Mortgages Turkey | Property Finance
Turkish Mortgages

New Legislation regarding Mortgages in Turkey

The Turkish Deputy PM Abdüllatif Şener said at the end of last year that the new Turkish Mortgage Legislation would appear on the Parliamentary agenda early this year (2007).

Mr Sener stated: “The atmosphere in Turkey, the stability, the institutional structure and the existence of autonomous institutions are the most significant guarantees for foreign capital. We should assess the debates and declarations within this framework. The government has taken and will continue to take steps to improve the investment milieu to give a boost to foreign capital investments and we are now receiving an intensive foreign investment inflow.".

Mr. Sener continued:"The legislation has determined the legal dimensions and the room for maneuver for various institutions. It says that Turkey is an open country for foreign capital and that the inflow can’t be blocked. This discourse is a gain for the wealth of our country.”

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How does this effect the Turkish Property Market?

The availability of mortgages on Turkish property means that the demand for property in Turkey is set to increase drastically. Overseas home buyers who are investing in property in Turkey today are set to take advantage of incredibly low property prices before the Turkish property buying boom begins.

Turkish Property Legislation

Property ownership is descibed in article 35 of the Turkish Constitution. This article stipulates that anyone is entitled to ownershipof a property in Turkey subject to some restriction under Turkish law.  These restrcitions apply mainly to land ownership.

Property Registration and Delivery

In most EU countries the buyer and seller go to a public notary to have the property put in the name of the new owner. The notary is responsible for the completion, which often takes place in the form of a ‘deed of transfer’ and entry in the property register.

The entry of ownership of property in Turkey in the property register in Turkey is not performed by a notary, but by an official of the Property Registry Department. Both sides (the seller and the buyer) must be present at the entry.  An other person for either oarty can be authorised by proxy deed. As an additionsl security measure, it is also advisable to authorise the sale through an independent registered notary.

The property register will issue  a document of proof of ownership, which is called ‘Tapu’. The ownership is only obtained at the moment that the building(s), if under construction, has been completed and the full amount has been paid.