Acting in accordance with the legal regulations in Turkey before making a land investment protects the investor against potential problems. Noting that it is necessary to work with an expert who knows real estate law well, Prof. Dr. Gürsel Öngören states that, “Investigate the ownership status of the land in the land registry and its zoning history from the municipality. Again, during the sale of title deeds, it is important that the sale is made over the real price, not the municipality’s current price.” Here are the legal steps to be considered in land investment in all aspects…
Land investments, which stand out due to commercial and livelihood needs, need to be carefully evaluated in terms of local and foreign investors. It is the title deed record that should be evaluated first before purchasing a land. First of all, it is necessary to look at the records limiting ownership such as the right of construction, the right of usufruct, expropriation, mortgage and sequestration of the title deed. If these limitations exist before purchasing the land, calculations should be made accordingly.
Lawsuits filed due to ownership disputes are recorded in the declarations section of the title deed record. It is necessary to look at how the land will be affected by the outcome of those lawsuits. For example, if you bought a land with a history of 2B, that is, a land no longer considered within the scope of a forest though it was previously, from the occupiers, your land may be subject to injunction due to the lawsuits filed by the former owners of this land, or if you have bought this land despite knowing this situation, the land may be taken from you. In the meantime, if there are other shareholders on the land, it is necessary to notify them in terms of the use of the right of preemption. Otherwise, you may have to give that land to a previous shareholder over the official sales value of the title deed. If there are other shareholders in the land and you are buying the largest share, thinking that you will buy that share as well in the future, there may be a situation of disagreement with those shareholders and a lawsuit can be filed for the dissolution of the partnership in the land, in which case the land may be sold to someone else as a whole.
Ask these questions about the zoning situation
If the title deed is suitable for the investor, the next inspection place will be the municipality. It is necessary to go to the municipality and ask many questions, including what is the zoning status of that land, what is this land considered in the zoning plans, are there any water basin protection areas, are there any restrictions due to national security and military facilities, is it a residential land, a commercial investment land, will there be a road near it in the future, is it included within the scope of a natural protected area, is there a ban on construction due to it being a protected area, or is there a danger of expropriation if it is next to an industrial zone that may develop, is there a situation of expropriation due to the construction of a dam or railway project? All these inquiries should be carried out with an expert lawyer experienced in the field of real estate law.
It should be learned if there is an abandonment to the public decision
One of the issues to be considered in the municipality is whether there is a previously determined decision of abandonment for reasons of building a road for the public or for public use. Because the square meter mentioned in the title deed can change significantly after abandonment. Again, the issue of whether Zoning Law 18 will be implemented in the zoning plans is very important. If a zoning application is to be made according to Article 18 of the Zoning Law, 45% of the land to be purchased can be given to the public or others free of charge as a result of this implementation.
If it is desired to create a special zoning situation and construction in line with the investment to be made on the land, after a regulation called “increment value share” made in the Zoning Law, investors may also have to pay an additional cost to the state that equates to the increase of value of the land due to a zoning change made by the municipalities or the Ministries.
Keep track of zoning plan changes
In land investment, it is necessary to look at the geological situation, the quality of the soil and the earthquake effects in terms of construction. It is also important to follow the zoning plan changes to be made in the future. You may have bought a land that does not have a zoning status, without a project, just because its value will increase over time. Since our country has a young population and constantly needs residences and workplaces, the places that are currently considered as property or agricultural land in the zoning plans may be used for residential, workplace, industrial and commercial purposes after a while with a change in zoning status. In such cases, the value of the land may increase up to three times with an administrative decision. For this reason, land investments in our country always have the potential to make money for their investors. However, do not forget that you need to be patient for a good return.
Make sure you make your payment via the bank
If the land is suitable for purchasing after the ownership and zoning status of the land is evaluated, first of all, the purchaser and the seller can make a real estate sales pledge contract, make a part of the payment and decide on the date of transfer of the land to the purchaser and its handing date in return for future payments. In fact, by making another type of contract with a partial payment, the land can be handed over to the use of the purchaser before the deed transfer is completed. In other words, by making various contracts in line with many commercial alternatives in terms of the use of the land by the purchaser, economic benefits can be obtained by the investor before the actual sale is carried out in the land registry office.
As a result, the parties make the purchase on the title deed in line with the sales pledge or sales contract. We recommend that payment-related activities are made through the bank, in case of a dispute in the future. Again, during the sale of title deeds, we recommend that the sale be made over the real price, not the municipality’s current price. While in the past, the transfer of title deed between the purchaser and the seller was made at the title deed directorate in the district where the land is located, now it can be done in some cases from the land registry directorates and consulates in different cities using digital security elements.