Most important real estate terms you need to know!

Turkey Real estate terms

While you search for apartments for sale in Istanbul, there are many abbreviations and terminology used in real estate as well as lots of terms that are only used in the Turkish market. The following article is a guide to some of the real estate terms used for renting, buying or selling a property in Turkey, as well as some financial and architectural terms relating to real estate.

It should be noted that the following terms are not legal terms or complete definitions and the aim is only to provide general guidance only to seekers of apartments for sale in Turkey. You must necessarily communicate with your real estate company who are experienced in real estate issues before buying real estate in Turkey.

Purchasing contract vs the Title deed t “Tapu”

During the approval of the offer by the construction company, a contract is established between you and the real estate company. Once you have signed your purchase offer, it will be installed and documented for both parties (buyer and seller) to abide by the terms of this contract. During your purchase of a residential complex in Istanbul, for example, this contract will be signed after the reservation payment is made to the property owner to complete the agreed property price and payment method.

The purchase contract differs from the title deed or Tabu. The Tabu is a document that confirms your full ownership of the property and authorizes you to act in the whole property such as the sale or lease or mortgage. Those interested in ownership in Istanbul residential complexes should know that some construction companies that offer the possibility of payment by installments and receive the title deed after the first installment, then the deed of ownership is for the construction company and can not become otherwise until the last payment.

Down Payment vs Deposit

The initial payment is the amount initially paid by the buyer to finance the purchase, usually as a percentage of the total purchase price. In Istanbul residential projects, the initial payment amount is usually 20% of the property price, which means that the buyer will pay 20% of the purchase price in advanced.

The amount of the reservation is the deposit that is paid only to confirm the intention of buying and booking the property at the closing price that was agreed upon, which is often between 700 and 2000 USD.

Mortgage loan vs installment payment

The mortgage loan is a secured loan from banks that is specifically linked to real estate property. The property is mortgaged to the borrower in exchange of the money paid by the borrower in installments over time. The mortgage allows the borrower to use the property so that the object is to own the property independently once the loan amount has been paid in full. The monthly installments of the loan are paid, and the lender can book the property and act in full with it.

The mortgage loan in Turkey is made through a Turkish bank that provides this service, and many people do not differentiate between the mortgage loan and the purchase of the property through the installment from the construction company, usually the difference between the mortgage and installment payment is that installments do not contain interests.

Checkout our article: How to get mortgages  in Turkey ?

Purchase costs (or closing costs)

The total expenses paid by the buyer after the signing of the purchase contract to start the procedures of the transfer of property and payment, including these expenses, warranty fees and documentation and translation of contracts and attorney fees and fees for registration of documents and property insurance.

The typical apartment ( model )

Is the design of the apartment model or apartments contained in the residential complexes which is still under construction, the typical apartment building is separate from the project to be presented to those interested to buy some unites in the of the project, which is similar to the unites to be delivered after purchase.

Barter real estate (Real estate swaps)

Real estate swaps means buying real estate for real estate or buying property for money and real estate. For example, you can buy a $ 150,000 property, swap it with a $ 120,000 property and pay $ 30,000 to the seller.

Real estate valuation or valuation

Is to work to determine the market value of the property and is made by experts licensed in the evaluation of real estate, and is used to evaluate real estate in many cases of sale and purchase and cases of mortgage application to finance the purchase of property in Turkey.

Finishing the property

Completion of the apartment after the completion of the construction process and provide all necessary to be habitable, and in Istanbul residential complexes, the construction companies are working on the complete finishing of the property and provide it even  with some necessary electrical supplies.

Transfer of ownership of the property

Means the ownership of the property and the title of the property shall be transferred from one person to another or from the owner of the property to the buyer with a financial consideration equal to the value agreed upon in the contract of sale.

Knowing the terms used during the purchase of real estate in Turkey provides you with a lot of effort while touring the properties in turkey, and you can understand the many details that will help you to make the right decision to choose the right property for you.

Resources:

investopedia;

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