Acquiring real estate in Turkey—whether for personal investment, corporate development, or as part of a broader business strategy—requires careful and comprehensive due diligence. Neglecting pre-acquisition controls can result in costly litigation, project delays, or even annulment of property rights. This article outlines the legal, technical, and practical aspects of due diligence that real estate investors must perform before acquiring property in Turkey.
1. What is Due Diligence in Real Estate?
Due diligence in real estate refers to the process of investigating, verifying, and assessing a property’s legal status, physical condition, financial background, and regulatory compliance before acquisition.
In Turkey, this process is especially critical due to:
- Complex zoning and title systems
- Rapid urban development and transformation projects
- Foreign ownership limitations in certain areas
2. Legal Due Diligence Checklist
A proper legal audit of a property includes the following core components:
a) Title Deed (Tapu) Verification
- Confirm ownership through Tapu Sicil Müdürlüğü (Land Registry Directorate)
- Ensure seller is the registered owner and authorized to sell
- Check for multiple ownership, usufruct, or mortgage rights
b) Encumbrances, Liens, and Annotations
- Investigate whether the property is subject to:
- Mortgages
- Easements
- Judicial restrictions
- Tax liens
- Cautionary annotations (şerhler) (e.g., inheritance claims, lawsuits)
Access to this data is available via:
- Official title deed extract (Tapu Kaydı)
- Web-Tapu online system (for authorized parties)
c) Zoning and Land Use Status (İmar Durumu)
- Obtain zoning status from the local municipality’s urban planning department
- Determine permitted:
- Building height
- Density (Taks/Kaks ratios)
- Function (residential, commercial, mixed-use)
- Is the plot part of a planned zone or unregulated area?
Projects built outside permitted zoning are subject to demolition orders or legal nullity.
3. Construction Compliance and Permit Status
If the property is a building or project under construction, further checks must be performed:
a) Building License (Yapı Ruhsatı)
- Has a valid construction license been granted?
- Is the building being constructed in accordance with approved architectural plans?
b) Occupancy Permit (İskan Belgesi)
- Required for completed structures to be legally inhabited or used
- Without this, connections for electricity, water, and gas may be denied
c) Violation and Fine Records
- Is there a record of municipal penalties, zoning violations, or unauthorized structures?
A real estate company must verify these through:
- Municipality inspection reports
- Satellite and architectural plan comparisons
- Field surveys, if needed
4. Environmental and Risk Assessments
For larger or strategically located plots (e.g., near coastlines or forests), the following evaluations are recommended:
a) Environmental Impact Assessment (ÇED Raporu)
- Mandatory for industrial, tourism, or large-scale residential projects
- Without a valid EIA, construction can be halted by the Ministry
b) Natural Disaster Risk
- Check if the plot is located in:
- 1st or 2nd-degree earthquake zones
- Flood risk areas
- Landslide zones
Access data via:
- AFAD (Disaster and Emergency Management Authority)
- Municipality GIS systems
5. Tax and Financial Checks
Before acquisition, the buyer must ensure the property is free from tax liabilities and priced fairly:
- Check for unpaid property taxes
- Verify if capital gains tax or value-added tax (VAT) applies
- Ensure the price reflects market value, especially in citizenship-related investments (minimum $400,000)
It is also prudent to:
- Commission an independent real estate valuation report
- Review the seller’s tax compliance history (especially for corporate sellers)
6. Litigation and Dispute History
A key part of legal due diligence involves determining if the property is involved in ongoing legal disputes:
- Pending lawsuits on ownership, inheritance, or eviction
- Bankruptcy or enforcement proceedings against the seller
- Court orders (e.g., sales bans, protective measures)
This data can be sourced from:
- UYAP (National Judicial Network System) for registered attorneys
- Direct inquiry at the courthouse with power of attorney
7. Utility and Infrastructure Status
Before acquisition, ensure that the property:
- Is connected to electricity, water, and sewage systems
- Has legal access (public road or servitude path)
- Is not in an area subject to urban renewal or expropriation
Infrastructure bottlenecks can drastically affect value and usability.
8. Ownership and Authorization Verification
When dealing with:
- Corporate sellers, verify signatory authority, board resolutions, and tax registry
- Power of attorney (POA) holders, ensure the POA includes explicit selling authority and is notarized
Fraud and unauthorized sales are a serious risk in Turkey—especially for foreign buyers.
9. Cross-Border Considerations for Foreign Buyers
Foreign individuals or companies must perform additional due diligence under:
- Land Registry Law Article 35: Ensures the plot is not in a restricted zone
- May require military clearance (especially for border cities or coastal plots)
- Citizenship-seeking investors must obtain a valuation report from SPK-approved firms
Failure to follow these rules can result in cancellation of title, loss of investment, or citizenship rejection.
10. Role of Professionals in Due Diligence
A robust due diligence team includes:
- Real estate lawyer (for legal analysis, contract drafting)
- Surveyor or architect (for zoning and technical compliance)
- Independent appraiser (for fair market value)
- Tax advisor (for transaction structure and tax efficiency)
Professional support is not optional—it’s a legal shield in a system where verbal assurances are often unreliable.
Conclusion
Real estate due diligence in Turkey is a multi-disciplinary process that encompasses legal, technical, financial, and operational verifications. Whether purchasing a single apartment or a large land parcel for development, neglecting even one step can lead to irreversible losses.
To protect the investment and secure long-term legal certainty, buyers—especially foreign investors—should approach property acquisition not as a mere transaction, but as a regulated legal operation, guided by qualified experts.
INTERN LAW FACULTY STUDENT
YAĞMUR YORULMAZ
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