What is Real Estate Appraisal Report? and is it Obligatory?

An appraisal is a professional opinion of a property’s value. Appraisals are almost always used worldwide in purchase-and-sale transactions and commonly used in refinance transactions. In a purchase-and-sale transaction, an appraisal is used to determine whether the home’s contract price is appropriate given the property’s condition, location, and features. In a refinance transaction, an appraisal assures the lender that it isn’t handing the borrower more money than the home is worth.

In Turkey’s real estate market and according to the circular published by TKGM (Turkish General Directorate of Land Registry and Cadastre), on the 15th of February 2019, all the Turkish real estate selling transactions made by foreign property buyers in Turkey cannot be done without the acquisition of an approved real estate appraisal report citing the exact value of the property before the transaction especially if the foreigners who buy real estate in Turkey buy it in order to acquire Turkish citizenship

 

This new amendment was made in place by the Turkish Government with the aim to protect foreign buyers and investors against high-priced properties. And also to prevent tax evasion.

 

This does not apply to preliminary sale agreements or promise-to-sell agreements even if one of the parties is a foreigner.

The fee of the SPK validated appraisal report costs between 1.000 TL and 2.000 TL and this fee will be paid directly to the new real estate appraisal department. The validity of appraisal reports is three months from the approval. In case of any change in any circumstances affecting the value of the real estate, a new property valuation report will be required regardless of whether the three-month period has passed.

 

If the chosen property is at the under-construction or off-plan stage, the value will be the estimation of its value on the market at the time of completion. The value specified in the amount of the valuation report will also appear on the title deed.

 

The valuation report includes the following documents;

  • Detail of the title deed
    • Property located on a map with coordinates
    • Property photos
    • Equivalent property prices
    • Approval of the price
    • Current debt condition of the property
    • Confirmation by the Land Registry and Cadastre General Directorate

 

Property Invest is a real estate company working with professional and experienced Turkish real estate agents and legal consultants, who will provide you with the needed support during your investment process in Turkish properties, and the acquisition of Turkish Citizenship.

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