Are you a foreign investor considering purchasing real estate in Turkey from an under-construction project? Buying a property not yet fully built comes with a distinct set of legal complexities and potential risks that demand specialized attention.
This comprehensive guide will demystify the Sales Promise Agreement (Taşınmaz Satış Vaadi Sözleşmesi), explaining its vital role in under-construction real estate transactions. More importantly, it will equip you with the essential knowledge and due diligence steps needed to ensure your property purchase in Turkey is secure, reliable, and free from unexpected pitfalls. For a safe real estate investment in Turkey, understanding these nuances and partnering with a trusted lawyer is paramount.
What is a Sales Promise Agreement in Under-Construction Projects?
A Sales Promise Agreement serves as a legally binding preliminary contract for properties that are not yet complete. In this agreement, the developer (as the “promisor” typically the developer or current owner) commits to sell a specific unit within an under-construction project to you (the “promisee” or buyer) at a future date, and you commit to buying it.
This agreement is fundamental because it secures your right to acquire the property even before its individual title deed (tapu) can be issued. It’s vital to understand that this is not an immediate transfer of ownership, but rather a firm, legally enforceable promise to perform the actual sale and title deed transfer at a later stage.
Notarization and Land Registry Annotation (Şerh)
For foreign investors making an investment in an under-construction property in Turkey, these two legal formalities are non-negotiable for mitigating risks and ensuring a secure property purchase:
- Mandatory Notarization: A Sales Promise Agreement for real estate in Turkey must be executed before a Notary Public to be legally valid. Any agreement not notarized is considered void and offers no legal protection.
- Critical Land Registry Annotation (Şerh): This is your most powerful tool for fraud prevention and protecting your investment.
- Public Visibility and Protection: When your Sales Promise Agreement is annotated (şerh) in the land registry (tapu kütüğü), it creates a public record of your contractual right to the property. This annotation acts as a safeguard.
- Protection Against Multiple Sales or Encumbrances: Without annotation, a developer could potentially sell the same unit multiple times or encumber the property with debt. With annotation, your claim is legally visible and enforceable against any third party. If the property is sold or mortgaged after your annotation, you can still assert your right to the property against the new owner or creditor. This makes your investment in under-construction real estate Turkey significantly more secure.
Your reliable real estate lawyer in Turkey will ensure these crucial steps are meticulously completed.
Can a Developer Make Multiple Sales Promise Agreements for One Unit?
Yes, unfortunately, without proper land registry annotation (şerh), a developer technically could enter into multiple Sales Promise Agreements for the same unit or even sell the underlying land to a different entity. This potential for fraud underscores the absolute necessity of immediately annotating your Sales Promise Agreement in the land registry. It is the primary legal mechanism protecting you from such malicious or negligent actions by the developer.
Essential Due Diligence for Foreign Investors in Under-Construction Projects
For foreign investors committing to an under-construction property in Turkey, rigorous due diligence is paramount. This goes beyond standard property checks and delves deep into the developer’s credibility and the project’s legal standing. This is where a trusted legal advisor becomes your most valuable asset:
- Developer Background Check: Your reliable real estate lawyer in Turkey will perform in-depth research on the developer’s reputation, financial stability, and past project delivery record. This includes checking their commercial registry records, tax debts, and any past litigations or bankruptcies.
- Project Legal Status Verification: Confirm all construction permits, licenses, and zoning approvals are secured and valid. Ensure the project plans match the approved permits.
- Land Ownership & Encumbrances: Verify that the developer (or the entity selling the units) holds clear ownership of the land where the project is being built, and that there are no hidden mortgages, liens, or other encumbrances on the land that could jeopardize the project or your future title.
- Construction Guarantees & Penalties: The Sales Promise Agreement should include clear construction schedules, milestone payments tied to verified progress, and penalty clauses for any delays or non-completion. Are there bank guarantees or escrow mechanisms in place to protect your payments?
- Technical Specifications Review: Ensure the contract’s property specifications (materials, finishes, size, layout) align with the promised architectural plans and project quality.
- Occupancy Permit (İskan): Understand the process and timeline for obtaining the occupancy permit (iskan belgesi), which is essential for legal habitation and individual title deed issuance.
- Turkish Citizenship Compliance: If your investment aims for Turkish citizenship, your lawyer will ensure the Sales Promise Agreement and payment structure strictly meet the current requirements, including the crucial “single contract rule” and the required investment threshold (currently $400,000 USD), as reinforced by the February 1, 2023 guidelines.
Work with a Trusted Lawyer
A Sales Promise Agreement is an invaluable tool for foreign investors looking to benefit from Turkey’s under-construction real estate market. It offers a structured path to property ownership, often with attractive entry prices. However, the inherent risks of buying an asset that doesn’t yet fully exist necessitate comprehensive due diligence and proactive legal safeguarding.
For a truly safe real estate investment in Turkey, especially in off-plan projects, navigating these complexities requires more than just good intentions. It demands the expertise of a specialized legal professional.
Your Path to a Secure Turkish Property Investment Starts Here
As Asons Law Firm, we are your trusted legal partner in Turkey for secure property purchase and investment. Our experienced team specializes in providing reliable legal advice for foreign investors, conducting thorough due diligence on developers and projects, meticulously drafting and annotating Sales Promise Agreements, and guiding you through every step of your Turkish property investment journey. We are committed to fraud prevention and ensuring your investment is both safe and legally sound.
Don’t leave your significant investment to chance. Contact Asons Law Firm today for expert guidance and embark on your Turkish real estate journey with confidence.
