| Delivery Defects | A second defect with respect to the required formalities concerning a foreigner’s acquisition of real estate in Turkey is linked to its delivery. The Turkish legislation has some stipulations which are specifically related to the acquisition of ownership by non-Turkish citizens. Article 35 of the Turkish Land Registry Act lists two conditions.
First the "reciprocity principle" must apply between the country of the person wishing to obtain acquisition of ownership. In other words, if a Turkish citizen can become the owner of real estate in the UK, then the same right applies to a UK citizen in Turkey. |
The second condition is that there are no legal restrictions regarding the acquisition of ownership. Here especially the Village Act and the Act regarding the Military Prohibited Areas and Security Areas play an important role. Article 87 of the  Village Act denies the right to foreign legal and natural persons to ownership of estate that is outside the centre of a village. One of our clients was confronted with this problem when he wanted to purchase a hotel in an idyllic place on the Mediterranean coast. The hotel appeared to be situated in a place that did not yet belong to a village centre. The client had to wait until the cadastral division of this area had been arranged. A related problem is that the intended use as stipulated in the zoning schemes does not correspond with the intended use that the purchaser has in mind. Problems may arise if a hotel or holiday home is built on land that is classified to be used for agriculture. A third impediment follows from the Act regarding Military Prohibited Areas and the Security Areas. This Act includes restrictions for the acquisition of real estate by foreigners if the estate is located within a particular distance of military sites or strategically important areas. This qualification specifically applies to many places along the coast. It is therefore essential to check with a competent military authority if a particular real estate is subjected to this restriction.The legal restrictions listed above may in turn be restricted or even be cancelled by more recent legislation which is closely related to the promotion of the economic position of the Turkish Republic. The 1982 Act to promote Tourism offers the possibility, including to foreigners, to acquire all kinds of rights in the "tourist areas" as designated by the Council of Ministers. These rights include the right to ownership of real estate. This also applies to the Oil Extraction Act and the Act to promote Foreign Capital. Therefore, with a view to attracting foreign companies, these acts leave more room in the field of places of establishment for foreign companies.
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