Valuation reports have become obligatory for Turkish properties being traded to or from foreigners
According to the Circular no. 1795 of 15 Feb 2019 from Turkey’s Environment and Urban Ministry, General Directorate of Land Registry and Cadastre, Department of Foreign Affairs, a valuation report will be required when transferring a title deed of a property to or from a foreigner.
The new rule was made applicable as of 4th of March 2019.
This means that every foreigner who wants to purchase or sell a property will be needing a valuation report prepared by a valuer certified by the Capital Markets Board of Turkey (SPK) and accredited by the Turkish Banking Regulation and Supervision Agency (BDDK) - a list of which is to be found at BDDK's website.
For details and further information please refer to the original circular and the translation of the relevant part of the text below:
1) As of 4th of March 2019 a real estate appraisal report will be requested submitted for all sales transactions where the natural persons of foreign nationality are either buyer or seller,
2) Valuation reports submitted during the acquisition application shall be valid for a period of three months from the date on which the valuation reports are issued. (Appraisal reports shall be deemed valid until the completion of the transaction by applying within three months from the date of issue.)
3) In case the said immovable is subject to new sales transactions within three months, the existing report shall be deemed valid and no new report shall be requested,
4) If any circumstances that changes the value of the real estate is observed from the registry (such as amendment of type of property, abandonment of part of the plot to the road, constitution of landed servitude etc.) a new appraisal report shall be requested irrespective of the duration,
5) The title deed transfer fees of the transaction shall continue to be collected as stated in the tariffs No. 4 attached to the Law on Fees numbered 492 and the market value (current market value / current state value) in the appraisal report shall be shown in the official deed as a table,
6) The value of the appraisal report shall reflect the value on the day of the transaction for the structures de facto completed on the ground and as regard to uncompleted/properties under construction with landed servitude, the value of which will occur when the building is completed,
7) The submitted valuation reports shall be scanned and fully transferred to TAKBIS in accordance with the provisions of the Circular (e) and shall not be physically stored but returned to the related person.
(The original circular in Turkish from the General Directorate of Land Registry & Cadastre)
Valuation report in relation to the purchase of real estate for the Turkish citizenship of foreigners were already mandatory since 2017.
Mr. Levent Kineşci, the CEO & President of ETU Homes, answering to the point, said that this new rule will secure safer trade environment for foreigners not being misled regarding market value of the properties that they want to buy nor facing surprising taxes when they sell their properties. Mr. Kineşci added that such appraisal reports typically cost around 300 € but ETU Homes' clients will not be affected as the company pays for all costs regarding the purchase process.
Valuation reports are expected to become mandatory for all property trades between Turkish citizens as well in 2021.