image 1

Purchase Contracts

Lawyers, title deeds and reservation deposits

It is not a necessity to arrange for a lawyer to complete a property purchase transaction, but we strongly recommend it.

What can I expect of a Turkish lawyer acting for me?

The lawyer (Avukat) will discuss the terms of the sale with yourself and the seller, and draw up a sales agreement that ensures the maximum legal protection for you as the buyer. Consideration will be given to the payment schedule and ensuring  both the buyer and seller agree to the contract conditions to which you will both commit by signing the agreement.

The title deed will be checked to ensure that:

  • There are no charges or liens against the property
  • Necessary building permissions and licenses are in order if the property is completed.
  • The terms and conditions stipulated by the seller are reasonable
  • The person selling the property is the legal owner 

A deposit is payable by the buyer to the seller upon signing the contract. Once the contract has been signed by both parties and the deposit paid, it becomes binding. It is usual for developers to request a deposit of around 10% of the purchase price. The contract will itemise the agreed payment schedule, and all the conditions agreed by buyer and seller with regard to the property itself.

If the buyer is not able to be in Turkey to sign the purchase contract in the presence of their Turkish lawyer, it is possible to compete a legally binding contract by signing in their home country, witnessed by a lawyer or notary public.

If the buyer pulls out having signed the purchase contract, then the initial deposit payment made will be forfeited. If the seller pulls out of the contract, then all monies paid at that stage will be returned to the buyer, and any penalty clauses applied by your lawyer will be payable to the buyer.

Payment schedules are negotiable with the developer, and you will need to know the timescales you can work to raise and release the funds required to meet the contract conditions.

For off plan projects or property in construction, stage payments will often form the basis of the sales contract as the construction progresses to completion.

Reservation deposits 

The use of reservation deposits is widely used by developers. It gives buyers time to carefully check contracts, raise funds and lawyers to complete checks. The timescale is usually 2 to 4 weeks, and the constructor removes the property from the market, and holds the price as agreed for this period.

Reservation deposits vary by developer, but expect to be asked to pay between £1000-£2500. These are usually non-refundable unless the developer has agreed otherwise.