LEGAL RISKS AND PROTECTIVE MEASURES IN REAL ESTATE PURCHASES IN TURKEY

Introduction

Real estate investments are among the most important investment instruments for both individual and corporate investors. However, the purchase of real property is not merely an economic decision but also a transaction that gives rise to significant legal consequences. In particular, failure to adequately investigate the legal status of a property may result in substantial financial losses for the purchaser and legal disputes that may continue for many years.

For this reason, during the process of purchasing real estate, not only the physical condition or market value of the property, but also its legal status, should be examined in detail. The principal legal considerations to be taken into account in real estate acquisitions in Turkey are discussed below.

I. Examination of Title Deed Records

The first and most important stage of a real estate acquisition is the examination of the title deed records.

The title deed records reveal:

1. The identity of the owner;
2. The nature of the property;
3. Its surface area;
4. Information regarding independent sections;
5. Ownership shares; and
6. Existing rights in rem and restrictions over the property.

The purchaser should first verify whether the person selling the property is indeed the legal owner. In particular, where a sale is conducted through a power of attorney, the scope and validity of the power of attorney should be separately examined.

II. Investigation of Annotations and Registrations on the Title Deed

Annotations and registrations recorded in the land registry may directly affect the use and transfer of the property.

Particular attention should be paid to the existence of the following entries:

1. Family residence annotation;
2. Annotation of a promise to sell;
3. Preliminary injunctions;
4. Attachments and liens;
5. Enforcement proceedings;
6. Lease annotations;
7. Usufruct rights;
8. Rights of superficies;
9. Easements of passage and other easement rights.

The existence of such records may, in certain cases, significantly restrict the use of the property and may also deprive the purchaser of the anticipated economic benefit of the acquisition.

III. Review of Mortgages and Other Encumbrances

It is essential to determine whether the property is subject to any hypothecation.

A mortgage in Turkey is a limited real right that allows a creditor to sell a real estate, which serves as collateral for a current or future debt. Although some mortgages / hypothecs may be discharged at the time of sale, the nature and amount of the mortgage should be carefully assessed. In particular, where a mortgage has been established in favor of a bank as security for a loan, the mechanics of the sale transaction should be planned in advance.

In addition, it should be examined whether the property is subject to any usufruct right, right of habitation, or any other right in rem.

IV. Investigation of Zoning Status

One of the most important factors determining the legal value of a property is its zoning status.

Accordingly, the following matters should be investigated through the relevant municipality:

1. Zoning status;
2. Construction conditions;
3. Floor area ratio (FAR);
4. Permitted building height; and
5. Dedication and expropriation status.

Particularly in land acquisitions, failure to investigate zoning status may result in significant investment losses. A property may be designated in zoning plans as a road, park, green area, or public service area.

V. Examination of Construction Permits and Occupancy Permits

It should be verified whether the property has been constructed in compliance with the relevant construction permit.

In particular, the following should be checked with respect to independent sections:

1. Compliance with the approved architectural project;
2. Building permit status; and
3. Existence of an occupancy permit (habitation certificate).

Buildings lacking an occupancy permit may be subject to administrative sanctions, fines, or practical usage problems in the future.

VI. Examination of Urban Transformation and Risky Building Status

It should be investigated whether the property has been designated as a risky structure under Law No. 6306 on the Transformation of Areas Under Disaster Risk.

Properties that have been declared risky structures or included within an urban transformation project may be subject to significant restrictions concerning the exercise of ownership rights.

Therefore, it is important to review the records of the relevant municipality and land registry office prior to acquisition.

VII. Investigation of Pending Litigation and Enforcement Proceedings

Disputes involving either the property or its owner may also affect the acquisition decision.

Particular attention should be paid to the existence of:

1. Lawsuits for cancellation and registration of title deeds;
2. Lawsuits for partition of the co-owned property;
3. Inheritance disputes;
4. Expropriation proceedings; and
5. Enforcement proceedings.

Although not all disputes are reflected in the title records, conducting legal due diligence, particularly in high-value transactions, may provide significant advantages.

VIII. Examination of Condominium Ownership and Management Documents

When acquiring independent units located within apartment buildings or residential complexes, documents relating to condominium ownership should also be reviewed.

This includes:

1. The management plan;
2. Condominium establishment documents;
3. Regulations concerning common areas;
4. Maintenance fee obligations; and
5. Ongoing management disputes.

Certain management plans may contain significant restrictions regarding the use of independent units.

IX. Determination of the Actual and Legal Use of the Property

It should be verified whether the actual situation of the property corresponds to its status as reflected in the title records.

For example:

1. Use of the property by third parties;
2. Existence of lease agreements;
3. Occupation without legal entitlement; and
4. Discrepancies between actual boundaries and title records

may subsequently give rise to serious legal issues.

Particularly where a property is acquired as an investment, existing lease relationships and the legal status of tenants should be separately examined.

X. Payment of the Purchase Price and Title Transfer Process

One of the most common disputes in real estate transactions concerns the payment of the purchase price.

As of 1 July 2026, the practice of cash and hand-to-hand payments in real estate acquisitions in Turkey will come to an end. Pursuant to the Regulation Amending the Regulation on Real Estate Trade, payments are required to be made through banks and financial institutions.

The purchase price is not transferred to the seller before the transfer of ownership has been completed. The principal systems designed to ensure transaction security are as follows:

1. Mandatory Payment System: Cash payments or direct transfers made outside the prescribed system are prohibited in real estate transactions. Funds must be transferred through systems designated by the Ministry of Treasury and Finance.
2. Land Registry Exchange System (Takasbank): This is the most widely used security mechanism between purchasers and sellers. The purchase price is blocked in the Takasbank clearing system and is automatically released to the seller once the title transfer has been officially completed. Access to this system is available through the E-Government portal.
3. Blocked Cheque: This is one of the traditional banking methods. The bank blocks the purchase price held in the purchaser’s account and issues a special cheque in favor of the seller, which may only be collected upon completion of the transfer transaction.

XI. Legal Considerations for Foreign Purchasers

The acquisition of real estate in Turkey by foreign individuals and legal entities is subject to certain restrictions.

Accordingly, the following matters should be considered:

1. Reviewing nationality-based restrictions despite the abolition of the reciprocity requirement;
2. Investigating restrictions relating to military prohibited zones and security zones;
3. Assessing statutory acquisition limits; and
4. Ensuring compliance with applicable legislation where the acquisition is made for citizenship purposes.

It is important for foreign investors to obtain comprehensive legal due diligence prior to completing any transaction.

Conclusion

The acquisition of real estate is not merely a transfer transaction completed before the land registry. The title records, zoning status, building permit, occupancy permit, urban transformation risk, existing rights in rem, litigation and enforcement proceedings, as well as the actual use of the property, should all be evaluated together.

A significant proportion of disputes arising in practice arise from the failure to conduct adequate legal due diligence before the purchase. Accordingly, particularly in high-value real estate transactions, carrying out a comprehensive legal due diligence review will substantially reduce potential risks and ensure the legal security of the investment.