Caveats on Initial Contracts for a Real Estate Sale in Turkey
- What are the initial contracts for the sale of real estate?
- Promise of sale Contract (Satis Vaadi Sozlesmesi)
- How legal are these types of contracts?
- What are legal problems likely to happen from these contracts?
- How can investors avoid these problems, and what caveats to be considered?
- Tips for investors who have made such mistakes
- What can Ghars Consultancy offer on this subject?
What are the initial contracts for the sale of real estate?
First of all, referring to an error arising from an illusion in the Turkish translation (Satis Vaadi Sozlesmesi), it is worth saying that the term (initial contracts), or (initial contract for the sale of the property) is inaccurate and it does not imply its intended meaning.
To better illustrate this, it had to be stated in some detail: in fact, there is no such thing as the 'initial contract for sale', but there are:
1- A contract form for a principled application, signed between the sellers and buyers, usually contains basic information for the seller, buyer, property, and price...2- Promise of sale contract (initial), called in Turkish as (satis vaadi sozlesmesi), which we're tackling.
Promise of sale Contract (Satis Vaadi Sozlesmesi)
Based on the Turkish name of this contract (Satis Vaadi Sozlesmesi), which can be translated literally as "contract of the promise of sale" or as others translate its meaning: (future sales contract), no problem with the term and its translations since they are all about one subject.
Legally speaking, "It is a legal contract proved by the notary, holding all the information of the property, seller and buyer, its description (the property), the terms on which sellers and buyers agreed, and states the obligation of both parties to the date of the deadline for the delivery of the property, and the agreed terms stipulated in the contract."
The promise of sale contract includes off-the-plan sale contracts and the property sale in installments. Usually, this type of contract is concluded on types of unconstrained properties, such as land-based properties, before the completion of the sorting and registration of parts of the property in TAPU, which are often due to the lack of regular TAPU papers, in case of the construction is not complete or there is a particular violation.
The promise of sale contract is proved by the notary, which is mandated by the Turkish Government to document these contracts.
How legal are these types of contracts?
The promise of sale contract in Turkey gains legal strength by regulating it in the notary, which is fully legal in form, protecting the parties' right to the contract and obliging them to perform the other party's right. Without that, the contract is merely an agreement that does not carry any legal force binding on implementation.
As a result, registration of the promise of sale contract in notary, signed by the contractors, is a valid, regular and flawless contract to establish the legal right in case of a conflict.
What are legal problems likely to happen from these contracts?
As mentioned above, the legal consideration of these contracts is to establish their registration in the notary. Unless promise of sale contracts are regulated in the notary with all agreed details in the contract, no condition or entitlement not mentioned in the contract can be claimed.
If the promise of sale contract were not regulated by the notary, it would not have a strong impact on courts if one of the parties violates the agreement provided for in the contract.
How can investors avoid these problems, and what caveats to be considered?
1. Editing the promise of sale contract on an official form
It is highly recommended to organize this contract on an official formal form, which includes every detail of the description of the property and the terms on which the seller and buyer agreed, the identification of the seller and buyer's information, the signature of both of them and other information...
2. Completion of the contract exclusively through the notary
The contract must be certified by the notary after direct supervision of its wording and terms.
It is necessary to use a sworn interpreter to translate the contract's content for persons who do not speak Turkish.
3. Including all basic elements in the contract
These include the terms of the agreement between the parties, the area of the property, its specifications, the date of delivery, and its price and due payments or the rest...
4. Keeping a copy of the contract in addition to the relevant documents
Here is an important piece of advice after registering the contract in the notary. Keep a certified copy of the contract papers to use when needed.
Tips for investors who have made such mistakes
Future sales contracts (the promise of sale contract) do not have a complete legal character unless registered and proved by the notary.
The investor is supposed to be careful and attentive to register this contract in the notary and prove the payments made using bank transfers to ensure his full rights in case of a conflict.
As for those who have fallen into the trap of legal errors during the conclusion of their contract or failed to prove it, we would undoubtedly advise them to consult experienced experts or professional jurists in this field.
What can Ghars Consultancy offer on this subject?
Due to our extensive experience in the Turkish real estate sector and our professional team, which attracts elite Turkish and Arab real estate experts and jurists, Ghars Consulting, a subsidiary of Imtilak Group, has provided the most prominent legal services and consultations in real estate. This includes the services of following up on the legal issues of contracts by providing follow-up services, organizing and auditing contracts to ensure the protection of rights until the contracts are proved in their final legal form.
Edited by Ghars Consultancy
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