Acquisition of Shared Property by Foreign Nationals in Turkey: Legal Framework and Procedures

In recent years, Turkey has become an attractive market for both individual and corporate foreign investors in the real estate sector. However, the acquisition of shared property by foreign nationals in Turkey is subject to specific legal restrictions and procedures. This article examines the legal framework for shared property acquisition in Turkey in detail.

1. Legal Basis

The acquisition of real estate by foreigners is regulated under Article 35 of the Land Registry Law and related legislation.

• Land Registry Law, Art. 35: Foreign nationals may acquire real estate in Turkey without the reciprocity requirement, subject to certain limitations.
• National Security and Strategic Area Restrictions: Some areas (such as military restricted zones and security zones) are off-limits to foreign ownership.

2. Concept of Shared Property

Shared property means more than one person holding ownership rights over the same real estate. Co-owners do not own specific portions of the property; instead, each has rights over the entire property proportionate to their share.

3. Restrictions on Shared Property Acquisition by Foreign Nationals

1. Area Limitation:
   • A foreign natural person may own a maximum of 30 hectares of real estate throughout Turkey.
2. Percentage Limitation in a District:
   • Foreign ownership cannot exceed 10% of the total area of a given district.
3. Approval for Strategic Areas:
   • If the property is located in a strategic zone, approval from the Ministry of National Defense or other relevant authorities is required.
4. Acquisition through Inheritance:
   • Foreigners can acquire shared property through inheritance, but the same restrictions apply.

4. Purchase Procedure

Step-by-Step Process:

1. Examination of the Property’s Legal Status – Checking the land registry records and zoning status.
2. Obtaining Required Permits – For properties in military or security zones, approvals from relevant authorities are mandatory.
3. Drafting the Sales Agreement – Notarization is not compulsory but highly recommended for legal security.
4. Registration at the Land Registry Office – Both parties must apply in person or via an attorney to the Land Registry Directorate.
5. Payment of the Purchase Price and Taxes – Including title deed fees, revolving fund charges, and other applicable taxes.

5. Rights and Obligations in Co-Ownership

• Shared Ownership (Joint Tenancy): Each co-owner has rights proportional to their share but can use the whole property.
• Pre-emption (Right of First Refusal): If a co-owner sells their share to a third party, other co-owners have the legal right of first refusal.
• Usage Agreements: Co-owners may decide, by mutual agreement, which parts of the property each will use.

6. Legal Risks and Recommendations

• Foreign buyers should conduct comprehensive title deed research before acquiring shared property.
• Disputes among co-owners may escalate to litigation, potentially leading to lengthy court processes.
• Seeking professional legal advice ensures smooth handling of permits and sale procedures.

Conclusion

Foreign nationals can acquire shared property in Turkey; however, statutory restrictions, permit requirements, and legal consequences of co-ownership must be carefully considered.
To ensure legal security, buyers should conduct due diligence on the title deed, obtain all necessary approvals, and work with experienced lawyers throughout the process.