What is real estate appraisal in Turkey and what are its importance and advantages?

What is real estate appraisal?

A real estate appraisal is a detailed report that shows the market value of the property according to specific criteria. It is also one of the official papers necessary to complete the Tabu registration transactions in real estate sales to foreigners in Turkey, and it bears special importance in the matter of determining the value of the property that grants its owner the right to apply for Turkish citizenship.

Real estate appraisal steps

The evaluation process is done by submitting an official application online with the aim of evaluating a property, and then the Title Deed Department nominates a list of evaluation companies approved by the Turkish government so that the concerned person or his agent chooses one of them, and the evaluation fee is fixed and standardized for all companies Real estate appraisal and in all Turkish states.

Where a price list for evaluation services is issued in which the official fee for evaluating the property is determined according to its type and area, and this annual price list is published in the Turkish Official Gazette.

We summarize the real estate appraisal steps as follows:

• Foreigners’ real estate appraisal requests are submitted through the Title Deed website of the General Directorate of Land Registry and Land Survey in Turkey, or by calling the Customer Service Center at 181.
• The concerned person (the buyer or his agent) can start the real estate appraisal transactions by choosing the transaction he wants to perform via the "Evaluation Transactions" menu on the site.
• The stakeholder can follow the evaluation transactions, or re-evaluate through the same page.
• The fee for the evaluation report shall be paid by the concerned party.
• The application will be submitted to the relevant evaluation company according to an algorithm that distributes work in the electronic "property evaluation information" system, which is equipped with an algorithm that ensures the best completion of transactions and achieves justice in giving priority to applications.
  

What is the importance of real estate appraisal in Turkey?

The importance of real estate appraisal in Turkey is highlighted in several aspects:

1. Turkish citizenship can’t be obtained without real estate evaluation, unless the purchased property is covered by the exemption from real estate evaluation, as is the case in projects with government partnerships, such as Emlak Konut projects and municipal projects.
2. The real estate appraisal report is a necessary condition for taking the title deed document, and therefore whoever does not receive this report is not entitled to own real estate in Turkey.

What are the advantages of real estate appraisal in Turkey?

The advantages of the real estate appraisal report can be summarized in the following points:

• Preventing price gouging with the aim of blocking real estate fraudsters who want to sell cheap real estate at exorbitant prices.
• Increasing the level of comfort and security for those wishing to invest in real estate in Turkey.
• Giving confidence to the foreign investor wishing to obtain Turkish citizenship in exchange for a property, that the property he bought is worth the offered value and can invest in it in the future and make profits commensurate with its price.

Who is responsible for real estate appraisal in Turkey?

The Title Deed Directorate is the main reference that the foreign investor resorts to submit a real estate appraisal request so that the Title Deed Directorate assigns real estate appraisal companies to prepare foreign real estate appraisal reports in Turkey.

The real estate appraisal report must be prepared by independent and specialized companies licensed by the Banking Regulatory and Monitoring Corporation. The list of these companies will be announced on the corporation’s website, as the real estate appraisal website of the mentioned corporation will be the approved one, and reports that will be issued by the bank will not be accepted. Before persons or companies of real estate appraisal companies in Turkey if their name is not announced on this website.

Real estate appraisal report in Turkey

Regarding the real estate appraisal report, a circular was issued by the General Directorate of Land Registries and Land Registries of the Ministry of Environment and Cities in the Republic of Turkey on February 15, 2019, under the number 1/2019, and it began to be implemented from the date of 3/4/2019, and this circular stipulates the necessity of Foreigners obtain a real estate appraisal report.

Important information regarding real estate appraisal:

• Exemption from evaluation when purchasing from government institutions:

Foreigners wishing to own property with the aim of obtaining Turkish citizenship will be exempted from the real estate appraisal report in sales made through Emlak Konut and other government institutions, and projects with government partnerships.

• Determining the validity period of the report:

The legal period for the validity of the evaluation report that a foreigner obtains when applying to purchase a property in Turkey with the aim of obtaining Turkish citizenship is three months.

The evaluation report that was made upon submitting the real estate purchase application will be valid for use in all transactions related to real estate ownership that were applied for during the validity period of the report.

• Sufficiency of the old appraisal:

In the transactions of undertaking not to sell for 3 years in order to obtain Turkish citizenship in exchange for a property, the foreigner will not be asked for a new evaluation report other than the one that was submitted when ordering the purchase of the property, even if the old real estate evaluation report exceeds its legal period of three months.

• The right to benefit from the evaluation for another person as long as it is within the specified period:

The completed appraisal report for real estate at the request of a foreign person will be used by another foreign person to apply for owning the same property unless it exceeds its legal validity period of three months.

Example: A real estate appraisal report was organized by an Iraqi citizen (A, E), and then another foreign citizen (Azerbaijani R.N) applied to obtain Turkish citizenship by purchasing this property within a period not exceeding the validity period of the first report, then he would be able to ( Azerbaijani R.N) Use the evaluation report made for the same property in the name of the Iraqi (A, E).

Frequently asked questions about real estate appraisal in Turkey

• Is real estate appraisal mandatory for all types of real estate in Turkey?

Yes, and this is not only for those who apply for Turkish citizenship after buying real estate but for those who buy and sell real estate from foreigners in Turkey in general.

• Is it possible to apply for Turkish citizenship through a property without a real estate appraisal?

No, except for purchases from real estate with the government guarantee

• Is real estate appraisal in Turkey in dollars or in the Turkish lira?

In Turkish Lira.

Edited by Imtilak Real Estate ©

Reference: General Directorate of Land Registry and Land Survey, Zingat & Ihlas Agency

Did you like this topic? You can share it with your friends now.