• Buying and selling real estate is only possible through the land registry office.
Unless this happens, any promissory notes, notarised statutory forms or deeds will be null and void in the transfer of the title to the buyer. The title to a real estate only passes to the buyer if the purchase takes place at a land registry or before a land registrar.
• It should be investigated whether the seller is the actual owner of the real estate in question.
In order to determine if the potential seller is the actual owner of the real estate in question, the title deed should be checked. We use the title deed to compare and contrast the identification details of the potential seller against the details of the owner as set out on the title deed. However there are occasions when this alone may not suffice. To avoid the possibility of a forged title deed, an application should be made to the land registry where the identification details will be checked alongside the property’s details.
• It must be verified that the real estate you wish to purchase is the one that has been shown to you.
A title deed lacks the address’ details of a property. That’s the reason why we should check the real estate’s cadastral map at the cadastral directorate to correctly pinpoint the location of the real estate. Moreover, before the consummation of the sales, we may ask the land registry to allow us to review the property’s project. This way it is possible to see if the site of the potential real estate on the project is the site of the property that the potential buyer has seen, with all its fronts and facades.
• A check should also be taken to see if any charge, encumbrance or other restriction is connected with the real estate’s registry which may block its sale, affect its value, or in any way affect the buyer.
A title deed does not indicate if there is any restriction that would block the sale or affect the value of the real estate. However by using the information of the land share, parcel, plot, or independent section in the title deed, you can access the land register page of the related immovable property. All of the restrictions related to the real estate’s registry can be disclosed by checking its land register page. If there are certain charges over the real estate, the buyer should decide whether to proceed with the transaction after carefully considering the consequences of such restrictions.
The management plan should be obtained from the land registry and reviewed. A management plan shows the rights and obligations of the property’s owners. As these rights and obligations will pass to the buyer upon the sale of the real estate, the management plan is critical.
• It should be checked to see if the property is under construction servitude or condominium ownership.
On a title deed, there is a cross (x) against either the construction servitude or condominium ownership options which indicate the status of a property. Condominium servitude is created over a building whose construction is in progress, or is planned to be. While condominium ownership is applicable for those completed buildings with an occupancy permit, meaning that its license is in compliance with the project. If the license to the real estate to be purchased is available and the construction works have been completed in line with the license regulations, the municipal planning authority will issue an occupancy permit. A condominium ownership is to be created afterwards. This is the reason why one should check if there is a license, or anything which is in breach of the project, during the purchase of a property with construction servitude, in order to avoid future problems when the buyer wishes to move to condominium ownership.
• The real estate’s zoning status should be checked, as should whether or not it has been issued with an occupancy permit.
A real estate’s zoning status should be checked at the relevant cadastral office in whose borders the immovable property is situated. The reasons, for which the property has been designated as per the zoning plan, should be inquired. If a residence is to be purchased, confirmation is necessary to confirm that the property is situated in a residential area. Other properties in the vicinity of the potential real estate should also be checked according to the zoning plan, as this will probably affect the value of the property.
• An enquiry should be made as to whether there are any overdue property taxes.
Municipality sources and records may be checked to see if there are overdue taxes for the real estate for the current and previous years. If there is an overdue property tax, both the buyer and the seller shall be liable for its payment. It is therefore essential to check this matter.
• It should also be checked to see if the property has a current tenant.
In case a tenant is found to be occupying the property, the lease contract should be carefully examined. If the tenant has made a commitment of discharge, the date on the letter of the commitment should be checked against the lease contract date.
• The purchase price to be reported to the land registry should be commensurate with the fair market value of the real estate.
Either the buyer or the seller reports the purchase price of the potential real estate to the land registry. This value should be above the fair market value of the real estate which shall be disclosed by the municipality. The right thing to do here is, in fact, to report the true (correct) purchase price of the real estate to the land registry. But most parties set the purchase price lower to cover the expected costs of taxes and charges. This decision should be carefully considered as it may lead to fines to be charged to all both in the future.
• Experts should be consulted.
Real estate purchase poses material risks, and for this reason, there is a strict need for professional help. The risk inherent in a sale between two parties without the assistance of professional help is much higher compared with those conducted with professional guidance. Analysis of the charges or restrictions of the title deed, detailed project inspections at the municipality or land registries, and the compliance of the customer’s stipulations with the land registry’s, are all critical issues for the future of the investment, which call for professional support backed by experts. In order to ensure these checks are thorough, professional services built with the expertise of professional advisors, such as SAĞLAM TAPU and PROPERTY RISK ANALYSIS, should be used.
Av. Hatice Akay