NEW ERA AT REAL ESTATE TRADE! (JULY 2018)

A new era has started at real estate market by the Regulation on Real Estate Trade (“Regulation”) published in Turkish Official Gazette on 05 June 2018. The activities of buying, selling and leasing of all real estate whether registered to land registry or not and the obligations to be fulfilled by the real estate agencies have been regulated by Regulation.  

The Provincial Trade Directorates, under the control of the Ministry of Customs and Trade, shall constitute an accessible “Real Estate Trade Information System” (“Information System”) pursuant to Regulation. The “Authorization Certificate” which is subject to criteria determined by the Regulation shall be issued for the people conducting real estate trade (“Realtor”) through Information System. The renewal, suspension and annulment of the Authorization Certificate is limited to a five-year period.  

The most significant criteria to receive an Authorization Certificate for the Realtor is the physical conditions of his/her enterprise and possession of the professional competence certificate. The mentioned specifications shall not be required for the Realtors who have already operating as Realtor at the date of the publication of the Regulation, who holds education certificate or who have educated on real estate trade. The Realtor can;  

  • Conduct marketing activities of buying, selling and leasing of all real estate whether registered to land registry or not and brokerage,
  • Examine, research or report about the real estate subject to trade, inform the client about current value, provide consultancy services,
  • Mediate for land registry transactions,
  • Draw up a contract between parties, conduct transactions and provide service regarding real estate. 

The Realtor is not allowed to conduct any business other than services subject to real estate trade at his/her enterprise. Also, the Realtor is not allowed to share the collected information from the transactions other than contractual parties. The Realtor is obliged to inform parties about the transactions conducted himself/herself and submit copies of the documents to the parties. The Authorization Certificate of the Realtor shall be annulled in case the Realtor breaches the principle and rules of real estate trade for three times in a calendar year. In such a case a new certificate shall not be issued for two years’ period as of annulment.  

The Authorization Contract between the client and the Realtor is a necessary for Realtor to perform services. The content of the Authorization Contract must include minimum information about real estate and must be drafted in two copies. The said information shall take place in the advert of the real estate to be posted by the Realtor. More than one Realtor can be authorized by an Authorization Contract. In such a case, the Realtor is obliged to inform his client about his/her partnerships and send the copy of the contract to his/her client within two business days following the conclusion of the contract. 

The adverts to be posted by the Realtors should contain the contact information of the Realtor and the number of the Authorization Certificate as well as the details of the real estate. Publication must be termination latest on the following business day as of the completion of transactions regarding the real estate. The adverts of the Realtor must be kept in soft and hard copy forms five years.    

The Realtor should draft a “Real Estate Exhibition Minute” for services regarding display of the real estate to prospective buyers or lessees. The Realtor is not allowed to demand any fee for such displaying. However, the Realtor is entitled to demand transportation expenses from the person when the real estate exhibition service has been performed outside the district of the Realtor’s enterprise. 

Purchase and Sale Brokering Contract must be concluded between the buyer, the seller and the Realtor. Besides, Lease Brokering Contract must be concluded between the lessor, the lessee and the Realtor due to brokering services of the Realtor. The percentage of the Realtor’s service fee in the Purchase and Sale Brokering Contract shall not exceed 4% of the real estate fee excluded Value Added Tax. On the other hand, the percentage of the Realtor’s fee in the Lease Brokering Contract shall not exceed the one-month rental fee of the real estate excluded Value Added Tax. The Realtor is entitled to service fee after registration of the purchase to land registry or conclusion of the lease contract. The service fees for the other services shall accrue after drafting the related contract. The service fee of the Realtor shall be paid equally by the parties unless otherwise written on the contract. 

In case annul of authorization certificate of a Realtor, authorization contract of such Realtor shall be deemed terminated. However, services fees to be accrued until the termination date shall be collectible.