| Turkish Property Laws |
|
|
|
|
Turkish Real Estate Law Newsletter New Regulation about the Real Estate Acquisition of Foreigners in Turkey Turkish Constitutional Court had repealed certain provisions of Turkish Land Registry Law dealing with the issue of acquisition of real estate by foreigners last year. The parliament has recently passed a new Act dealing with this issue. This newsletter outlines the current legal position after the enactment of the aforesaid act. Real estate acquisition of foreign real and legal persons is governed by the Article 35 of the Land Registry Law numbered 2644 amended by the Law numbered 5444 and dated 29.12.2005. Foreign real and legal persons may acquire real estate in Turkey as long as two conditions are fulfilled: reciprocity and compatibility with legal restrictions. The same conditions are required to acquire a limited real right. Reciprocity principle means that a foreign state has to apply exactly the same rules to its citizens as well as to the Turkish citizens. In order that the reciprocity principle is fulfilled, the de jure and de facto reciprocity must exist. This means that if in practice the laws are not applied, reciprocity principle is not fulfilled. To acquire real estate in Turkey, a foreign real or legal person has to comply also with the legal restrictions. The first legal restriction is determined by the Article 35 of the Land Registry Law itself. The total area of the real estates and limited real rights that a foreign person can acquire can not exceed two and a half hectares. The Council of Ministers has the right to increase this amount up to thirty hectares. According to the Article 35 of the Land Registry Law, foreign persons can not acquire real estate or limited real rights on the areas within the development plan borders. The Council of Ministers has the right to determine the proportion of the real estate on province basis provided that five per thousand regarding the surveys of the provinces is not exceeded. According to the Law of Military Restricted Zones and Security Zones numbered 2565, foreign real and legal persons can not acquire real estate on military prohibited zones and security zones. Foreign real or legal persons can have mortgages on real estate without complying with any conditions. Provided that the reciprocity exists, the transition of real estate by legal heritage is exempt of the restrictions listed above whereas the dispositions by will have to fulfill the conditions required. This Newsletter provides a short update on the recent developments on Turkish real estate law. The information provided is not intended to serve as a legal advice. Before taking any action or relying on the information given, addressees of this Update should seek specific advice on the matters which concern them. |
