Turkish Real Estate Law: Contracts and Guarantees

Published on October 4, 2025 and written by Cyril Jarnias

In Turkey, the complexity and diversity of real estate law present intriguing challenges for anyone wishing to navigate this vast legal field. With an ever-evolving market, encompassing various aspects such as real estate transactions, leases, and buyer protection, it is essential to grasp the nuances of property contracts and be aware of the different forms of guarantees that protect the parties involved.

Real estate investment, a key sector of the Turkish economy, offers profitable opportunities but requires solid knowledge to ensure legal and financial security for transactions. This article demonstrates how key legal provisions and statutory guarantees serve as crucial tools for securing the rights and obligations of the involved parties.

Real Estate Law in Turkey: Legal Framework for Transactions

The legal framework for real estate transactions in Turkey is based on several fundamental laws governing property ownership, acquisition, sale, and management. The entire system is structured around general codes, supplemented by specific laws, and overseen by various government agencies.

Key Applicable Laws and Regulations:

• Turkish Constitution & European Convention on Human Rights: Guarantee the right to property.
• Turkish Civil Code (Türk Medeni Kanunu): Defines types of properties and governs the creation, transfer, or termination of real rights on a property.
• Code of Obligations (Türk Borçlar Kanunu): Regulates all real estate contracts (sale, lease), specifying their formation and termination.
• Land Registry Code (Tapu Kanunu): Deals with the official property registration system via the cadastre.
• Zoning and Construction Code (İmar Kanunu): Sets rules for urban zoning, construction permits, and occupancy permits.

Supplementary texts exist for urban planning (Urban Regeneration Law), as well as for specific situations like divorce or inheritance.

Government Agencies Involved in Real Estate Regulation:

• General Directorate of Land Registry and Cadastre (Tapu ve Kadastro Genel Müdürlüğü)
  Manages the legal registration of properties and issues official land titles (“Tapu”).
• Ministry of Environment, Urbanization, and Climate Change
  Oversees all matters related to urban zoning and grants or denies permits for construction/modification/occupancy.

Legal Procedure for Real Estate Purchase/Sale in Turkey

1. Preliminary property check at the cadastre (verifying the actual owner’s identity; absence of mortgage or dispute)
2. Prior signing of a private preliminary contract between seller/buyer (optional but common)
3. Gathering required documents:
   • Valid ID
   • Turkish tax number
   • Original land title (“Tapu”)
   • Recent official property appraisal
   • Recent biometric photos
4. Submission to the local Land Registry office for administrative review
5. Mandatory payment:
   • Property transfer tax (~4% of declared value)
   • Fixed administrative fees
6. Signing before a public officer at the Land Registry; official handover of the new “Tapu” title

Step	Required Documents	Associated Fees
Preliminary Check	“Tapu” title, ID	None
Transfer Application	Official form	Administrative fees
Tax Payment	Bank receipt	Transfer tax (~4%)
Finalization	Biometric photo	Notary/lawyer fees

Rights & Obligations in Real Estate Transactions

• The seller must guarantee the property is free of undisclosed mortgages or encumbrances;
• The buyer has the right to full disclosure before signing;
• Both parties must strictly adhere to all conditions stipulated in the contract;
• In case of a dispute following a transaction registered in the official cadastre, the cadastral record holds legal authority.

The legislation provides enhanced protection for each party: possible cancellation in case of proven fraud; judicial recourse available for undisclosed hidden defects; possibility to claim financial compensation.

Acquisition by Foreigners – Restrictions & Recent Developments

Since 2012 (Law No. 6302, a major reform), there is no longer any requirement tied to the strict “reciprocity” principle. Foreign individuals can now freely acquire any type of property where permitted—excluding military zones/strategic regions designated by special decree.

Concrete example: A French national can buy a residential apartment in Istanbul without a local partner or associated Turkish company; they simply need to obtain a tax number and follow the exact same procedures as a national citizen.

Restrictions remain only in certain sensitive territories: acquisition is impossible near national borders/protected military zones/agricultural land subject to specific regulations.

Current Practical Examples

• Standard purchase of a new city apartment through a licensed agency: entire process completed in less than a week after file validation.

Major legislative changes have widely opened the market to foreign investors while simultaneously strengthening legal security through comprehensive centralization via the national electronic cadastral system (“TAKBIS”).

Transactions are now fast and transparent, with digital documentation accessible instantly from any connected Turkish land registry office.

Purchase Contracts in Turkey: Key Points to Know

Definition and Importance of Real Estate Purchase Contracts in Turkey

Real estate purchase contracts in Turkey are legal agreements formalizing the sale and acquisition of a property. They protect the rights of both parties, secure the transaction, and serve as the basis for official property registration. In Turkey, signing a sales agreement before a notary is essential to guarantee the legitimacy and transparency of the operation.

Main Legislations Governing Purchase Contracts

• Turkish Code of Obligations (Law No. 6098, Articles 207-226): Specifies the parties’ obligations and contract validity conditions.
• Turkish Civil Code (Article 705): Requires registration of property transfer with the Land Registry.
• Law on Prevention of Money Laundering (No. 5549): Requires proof of funds for any transaction.
• Zoning Law (No. 3194): Governs urban planning and permits necessary for property acquisition and use.

Essential Steps in the Real Estate Purchase Process

1. Verification of Property Title: Ensure the seller is the legitimate owner and the property is free of debts or disputes.
2. Negotiation and Contract Drafting: Define the price, payment terms, and each party’s responsibilities.
3. Signing the Sales Agreement: Notarized act including property description, price, and payment schedule.
4. Certified Translation (for foreigners): The contract must be translated and certified by a Turkish notary.
5. Deposit Payment: Typically required to secure the transaction.
6. Transfer of Tapu (Property Title): Official registration at the land title office.

Rights and Obligations of the Parties

Parties	Main Rights	Main Obligations
Buyer	Receive a property conforming to the contract, transfer of Tapu	Pay the agreed price, adhere to the payment schedule
Seller	Receive the price payment	Transfer a property free of debts and matching the description

Critical Elements to Verify in a Contract

• Contingency Clauses: Obtaining an occupancy permit, absence of debts or mortgages.
• Termination Clauses: Terms for contract cancellation in case of non-performance.
• Payment Structure: Schedule, deposit amounts, payment methods.
• Compensation Clauses: For delivery delays or non-conformity.

Tax Implications for Buyers

• Nationals: Payment of transfer tax (generally 4% of declared price), capital gains tax for quick resale.
• Internationals: Same tax obligations as nationals, with mandatory fund declaration and compliance with anti-money laundering regulations.
• Other fees may include VAT depending on the property type and transaction nature.

Guarantees and Recourse in Case of Non-Conformity or Dispute

• Recourse to Turkish courts for contractual non-performance.
• Possibility to obtain damages.
• Alternative dispute resolution mechanisms (mediation, arbitration).
• The contract may include specific guarantees, such as penalties for delays or non-conformity.

Tips to Avoid Fraud or Disputes

• Hire a lawyer specialized in Turkish real estate law to review the contract and verify titles.
• Check for absence of debts, mortgages, or easements on the property.
• Request certified translation for any document not understood.
• Never make payments without proof of official registration and notarial validation.
• Prefer transparent, documented transactions with all steps formalized before a notary.

Practical Examples

A foreign investor secured their purchase by requiring an occupancy permit as a contingency clause, thus avoiding acquisition of a non-compliant property.

A dispute over delivery delay was resolved thanks to a compensation clause in the contract, allowing the buyer to obtain financial compensation.

Elements to Verify Before Signing the Contract
Property free of debts and mortgages
Existence of occupancy permit
Clearly stated contingency clauses
Termination and compensation clauses
Detailed payment structure
Certified translation of the contract (for non-Turkish speakers)

Key Takeaway: Assistance from a local legal professional, vigilance in document verification, and transaction transparency are essential to secure real estate purchases in Turkey and limit the risk of disputes or fraud.

Guarantees for Expatriates in Turkish Real Estate Law

Specific Legal Guarantees Offered by Turkish Real Estate Law to Expatriates

Turkish real estate law provides several legal guarantees to protect expatriates during property acquisition and ownership, aiming to ensure legal security and strengthen foreign investors’ confidence.

Types of Guarantees Offered:

Protection of Property Rights:

• Expatriates enjoy property rights equivalent to Turkish citizens, subject to compliance with local rules (notably tax and anti-money laundering).
• Property transfer occurs before a notary or at the land title office (Tapu), guaranteeing the title’s enforceability.

Mandatory Contract Formalization:

• Preliminary sales contracts must be notarized.
• For non-residents, a certified power of attorney is required to secure transactions.

Recourse in Case of Dispute:

Turkish civil courts are competent to handle real estate disputes. Procedures are structured to ensure impartial judgment for both parties.

Guarantee	Description
Right to Access Courts	Possibility for any expatriate to file a lawsuit against any irregularity
Notarial Security	Requirement for notarized act or registration with the land registry
Limitation on Deposits	Legal framework on the amount of required deposits or guarantees

Recent Measures Strengthening Foreign Investor Confidence

• Increased Regulation of annual rent increases through indexing to the official rate, limiting potential abuses.
• Strict Procedure for eviction: mandatory prior notification and court decision required before any actual eviction to prevent arbitrary measures.
• Greater Openness: General absence of restrictions on property purchase by foreigners (except very limited geographic or military exceptions).

Rights and Legal Security During Purchase

• Facilitated access through the possibility to act via certified power of attorney if physically absent
• Clear contractual obligation: written act specifying price, terms, and deadlines
• Recommended systematic verification by a specialized lawyer (checking titles, absence of mortgage)
• Equal rights between foreign individuals and Turkish citizens

State Obligations & Protections Against Fraud/Errors

The state mandates:

• Rigorous land publicity through the public Tapu registry
• Strict regulation of the notary’s role in any transfer

However, there are some important limitations:

In case of “off-plan” purchase, no financial guarantee is legally imposed on the builder; thus, it is up to the foreign buyer to demand their own contractual securities.

Recommended Practical Protections:

• Prior verification with the land registry before final payment
• Systematic consultation with a local specialized lawyer

Concrete Examples:

1. A foreign investor who acquired a property with an encumbered title obtained judicial cancellation after post-discovery thanks to the mandatory check during Tapu registration.
2. An expatriate tenant avoided wrongful eviction because the landlord did not follow the formal procedure required in Turkey (written notification + court judgment).

These measures allow international investors and temporary residents relatively safe acquisition within a legal framework that is now transparent and aligned with current European standards.

Important Note
For “off-plan” purchases, extreme vigilance is required as no public guarantee is imposed, unlike common practices in some Western countries; only your private negotiation truly protects you in this specific case.