As known, within the scope of Turkish citizenship applications, it was required for the foreign real persons to submit land registry an appraisal report of property to be purchased. With its circular dated 15 February 2019 and numbered 2019/1 (“Circular”), the General Directorate of Land Registry and Cadaster (“GDLC”) has resolved that appraisal report of the real estate, which is intended to be purchased or sold by a foreign real person after 4 March 2019, should be submitted to relevant land registry with regardless of whether this property acquisition is within scope of Turkish citizenship application or not.
On the other hand, with its Direction numbered 36189470-125.01.01-E.544639 and dated 6 February 2019 (“Direction”), in terms of promise to sell annotation applications within the scope of Turkish citizenship applications, the GDLC has concluded that, if it is clearly stated under a power of attorney that such property acquisition is intended for benefiting from Turkish Citizenship Law, there is no need to require an explicit authorization under such power of attorney for registering declaration of not to transfer for 3 years.
Within the same Direction, the GDLC has also clarified that, if under a promise to sell agreement validly signed before the notary public, there is a clear phrase stating that such agreement is signed for obtaining Turkish citizenship, there is no need to require presence of the seller (owner) for registration of such annotation, thereby only real person foreign buyer will be sufficient to realize such promise to sell annotation transaction.
The GDLC has successfully clarified the above two issues, which were indeed already explicitly sorted out under the current legislation but they often materialized problematic. Accordingly, this clarification will considerably have a positive effect on land registry transactions consummated within the scope of Turkish citizenship.
Obligation introduced by the Circular to submit an appraisal report to the land registry, in any kind of property purchase and sales transactions of foreign real persons, is also a positive start in terms of regulating the sector.
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