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Tuzla mahallesi. Sadi Pekin cd. No: 30. Fethiye - Muğla

info@turkishcoasthomes.com

Power of Attorney ( POA )

This month we have 3 property sales to complete. A couple of which our clients can be not be here in person therefore they will give (POA)  power of attorney to authorise another person who is present here in Turkey to handle all the proceedings on their behalf.

This can be done in the UK with a professional solicitor who knows the buying/selling process in Turkey. (We can recommend) if required. They will draw up the POA in English with your personal details and what is to be included within the document such as signing over a property, handling and transfer of money/bank account .

Required documents to give a power of attorney – Your original passport and its translation, tax number and two passport photos.

The current estimated cost in the UK with courier notary and apostil stamp is 410 GBP for 1 signature 440 GBP for 2 signatures (please note this may vary from professional to professional and the services included in the fee)

The POA document will then need to be officially translated in Turkey by a professional registered approved translator at the notary with an authorised stamp .

Estimated cost 10.000 TL – 12.000 TL (250 GBP – 300 GBP) again this can vary from the services provided.

If you are already present in Turkey and believe that at a such time it will be more convenient for you to give POA to another trusted authorised person for either selling or buying property/land.  The POA can be drawn up in Turkish at a local notary providing all the information needed this document will stand for as long as the period you request at the time.

Estimated fees same as above.

We hope that you found this information of some use and could be helpful to you in the future.

TCH Estate agent information and advice

We like to provide our clients and those of you whom maybe interested in the future of either buying a property in Turkiye or selling your property in Turkiye with a little more information on the current situation and what it involves if you are seeking to relocate.

For those interested in buying for main residence purpose

1. Not all areas are suitable for this circumstance the government makes the decision on which towns a new foreigner coming to live and take residence permit in Turkiye. Currently the areas we cover Fethiye, Calis, Ciftlik, Koca Calis, Uzumlu, Gocek, Seydikemer are all suitable for all year round living.  Ovacik and Hisaronu they are not granting any new residency permit that we are aware of to our knowledge. There are still available properties in Ovacik and Hisaronu for a foreigner to purchase for the application of Turkish Citizenship for example.
2. Some properties are NOT suitable for main residence as the land they are built on maybe classed as tourism or commercial land or even certain zones where foreigners are not allowed to purchase. Each parcel of land is marked out and we as an estate agent can check the situation with individual plots.
3. The current requirement to allow a person to get residency permit is you must be the owner of a property which has a declared value of 200.000 USD the equivalent value in T.L on that date. This value is NOT determined by the selling price alone. When a foreigner is purchasing property there is a compulsory survey/exper report done this shows/classifies the government value NOT the actual selling value however it should be a close figure.
4. If you are a married couple then you are both eligible to get residency permits. If you are buying in joint names however not married and wanting to live here permanently you should be officially retired in the UK and be able to prove your pension income. Otherwise only one of you will be able to get the residency permit. ( If you are young free and single your laughing all the way with your application for residency )
5. You maybe interested in a property which looks to be suitable from what you have seen i.e. location ticks the box, price ticks the box. However, the property needs to qualify to the same affect.

For those of you looking to sell for whatever reason

1. You should have owned your property for more than 5 years, otherwise you could come across capital gains Tax. We can advise on each individual case as your estate agent.
2. Your property may not be suitable to all buyers, Self-explanatory
3. If you are looking at downsizing for example and still want to continue living here, again you need to check the property you are buying will qualify for the residency requirements in the current status.

We hope you found this of some interest. We are here to assist and advise all our clients. You are all always welcome to pop in if just for a tea/coffee and chat or maybe if you have any query no matter how small.

Please note we are giving this information the best of our knowledge at the present date. Regards TCH Team.

Compulsory Survey is a legal required document when purchasing a property in Turkey.

The evaluation process is done by submitting an official application online to evaluate a property in Turkey.

One of the legal documents needed for a foreign national to buy property in Turkey is a official survey which is conducted by a registered recognised professional to evaluate the property.

İt is also a requirement for a local Turkish national should they be buying a property with a Mortgage.

The report is processed in Turkish language and can be several pages long. Your estate agent can explain the text in English.

The Tapu department nominates a list of evaluation professionals approved by the Turkish government.

Within the text it shows the properties legal status of location and size in comparison with similar properties within the area.

İt is noted if any of the building has been built not to the original architecture construction plans. The room sizes and balconies will be shown to the floor plan.

There are examples of value to calculate the worth of expected rental income.

There is a calculated amount of the property given in line with the local government mapping system.

When declaring the property amount on the Tapu the new owner should be stating a figure close to this provided by the survey.

The survey is applied for and paid online your estate agent will assist you in this service.

İt will take 2-3 working days for the report to be completed.

The current fee is 14.000 TL please note this can differ in property size and location.

All the above information provided is correct of December 2023.

Some useful information today on the Tapu transfer application process and documents required :

From the buyer DAB certificate, I D form , photo, passport, DASK , survey report.

From the seller, I D form, passport , photo / POA, TAPU

‌We give in all these documents to the official land registry Tapu office for the Tapu application.They put through all the information into the system to check all is legally correct and there are no outstanding debts taxes on the subject property.

We then wait for a text message saying all is ready to pay the property purchase Tax. This is done either online or at the determined ATM bank. Once this is done and the seller has received full payment part bank transfer part cash. ( As agreed in the sales contract )

Both parties / whoever’s POA will be present at the Tapu office to sign over the property. For a foreign national an official translator must be used.

In the official TAPU room both parties will be explained what they are signing over. Once this is accepted both will sign in the land/property registration book . This is a secure procedure and is done within a camera recorded room. The new Tapu is then draw up according and presented to the new home owner .

DAB Certificate explained

In an attempt to protect the Turkish Lira and the economy, Turkey has introduced a new legislation for all foreign buyers purchasing property in Turkey. When making the final payment prior to the title deed transfer, the foreign buyer needs to pay the amount declared on the property deeds (TAPU) in Turkish Lira (TL). Previously the purchase could be made in any currency. For example, a UK Buyer and a UK Seller used to be able to complete the whole transaction in GBP. This new legislation has made the process a little more complex.

Now a foreign buyer/buyers must pay the amount declared on the TAPU in TL. The Buyer will need to exchange their foreign currency to TL on the day of the title deeds transfer. When exchanging the money, TCH will advise the bank that the transaction is for the purchase of a property and the bank will issue a DAB certificate to confirm the foreign currency exchange has taken place in relation to the property being purchased. This DAB certificate is now part of the paperwork required by the deeds (TAPU) office. Please note if you are purchasing in more than one number the amount will need to divided and shown on an individual DAB certificate for each person .

If the Seller is Turkish, they may be happy to receive all of the final payment in TL or at least the TAPU value in TL and the remaining amount in a foreign currency. However, when the Seller is a foreigner, they may require the whole amount to be paid in a foreign currency. These details should be confirmed in the Sales Purchase Contract issued by TCH.

When the Seller requires the whole amount to be paid in a foreign currency, the Buyer will need to make a second foreign currency exchange to convert the TL they bought to obtain the DAB certificate to the foreign currency specified by the Seller. It is important to note that buying and selling exchange rates differ. The buying rate is always lower than the selling rate and this is standard worldwide. Due to the difference in the buying and selling exchange rates the buyer will inevitably lose money over the two transactions.

Exchange rates are impossible to predict, therefore the amount of loss on the day of the two foreign currency exchange transactions is also impossible to predict. It has become common practice and seems only fair that the loss on the day is shared between the Seller and Buyer. Again, these details should be confirmed in the Sales Purchase Contract issued by TCH.

Example:

• The Buyer is using GBP to purchase a property.
• The Seller is wanting to receive all of the final payment in GBP.
• Exchange rates as of 02.05.23:
• Bank in Turkey buys GBP @ 24.2787 TL
• Bank in Turkey Sells GBP @ 25.8257 TL
• The amount declared on the TAPU is 2,000,000 TL.
• The Buyer will need to exchange 82,376.73 GBP to receive 2,000,000 TL.
• (2,000,000 TL divided by 24.2787 TL = 82,376.73 GBP)
• After the DAB certificate has been received, the Buyer will need to buy GBP with the 2,000,000 TL. 2,000,000 TL will buy 77,442.24 GBP.
• (2,000,000 TL divided by 25.8257 TL = 77,442.24 GBP)
• Over the two transactions the Buyer has lost 4,934.49 GBP.
• (82,376.73 GBP minus 77,442.24 GBP = 4934.49 GBP)