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While you search for apartments for sale in Istanbul, there are many abbreviations and terminology used in real estate
as well as lots of terms that are only used in the Turkish market.
The following article is a guide to some of the real estate terms used for renting, buying or selling a property in Turkey.
It should be noted that the following terms are not legal terms or complete definitions and the aim is only to provide general guidance only to seekers of apartments for sale in Turkey. You must necessarily communicate with your real estate company who is experienced in real estate issues before buying real estate in Turkey.
Purchasing contract vs the Title deed “Tapu”
During the approval of the offer by the construction company, a contract is established between you and the real estate company. Once you have signed your purchase offer, it will be installed and documented for both parties (buyer and seller) to abide by the terms of this contract. During your purchase of a residential complex in Istanbul, for example, this contract will be signed after the reservation payment is made to the property owner to complete the agreed property price and payment method.
The purchase contract differs from the title deed or Tabu. The Tabu is a document that confirms your full ownership of the property and authorizes you to act in the whole property such as the sale or lease or mortgage. Those interested in ownership in Istanbul residential complexes should know that some construction companies that offer the possibility of payment by installments and receive the title deed after the first installment, then the deed of ownership is for the construction company and can not become otherwise until the last payment.
Down Payment vs Deposit
The initial payment is the amount initially paid by the buyer to finance the purchase, usually as a percentage of the total purchase price. In Istanbul residential projects, the initial payment amount varies between 20% and 50% of the property price, which means that the buyer will pay 20% of the purchase price in advanced.
The amount of the reservation is the deposit that is paid only to confirm the intention of buying and booking the property at the closing price that was agreed upon, which is often between 700 and 2000 USD.
Mortgage loan vs installment payment
Many people do not differentiate between the mortgage loan and the purchase of the property by installment of the price of the construction company for years.
The installment payment to the construction company does not contain any interest.
Once the parties sign the purchase contract, the buyer has all the rights to use the purchased property except the sale of the property until the full value of the property is paid.
A mortgage loan in Turkey is a secured loan that is specifically linked to real estate, through a Turkish bank that provides this service. Once the loan is fully repaid, if the monthly installments of the loan are not paid, the bank can book the property and dispose of it completely.
Purchase costs (or closing costs)
The total expenses paid by the buyer after the signing of the purchase contract to start the procedures of the transfer of property and payment, including these expenses, warranty fees and documentation and translation of contracts and attorney fees and fees for registration of documents and property insurance.
The typical apartment ( model )
Is the design of the apartment model or apartments contained in the residential complexes which is still under construction, the typical apartment building is separate from the project to be presented to those interested to buy some unites in the of the project, which is similar to the unites to be delivered after purchase.
Real estate valuation
Determining the real market value of the property with the help of licensed real estate valuation experts, which is an obligatory procedure before buying and selling real estate in Turkey.
Finishing the property
Completion of the apartment after the completion of the construction process and provide all necessary to be habitable, and in Istanbul residential complexes, the construction companies are working on the complete finishing of the property and provide it even with some necessary electrical supplies.
Transfer of ownership of the property
Means the ownership of the property and the title of the property shall be transferred from one person to another or from the owner of the property to the buyer with a financial consideration equal to the value agreed upon in the contract of sale.