How Does the Process Work When Selling Real Estate to Foreigners?

Selling to a foreign buyer works differently than selling to a Turkish buyer. The process is longer, there is more paperwork, and most delays come from places the seller never expected. If you are thinking of selling, knowing these steps from the beginning ensures you do not lose the buyer.

1. Valuation report is mandatory

In sales made to foreigners, it is mandatory to obtain a real estate valuation report from an institution licensed by the CMB (SPK). Preparing the report takes a few business days and it has a validity period — you cannot go to the title deed office with an expired report.

If the buyer will apply for citizenship, the report also serves as the primary document showing that the threshold is met. If the value in the report turns out lower than expected, not the sales price, but the application itself is jeopardized. Therefore, when working with a serious buyer, getting the report done at an early stage protects everyone's time.

2. Military forbidden zone inquiry

An inquiry is made that the immovable is outside the military forbidden zone and security zone. The inquiry is conducted by the Land Registry Office and the results may take time. In most areas of Istanbul, no problems arise, but taking an appointment without waiting for the result costs a wasted day.

3. Payment of the price through the bank

The price must be transferred from the bank in the name of the buyer to the seller. Hand-to-hand payments are not accepted. If the buyer will apply for citizenship, foreign currency is sold to the Central Bank before the purchase and a foreign exchange purchase certificate is obtained. This document is a must for the file and cannot be produced afterward.

The most frequent irreversible mistake: completing the transaction without selling the foreign currency to the Central Bank. In this case, the citizenship file is rejected and the property remains encumbered for three years.

4. Title deed appointment and fee

The title deed fee is calculated based on the sales price and is paid before the appointment. For the foreign buyer, a passport translation, tax number, and, if necessary, a sworn translator must be ready. The absence of a translator at the appointment is the most common reason for the transaction not to be completed that day.

5. Encumbrance and beyond

If the buyer will apply for citizenship, an encumbrance stating that the property cannot be sold for three years is placed on the title deed. This encumbrance does not concern the seller, but since it restricts the future transfer of the property, the buyer needs to be aware of it.

Common delays on the seller's side

• Not having transitioned to condominium ownership (kat mülkiyete) — although sales with floor servitude (kat irtifakı) are possible, it creates hesitation on the buyer's side.
• Lack of the occupancy permit (iskân).
• One of the co-owners being abroad and the power of attorney not being arranged on time.
• Having a mortgage or lien encumbrance on the property and the release procedure being delayed.
• Dues and real estate tax debts not being paid off.

All of these items are matters that can be sorted out weeks before the sale. This is why we check the paperwork of every property we take into our portfolio before sales negotiations begin: when bargaining sits at the table, the file must be clean.

The information in the article is for general informational purposes. Legislation is subject to change; current conditions must be confirmed before the transaction.