Turkey: to Buy or Not to Buy

Imagine…..  you’re on the beach, the sun is beating down on your back, in the background you can hear the sound of the waves lapping on the shore.  You’re comfortable, happy, relaxed.  The locals are friendly, and you feel as though you have found a ‘little piece of heaven’. 

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So… you get to thinking how nice it would be to have a place of your own out here.  The cost of living is less than at home, the property is at an affordable price, like everywhere at the moment there has been a slow down in the real estate market – so maybe you would get a good deal? Besides, there’s so much to do and see in Turkey – it isn’t just about sun kissed beaches and beautiful turquoise seas. 

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The whole fabric of Turkey is entwined in history and culture, east meets west and encompasses everything from historical artifacts and architecture to modern package holidays in the sun and even skiing in the north. If you are interested in ancient architecture and history there are the ancient cities of Troy, Ephesus and Miletos to visit, to name but a few.  If you like shopping there are plenty of bazaars full of hidden treasures for the bargain hunters and of course the cosmopolitan city of Istanbul to visit.

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New historical discoveries such as Gobekli Tepe in Eastern Turkey - which could possibly be the true Garden of Eden offer event he most seasoned traveller new, ancient and interesting places to visit.

But – enough of Turkey and it’s alluring features, let’s get back to the issue in hand – to buy or not to buy… that is the question.  Whilst many people have bought property in Turkey without any problems, in recent years there have been a growing number of buyers that have encountered problems due to the buying process.  ‘Caveat emptor’ let the buyer beware.  In Turkey if you find a property you like, especially an off-plan or new build, there appears to be a misunderstanding leading many a prospective buyer into what can only be described as a ‘kâbus’ – nightmare! 

Let me explain, when you find a property you like and decide to buy it, you sign a contract between yourselves and the vendor.  Nothing odd there, you would think – but here is where the misunderstanding begins, where as in the UK you would expect this to secure your purchase, in Turkey it is merely a ‘promise to sell’.  This is where it gets complicated.  Many a purchaser has naturally assumed this is the same as when you exchange contracts in the UK, so have parted with their hard earned money and duly waited for their property deeds – their ‘tapu‘.  This is an easy mistake to make as after the contract is signed – many agents and developers hand over the keys to the buyer and even help them to furnish the property.  All very nice you may think, you can move in straight away – even if the funds take a few days to transfer – providing everything runs smoothly.  If it doesn’t – then the kâbus (nightmare) begins. 

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Recently there have been a large number of problematic cases where foreign investors have bought properties in Turkey. Having followed the usual purchasing process,  even paying the full asking price only to find that they do not own the property and have lost their investment.  Thus ending up in lengthy legal battles, sometimes lasting for years, leaving the buyer out of pocket and owning nothing.  How can this happen? In some cases builders or land owners have borrowed money against properties to finance further builds, this appears to be legal as the buyer does not own the property until they receive the deeds (tapu).   Prospective buyers have been totally unaware until they have queried why they have not received the tapu.  As foreign purchasers have to undergo military clearance there can be a period of several months when the builder or land owner raises money against the property.  The only way to check is to go to the Land registry and enquire as to whether there are any debts against the property.  You would expect the lawyer dealing with the transaction to do this, but it doesn’t appear to be happening.  Once a debt is put on the property it is very difficult to secure the tapu until the builder or land owner has paid it off, or a lengthy court case ensues.  Some properties have been repossessed by banks, auctioned off and have new Turkish families living in them. Foreign nationals are prohibited from bidding at these auctions, and usually the properties are sold for a fraction of a the original purchase price, and unfortunately when this happens the whole contents of the property are auctioned at the same time.  There have been cases of this happening and the foreign purchaser has been totally unaware of the situation, returned to Turkey to find their house and belongings are legally no longer theirs.

The best way to avoid this happenening is to check for debts against the property, and only pay a deposit to the agent or builder until the  Tapu is available.  Then and only then, part with the remainder of the money owed. Or alternitively, avoid new builds and purchase a second hand property with the Tapu already in place.

So if you plan on buying in Turkey in the near future – ‘Caveat  emptor’ beware! Check there are no debts against the property.  Do this yourself and don’t rely on anyone else.  Make sure you get receipts for everything, so if anything does go wrong you can prove what you have paid for.  Behave vigilantly, as you cannot expect things to work the same way as you would when buying at home – and remember you are parting with your hard earned money, perhaps your life savings.  You are buying in a foreign country with different laws and different business practices, no matter how nice or friendly your agent or builder is – you are the best person to deal with your business and will have your best interests at heart.