Some investors interested in buying property in Turkey opt for bank loans. Some banks offer attractive facilities for obtaining property loans, but there are certain things to consider carefully before applying for a bank loan, as there are several expenses in addition to loan installments.
Banks usually charge administrative fees, known as “file fees” which are a maximum of 5% of the loan amount. This percentage becomes significant when considering the rest of the expenses.
Another amount is collected under the name of “expert fees” This amount is allocated to the expert(s) who conduct a thorough inspection of the property to be purchased. The expert typically conducts technical and artistic examinations to assess the value of the loan that can be obtained based on the agreed price between the buyer and the seller. The loan amount is determined, with a maximum of 80% of the total purchase amount.
Attention should also be given to earthquake insurance expenses, which are very important and considered mandatory. These expenses must be paid since it is not possible to sell or buy the property without settling this amount.
There are also other expenses, such as real estate brokerage fees if the property is purchased through a real estate agent. It has become customary to pay a commission to the real estate agent, ranging from 1% to 2% of the property price, which is paid separately by the seller and the buyer.
Title Deed Fees in Turkey:
The title deed registration fee (tapu fee) is considered an important item that must be taken into account before purchasing property. It is not a negligible amount, as it amounts to 2% of the property price, imposed by the state on both the seller and the buyer. However, it is worth mentioning that it has become customary in Turkey to fully burden the buyer with this fee. In other words, the buyer pays 4% of the total property value as a fee for the title deed registration.
For example, if the property price is 200,000 Turkish liras, the title deed fee would be 8,000 Turkish liras.