REALTY GALAXY

When you step into the world of real estate, the technical terms you encounter can make your buying or investing decisions difficult. Questions like "What is floor easement?", "What is the purpose of an appraisal report?", or "Why is the difference between gross and net area important?" can be confusing, especially for first-time homebuyers.

This guide provides a simple, up-to-date, and clear glossary of real estate terms for anyone who isn't knowledgeable in the field but wants to make the right decision.

 Basic Terms for the Buying and Selling Process

Real Estate

This refers to immovable property. It includes all properties that cannot be physically moved, such as residential homes, land, plots, and commercial properties.

Title Deed (Tapu)

This is the official document that proves ownership of a property. The title deed is issued by the state and obtained from the land registry office.

Real Estate Agent / Consultant

This is an authorized person who brings buyers and sellers together for sale or rental properties, presents portfolios, and manages the process. They must have an official authorization certificate.

Purchase and Sale Agreement (Preliminary Protocol)

This is a preliminary document that shows the parties have agreed on the property to be sold. It can be notarized but is not sufficient for the transfer of the title deed.

Promise to Sell Agreement

This is an official commitment that the property will be sold in the future. It must be made at a notary public. If it is registered in the title deed, the buyer's rights are secured.

Appraisal Report (Ekspertiz Raporu)

This is an official report that shows the value of the property according to market conditions. It is prepared by licensed firms approved by the CMB (Capital Markets Board). It is mandatory for foreign sales.

Title Deed Fee (Tapu Harcı)

This is a tax collected by the state during the sale transaction. It should be paid jointly by the buyer and seller. It is generally 4% of the sale price.

DASK (Compulsory Earthquake Insurance)

This is a mandatory insurance against earthquake risk for every titled residential property. A valid DASK policy must be presented for title deed transfer transactions.

Floor Easement (Kat İrtifakı) / Condominium Ownership (Kat Mülkiyeti)

Floor Easement: This is the title deed of a project that has not yet been completed. It shows the apartment belonging to you according to the project plan.

Condominium Ownership: This is the official title deed for a completed building with independent sections, where the occupancy permit (İskân) has been obtained.

 Terms Related to Title Deed and Ownership

Occupancy Permit (İskân) (Yapı Kullanma İzin Belgesi)

This is the official permit issued by the municipality after a building's construction is complete, certifying that the building is suitable for use. Condominium ownership cannot be registered on the title deed without an occupancy permit.

Encumbrances (Takyidat)

These are restrictions and limitations on the title deed. They include all records that affect ownership, such as mortgages, foreclosures, and annotations. An encumbrance check must be done before purchasing a property.

Annotation (Şerh)

These are cautionary notes registered on the title deed that do not directly affect ownership but must be considered during the buying and selling process. For example: "cannot be sold" annotation, pre-emption right annotation.

Mortgage (İpotek)

This is when a property is used as collateral for a loan. The bank has the right to put the house up for sale if the debt is not paid. Mortgaged properties can be purchased, but a detailed inspection is required.

Shared Title Deed (Hisseli Tapu)

This is a title deed where a property is jointly owned by more than one person. The consent of all shareholders is required during the buying and selling process. It can be risky for investment.

Independent Section (Bağımsız Bölüm)

This refers to units like residential homes, workplaces, or storage areas within an apartment building or site that have their own entrance, number, and usage area. It is specified in the title deed.

Soil Survey (Zemin Etüdü)

This is the process of examining the ground for stability and load-bearing capacity before a building is constructed on a plot of land. It is of vital importance for earthquake safety.

Terms for Rent, Yield, and Investment

Rental Multiplier (Kira Çarpanı)

This is the ratio of a property's annual rental income to its sale price. It is generally used to calculate the payback period (amortization). A low multiplier means a high rental yield.

Example: Monthly rent is ₺10,000, sale price is ₺2,000,000 → 200 months = 16.6 years.

Gross Area / Net Area

Gross Area: This is the total area of the apartment, including walls, balconies, and common areas.

Net Area: This is only the interior living space of the apartment. It should be considered for furniture placement.

Net area information is essential when making an investment decision.

Gross Rental Yield

This is calculated using the formula: (Annual rental income ÷ purchase price) x 100. It excludes taxes and expenses.

Example: ₺240,000 annual rent ÷ ₺4,000,000 = 6% yield.

Net Rental Yield

This is the actual profit remaining after taxes, maintenance fees, and management expenses are deducted from the gross income. This rate should be considered for professional investment decisions.

Valuation (Değerleme)

This is the process of determining a fair value for a property based on market conditions. It can be confused with an appraisal report but may be more comprehensive.

Airbnb / Short-Term Rental

This is the practice of renting out a house or apartment on a daily or weekly basis. It can provide high income, especially in tourist areas, but may require legal regulations and permits.

Guaranteed Rent Sale (Kira Garantili Satış)

This is when a developer or real estate office offers an investor a guaranteed rental commitment for a specific period. This creates a sense of trust, especially for foreign buyers. However, the contract details must be carefully examined.

 Project and Construction Terms

Delivery Date (Teslim Tarihi)

This is the date when the project is completed and the apartments are physically handed over to their owners. It must be specified in the contract. A sales contract that includes a penalty clause for delays is important.

Off-Plan Sale (Maketten Satış)

This is the name given to sales made before construction has started or is completed. For these types of sales, a detailed contract and a trustworthy company are essential.

Down Payment (Ön Ödeme / Peşinat)

This is the initial payment amount given at the beginning of the purchase process. It is generally between 10% and 30%. It reserves the property for sale.

Floor Plan (Kat Planı)

This is a technical drawing that shows the interior structure of an apartment and the layout of rooms and living spaces. Gross and net measurements are specified on this plan.

Project Occupancy Permit (Proje İskanı)

This is a collective occupancy permit for the entire site or apartment building, not just a single apartment. It is a prerequisite for transitioning to condominium ownership.

Renovation Permit (Tadilat Ruhsatı)

This is a permit that must be obtained from the municipality for any changes to the interior or exterior of an existing building.

 Urban Renewal and Foreign Investor Terms

Urban Renewal (Kentsel Dönüşüm)

This is the process of demolishing and rebuilding buildings in risky areas. It is carried out with state-supported projects. New buildings generally offer advantages such as larger square meters, parking, and elevators.

Risky Building Report (Riskli Bina Raporu)

Within the scope of urban renewal, this is an official report that a building is unsafe against earthquakes. The process of evacuation and rebuilding begins afterward.

Sale to Foreigners (Tapu 2644 sayılı yasa)

This is the law that regulates the acquisition of immovable property by foreign nationals in Turkey. The permit status may differ for citizens of each country. Some areas are restricted for security reasons.

Citizenship by Investment (Yatırım Yoluyla Vatandaşlık)

Foreigners who purchase real estate worth at least $400,000 can apply for Turkish citizenship, provided they do not sell the property for 3 years.

Commonly Confused Real Estate Terms

 Don't Let Unknown Terms Mislead You

Every step taken in the real estate sector can have serious legal and financial consequences. Therefore, correctly understanding the terms used will help you make more conscious, safer, and more profitable decisions.

This glossary is a reference not only for first-time homebuyers but also for anyone looking to grow their investment.

Remember, correct information = a strong investment.

If you would like to receive professional real estate consultancy from our company, please feel free to contact us.