During the last few years, the title deed count issued by the Tabu Directorate in Turkey has increased significantly, in conjunction with the increasing demand for buying and selling real estate in the country on the domestic and international level, as the real estate market in Turkey has witnessed a remarkable prosperity as a result of the high demand from the foreign investors, either for residence, or for Real Estate Investment , or in order to obtain the Turkish citizenship.
Definition of Title Deed in Turkey:
Title deed known as tabu is the document the proves ownership of a certain property to the owner in a legal manner, it has the name and a photograph of the owner, the type of the property and its location, in addition to its size and detailed information, this document gives the right to the owner to use the property by selling, renting, or investing, and the owner cannot prove their ownership to the property without this document which is issued by the Land Registry Directorate of the Turkish Ministry of Environment and Cities.
What is the Title Deed Tax in Turkey?
It is a tax that is 4% from the property price, this tax should be paid to the Tabu Directorate branches in Turkey during the process of transferring ownership of the property from the seller to the buyer, it is usually paid by the buyer, this tax in Turkey is considered relatively low and is rather a tool to attract foreign investors, as this title deed tax can go as high as 12% in some European countries.
What is Included in the Title Deed in Turkey?
1. Address of the property.
2. A photograph of the property owner.
3. The name of the owner, their ID number and nationality.
4. The financial condition of the property.
5. The registration number of the land which the building is built upon.
6. The type of the land, and if its qualified for construction or not.
7. The total land size which the real estate project is built upon.
8. The property size with the floor number and building number.
9. The value and the price of the property in Turkish liras.
10. Registration information before and after the purchase.
11. The signature of the person responsible for organizing the issuance of the title deed in Turkey.
Types of Title Deed Documents in Turkey:
There are two types of title deed documents:
First: The red title deed and its issued to residential properties, constructable lands included in an organizational scheme.
Second: The blue title deed and its for field real estate and agricultural land.
Types of Title Deeds Related to the Types of Tabu in Turkey:
1. Agricultural Lands Title Deeds:
It is the title deed related to agricultural lands or lands with field attribute, which gives the owner the right to do all types of agricultural projects such as: agriculture, poultry, and livestock breeding, and in case these lands were used outside of their legal context, like building residential buildings, Its owner is subject to legal accountability.
2. Building Title Deeds in Turkey:
Building title deed includes general information about the documented property, it’s special to the houses, warehouses, palaces, villas, as well as restaurants and schools.
3. Real Estate Easement Title Deed in Turkey:
It is an ownership document that registers each part of the property separately, like registering each apartment inside a building individually which allows each investor to get their real estate equity from the building.
4. The Floor Easement Title Deed:
It is the title deed that reserves the right of the owner in obtaining their residential unit within a certain floor inside the building, it also serves as confirmation that the building has been completely constructed in accordance with the Building Code of Turkey.
5. Commercial Real Estate Title Deed:
It is the title deed related to commercial properties such as: offices, shops, warehouses, etc.. from the real estate unites used for commercial purposes.
6. Transitional Title Deed (Timeshare System):
It is an official document that reserves the right of ownership for a certain period of the year, given that the usage period is determined within the document, this type of documents is popular for vacation properties and so on, and by this document the owner have the full ownership right from selling and renting and moving ownership to others, but according to the period determined within the transitional title deed.
7. Full Title Deed:
The owner can extract this document after fully finishing the property construction, this includes information such as: property type, number, location, in addition to property equity from the construction land, and in this case the property is granted the right in easement or full ownership.
Title Deed Obtaining Procedures in Turkey:
1. The conclusion of the purchase contract between the buyer and the seller.
2. Ownership transfer application.
3. Payment of the agreed value of the property.
4. Signature of both parties on the purchase documents in the Tabu Directorate.
5. The buyer acceptance of the new title deed with their name which proves their ownership.
6. If the buyer is a foreigner, a certified translator should be present so the Tabu employee can verify that the buyer understands all the terms of the title deed document.
Required Documents to Extract the Title Deed from the Real Estate Registration Office:
1. ID document for the seller and the buyer.
2. A recent photo for the seller, and two photos for the buyer.
3. A document from municipality about the property’s condition.
4. Earthquake insurance document.
In case of buyer or seller absence, a certificate of authorization can be presented to the real estate agent, in addition to an official authorization certified by the Turkish consulate and the notary to finish the procedures.
