Things to consider during property trade have important effects on your investment. All procedures during conducting of property trade must be official, which is the most important thing to consider. Factors such as unpaid tax debt or incorrect valuation will turn the trade into disadvantage. For this reason, it is essential to pay attention to the issues mentioned during property trade.
Don’t Decide Without Questioning Tax Debt!
Property tax debt, which you will notice after property trade transactions, will be a problem for you. For this reason, you should check past tax debts. If you conduct trade over a property with a property tax debt, both the buyer and the sell will be liable for the existing tax debt so you mustn’t act without checking it. The seller of the property should also be cautious about this matter.
Property owners are required to pay property and environmental cleaning taxes. To avoid any proceedings following the property sales procedure, the seller should file a petition with the municipality saying that s/he has completed the sales transactions of the property.
The first of things to consider while conducting property trade is to inquire about tax debt.
Turn Your Investment into Advantage with the Right Property Valuation
The second things to consider while after the inquiry about property tax debt is the declared value of the property trade in the title deed. Depending on the disposal of the property in 5 years, there are changes in the value to be earned.
These rates are considered as appreciation gains. For further information, please see our article entitled property taxes payable by people who will buy property. An appreciation gain is declared for the property disposed of in 5 years, and you may be required to pay various rates of income tax but if property sale transactions are initiated after 5 years, income tax will not be required to be paid during the sale of the property.
Accordingly, calculated title deed fee required to be paid during purchase-sale will be lower than the minimum property tax value. The declared value must be the actual purchase-sale price. The minimum property tax value is determined every 4 years and is increased every year according to the valuation rate. Another issue to consider is that property tax must be declared.
Property tax for the year the property has been purchased must be paid by the seller. The property tax for the following year is payable by the buyer.
Documents Required for Property Trade in Turkey
You may find it helpful to know about the documents required for property trade. Rather than missing documentation, certain restrictions in the documents the deed officer checks during the buying and selling procedure may prevent trade.
If you do not face such a problem and if you complete the following documentation, you won’t have any problem.
• Title deed information of the property to be sold
• ID documents of the buyer and the seller and 2 photographs
• If legal entity, tax office details
• If any of the parties is represented, power of attorney and ID document and 1 photograph of the representative
• If you provide the document of the property regarding the property tax value obtained from the municipality, you can perform your transactions.
Being under guardianship, having an impaired mental state and being a minor prevent conducting the abovementioned purchase-sale transaction. In addition, there will also be restrictions if there is any annotations on the property such as provisional injunction, public lien, bankruptcy, etc.
Property Trade For Companies
The first of things to consider while conducting property trade through a company is that it should be expressly provided for in the articles of association that this procedure can be performed. An authorized person will represent the company and mediate during property trade transactions of the company.
Pursuant to the Land Registry Law, the representative authorized to carry out title deed transactions must submit the authorization certificate from the Trade Registry Office.
If you meet all these requirements, you’ll save time while during property trade and gain an advantage by taking account of the things to consider.
