Question for you
Emlak fee
Hello everyone, hope you're all having a nice summer.

Wanted to ask about emlak fees. Does a buyer need to pay the sellers emlak? If so how much is it?
 

enoch

Member
Emlak fee
Hello everyone, hope you're all having a nice summer.

Wanted to ask about emlak fees. Does a buyer need to pay the sellers emlak? If so how much is it?
It all depends on what you agreed, but I would have thought the seller has to pay he got the Emlak. It will run into many thousands I think a percentage.
 

IbrahimAbi

Grey wisdom
Emlak fee
You will be told that 'the buyer normally pays both halves of the emlak fee' I would refuse and tell them that you did not instruct the emlak, the vendor did. We did this and won through. We were though, prepared to walk away from the purchase.
 

esb1841

Member
Emlak fee
In the past buyer would normally pay 3% and seller would pay 3% what would happen is the seller would increase the price of their property to cover their 3% or ask the emlak to pass the seller 3% onto the buyer
the new property valuations for foreigners means the seller can no longer build their 3% into the price

I would tell the emlak and the seller NO
 

enoch

Member
Emlak fee
In the past buyer would normally pay 3% and seller would pay 3% what would happen is the seller would increase the price of their property to cover their 3% or ask the emlak to pass the seller 3% onto the buyer
the new property valuations for foreigners means the seller can no longer build their 3% into the price

I would tell the emlak and the seller NO
Is that not the tax 3% each? That's normal but turkish seller will try to get out of it. I thought someone has said on here the other day the valuation is no more. But I could be wrong.
 
Emlak fee
In the past buyer would normally pay 3% and seller would pay 3% what would happen is the seller would increase the price of their property to cover their 3% or ask the emlak to pass the seller 3% onto the buyer
the new property valuations for foreigners means the seller can no longer build their 3% into the price

I would tell the emlak and the seller No
I don't understand why the buyer must pay 3% the agent represents the seller not the buyer

Would any of you pay 3% as buyer's ?
 

Mushroom

Member
Emlak fee
I sold ours by telling our Emlak friends what I wanted putting in the bank in Sterling after all costs had been deducted.
No less.
We did have a Brit buyer who was a bit wet behind the ears but not my concern.
Worked for me but I'm guessing there would be greater obstacles today?
 

esb1841

Member
Emlak fee

Taxes payable when purchasing/selling a property in Turkey​

Turkish Property Transfer taxes (Emlak Alim/Satim Vergisi) at 2% are payable by both parties (the buyer and the seller) the sale of a property. These fees (i.e. 4% in total) are based on the evaluation report of the property by an expert.

Local experts and companies are available and the cost is generally paid for by the buyer. The evaluation report, which is valid only for three months, should be submitted to the title deed office. This value will then be the declared value of the property. However, the declared value of the property cannot be lower than the ‘tax value’ determined by the local municipality, which is also used as the base of the local property tax.

If the property is a building then Natural Disaster Assurance (DASK) is obligatory.
 

esb1841

Member
Emlak fee
Is that not the tax 3% each? That's normal but turkish seller will try to get out of it. I thought someone has said on here the other day the valuation is no more. But I could be wrong.
I think its was wishful thinking by an emlak as both emlak and seller's dislike the valuation report
I can see potential pitfalls for buyers they view property without the valuation report make an offer, put down deposit ( something that Turks don't do) emlak tells them lots of interest in property and they need to provide deposit to secure property
Then everyone goes to Tapu office to complete sale only to be told no sale without valuation report
Once Buyer sees valuation report they notice the valuation report is 30% less than the agreed price
buyer wants to either renegotiate agreed price or withdraw from the sale
emlak tells buyer deposit is non-refundable
 
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IbrahimAbi

Grey wisdom
Emlak fee
I think its was wishful thinking by an emlak as both emlak and seller's dislike the valuation report
I can see potential pitfalls for buyers they view property without the valuation report make an offer, put down deposit ( something that Turks don't do) emlak tells them lots of interest in property and they need to provide deposit to secure property
Then everyone goes to Tapu office to complete sale only to be told no sale without valuation report
Once Buyer sees valuation report they notice the valuation report is 30% less than the agreed price
buyer wants to either renegotiate agreed price or withdraw from the sale
emlak tells buyer deposit is non-refundable
Lots of deposits and owner still owns the property. Nice one Mustafa
 

esb1841

Member
Emlak fee
emlak wants deposit to

1) prevent buyer from walking way or changing their minds
2) to cover emlak costs if the sale fails to complete ( I suspect seller doesn't receive anything is sale fails to complete)
 

enoch

Member
Emlak fee
emlak wants deposit to

1) prevent buyer from walking way or changing their minds
2) to cover emlak costs if the sale fails to complete ( I suspect seller doesn't receive anything is sale fails to complete)
I understood that the deposit was paid, and if the seller pulls out he must pay double the deposit?
 

Kanga

Member
Emlak fee
Turkish Property Transfer taxes (Emlak Alim/Satim Vergisi) at 2% are payable by both parties (the buyer and the seller) the sale of a property. These fees (i.e. 4% in total) are based on the evaluation report of the property by an expert.

Taxes are NOT fees, they are payments to the Turkish Treasury. Fees are payable for services, which is debatable when it comes to taxes.

The 3% is 'traditionally' the payment by both parties to the emlak on successful completion of the deal; the emlak will 'claim' they have been the negotiator for both parties. As this new system beds in emlaks could be in danger of losing out as there will be more private sales. A friend who recently completed a private sale to another friend under these new regs found using an emlak who also had translator registration with the Noter was the best and quickest way forward.

The 10% deposit is a legal obligation, just as it is in the UK, and will be forfeited if the buyer pulls out after going to offer and paying the deposit.

In Turkey this is doubled as a penalty on the seller if they don't complete the deal.

The valuation is not given to either buyer or seller; it goes to the Tapu office for their records. The Tapu office will only block a sale if the price is below the official valuation. That valuation stands for tax purposes for the local belediye and any capital gains liabilities.The only time you will get a valuation will be if there is a mortgage or bank loan, when the lender will need one, and may disclose the value to either party.
 

esb1841

Member
Emlak fee
I Believe the post above has been written by an emlak and has no legal substence or standing in Turkish law

Well, Turks pay reservation deposits, too, don’t they? ‘



Nope. Never have, and never will…! No local Turk buys a property that way, with a reservation deposit - the concept does not exist. Why Turks do not pay reservation deposits when buying property in Turkey…
But what about all that about reservation deposits I’ve read everywhere on the internet, it says so… ‘



Yes and you know what that is…it’s called ‘pahlavra’ in polite vernacular… or ‘misleading sales patter’ in English...



If you pay a ‘reservation deposit’ you are financially AND psychologically locked into a transaction procedure that is always prejudiced against your interests, and from there on, you may pay additional cash costs at a later date to rectify various matters that are hidden now (Due Diligence). It is this misleading procedure which is the main reason why more than 85% of foreigners have bought property in Turkey with all sorts of hidden problems. Unable to stomach the need to take legal action to retrieve their deposit, they instead proceed with the property purchase, and defer dealing with the problem until later, when it cost them thousands, and in many cases, jeopardises their entire investment.



It is not unusual that an agent will try and hide key information from a buyer, and instead try and ‘lock-in’ the buyer with a ‘reservation deposit’. Doing so, the buyer cannot get their money back without going to court (don’t believe agents promises), and cannot withdraw from buying without losing the money, and is less likely to find out the information, until after the sale is completed, when it is too late for the buyer to change his or her mind.

Paying money over requires also that you receive something in return – and this involves some form of valid contractual documentation, executed in a legally valid manner, and again more costs. Paying money over without receiving anything but a receipt is not sensible. If having paid, you decide for whatever reason not to proceed, despite verbal assurances from agents and sellers that they will repay the deposit, to get them to do so, it is always necessary to engage in unpleasant litigation, which will take 18 -24 months to regain your deposit, and will cost several thousand EUR equivalent in court and lawyers fees, only half of which is recoverable upon receiving judgement. And so it is always advisable to remember to add say EUR 3000 to whatever deposit figure is being asked for, as this is the cost of protecting your deposit, and taking it back if necessary, with contract or without.



And remember, paying a 'reservation deposit' does not 'reserve' the property for you in any way, or require the seller to take the property off the market, or prevent the seller from selling to some one else...additional procedures and legal costs are required to prevent an owner from selling to someone else. And yes, the contracts agents provide are generally defective in substance and/or execution. What's more there are additional legal registrations required besides the contract.... More costs, and more risks. A 'reservation deposit' serves no other purpose than to secure an agents commission, which is why agent's often advise that it is 'non-refundable'... So if you want the money back, be prepared for court....



And remember, once you have paid a reservation deposit, you will never be able to negotiate a better price, and the seller is not committed to the price.... Negotiating the best bargain price is not done until the purchase transaction is completed: payment made and ownership transferred. In order to succeed, a buyer must have the Advance Preparations taken care of, and this way there is never a discussion of 'reservation deposits'. Find out more about how to buy at bargain prices....



The ‘reservation deposit’ is the most crucial tactic used by agents which a buyer must avoid at all costs. Unfortunately it is just one of many deceptive tactics agents use multiple times every day, of every week, of every month. The buyer may be prepared for one tactic, but the agent has many, and will hook the buyer with one of them.


In the UK Property Sales rules and regulations differ between Scotland and England and Wales there is no
legal obligation to provide a 10% deposit in England and Wales

1. Is payment of a deposit necessary on exchange?

No, it’s a tradition, strangely, with no legal basis. It demonstrates the buyer’s commitment to the purchase and is incorporated into the contract for sale and purchase, for the benefit of the seller.

A deposit is usually 10% of the purchase price, a significant sum. The deposit is paid to the seller on exchange of contracts as part payment of the purchase price.

A request for a deposit over 10% should be questioned as it may not be legally enforceable because it amounts to a penalty on the buyer.

2. Can the seller run off with my deposit following exchange?

No. Typically, the seller’s solicitor holds the deposit as ‘stakeholder’ in their client account.

Holding the deposit as stakeholder means the seller’s solicitor may not pay the deposit to the seller until completion of your purchase. However, where the seller has a connected purchase which creates a ‘chain’, the seller may use all or part of the deposit towards the deposit on their connected purchase, in accordance with the Standard Conditions of Sale (5th edition), which are incorporated into most contracts for the sale and purchase of residential property in England and Wales.

If the deposit is held by the seller’s solicitor as ‘agent’ for the seller under the terms of the contract, the seller’s solicitor may hand the deposit over to the seller before completion. Buyers should resist this position, as it may be difficult, and likely costly, to recover the deposit from the seller, where the seller defaults on completing the sale.

In the Uk the majority of property sales are made using a solicitor or conveyancer (in England an Wales its not a legal requirement to use a solicitor or conveyancer)

If a deposit is required as part of the sale that deposit is lodged with the seller solicitor or conveyancer and remains with the seller solicitor or conveyancer until the completion date ( hand over the keys)

In Turkey the majority of property sales are made without using a lawyer

Also the Eksper Appraisal Reports ( Valuation Report) is available for all parties to view not just the tax office as they are required for many reasons such as
Although valuation reports are mostly used in the credit stages of banks today, their usage areas are expanding day by day. Customers of Istanbul Gayrimenkul DeÄŸerleme mostly request valuation reports to be used in the following areas:

  • for inheritance sharing
  • For the purpose of valuation of fixed assets subject to company valuation
  • In divorce cases
  • In valuations subject to tax liability abroad
  • In order to determine the retrospective value
  • In order to determine the values of the flat owners in the existing and reconstructed building in urban transformation,
  • In order to provide guarantee to SSI and Tax Office
  • Institutions working with the dealership system against collateral
  • For the purpose of determining the value and legal status during the buying and selling phase
More Info can be found here
There can be many reasons why the real estate agent or the seller doesn't want you to see the valuation report don't accept their crap that you not allowed to view it
There have been posts on this forum where the seller would permit the buyer to view it at the property
In Turkey the only time money is exchanged regarding property sales is when both parties go to Tapu office to complete
 
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