect computers and other vital equipment. = Get a surge protector to guard sensitive devices. Both are cheap.
Tel=
evisions
in
Properties gener=
ally will
use bottled gas.
Some apartments =
and
other developments in urban areas buy bottled gas in huge quantities and st=
ore
it in their own gas tanks. Th=
ey
then supply the gas to the units in the development by their own pipe system
and charge by meter.
There is a telep=
hone
monopoly in Türk Telecom. Telephone connections are re=
adily
available in all areas – but not for non-resident foreigners, who can=
not
(at present) have a land line.
They can, however, have a Turkish mobile phone. Prepay phones are easier.
Water supplies i=
n
Despite huge engineering projects to bring water from =
plentiful
areas of
The result is restrictions on supply, particularly in = summer months. Some properties= were in the past built with a separate water tank (depo) that could be filled = by tanker. This system has= been reinstated in some areas so that properties have an emergency supply.
Turkish plumbing=
is, in
the nicest possible way, different from English plumbing! Just like you should not usually E=
nglish
electrician to wire a Turkish home so you are ill-advised to use your Engli=
sh
plumber to plumb a Turkish home.
There are many d=
ifferent
types of water heater. Both gas and electric type are in widespread use.
When installing =
a heater
make sure that it is adequate to deal with the times when the property is f=
ully
occupied by people who take lots of showers. Many "standard
equipment" heaters and hot water tanks in older properties were far too
small.
All Turkish tap = water is drinkable – unless marked otherwise.= Not all water from wells is drinkable. Not all of the water that is drink= able tastes nice!
A well is a good
thing! Even though you may no=
t use
it for drinking water it will be an excellent and cheap way of watering your
garden or filling your swimming pool.
Some wells dry up in the summer.&nb=
sp;
Some have gone salt, so are useless. If your property has a well a=
nd you
think that it is going to be important to you make sure that your rights to=
it
and its water are protected in your contract of purchase. If you want to use your well for
drinking water you should get it checked by the health department or by your
local water company who will issue a certificate that it is fit for human
consumption.
Most
rural Turkish properties depend upon a septic tank or its even less complic=
ated
brethren for their drainage. =
For
city dwellers this is a strange concept but there is nothing wrong with
it. A septic tank is, essenti=
ally,
a filter that treats sewage by
breaking it down bacteriologically before disch=
arging
relatively harmless water into the ground.=
There are two types of septic tank commonly found in
Septic
tanks have a natural lifespan, which can be extended by careful treatment b=
ut
cannot be extended indefinitely. If
you have to replace an old-fashioned tank you will have to do so with a new
style tank. You will need pla=
nning
permission.
If
you are replacing the tank make sure that the size is adequate for your
requirements. It should be ba=
sed on
the maximum use of the house and the amount of water that would be generate=
d by
people used to having lots of baths showers etc.. If you install a tank that is too =
small
you will simply have to have it emptied with monotonous frequency and
considerable cost. If you ins=
tall a
large tank emptying will be a rare event and, more importantly for maintena=
nce
and longevity, will not just be a means of disposing of excess volumes of
liquid.
If
you are buying a house with a septic tank have it checked by your surveyor.=
Swimming pools a=
re expensive. There is not just the capital cost=
of
building the pool (typically about £10,000 for a modest pool,
£20,000 for a larger one) but there is the annual cost of maintaining=
the
pool. That can be several tho=
usand
pounds if you are often absent from the property and thus require a
professional maintenance company to come in and treat it - often twice per =
week
in the summer months.
If you wish to p=
ut pool
into an existing property you will need permission to do so. This will involve an application f=
or
what we would call planning permission (ruhsat<=
/span>)
from your local town hall.
The process is swifter if entrusted to a local builder/pool speciali=
st.
As in
Satellite televi=
sion is
available throughout
You will be resp=
onsible
for payment of your community bill.
This is the bill for the services that you enjoy jointly with other
people living in your block of apartments or complex of houses sharing comm=
on
facilities. See the explanation above as to the way in which that bill is
calculated.
These charges are
usually billed either monthly or quarterly. The rules of your community will s=
pecify
the arrangements for billing.
Insurance agains=
t the
risk of earthquake is compulsory, though the cover tends to be limited. Remember that
The main earthqu=
ake zone
is some distance from the area where most foreigners are buying their homes=
. Small earthquakes are a frequ=
ent
occurrence in southern
The taking out o=
f a
multi-risk household policy is only a recent innovation in
Premiums are
comparatively cheap in rural areas, more expensive in
There are three
important points to bear in mind when choosing a suitable policy.
1.&n=
bsp;
Make s=
ure
that the level of cover is adequate.
Just as in
The amount for which you should be covered as far as civil liability =
is
concerned should be a minimum of one million Euros and preferably higher.
The amount of cover you should have for the building itself should be=
the
full cost of reconstruction of the building. If you own an apartment then the c=
ost of
the buildings insurance for the whole block of apartments should be include=
d in
your service charge. You will=
then
only need contents and public liability insurance.
As far as contents are concerned, you should make a detailed estimate=
of
the value of your furnishings and possessions likely to be in the property =
at
any time. Remember to allow f=
or
items such as cameras that you may take with you on holiday. Pay particular attention to =
the
details of this policy and study the small print about what you have to spe=
cify
when taking out the insurance and any limitations on claims that can be made
against it. Notice in particu=
lar
whether there is a requirement to stipulate items of high value. If you have any items of high valu=
e it
is worth having them photographed and, possibly, valued. The insurance company might
specify security measures that must be in place in your home. If you do not use them you may fin=
d that
you are not covered.
2.&n=
bsp;
If you=
are
using the property as holiday accommodation (or spend long periods away from
home) you must specify a policy which is a holiday policy. If you do not you are likely to fi=
nd
that one of the conditions of the policy is that cover will lapse if the
property is empty for 30 or 60 days. =
Premiums will be higher for holiday homes because the risk is higher=
.
3.&n=
bsp;
If you
intend to let your property you must notify the insurance company and comply
with any requirements of the insurance company with regard to the
lettings. Otherwise your cover
could be void. Your pre=
miums
will be higher.
There are some <=
st1:country-region
w:st=3D"on">
If you have to m=
ake a
claim note that there are usually time limits for doing so. If the claim involves the theft or
break-in you will usually have to report the matter to the matter to the
police. This should normally =
be
done immediately after discovery of the incident and in any case within 24
hours. The claim should be no=
tified
to the insurance company without delay.&nb=
sp;
Check the maximum period allowed in your policy, which could be as
little as 48 hours. As with
all-important documents in
There will, inev=
itably,
be other expenses involved with owning property. These will include routine repairs,
maintenance etc..
As a very genera=
l guide
we find that the basic annual cost of owning a holiday home in
Don't.
You will be much=
better
buying a "new" car when you arrive in
Cars in
If you insist on=
taking
your British car you will be able to use it on Turkish roads only for a max=
imum
of six months. A further six months extension may be granted if you apply to
the customs authorities before the expiry of the initial six month period. =
It
can only lawfully be used on Turkish roads when it complies fully with the =
requirements
necessary for use on English roads including the requirements that the vehi=
cle
is tested and taxed. Insuranc=
e will
only be available from British insurance companies and you will have to
disclose to the company the fact that the vehicle is used primarily abroad.=
If you intend to=
keep
the vehicle in
· =
Work p=
ermit
to work in
· =
Reside=
nce
permit
· =
Letter=
from
your employer confirming your employment in
· =
Letter=
of
Guarantee from a bank in
· =
A valid
driving licence
The
minimum age for a class A licence is 18. For car hire insurance purposes cl=
ass
B,D,E and F require a minimum age of 22 and one years valid national or
international licence. Classes G and H require a minimum age of 25 and two
years valid national or international licence. Classes L,X and M require a
minimum of 27 years and three years national or international licence.
Whether
you buy a car in
As a
British (or other EU) citizen you will be able to take your possessions with
you to
A
deposit in respect of customs duties will have to be paid. This will be
refunded to you once you have arrived in
If
your stay in
The most practic=
al way
is to use a specialist removal company, who will charge about £4,000 =
for
taking the contents of a medium size house from the
If you wish you =
can take
the items out yourself, you may be asked when you arrive for an inventory in
Turkish and proof of ownership.
Neither is easy to provide. &n=
bsp;
If you do this you are likely to need to speak Turkish.
The reductions regarding the importation of pets to =
and
from
You are allowed to bring in most domestic pets but if
you own something exotic it is best to check first. Animals other than ordinary pets w=
ould
require a special importation certificate from the Turkish Ministry of
Agriculture. That could have =
conditions
attached to it.
Your main decision is whether you intend ever to bri=
ng
the pet back to this country. If so
you will have to comply with the British rules for the importation of pets =
into
the
If you know that you are not going to want to bring =
your
pet back to this country then all you need to take the pets to
You are generally only allowed to take two animals i=
nto
Once you arrive in