1. The Land Registry Record and the Legal Position of Ownership
The first thing to do before buying an immovable property is to examine the land registry record in detail. The following points must be checked in the record:
- 1) The true owner of the property
- 2) Annotations of attachment, mortgage or a prohibition on sale
- 3) Easement or usufruct rights
- 4) Rights of pre-emption (şufa)
Although the land registry is a public and reliable system of records in Turkish law, certain disputes can arise in practice. For this reason it is important that the land registry records be examined professionally.
2. The Shoreline Edge Line and the Risk of Cancellation of the Title Deed
In coastal areas such as Fethiye, one of the most significant legal risks concerns properties lying within the shoreline edge line. In Türkiye the coasts are under the control and disposal of the State and cannot be the subject of private ownership. For this reason some properties, even if they held a title deed in the past, may later become the subject of cancellation of the title deed as a result of actions brought against them.
Disputes concerning the ownership of properties in coastal areas have also been dealt with in various decisions of the Court of Cassation. Before investing, therefore, the following must be checked with the municipality and the cadastre directorates:
- 1) whether the property lies within the shoreline edge line
- 2) its position in the zoning plan
- 3) the cadastral records
3. Zoning Status and the Right to Build
Investments in fields and plots of land are particularly common in Fethiye. Many investors, however, make their purchase without examining the zoning status. The following information must be researched before the purchase:
- 1) The status of the plot in the zoning plan
- 2) The building ratio (floor area ratio and building height)
- 3) Whether it is a protected site or a conservation area
- 4) Building permission on property classified as a field
On some properties classified as fields it is not legally possible to construct any building at all. For this reason the zoning status must be confirmed with the official institutions.
4. Condominium Ownership and Occupancy Permit Status
One of the most important matters when buying a home or a flat is the position as to condominium ownership and the occupancy permit. Under article 10 of the Condominium Ownership Act, condominium ownership arises upon registration in the land registry. If the building does not have an occupancy permit (iskan), the property is most often dealt with under a condominium easement title. This situation may give rise to the following risks:
- 1) The occupancy permit cannot be obtained
- 2) Problems with electricity, water and subscriptions
- 3) Sanctions imposed by the municipality
Before the purchase, therefore, it must be checked whether the building has an occupancy permit.
5. Risky Structure and Urban Transformation Status
In Türkiye, a determination that a structure is risky may be made under the Act no. 6306 on the Transformation of Areas under Disaster Risk. In buildings determined to be risky structures:
- 1) a demolition decision may be taken
- 2) a rebuilding process may be started
- 3) the owners may need to conclude new contracts
In Fethiye, particularly in areas with a large stock of older buildings, it must be researched whether the building to be purchased has the status of a risky structure.
6. Enforcement Auctions and the Risk of Annulment of the Auction
Some investors prefer to buy property through enforcement auctions. There are, however, important legal risks to watch for in sales of this kind. The following situations may lead to the annulment of the auction:
- 1) rigging of the bidding
- 2) errors in the sale announcement
- 3) the features of the property being shown incorrectly
Where the auction is annulled, the sale transaction may be cancelled. For this reason it is of great importance that the auction file be examined in detail.
7. Tax, Treasury Property and Risks for Foreign Investors
In property investments not only the title deed but also tax and ownership obligations must be taken into account. The main matters to be checked are:
- 1) Any property tax debt
- 2) The difference between the declared value in the land registry and the real value
- 3) The use of Treasury property and the risk of occupancy compensation (ecrimisil)
In addition, for foreign investors the acquisition of property in Türkiye may give rise to certain particular situations in terms of inheritance and succession law. For this reason it is important, especially for foreign investors, to obtain legal advice.
Conclusion
Buying property in Fethiye can be a highly profitable investment when it is done correctly. Even a small mistake made during the investment process, however, may lead to serious legal problems later.
For this reason, legal checks such as examining the land registry records, researching the zoning and coastal status, checking condominium ownership and the occupancy permit, and examining risky structure status and tax obligations must be carried out before the purchase.
Carrying out a legal risk analysis before a property investment is the most important step in securing that investment.
