Obtaining an appraisal report, which is a document outlining the property’s value, is required in order to complete the title deed transfer for foreigners buying real estate in Turkey.
Buying a home in Turkey? Here’s everything you need to know about property valuations:
The Importance of the Appraisal Report and Why it’s Mandatory
A property appraisal report has been mandatory for any international property sale of Turkish real estate since 15.02.2019.
One of the most important reasons the Turkish government obligates appraisal reports when foreigners buy property in Turkey is because it aims to guarantee that buyers from outside the country are getting a fair deal and are not being taken advantage of throughout the buying process. This measure also counts as a further safeguard against tax evasion by construction companies.
When it comes to investing in Turkish real estate for citizenship purposes, the appraisal report will reveal if the property’s valuation qualifies it for obtaining Turkish citizenship.
What Does the Appraisal Report of a Property Include?
A real estate appraisal report in Turkey includes the following information:
- Real photographs of the property (including under-construction properties).
- Title deed information.
- The property’s location is on the map with the coordinates.
- Current debt situation and technical status is given by Land Registry and Cadastre General Directorate.
- Estimation of the purchase price.
- Prices of similar properties in the area.
An appraisal report contains a wide range of facts about a property however, it does not directly state if the property’s information is appropriate for purchase. Therefore, seeking guidance from real estate professionals such as Nevita’s experienced specialists is essential in order to understand what is ideal to buy and what is likely to cause future problems.
How is the Property Appraisal Report Prepared?
An appraisal report is conducted by qualified appraisers who are certified by the Capital Market Board (Sermaye Piyasası Kurulu). The SPK-certified appraisers inspect the plans, the title deed, and the municipal records. Meanwhile, they make a site visit to ensure that the property shown is the one being purchased as well as verify the pricing of the property.
Depending on the features of the real estate, the appraisers generate the report using one of three methods. Either by comparing the property to other properties that are similar to it, estimating fair value based on the property’s generated revenue or by considering the cost of constructing an identical property.
Documents Needed to Apply for a Property Appraisal Report
To request a property appraisal report for a property purchase, the following documents will be necessary:
- Passport copy of the buyer.
- The title deed of the property.
- Address of the property.
Time Required to Complete the Appraisal Report
The preparation of a property appraisal report in Turkey takes no more than 3 days in metropolitan cities, while in other cities may take as long as 6 days.
Duration of the Appraisal Report’s Validity
As mandated by the Land Registry office, the report is valid for 3 months. A new report can be requested if the validity term of the existing one expires.
Cost of Property Appraisal Report in Turkey
The cost of a property appraisal report in Turkey would approximately be 2000 TL, depending on the location and attributes of the property. Buyers pay this fee directly to the Real Estate Appraisal Department of Land Registry and Cadastre.
For Further Information Contact Nevita ®
If you have any questions or want to learn more about property appraisals in Turkey, don’t hesitate to contact us. Our real estate specialists are ready to address any concerns, so get in touch with us today!