There is a set of common real estate terms for every investor who wants to own a property in Turkey, as it is considered an essential guide for everyone who would like to enter the real estate investment market in Turkey.
Having an idea about it would help you avoid falling into legal trouble or being defrauded by some fake companies.
Therefore, in this article, we will shed light on the most common terms in the real estate field, including buying, selling, or leasing a property in terms of the legal and financial points of view.
The title deed (Tapu)
After completing entire sale procedures including the payment process, the ownership of the property is transferred to the new owner through an official document called (Tabu) which includes all property information of the new owner. By Tabu, the property owner is verified legally and usually issued by the Real Estate Registry Directorate.
Deposit is the first payment that represents a buyer’s good faith to buy a property. If the buyer is no longer interested in completing the purchase of the property, he will not be able to take back the deposit, according to the terms of the contract text, which might vary from one contract to another. The rate of deposit is usually about (2.5%) of the total value of the property.
It is one of the common types of property sales. Both the buyer and seller enter into an installment agreement in which the buyer agrees to make a down payment and pay the rest of the amount of the property price over a term of time, determined in the contract.
Upon signing the property contract, the ownership of the property is legally transferred to the new owner. The property owner assigns the property ownership to the buyer for a certain amount of money according to the agreement of the parties.
Real estate broker
The real estate broker is a mediator that negotiates and arranges transactions between the customer who wants to buy the property and the property owner (the seller), in exchange for a certain amount of money called commission. However, the real estate broker should be legally licensed by the Turkish Mortgage Authority.
Real Estate Investment
It is the process of buying a property such as an apartment, shop, or land to get profits. The property is resold at a certain premium called capital gains. Real estate investment also represents property renting by which the property owner can earn monthly returns (rent).
A mortgage is a debt secured by the collateral of specified real estate property that the borrower must pay back with a set of payments as well as interests. The borrower can use the property as he wants, but he is not entitled to sell it until he completes all the monthly installments with the interests, and only then becomes the owner of the property legally.
Real Estate Development
Carrying out various real estate projects to sell them and get capital gains. The real estate development can include establishing new residential or commercial projects or a total or partial repairing of old properties to resell them.
The process of estimating the market value of a property is based on specific economic factors and feasibility studies that are carried out by professional companies called real estate appraisal companies with a legal license. The real estate appraisal company provides services to real estate companies and brokers to define a fair price for their customers.
The amount of money that is usually defined by real estate brokers in exchange for the services they provide as a mediator between the seller and the buyer. The commission might vary from broker to broker. However, it is usually based on a specific agreement between parties, the broker, on the one side, and the seller and buyer on the other side.
The last stage of the real estate construction process includes procedures, such as internal and external decoration, and providing basic services such as electricity, water, and gas that make the property suitable for use either for housing or commercial purposes.