The Turkish government’s guarantee of some real estate projects in Turkey, also known as the government guarantee in Turkey, is a term that refers to adding reliability and safety for those wishing to invest and own real estate in Turkey, whether they are Turks or foreigners.
In this article, we will discuss with you:
– What does ‘government guarantee for real estate in Turkey’ mean?
– What does the real estate government guarantee include in Turkey?
Ensure construction safety.
Ensure the validity of the title deed and the securities.
Supervising marketing and sales promotion.
Ensure payment and receipt.
In the following paragraphs, we answer several questions, most notably what is the meaning of government guarantee in Turkey?
What does ‘government guarantee for real estate in Turkey’ mean?
In the beginning, it must be said that the government guarantee is the clearest form of the title deed document or Tabu which is issued by the Turkish state in the name of the owner of the property. The title deed indicates the subordination of the property to the owner, its registration under his name, and his full ownership. This document in itself is considered the most important and solid guarantee by the state to property ownership.
On the other hand; There is a real estate guarantee procedure that is not only a guarantee of ownership, but a guarantee that covers projects that are still under construction, or what is known as off-plan properties.
This guarantee includes all phases of the new projects. The government monitors and follows up all project details, from laying the foundation stone for it to handing over apartment keys to their owners, through marketing and allocating it.
This is done through governmental construction companies affiliated to the Council of Ministers or the Turkish Ministry of Environment and Urbanization, or even to major municipalities such as the Greater Istanbul Municipality IBB, and among these government companies: Emlak Konut Company, Kiptas, and Toki Company.
These companies sign a partnership contract between themselves and the private construction companies and contractors, giving them the land allocated for the project and owned mainly by the state, to implement a project for them, under their control. They simply guarantee the completion of the project at every stage.
Thus, the government company will act as a closely monitored partner for all project details, and the project implementation stages are under its supervision based on predetermined quality standards, to fully guarantee the right of the buyer and the investor, whether the purchase is in cash or installments.
What does the real estate government guarantee include in Turkey?
The government guarantee includes several things, including:
- Ensure construction safety.
- Ensure the validity of the title deed and the securities.
- Supervising marketing and sales promotion.
- Ensure payment and receipt.
Ensure construction safety
Before the construction process begins, the government construction company responsible for the government guarantee requires the contractor to submit architectural, structural, and mechanical approvals for the project from the relevant regulatory and government agencies. Also, it requests geological reports related to the structure of the land from the responsible authorities. After drilling has been carried out, it re-tests again the ground and soil.
It also checks the safety and quality of all materials and equipment used in construction, and if any defect is found in the materials, the implementing company or contractor is required to change and amend the materials, and any dues, amounts, or fees are stopped until the change and amendment of the materials is verified according to the specified standards.
All projects supervised by the guarantor companies are implemented with designs that are resistant to severe earthquakes. All samples of reinforced concrete, iron, and other building supplies and materials used in construction operations are tested and taken to multiple laboratories to repeat the tests when needed.
Ensure the validity of the title deed and the securities
The government guarantee company requires not to sell any real estate or even offer it for sale before completing all the required housing permits. Also, all approvals certifying the safety and licensing of the building must be obtained.
The guarantor company supervises the signing of all sales contracts in the presence of a responsible notary. It also appends all necessary papers and documents such as charts and papers to avoid any possible error in the future.
It also extracts the initial title deed, the final title deed, the housing permit, and all the necessary documents and certifies them from the Notre Office according to the date specified in the contract.
Supervising marketing and sales promotion
The guarantor company makes sure that all data and information are correct before presenting them to customers. For example, check the accuracy of project catalogs, commercial ads, and newspaper ads.
On the other hand, It also monitors prices on sales systems, and prepares everything necessary before starting sales operations, and does not sell any independent unit or any project before obtaining the approval of the Capital Authority.
Ensure payment and receipt
When you buy an apartment or property through government guarantee companies, you do not pay the contractor directly. Rather, all payments and bonds reach the account of the guarantor company, which in turn provides the contractors with split instalments to ensure the accuracy of the timetable for the contractors’ work.
Upon receipt from the executing company and before delivery, the guarantor company checks each part of the construction and ensures that it is completed as agreed and planned.
After approval of the full readiness of the project is issued, the apartments are delivered to customers. Then, a temporary administration of the residential complex is chosen, in agreement with the contractor, until the main management is nominated by-election from the residents of the building.
The responsibility of the government guarantee company is not over yet. After the housing, it works on evaluating complaints that may be received from the residents, reviewing the project after one year of housing to ensure its final acceptance, and paying all payments owed to the contractor.
Of course, the government guarantee companies benefit from a profit margin, which covers the costs of all these delicate procedures, for supervision, verification, and quality. Despite that, real estate prices guaranteed by the Turkish government are not more expensive than market prices but are often at competitive prices.
If you decide to buy a property in Turkey, we at Extra Property strongly advise you to choose one of the projects with a government guarantee for its quality and safety. We are happy to assist you in providing you with the best options available according to your need.
Edited by: Extra Property ©
Source: Amlak Connaught