How to Transfer Real Estate with a Power of Attorney in Turkey
Today, Turkish citizens living abroad or foreign country citizens may own immovable properties in Turkey. There is no requirement to come to Turkey for the transfer of these properties. This article discusses the process of transferring immovable property from abroad.
Legal Framework
a. Transfer of Immovable Property in Turkish Civil Code
According to the Turkish Civil Code, transfers of immovable property must be made in official form. This transaction requires the preparation of an official deed at the land registry offices.
b. Legal Basis for Transfer Transactions through Power of Attorney
According to the provisions of the Turkish Code of Obligations and Land Registry Law, the property owner can carry out transfer transactions by giving power of attorney.
Methods of Transfer
There are two basic methods for people living abroad to transfer their properties in Turkey. These are obtaining power of attorney through the consulate and through a foreign notary. Which of these methods will be chosen may vary according to the opportunities and preferences in the country where the person is located.
Preparing Power of Attorney at Turkish Consulates
a. Procedure to Follow at Consulates
The process of preparing a power of attorney at the consulate begins with making an appointment. The transaction is carried out by selecting the “Notary Transactions” category in the appointment system. When visiting the consulate, the official performs identity verification and checks the property-related documents. The power of attorney text is prepared by the consulate official and its content is explained in detail to the person giving the power of attorney. All transactions are completed within 3 business days.
b. Required Documents and Costs
The basic documents required for preparing a power of attorney are: Valid identity card or passport, current title deed of the property, identity information of the proxy, and if available, the property’s valuation report. The power of attorney fee is collected in the currency of the country where the transaction is made and this fee is updated annually. Additionally, translation fee must be paid when an interpreter is required.
c. Mandatory Elements to be Included in the Power of Attorney
The power of attorney to be used in property transfer must contain certain mandatory elements. These include the property’s title deed information (province, district, neighborhood, block, plot number), clear identity information of the appointed proxy, and the scope of authorities granted. In addition to the authority to sell, it is important to explicitly state secondary authorities such as removing mortgages, making type changes, and carrying out subdivision procedures when necessary. Additionally, the minimum sale price or a fixed price can be specified in the power of attorney.
Preparing Power of Attorney through Foreign Notary
a. Apostille Process
For a power of attorney prepared in a foreign country to be valid in Turkey, it must receive an Apostille certification. This certification confirms in which country the document was prepared and its official validity. For powers of attorney prepared in countries not party to the Apostille convention, approval must be obtained from the Turkish Consulate in that country. The Apostille certification process is completed by the authorized authorities of the country where the document was prepared within 5 business days.
b. Translation and Notary Certification Procedures
Power of attorney prepared in a foreign language must be translated into Turkish. This translation must be done by a sworn translator and the translation must also be certified by a notary in Turkey. In some countries, the translation of the power of attorney can also be done at the consulate. In case of consulate translation, separate notary certification is not required. Translation and notary certification procedures are usually completed within 2 business days.
c. Practices Varying by Country
Each country’s notary system and power of attorney preparation procedures differ. For example, while powers of attorney prepared by notaries in Germany may require Landgericht (State Court) approval, in England, powers of attorney prepared by a solicitor or notary public are accepted. In the USA, there are differences between states, and most states require county clerk approval. In European Union countries, the European Apostille practice is valid and this document is automatically recognized in all member countries. Processing time can vary between 3 to 10 business days depending on the country where the document is prepared.
Power of Attorney Preparation Process
Essential Information to be Included in Power of Attorney
a. Property Information
Identifying the property is of great importance when preparing the power of attorney. The property’s title deed information must be written completely. In this context, the province, district, neighborhood or village name, location, map section number, block number, plot number, area, and if any, independent section number of the property must be specified. Additionally, the complete address and nature of the property (apartment, shop, land, etc.) should also be included in the power of attorney. If there is a mortgage, seizure, or other restriction on the property, these must also be explicitly stated in the power of attorney.
b. Scope of Powers Granted to the Attorney
The powers granted to the attorney must be clearly and explicitly stated in the power of attorney document. In addition to the basic power of sale, the attorney should also be granted ancillary (secondary) powers that may be needed during the transfer process. These powers include signing at the land registry office, preparing and receiving necessary documents, paying title deed fees, delivering the property, terminating lease agreements if any. The attorney should also be granted authority to conduct transactions at the municipality, tax office, and other official institutions related to the property.
c. Sale Price and Limitations
Regulations regarding the sale price hold an important place in the power of attorney. The sale price can be specified as either a fixed amount or as a minimum limit. If the price is determined in foreign currency, the payment method and exchange rate date should also be specified. Additionally, special conditions such as time limitations on the attorney’s powers, restrictions on potential buyers, or the bank account where the sale price will be collected can be included in the power of attorney. It should also be clearly stated whether the power of attorney is for single use or valid for multiple transactions.
Important Considerations in Selecting an Attorney
Attorney’s Responsibilities
a. Legal Obligations
The attorney must protect the interests of the principal when exercising their authority. According to the Turkish Code of Obligations, the attorney must conduct the undertaken work and services within the framework of loyalty and due care obligations while considering the legitimate interests of the principal. The attorney has legal liability for damages that may arise from their actions and is obligated to compensate for these damages. The attorney is also under the obligation to provide an account of their actions to the principal and must submit this account within 30 days.
b. Financial Responsibilities
The attorney has the obligation to transfer the proceeds from the property sale to the account specified by the principal. All financial transactions must be documented and recorded. The attorney’s authority and responsibility limits regarding the payment of title deed fees, taxes, and other expenses should be clearly defined. It is recommended that the attorney make expenditures against receipts and conduct all payments through banking channels.
Security Measures
a. Identity and Competency Verification of the Attorney
Investigating the reliability of the person to be selected as attorney is of great importance. The attorney’s past work experience, professional record if any, and references should be checked. Particularly, selecting an attorney experienced in legal transactions provides an advantage for smooth execution of procedures. It is recommended to verify the attorney’s identity information and contact addresses through official records.
b. Communication and Documentation Process
Regular communication with the attorney and step-by-step monitoring of transactions is necessary. Recording all correspondence and meetings is important for proof in case of potential disputes.
Determining Authority Limits
a. Scope of Authority
The attorney’s powers must be defined clearly and explicitly in the power of attorney. Which transactions they can perform and which transactions require additional permission should be detailed. For example, conditions can be set requiring special permission from the principal for important decisions such as reducing the sale price, arranging installments, or placing the property under mortgage.
b. Time and Transaction Limitations
The validity period of the power of attorney should be determined. Instead of issuing an indefinite power of attorney, it is recommended to set a reasonable period (for example, 6 months or 1 year) for completing the transactions. Additionally, it should be clearly stated whether the power of attorney can be used for a single transaction or multiple transactions. Whether the attorney can delegate their powers to others should also be regulated in the power of attorney.
Title Deed Transfer Process
Attorney’s Procedures at the Land Registry Office
a. Required Documents
For the title deed transfer process, the attorney must first prepare all necessary documents completely. These documents include the original power of attorney and its notarized copy showing conformity to the original. Additionally, the attorney’s own identification document, the property’s 3-month title deed record, municipality letter showing the property tax value, and if available, the property’s occupancy permit are required. If there is a mortgage on the property, a bank letter regarding its release must also be submitted.
b. Taxes and Fees
There are primary financial obligations to be paid in the title deed transfer process. The title deed fee is calculated at 2% separately for both buyer and seller based on the property’s tax value. Additionally, revolving fund fee and stamp duty are also paid.
If the property value exceeds a certain limit, it may be necessary to apply to the value assessment commission and pay a value assessment fee.
c. Processing Time
At the land registry office, transfer procedures are usually completed within 1 business day when all documents are complete and accurate. However, depending on the workload, this period may extend up to 3 business days. In some special cases, such as properties near military zones or for foreign buyers, additional permissions may be required, and in this case, the process may extend up to 15 days.
Conclusion:
We can summarize the key points for successfully completing the property transfer process from abroad to Turkey as follows:
- Complete specification of property information and scope of authority in the preparation of power of attorney
- Evaluation of power of attorney arrangement options through consulate or foreign notary
- Timely and accurate completion of apostille annotation and translation processes
- Selection of a reliable attorney and clear definition of the attorney’s responsibilities
- Complete preparation of required documents in the title deed transfer process
- Timely and complete fulfillment of financial obligations
- Following up on post-transfer procedures and notifications
- Maintaining effective communication and coordination throughout the process
Careful and diligent follow-up of these steps will ensure the smooth completion of the property transfer process from abroad.
As Soylu Law Office, we provide professional legal consultancy services to our clients living abroad for their property transactions in Turkey. We are proud to be your most reliable solution partner in real estate law with our international experience.
For more assistance or consultation on this matter, you can contact us.
