UK & Irish Estate Agents Selling Turkish Property to Overseas Investors

It is considerably easier to sell a house in Turkey than it is to purchase a property there. Turks prefer to hire a real estate agent and handle the rest themselves because of this.

A foreigner’s ability to communicate effectively in Turkish and understand the cultural norms will be hindered, thus this guide is here to help you through the process.

 

Finding a Foreign buyer for your home in Turkey

Simple. An estate agent who markets worldwide is a good choice.

Use a professional that has a proven track record and is well-known in the community. Friends in the area or your lawyer may be able to suggest someone.

Consider the most likely sources of your customer. Is your house likely to appeal to a foreign buyer, a Turk from Istanbul or Ankara, or a local resident? Which country is most likely to be interested in purchasing this item if it is sold to a foreign buyer? Select a real estate agent who has experience working with buyers from such areas and who speaks the language and has other relevant abilities.

Many Turks use local press and the internet to market their houses privately (without using an estate agency), but foreigners will always benefit from using an estate agent when trying to find a buyer.

  • Knowing the market and its rates, they can get you the greatest deal on your house.
  • Your property information documentation will be prepared exactly as it would be anticipated in Turkey, which is vital for a Turkish buyer but unnecessary for an international buyer.
  • People who are Turkish will be able to converse with them in fluent Turkish as they tour them about the property.
  • They’ll be able to work out a deal for the property’s sale. Because of the country’s unique cultural context, bargaining takes on an entirely new meaning for visitors from other nations.
  • They’ll work with your lawyer, notary, and land registry to get the deal done swiftly.

We’re not looking to generate more work for real estate agents, but using one is the most logical choice.

The majority of estate agents in Turkey have a good reputation, but various companies target different segments of the market, so conducting some research before selecting an agent is recommended. What you’ll have to do is called “research,” which is a bit of an overstatement. In most cases, you’ll simply need to look at which agents in your region are selling the most property. There are always a couple of obvious leaders in each group.

A well-known and self-contained location, like Istanbul’s historic centre or the harbour district of Göcek, necessitates a choice between selling through an agency who specialises in this area or one who covers the entire city. A good rule of thumb is to list your home with the agents that have the greatest experience with similar properties in the region.

As a general rule, it’s a good idea to make sure that an agent’s office has at least one person who speaks your language well, and ideally a second person who can step in when the first is unavailable.

When selling a home for a profit, agents normally charge 5% commission.

 

How to go about selling a home legally in Turkey

 

Which party is responsible for the sale?

It’s up to you if you want to utilise the agent to sell the property, then hire a lawyer to prepare the contracts and deal with the paperwork, or the other way around. It’s going to cost you a bit more to get this done. To deal with a straightforward sale, the agent’s fee will continue at, on average, 3% of the selling price, and the lawyer’s fee will likely remain at 1% of the sale price (subject to an initial €1,200 cost).

To get started, there are four steps that you (or your lawyer or estate agent) will need to take:

 

Make a contract and a set of supporting documents.

Anecdotally, there is significant evidence that having a suitable document pack considerably boosts the chances of a rapid sale and greatly speeds up the process of completing that sale. In Turkey, pre-prepared documents or sales packs are uncommon.

Documents included in the package include the contract, a copy of your proof of ownership, a copy of your building permit or habitation licence authorising its usage, and (potentially) things pertaining to the property’s safety.

Turkish law prohibits sellers from providing a pre-sale property inspection report, but buyers can request one if they so choose, and it’s not uncommon for them to do so.

There should be a translation into your own tongue as well as the languages of any other prospective consumers if you’re going to have a document pack. The document pack must be in Turkish. A two-column layout makes this the easiest to do.

In certain cases, clients from countries like China don’t speak Turkish or English well enough to grasp the terms of their agreement with us. The contract should first be written in Turkish and English, the two most commonly spoken languages in Turkey, before being translated into Chinese. Additionally, if the customer is fluent in another language, we may supply independent translations into that other language.

 

Respond to the buyer’s inquiries, whether technical or otherwise.

Inquiries concerning whether the drapes are included in the sale, when the pool was last serviced, and whether or not your construction licence is valid are just a few examples.

Your real estate agent will be able to answer some of these questions. To begin with, nearly all of them are sent to the real estate agent. The estate agent will then recommend those who need to go to the lawyer to the lawyer, and those who need to come to you to you.

 

Attend the property’s transfer of title signing.

In front of a Land Registry official, this will be done (Tapu Ofis).

A Power of Attorney can be used to designate someone else to sign on your behalf if attending in person isn’t feasible (note that each person named in the legal title must be present). See our Guide to Powers of Attorney in Turkey for more details.

 

Obtain the requisite sum of money

When selling a home in Turkey, you’ll be most concerned with how much money you’ll make.

In most cases, the buyer is expected to pay a deposit of 10% of the sale price when they sign a contract to buy the property, and then the rest of the price when they sign over the property’s title. First, the estate agent or your lawyer will keep 10% until all paperwork has been signed, at which point you will get the remaining amount (less any fees and taxes).

The course of action in a court case

It’s a lot like buying a house, except that there are a lot fewer steps involved. See our Guide to Buying a House in Turkey for information.

 

Taxes and other charges

When selling a home in Turkey, you’ll have to pay a slew of fees and costs.

You’ll have to cope with the following:

  • Your utility and other accounts will be closed when you pay all of your payments.
  • Keeping track of your tax obligations. If you’re planning to travel out of Turkey, this is a need.
  • Disclosing who will foot the bill for the transfer tax. However, this tax (4%), which is traditionally shared between the buyer and seller, can be negotiated in any way. Some merchants demand that the customer cover the entire cost.
  • Don’t forget to pay the estate agent and the lawyer. Most of the time, they’ll make sure they have enough of your money on hand to cover their costs.

Your Turkish tax obligations

If you’re planning to leave Turkey after selling your home, you’ll want to make sure your Turkish tax records are up to date. All necessary taxes must be paid, such as property taxes for the current year, as well as personal tax returns for the current year and the previous year.

In Turkey, there are several kinds of taxes.

If you sell your home within five years after purchasing it and earn a profit, you will have to pay taxes. See our Taxes on Individuals in Turkey page for more information.

Your own country’s taxes

Depending on your nationality and where you generally reside, you may also be required to pay tax on the capital gains you have achieved in your own country. Most of the time, a double taxation agreement exists between your nation and Turkey, allowing you to deduct taxes paid in Turkey from any tax obligations owed “back home”.

You’ll need to verify the specifics of Turkey’s tax deal with your own nation first. Having a lawyer on your side can help you with this. In order to learn more about double taxation treaties and which countries have signed one with Turkey, please see our Guide to Double Taxation Treaties in/with Turkey.

 

Selling your Turkish property may necessitate further actions on your part.

If your property is part of a larger complex, it is customary to inform the community’s president in person that you have sold it. This also protects you from being pursued by them if the new owner fails to make good on his obligations.

Insurance policies can be cancelled in respect to a property. A refund may be due to you.

You should inform your bank of what you’re up to. Bank accounts in Turkey may require a different sort of account if you wish to retain one there.

 

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