Standards have been introduced for valuation reports in sales of real estate to foreigners

The General Directorate of Cadastre and Cadastre (“GDLR”) previously made it compulsory to obtain an expert report in real estate sales to foreigners, with the circulars numbered 2019/1 and 2019/5.

It is now decided that the process of drawing up and approving the appraisal report should be carried out digitally, via the Real Estate Appraisal Information System (TADEBS) under Webtapu (electronic land registration system) in accordance with the GDLR circular of September 15, 2021 and numbered 2021/6. As a result;

  • Valuation report requests for real estate transactions for which foreign natural persons are buyers can now be made through Webtapu or, if the seller is a Turkish citizen, by telephone.
  • The system will assign an assessment institution after receipt of a payment to be made by the buyer or seller based on the fee, payment schedule and claim number information notified by the GDLR.

o It is also possible to select the evaluation establishment from a list of evaluation establishments to be provided within the framework of the system, in accordance with the announcement entitled “Modification of the evaluation reporting system concerning the numbered circular 2019 / 1 ”published by the GDLR on November 16, 2021.

  • For property held in joint possession, it will suffice for one of the owners to submit a request for an expert report.
  • The buyer or seller will be able to follow the appraisal report through Webtapu and request corrections regarding material errors or the value of the property.
  • If the land registry officer finds simple material errors in the appraisal report, that officer will notify the buyer or seller to request a correction through Webtapu.
  • If situations change the value of the appraisal report (type classification, abandonment of the route, establishment of easement rights, etc.), the buyer or seller can request a new appraisal report.
  • The authorized valuation institution designated by the electronic system or selected from the list will prepare the valuation report in accordance with international valuation standards and rules published by the Capital Markets Board and the Association of Valuation Experts. Turkey.
  • The authorized institution will electronically sign the appraisal report in accordance with Electronic Signature Law No. 5070 and send it to the buyer or seller via Webtapu.

However, before uploading the report to the system, the assessment body will carry out a final check to ensure that the necessary elements, and in particular the following, are included in the report:

– Demonstration of reference properties of the same quality as the building subject to an appraisal report on the same cadastral plan;

– Information on the current state of construction on the date of the appraisal, if the property subject to the appraisal has not yet been completed; and

– Explanation of evaluation instruments such as number corrections, rounding and minor revisions.

In transactions involving the acquisition of Turkish nationality by foreign natural persons through the acquisition of real estate, the regional land registry offices issuing certificates of approval will only review the report for consistency and not will not conduct a desirability review.

As such, the Regional Directorates:

– Ask the buyer or seller to request a rectification via Webtapu, in the event of insufficient elements of the expert report;

– Contact the GDLR Real Estate Appraisal Service, in case of hesitation on the value of the real estate object of the appraisal; and

– Check if a previous appraisal has been made for the property subject to appraisal. If the property valuation service determines that there is no more than a 20% difference between a report made in the last 6 months before the most recent sale of the property and the current value of the property, it will report.

If more than one appraisal report is submitted for the same property, the value of that property will be determined on the basis of the Consumer Price Index, Rent Index, Housing Price Index which will be announced by the Central Bank of the Republic of Turkey. or any other national index to be established by the GDLR.

The circular entered into force on September 20, 2021.

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