Attorney at Law / Partner
14 May 2019
Appraisal Report Obligation for Sales of Real Estate to Foreigners
As per the Circular dated 02/15/2019 and numbered 2019/1 published by the Ministry of Environment and Urbanization General Directorate of Land Registers Foreign Issues Department, the land registry offices are informed that an appraisal report of the real estate must be required during the sale and purchase of real estate by a foreign real person.
The real estate appraisal report must be issued by an appraiser company authorized by the Banking Regulation and Supervision Agency in accordance with the article 11 of the Regulation of Banks Getting Appraisal Services and Authorization and Activities of Establishments Giving Appraisal Services to Banks.
The parties shall apply to the land registry office for the sale transaction within three months of the issuance date of the appraisal report and a new report must be taken for applications not made during this period. If the same real estate is subject to other sales agreements within the three-month period, then the report shall be deemed valid and no new report is required from the parties.
A new appraisal report must be taken, regardless of the three-month period, in case there has been a change of type, expropriation for roads, and registration of an easement right regarding the property.
The sales price, same as the previous regulation, shall be set by the parties not being lower than the market value and it is not mandatory to state the value of the appraisal report as the minimum sales price.
Above mentioned regulation only covers the foreign real persons and not the legal entities. The purpose is to protect the foreign real persons, prevent high pricing and unrecorded work in the construction sector and it is aimed to increase Turkey’s brand value on foreign investments.