Understanding Pre-emption Rights in Turkish Real Estate
2024-03-30
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Are you thinking about buying or selling real estate in Turkey? Owning property in Turkey gives you various rights, including usage, pleasure, and the opportunity to sell. But what if another person has an opinion on the transaction? This is where preemption rights come in. This guide will explain what pre-emption is, who owns these rights, and how they affect your purchase or sale.
Table of Contents
What Is a Pre-emption Right in Turkiye?
In Turkish property law, a pre-emption right, known as Şufa or Önalım Hakkı in Turkish, gives some persons the priority to purchase a property before it is sold to others. This implies they can match another buyer's offer and purchase the home themselves.
The right of pre-emption is one of these limitations and is regulated under the Turkish Civil Code numbered 4721 dated 22.11.2001 ("TCC")
Pre-emption rights exist to protect persons who have a pre-existing interest in the property. For example, it protects co-owners from having to split ownership with a stranger if one of them decides to sell their portion.
Understanding pre-emption rights is crucial for both buyers and sellers of Turkish real estate. Buyers must be informed whether someone else has the right to purchase the property first. On the other hand, sellers should be aware of any rights of first refusal that may limit their ability to freely sell the property.
Related: Legal Aspects of Buying Property in Turkiye.
What Are the Types of Pre-emption in Turkiye?
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In Turkey, pre-emption rights are classified into two types:
- Legal pre-emption: This occurs automatically under the law in certain cases, such as between co-owners of a property.
- Contractual Pre-emption: This is achieved by a special agreement between the property owner and another party that grants them the right to pre-empt if the owner decides to sell.
Who Has Legal Pre-emption Rights
Co-owners: This is the most common scenario for legal preemption. If a property is jointly held by several persons (co-owners), any co-owner who wishes to sell their part must first make it available to the other co-owners.
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Neighbours (limited situations): In some cases, adjoining property owners may have a legal pre-emption right. This is particularly typical in rural regions, where traditional land ownership patterns are highly valued. For example, suppose Zeynep owns a large tract of agricultural property adjacent to Hasan's farm. In this specific area, there might be a legal pre-emption right for neighbouring landowners. If Zeynep decides to sell her land, Hasan might have the right to purchase it before it's offered to someone else.
Is There Any Restriction on Exercising the Preemption Right?
According to Article 733 of the TCC, if real estate is sold at auction through an execution procedure by the Execution Offices, the pre-emption right cannot be exercised.
How Does a Pre-emption Holder Exercise Their Right?
Here's how a pre-emption holder, whether with a legal or contractual right, might use their privilege under Turkish property law:
Notification
The pre-emption holder must be notified of the sale. This notification should include the selling specifics, such as the agreed-upon price and any special conditions. In cases of legal pre-emption involving co-owners, it is often the seller's responsibility to notify the holder of the pre-emption right. In contrast, when pre-emption is based on a contract, the manner of notice is stated in the contractual conditions between the property owner and the pre-emption holder.
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Timeframe
There are two crucial deadlines when it comes to legal pre-emption:
- 3 months: This is the time limit after getting a notification to bring a lawsuit against the new buyer.
- 2 years: This is the whole time frame from the date of sale to which the pre-emption holder can exercise their entitlement.
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The period for exercising the right under contractual preemption will be specified in the agreement. Depending on the terms, it might last anywhere from a few days to a year.
Matching the Offer
To use their preemptive right and acquire the property, the holder must match the third-party buyer's offer in its entirety. This includes agreeing to the same purchase price specified by the seller and the third-party buyer, as well as adhering to any extra conditions of the original selling agreement, such as payment methods and closing dates.
Payment
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The pre-emption holder must generally deposit the purchase price and any registration fees into a court-designated account (for legal pre-emption) or use the payment mechanism specified in the agreement (for contractual pre-emption).
Related: Your Guide to Property Tax in Turkiye.
Choose Imtilak Real Estate And Buy With Confidence
Purchasing property in Turkey is an exciting idea, but legal complexity such as pre-emption rights can cause unnecessary concern. Imtilak understands these challenges. Our expert real estate lawyers are here to help you negotiate the laws, guaranteeing a smooth and successful purchase or sale.
Contact Imtilak to Buy Your Turkish property seamlessly.
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