How to Sell Property in Turkey Internationally to Cash Investors

Phase I: Preparing the Asset and Legal Foundation

Before launching any international marketing campaign, the property must be prepared and all legal documentation meticulously compiled. International cash investors demand speed and clarity; any legal ambiguity will be a deal-breaker.

Legal and Financial Due Diligence:

1. Title Deed (Tapu) Verification: The Tapu, or official title deed, must be clean and immediately available. Verify that the owner’s name matches the passport/ID, and that there are no outstanding mortgages, liens, or legal encumbrances (known as s\c​erh in Turkish) registered on the property.
2. Mandatory Valuation Report: For sales involving foreign buyers, an official Property Valuation Report ($Gayrimenkul$ Deg˘​erleme $Raporu$) from an authorized expert (licensed by the Capital Markets Board, SPK) is mandatory. This report establishes the property’s true market value, which prevents fraudulent under-declaration and forms the basis for transfer tax calculation. The report’s validity is typically short, so timing its commission is crucial.
3. Required Documentation: Assemble a complete dossier, including the original Tapu, a valid Compulsory Earthquake Insurance (DASK) policy, the Fair Value Certificate from the local municipality (for tax purposes), and a certificate confirming No Real Estate Tax Debt on the property. For a foreign seller, a notarized translation of the passport is also required.
4. Tax Considerations: Understand the Capital Gains Tax implications. Properties sold within five years of the purchase date are subject to income tax on the profit (up to 35% in some cases, calculated on the inflation-adjusted gain), while those held for five years or more are typically exempt. Clear, professional tax advice must be ready for the investor.
5. Professional Representation: A local, English-speaking Turkish lawyer specializing in foreign property sales is indispensable. They can handle due diligence, draft the preliminary sales contract (satıs\c​ $vaadi$ so¨zles\c​mesi) which can be notarized and annotated to the Land Registry for buyer protection, and execute the final transfer via a Power of Attorney (Veka^letname) if the seller cannot be present.

Phase II: International Marketing Strategy for Cash Investors

Targeting cash investors requires focusing on specific markets, delivering premium presentation, and emphasizing the unique value proposition of a Turkish investment.

1. Identifying Target Markets and Platforms:

• Targeting High-Net-Worth (HNW) Markets: Focus on countries known for outward property investment and liquidity. Historically, buyers from the Middle East, Russia, and Central Asian states have shown strong cash-buying interest, alongside established interest from European buyers (UK, Germany).
• Specialized Real Estate Portals: List the property on international platforms popular with global investors. These are not just agent websites but major online marketplaces. Listings should be translated into key buyer languages, such as English, Arabic, and Russian.
• Luxury and Investment Networks: Partner with a real estate agent who is a Certified International Property Specialist (CIPS) or one with proven international sales channels. Leverage luxury international property exhibitions, private networking events, and investment seminars in target markets.
• Digital Marketing and Localization: Run targeted social media and search engine advertisements (Google Ads) in the buyer’s local language and currency. The messaging must be tailored, highlighting aspects important to investors: high potential rental yields (which can reach 6-12% in prime coastal/urban areas), low entry prices per square meter compared to other European cities, and favorable exchange rate advantages for foreign currency holders.

2. Premium Property Presentation:

• Exceptional Visuals: Cash buyers often make decisions remotely. High-quality professional photography, detailed floor plans, and a 3D virtual tour/video walkthrough are non-negotiable. The presentation must convey the property as a turn-key, premium asset ready for immediate use or rental.
• Investment Case Summary: Create a professional, data-driven investment brochure (in multiple languages). This should clearly articulate the Return on Investment (ROI) potential, including expected rental income (long-term or short-term holiday rentals), projected capital appreciation, and a detailed breakdown of all associated transaction and holding costs (property tax, agent fees, etc.). Transparency builds trust with serious investors.

Phase III: Vetting and Securing the Cash Investor

The final, and perhaps most critical, step when dealing with cash investors is the rigorous and non-negotiable process of financial vetting. This is essential to ensure the buyer has the funds readily available and to comply with international anti-money laundering (AML) regulations.

The Requirement for Proof of Funds (POF): Serious cash investors value efficiency and will not waste time on deals that fall through. Requesting Proof of Funds (POF) is a standard, professional procedure that immediately filters out non-serious inquiries and tire-kickers, saving both parties valuable time.

1. When to Request POF: The request for POF should be made after initial interest is established, but before sharing highly detailed financial data or arranging in-person viewings, and certainly before any formal offer is accepted.
2. Acceptable POF Documentation: Request one of the following official documents from the investor’s bank:
   • Bank Statement: A recent (ideally dated within the last 30 days) statement showing the required funds are held in the investor’s account. Personal financial details can be redacted, but the bank name, account holder’s name (matching the buyer), and sufficient funds must be visible.
   • Letter of Credit or Bank Comfort Letter (BCL): A formal letter from a recognized bank confirming that the client (the buyer) has sufficient liquid assets/cash on deposit to cover the purchase price of the property and that these funds are readily accessible. This is the preferred method as it is highly professional and verifies the funds’ liquidity.
   • Escrow Account Confirmation: If a preliminary deposit has been placed into a lawyer’s or agent’s trust (escrow) account, a formal receipt/confirmation from the holding party suffices.
3. Compliance and Legal Review: The POF documentation must be reviewed by the seller’s Turkish lawyer. This is not only for verification of funds but also for preliminary Know Your Customer (KYC) and AML (Anti-Money Laundering) compliance. Turkish law requires that all sale payments be made through official bank channels and not in cash, and a clear, traceable paper trail is mandatory for the final transfer at the Tapu Office. For foreign buyers, the property’s sale price must also be exchanged into Turkish Lira through a Turkish bank and documented via a Foreign Exchange Purchase Certificate (Do¨viz $Alım$ $Belgesi$). This regulation ensures the payment is official and verifiable.

Phase IV: Closing the Sale and Fund Transfer

The final stages involve legal execution and the secure transfer of funds, which must adhere strictly to Turkish real estate law.

1. Preliminary Sales Agreement: A notarized Sales Commitment Contract is signed, detailing the purchase price, payment schedule, and terms. A non-refundable reservation deposit (typically 5-10%) is paid by the buyer and held securely, ideally in an escrow account managed by the seller’s or a neutral lawyer, pending the final transfer.
2. Transfer at the Land Registry: Both parties (or their legal representatives with Power of Attorney) attend the local Land Registry and Cadastre Office ($Tapu$ Mu¨du¨rlu¨g˘​u¨). A certified sworn translator must be present for the foreign buyer.
3. Final Fund Transfer: The full sale price must be transferred via the bank on the day of the transfer (or verifiably ready in an account designated for the transfer) before the final title deed is signed. The Tapu official ensures that both parties sign simultaneously, and the buyer’s funds are officially transferred to the seller’s designated Turkish bank account.
4. Title Deed Handover: Upon signing the official deed, the registrar issues the new Tapu certificate, completing the sale. The funds are then officially cleared to the seller, and any final capital gains tax or agent commission payments are processed.

By integrating rigorous legal compliance, a targeted international marketing campaign, and a strict Proof of Funds vetting procedure, sellers can maximize their chances of securing a quick, secure, and profitable transaction with a serious cash investor in the dynamic Turkish real estate market. The key is absolute professionalism and transparency at every stage of the process.