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The real estate appraisal law in Turkey came to preserve the rights of foreign investors when buying a property in Turkey.
So what is the real estate evaluation? What is its purpose? What are the details and criteria of real estate evaluation? What are its latest updates?
Real estate valuation in Turkey: goals, details and criteria
The main objective of introducing the real estate appraisal law in Turkey was to protect foreign investors in the Turkish real estate market.
What is the real estate evaluation in Turkey?
The mandatory real estate appraisal decision was issued by the Turkish Ministry of Housing and entered into force in the beginning of 2019.
The law issued on 02/15/2019 under the number 1/2019 stipulates the necessity of obtaining the real estate evaluation by the competent authorities when starting the procedures for obtaining a tapu.
Obtaining a real estate appraisal was mandatory for those wishing to obtain Turkish citizenship, but the amendment that took place in the law obligated everyone who sells real estate of any kind to foreigners in Turkey to be subject to appraisal.
A list of companies approved by the Turkish government has been issued and no real estate evaluation issued by any party not included in this list is accepted.
What is the aim of the real estate evaluation?
Real estate evaluation aims to protect foreigners from any manipulation of the real estate price. Where it is based in principle on the evaluation of the property price for several factors:
Property area and date of construction: The total area of the property is considered, its type in case it is commercial or residential and the age of construction.
View: The property is evaluated from the point of view if the property is overlooking the sea, for example, or if the property overlooks a main street ... etc.
Services: such as swimming pools, gyms, parking lots, etc. The quality of services will play a big role in raising the value of the property.
The legal status of the property: It is a search in the legal papers related to the property such as licenses and making sure that there are no obstacles with regard to the transfer of ownership between the seller and the buyer, such as the presence of a reservation mark on the taboo, for example.
The surrounding real estate: When evaluating the real estate, the price of the surrounding real estate is looked at and a comparison is made between the foreign real estate’s price and the real estate surrounding it.
Real estate appraisal law details
-It was necessary for a foreigner who wants to buy a property in Turkey in order to obtain Turkish citizenship to obtain a real estate evaluation that proves that the value of the property is 250 thousand US dollars or its equivalent in Turkish lira.
However, the law has been updated to include all real estate purchases in Turkey by foreigners to ensure they get real property prices without any manipulation.
-The report on real estate evaluation in Turkey is valid for three months from the date of issuance of the report.
-It takes a maximum of three days to produce a property evaluation report.
There is a new update on this law to include all transactions of buying and selling real estate in Turkey, regardless of the parties involved.
So, if a Turkish citizen wishes to purchase a property, whatever its price and whatever it was, the property should be evaluated
This step would increase the credibility of the Turkish real estate market.
The real estate evaluation report in Turkey includes:
-All the details of the title deeds.
-Real estate photos.
-Real estate location and coordinates.
-Similar real estate prices in terms of style, region and all variables.
-Notification of the property's debt situation.
-Price match.
-The approval of the Geographical Survey Directorate.
In addition to circulating the Real Estate Appraisal Law on all real estate sales and purchases in Turkey, regardless of the nationality of the parties, A recent amendment was made requiring the price of the property be treated in the title deed in order to preserve the rights of the parties involved in the buying and selling of real estate in Turkey.
And what’s worth mentioning is emphasizing the necessity of not resorting to real estate evaluation companies that are not licensed by the Turkish state, as the reports issued by unlicensed entities from the government are not accepted.