Things to Consider When Buying or Renting a Home

EDITOR FULYA ÖKTEM / BLOOMBERG HT

In Turkey, one of the areas where the effects of inflation, cost of living and geopolitical factors have been most felt is the real estate sector. Many factors such as rising construction costs, falling production, deteriorating price behavior and falling household savings have led to sharp increases in house prices and rents.

Extremely high prices and the expectation that rising prices will not stop have also begun to disrupt the housing sales and rental market. Some of the most common complaints recently include landlords giving up on the sale during the transfer phase, evicting tenants from their residences and workplaces, trying to enter into new contracts with new tenants at high prices , demanded an interim increase in rental prices. , etc.

Landlords who pulled out one-year tenants for higher rents, sales returning from the title deed drew attention to the rights of tenants and landlords.

Notarized contracts are not valid

For the sale of real estate to be valid, the contract must be formally established. Consequently, the sale of a dwelling can only be done at the Land Registry Office, contracts concluded with the public notary or between individuals are not valid.

It is recommended that the buyer respect the title deed of the house he will buy by complying with his particular obligation. Thus, the buyer can know if there is a lien or a right of servitude (right of use and benefit) on the house. On the other hand, in accordance with the principle of trust in the land register, this acquisition of the third party in good faith who acquires property or other real rights on the basis of the entry in the land register is protected.

You can request a premise of sale contract

It is stated that when the transfer phase is reached in home sales, the owner demands an instant price increase or forgoes the sale in the hope that prices will rise even more.

The buyer, who thinks he has agreed on the terms of the sale, may have contracted a loan up to the stage of the transfer, transformed his savings into cash or contracted commitments. In this case, it is recommended to make a contract of promise of sale of real estate in order to prevent grievances. If this contract is signed with a notary and for a maximum duration of 10 years and is annotated on the title deed, it is opposable to third parties other than the seller.

Due to the excessive increase in housing prices, it is indicated that the priorities of home buyers in the recent period are not earthquake resistance, but a relatively low price. If the house is built in violation of anti-seismic regulations or is covered by the zoning amnesty, attention is drawn to the material and moral damage that may result from the contradictions. One of the most common examples of these contradictions is that places that should be shelters are turned into residences and offered for sale as reverse duplexes. It is recommended that the buyer investigate these issues before taking possession of the residence.

According to BETAM’s rental housing market study, the annual increase in the average price per m2 of rental housing in Turkey increased to TL 30 with 84.2% in February. The annual rent increase rate was 112.3% in Istanbul, 106.7% in Ankara and 74% in Izmir.

It is also seen that both the owner and the buyer incur losses in the transactions of sale of dwellings carried out by proxy. For example, the sale price does not pass through the hands of the seller or it is transferred to someone else without the buyer actually owning the property.

If the owner authorizes a third party for the sale of the house, it is recommended to write in the power of attorney that the sale price will be paid to the principal. This way the money goes directly to the owner. Although the buyer appoints an agent, it is recommended that the power of attorney be drawn up in such a way as to allow the purchase only within a certain period of time and, if possible, giving details of the residence. It is not recommended to issue a general power of attorney that will allow all kinds of transactions for a particular job.

On the other hand, for example, an unauthorized lawyer can transfer the residence to a third party and have it registered in that person’s name. The owner can sue for cancellation and registration of title due to power of attorney abuse.

Five-year critical lease term

The excessive rise in housing rents and the contraction of the rental stock have started to put tenants in a difficult situation. There are growing reports that many landlords are asking for their tenants to be evicted in order to rent the property at a higher price, and some of them are demanding an interim increase from their tenants.

According to Endeksa housing valuation statistics, Beşiktaş became the most valuable district in Turkey with an average price of 47,081 TL per square meter in March. According to the data of the last two years, Datça ranked first with a 342% increase in the value of summer house sales.

Who has what right?

The landlord cannot demand a rent increase above the 12-month average of the CPI from a tenant whose contract has not expired for five years. Since July 1, 2020, this rate has also been applied to tenants working as traders.

Before the end of the rental period, which usually covers one year, the owner of the property can make an interim increase in the rental price or another name. below cannot claim a raise.

If the tenant does not give notice of termination at least 15 days before the end of the contract, the contract is extended by 1 year under the same conditions, excluding the rental price.

The eviction recognizance is invalid

With the exception of the determination of the rental price, no modification can be made to the rental contracts against the tenant. The evacuation commitment made at the start of the contract has no validity.

According to TURKSTAT data, the construction cost index rose by 90.27% in February compared to the same month a year earlier, continuing its record streak.

The tenant is entitled to compensation

The owner cannot rent the house, which he has vacated out of necessity, to a person other than his former tenant, without justified reason, unless 3 years have passed. The lessor, who does not respect the prohibition to re-let, pays the tenant the sum of the last rent for 1 year as compensation.

The tenant can only be required to pay the rent and ancillary charges (subsidies). Compulsory insurances, taxes and similar obligations belong to the owner.

The rent determination file cannot be opened retroactively, it relates to the new rental period. Even if it is stipulated in the contract that the retroactive rents can be the subject of a lawsuit in determination, this one is not valid.

Previous increase in 5 years, absolute discharge in 10 years

The landlord, who has a request for a rent increase above the 12-month CPI average, can file a lawsuit every 5 years to determine the rental price taking into account comparable rental prices.

The landlord can request the eviction of the tenant because of the needs of himself, his family or his dependents, but must prove that the need is real, sincere and permanent.

The landlord can evict the tenant unconditionally by terminating the contract with notice to the tenant 3 months before the end of the rental period, after the end of the fixed-term lease contract and after the total of the extension years exceeds 10 years .

If it is necessary to repair, enlarge or modify the dwelling for reconstruction or zoning purposes, and it is impossible to use the dwelling during these works, the landlord may terminate the lease agreement subject to a legal action within one month, from the date to be determined according to the termination period and the deadlines provided for the notice of termination.

Under what circumstances can the tenant be evicted?

The buyer of the house can, if necessary, notify the tenant in writing within one month from the date of acquisition, and terminate the rental agreement with a legal action to be filed after 6 months. . The purchaser of the house can also bring an action for eviction after the expiry of the old lease, by notifying the tenant in writing within one month.

The tenant may not leave the accommodation at any time; may have to pay rent until the end of the contract even if he does not live.

If the tenant has not respected the commitment to evict or has received 2 formal notices with reasons for non-payment of rent, the lessor may terminate the contract by way of forced execution or by way of litigation as the case may be.

Apartment owners can request the eviction of a tenant for behavior that disturbs the tranquility of the apartment.

The tenant is obliged to give his authorization

The fact that the house was rented does not prevent its sale. The tenant is required to allow the third party to visit the residence.

The deposit cannot exceed the 3 month rental fee and is deposited in a term account, not to be withdrawn before the end of the rental relationship.

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