Getting A Tapu On A Property Not In A Municipality
Posted 21 November 2010 - 12:02 AM
I bought a property in a small Village across from tuzla lake in 2005 when the Turkish government was changing the foreign ownership laws,I was told no problem, but when the new laws came out my solicitor told me that I could not get the TAPU registered in my name as I am not Turkish and the property is not in a MUNICIPALITY which meant that I either had to sell it or set up a Turkish limited company to get the tapu in my name, so I set up a company but now have to pay
Posted 21 November 2010 - 12:17 AM
I understand that unless you can sell the company it is a long winded affair to wind the company down.
Yes, it would be interesting to know how the new complexes are managing to get the tapus, around the Tuzla lake.
Posted 21 November 2010 - 08:11 AM
Posted 21 November 2010 - 09:08 AM
Once you have formed the company and put the property into it then moving it out will cost you transfer taxes and fees. The company will also remain as it is an entity in it's own right and will have to be maintained whilst it goes through the process of being closed. So I can't really see any advantage in moving it into a trust at this stage unless you are thinking very long term.
The boundaries of the various imari plani are reviewed every few years and once they reach a certain population density villages get the option of joining the nearest municipality. However, even if your village did join a municipality and the plan extended out to cover your property and you transferred in into your own name you would, again, still be left with owning and maintaining the company whilst it closed.
If you wanted to sell your property to a foreigner then as you own via a company it would be a lot easier and quicker than selling between individuals, you simply transfer the company shares from the current shareholders to the new shareholders. No property transfer tax is payable (as the property itself hasn't moved) and it can be done in a day.
I think ownership via a company has a place in property ownership in Turkey, I personally wouldn't own any other way but that is a personal choice and I see the yearly maintenance costs as a price worth paying. But I knew what I was doing and had reasons for it, you were poorly advised and didn't get to make a fully informed choice.
I don't know how places like the developments on Lake Tuzla get their permissions. I would imagine they are not strictly residential permissions but a type of tourism permission which is commercial and has certain rules and regulations attached which either may never be enforced or which the owners are unaware of.
Posted 21 November 2010 - 05:47 PM
Some very good info and advice, I dont know why my solicitor didnt offer to put the property in his name at the time??? this would seem resonably safe ??? I dont know anything about "Mevzi Imar Planı" Cukurbagli but I will do some research on it, A Turkish "friend" offerd to put the Tapu in his name with a legal "lean" against it but this option sounds very risky!!!!I will PM Benhalterci (when I figure out how to do this) as she was in the same position as myself.
Thanks for your detailed info Karyn your position seems to work very well for you. Up until the down turn and the ressession I was hoping to start a property business so I wasnt too bothered about having to set up a company, I would still like to know where taxes and vat comes from on basicaly a none trading shelf company??? I think that one solution for all of us in this position would be to all joint together and have one company (with all our properties inside it)instead of us all setting up individual companies and all of us paying the same costs. we could then transfer share holders in and out of the company as members bought ans sold their properties.
Posted 21 November 2010 - 06:42 PM
Also since you formed your company the rules on properties held by FDI companies have changed again and establishing a shell company solely for ownership of property in the restricted zones is no longer possible nor is transfer of a new property into a company as quick as it once was.
As to the taxes and VAT you really need to go to your accountant and have these explained to you so you are clear on them. You must have all sorts of questions around your particular company and it is worth spending time finding out how it works and what you are paying for.
Posted 21 November 2010 - 07:21 PM
As you will have realised I am totaly green as far as ther rules and regs go regarding FDI companies I will speak to my accountant next time I am in Turkey, but thanks for your info.
Does any one know how to obtain municipality maps via the internet? as far as I know a village can become a municipality when the population is greater than 2000 and I know there must be more than 2000 residents/ owners in the Tuzla area or will be very soon
Posted 21 November 2010 - 09:21 PM
The others have gone into the company option in detail so I won't talk about it.
The escrow option is far simpler in that all you have to do is draw up an escrow agreement between yourself and the escrow. But the following points have to be born in mind:
1. The escrow should be trustworthy and the agreement should be a business one whereupon you have an escrow agreement agreed upon you both, signed by you both and in respect of which you pay an annual fee as it is a business arrangement. If you say, put it in a Turkish friend's name, there is a risk of him defaulting on the agreement or if he has money problems, the bank seizing the property or his dying and the property devolving on his estate.
2. The escrow should execute a power of attorney in favour of his partner, office manager or someone else in his firm. Accidents can happen even if he is young and healthy as my lawyer is.
3. The escrow should live nearby and be contactable in case you need to deal with your tapu. This is very important. You even need the escrow's details and copy tapu for DASK etc.
4. You will be the legal tenant and there should be a leasehold contract made between you and your escrow who will be your landlord. Of course he won't really be receiving your money as rent so you mustn't have the rent too high so he won't be liable for tax on rental income.
5. There should be a clause that you are liable for all taxes and expenses as a result of the escrow agreement. This is to protect the escrow.
The main point is that he is holding as a proxy for you and you have the equity in the property.
If you find a lawyer who speaks English and you trust him or her, I think this is the best way to go. It's not ideal but then nothing is here I'm afraid. Good luck.
Hope this helps.
Edited by benhalterci, 21 November 2010 - 09:26 PM.
Posted 23 November 2010 - 08:32 PM
thanks for yor detailed answer. You have given me much to think about but have answered a lot of the questions I had.
Posted 25 October 2011 - 04:35 AM
I was out of the municipality I was told that for foreigners to buy you must have a police station in your area.
Buying a house from a builder under the cloak of a Ltd Co is dangerous as I know one builder who borrowed money on all the properties and then ran away to the states and is living happily ever after.
Even leasing your property needs a good lawyer to word your escrow.
You should not use lawyers in the area of your property go to a big city in your province or even another province.
Turks protect each other especially if the lawyer and your seller are born in the same province.
Chose a lawyer that is recommended by another British subject or ask at your embassy for someone who has used a lawyer, not the advertising found at the embassy.
Buying in Cooperatives which never issue a tapu, my coop house in Izmir took ten years to get my tapu as the coop managers want to keep the coop going so they keep getting paid, 20 years on many of the home owners in my old coop still have not got their tapu.
I had 2 water supplies one from the council and one from a well pumped to me by the coop this stopped me leaving the coop untill I sank my own well.
The street lighting supplied to many of the houses in the gated coop was paid from the coop I just took out the lamp standard by my house.
There are many traps in buying property in Turkey
Never buy off plan many builders go broke before finishing and the bank or lenders claim back the property even after you have fully paid and moved in you will have no leg to stand on.
This post is a bit harsh as you can find many honest Turks
- tedinturkey likes this