10 points you have to read well before singing a property sales contract in Turkey
The sales contract is an agreement to buy a specific property for an agreed amount of money in return for ownership of the property, usually sales contract has 2 parties the buyer and the seller (which is usually the construction company )
Singing the sales contract of the property you want to buy in Turkey is the starting point of owning it , it’s not the final step like the title deed but the contract is very important to avoid any possible future risks
We in Taksim real estate advice all customers to have a draft copy of the contract before signing it, in order to read it well , translate it to their language in case the contract is in Turkish language .
And here are 10 points you should read well before signing your contract :
1 - Title deed cost:
Title deed is the real proof of owning a property in Turkey, construction companies in Turkey usually transfer the ownership of property after finishing all payments by customer.
Title deed cost in turkey is usually 4 %.
Usually the cost is divided equally between two parties 2 % from buyer, 2 % from seller.
But sometimes construction companies put the whole cost to be paid by customer. So, the customer should be careful about this point and ask about it in case it was not mentioned clearly
2 - Number and area of property:
In Turkey, they usually number all the apartments, shops of a compound even if its still under construction. So, the number of property should be written in the contract
Also, the square meters of the property (apartment, shop …etc) should be written in the contract for both gross and net area.
Even the floor plan of property should be attached with the contract and signed by both parties.
3 - Floor and block:
In case you are buying an apartment, floor of apartment and block number should be written clearly in the sales contract , Even if you are buying a shop, the block number where the shop is located should be written as well
4 - Direction:
Direction of the apartment is important to be written in sales contract to avoid any mistakes or scam connected to the numbering of apartments specially if you are buying an under construction property.
5 - Date of delivery:
In case the property is under construction, so the Date of delivery should be written in a clear way in the contract , If the property is ready to be delivered, so no need to be mentioned.
6 - Payment methods and installments :
The price agreed between two parties should be written in the contract along with the date and amount of all payments (deposit, down payment, installments) as agreed.
7 - Terms of cancellations:
All contracts should have a subject about what will happen in case the customer (buyer) wants to cancel the deal.
Usually in Turkey, in case the customer wants to cancel the deal after signing the contract and paying an amount of the money or total amount, they subtract 3 % from the total amount and refund the rest to him.
But this is changeable from company to another, so you should read the point well.
8 - Penalties for both parties:
♦ Penalty for the delay of buyer: In Turkey, they usually add an interest on buyers when they delay their payments. So, this point should be added clearly in the contract and buyer should be aware of this point and the interest rate which the company may apply it when payments are delayed.
♦ Penalty for the delay of developer (construction company): The sales contract must contain a penalty clause on the construction company if it delays in delivering the property on the specified deadline agreed in the contract.
The penalty which should be paid by developers usually is the market value of monthly rent for property for each month’s delay.
Note: the law in Turkey give all construction companies a right to delay for only 6 months after the date agreed in the contract. So, any penalty on developers should be calculated after these 6 months.
9 - Bank account of the owner:
The bank account of the construction company must be clearly mentioned in the contract and be signed by both parties.
10 - Specification of the property:
All the specifications of the property and how it will be delivered should be written clearly in the contract as kitchen specification, floor of apartment, windows brands …etc.
In Turkey, if you are buying an under construction apartment for example, they usually show you the sample apartment and all the Specification you see (except for furniture which is only for show) in sample apartment should be the same when you receive your apartment
We as Taksim real estate consultancy read the contract well on behalf of our customer (in case our customers want that) to make sure that everything is alright and all points are mentioned and true.
Note: these points for those who are buying from developers (construction companies), in case you are buying a second hand apartment directly from its owner for example. the procedures are different