Wednesday, November 20, 2019

New evaluation report introduced in Turkey

Earlier this year a new expertise report was introduced when buying or selling a property in Turkey. 

This means that a certified appraiser must valuate the property being traded.

This value is then used as the official property evaluation and used for calculating fees for the title deed transaction, property tax among other examples.

Historically in Turkey the public property values and evaluations has been a lot lower than the actual market values and traded values.

The idea behind introducing this new report is to bridge the gap between the public property evaluation and the market values.

The new rapport consists of a detailed description of the property, the building, similar properties within the same area among other examples.

Interestingly enough this report so far is only mandatory for property transactions where foreigners are involved as either seller or buyer.

As in other countries a higher public property evaluation also in Turkey equals more expenses for the owner of the property.

In case the Turkish authorities want to gap the bridge between public evaluations and traded values the logical step would be to re-evaluate all properties not matter if they are being traded or not.

Unfortunately this would go under the category if "political suicide" and therefor the government has chosen to implement this new report step by step and did for some reason choose to start with properties being sold or bought by foreigners.

However, it is believed by most that this will be implemented to all property trades no matter nationality soon.

Moreover, within some years all properties no matter if they are being traded or not will have to be re-evaluated.

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