Informal property sales agreements
The topic of this article should be very clear from the headline. Summer is here in the south of Turkey, and site visits by real estate agents will have started already. In the past I have written articles reminding people of the deception of making buyers sign an informal property sales agreement, which is improper under Turkish law. We don’t have an informal property sales agreement in Turkish law, so please don’t sign such an agreement, which exposes you to high risk if you do not purchase the property in a proper way valid under Turkish law.
An informal sales agreement does not necessarily mean that the seller will transfer the title of the property into the buyer’s name. The seller may at any time sell the same property to someone else.
Since an informal property sales agreement is not valid under Turkish law, first a“promise to sell agreement” should be signed before a Turkish notary and registered with the land registry office. Such agreements should be made in the exact form required by Turkish law, and wording showing that the property is promised to be sold to the buyer in the future should be registered with the land registry. Otherwise, if you make an informal agreement, this will only be a “piece of paper” and weak evidence for the court when you are trying to recover your losses.
Should you make a proper type of agreement, a “promise to sell agreement as properly registered” with the seller, then you will even be able to register the property in your name with a court order after a short legal process. The court would recognize an agreement that fulfills the legal requirements rather than an informal sales agreement.
Why do people sign an informal sales agreement instead of a “promise to sell” agreement?
Firstly, the parties — the seller and the buyer — do not want to get military clearance beforehand. I really don’t understand this. If the buyer is a foreign national, in any case, sooner or later the parties MUST obtain this clearance. There is no point in delaying this. If you are in a hurry, ask your lawyer to find another solution to secure your investment. Secondly, the parties do not want to spend money on stamp duty and other expenses.
Thirdly, the foreign investors want to avoid complicated procedures. This is probably the biggest reason, I would say. However, it is not that complicated; find a good lawyer, and all you have to do is grant him power of attorney, which takes 30 minutes. Your lawyer, as long as you make sure that you have found the right lawyer, will complete the process on your behalf.
I know that many buyers may not even know of the existence of such an agreement. Who is responsible for this lack of information? In this case it should be the lawyer who did not inform their client in detail and the real estate agent who advertised the property that are jointly responsible. The lawyer should inform their client of the way this transaction should be made, and it is the client’s option to choose the long way or short way depending on the nature of the investment. Sometimes the seller has many buyers keen on the property, and the investor just accepts investing after signing only an informal sales agreement. Source – Berk Cektir reported for Todays Zaman
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