How to Establish a Real Estate Company in Turkey
What Are The Innovations Brought By The Regulation?
– It has brought the obligation to obtain an Authorization Certificate and Professional Competence Certificate.
– The services that will be subject to real estate trade are determined to be limited.
– Rules to be followed while engaging in Real Estate Trade are determined, and failure to comply has been sanctioned.
– Authorization Agreement, Trading Brokerage Agreement, Leasing Brokerage
– Contract, mandatory elements that must be included in the Service Partnership Contract have been determined.
– The Service Fee to be entitled to those who deal with real estate trade has been legally determined, and the conditions for entitlement are regulated.
Administrative fines to be incurred in case of breach of the regulation have been regulated.
What is the Regulation and Scope on Real Estate Trade?
In the first paragraph of the provisional article 1 of the Regulation on Real Estate Trade published in the Official Gazette dated 05.06.2018 and numbered 30442, the phrase “their status within eighteen months from the date of entry into force of this article” has been changed to “their status until 31.08.2020”. Regulation; It will be applied to actual or legal person merchants and artisans who mediate the purchase, sale, leasing of real estate, registered or not registered in the land registry, and provide consultancy management services to the real estate.
The Regulation covers the procedures and principles regarding the issuance, renewal, suspension, and cancellation of authorization certificates to these persons, the conditions sought in businesses engaged in real estate trade, and the obligations of these enterprises regarding their activities.
What is a Certificate of Authority? Which Conditions Are Required to Continue Real Estate Trade?
Within the regulation scope, actual or legal persons will need to have an authorization certificate to be given by the Provincial Directorate of Commerce to deal with real estate trade. Authorization certificates will be issued separately for each enterprise. If more than one merchant or tradesman and craftsman are engaged in real estate trading in a business, only one authorization certificate will be issued on behalf of the company.
As of the date of entry into force of the regulation, for those engaged in real estate trade to continue their activities, they must obtain a certificate of authorization within 18 months from December 5, 2019, following the requirements sought to issue an authorization certificate.
What are the Conditions Required for Issuance of Authorization Certificate?
What are the Conditions Required for Issuance of Authorization Certificate?
1. The enterprises have the quality of an independent section determined following the Planned Areas Zoning Regulation, and their net area is at least thirty square meters (this rate is increased by twenty percent for each merchant or merchant and artisan if more than one tradesman or tradesman and craftsman operate in a business).
2. If the filing process is done physically with the administrative office and the reception place, there is an archive section,
3. Having tables, cabinets, armchairs, and similar materials and technical equipment such as computers, internet, phones, scanners, and faxes to ensure that the service is provided regularly, systematically, and quickly,
4. Being registered in the professional chamber. Being an income or corporate taxpayer,
5. Real person merchants and artisans themselves, trade companies and other legal person merchants who are authorized to represent and authorized to carry out their activities in this field, and the branch manager in branches;
• Being over the age of eighteen,
• To be at least a high school graduate (As of 05.06.2018, merchants and merchants and artisans who have income or corporate tax records and are registered in the trade association and engaged in real estate trade will not be required to be a high school graduate)
• Even if it has not gone bankrupt or has gone bankrupt, its reputation has been restored following the provisions of the Execution and Bankruptcy Law No. 2004 dated 9/6/1932,
• Not declaring concordat,
• Crimes against the security of the state, the constitutional order and the functioning of this order, national defense and state secrets, espionage, embezzlement, extortion, bribery, theft, fraud, forgery, abuse of trust, fraudulent bankruptcy, even if they are forgiven or for a crime committed deliberately, Misconduct in the tender, rigging the execution of the act, laundering of property values arising from corruption, financing of terrorism, smuggling, tax evasion or illegal acquisition of property, sexual assault and sexual abuse of children, indecent acts, obscenity, prostitution, providing a place and opportunity for gambling. He must not have been convicted or prohibited from performing trade and arts.
6. Real person merchants, tradesmen, and craftsmen themselves, at least one of the persons authorized to represent trade companies and other legal person merchants, and branch manager in branches must have a «professional qualification certificate» based on the national competence of the responsible real estate consultant (Level 5).
Issuance Period and Renewal of Authorization Certificate
Authorization certificate application will be made through the Information System and the documents showing that the conditions required for the authorization certificate are met.
The enterprises that are found to meet the conditions required for the issuance of the authorization certificate will be given a certificate of authorization by the Provincial Trade Directorate within ten days from the application date.
The authorization certificate’s duration is five years, and at least thirty days before the expiry of its validity period, a renewal application must be made through the Information System to be established by the Provincial Trade Directorate.
If there is a change in the information in the authorization certificate, a renewal application must be made through the Information System within seven days from the change date.
Suspension and Cancellation of Authorization Certificate
Suppose any of the conditions sought in the issuance of the authorization certificate is lost. In that case, this must be reported to the provincial directorate through the Information System within fifteen days from the date the conditions are lost.
In cases where it is not possible to fulfill the conditions required for obtaining an authorization certificate upon the notification or ex officio by the provincial directorate that it does not meet at least one of the requirements needed for issuing the authorization certificate; as a result, the authorization certificate will be canceled on the same day.
In other cases, it will give the company thirty days from the date of notification or determination to bring the conditions into conformity. The authorization certificate will be suspended during this period. If the disorders do not become appropriate at the end of the given period, the provincial directorate will cancel the authorization certificate.
Suppose it is determined that the business whose authorization certificate has been suspended is engaged in real estate trading within the suspension period. In that case, the authorization certificate will be canceled on the same day.
The authorization certificate can be canceled on the same day upon the request of the enterprise.
What is Vocational Qualification Certificate?
It refers to the document issued within the framework of Article 22 of the Vocational Qualifications Authority Law No. 5544 dated 21/9/2006.
Persons employed in the business as marketing and sales staff will need to have one of the professional qualifications based on the responsible real estate consultant (Level 5) or real estate consultant (Level 4). For the qualification certificate details, the qualification code 17UY0332-4 and 17UY0333-5 can be viewed at https://www.myk.gov.tr/.
As of 05.06.2018, merchants, merchants, and artisans who are engaged in the real estate trade, who have registered a trade association with income or corporate tax registration, and who have received a certificate related to real estate trade as a result of training given by public education centers or professional chambers authorized by the Ministry of National Education, certification is not required.
What are the Services Subject to Real Estate Trade?
Those who are engaged in real estate trading can provide the following services:
1) Carrying out marketing activities and mediating in the purchase, sale, and lease of real estate, whether it is registered with the land registry or not,
2) Examining, researching, and reporting on the real estate subject to purchase, sale, and lease,
3) To inform the employer about the current sale or rental value of the immovable property,
4) To mediate title deed transactions,
5) To make a contract with the buyer or tenant, to follow up the lease payments and subscription transactions, to provide services such as the repair, maintenance, and repair of the immovable, and to inform the business owner about the process related to these issues,
6) To provide consultancy and management services regarding the immovable,
7) To carry out other services related to the real estate trade.
What are the Principles and Rules that Real Estate Tradesmen Must Follow?
a) In the enterprise providing services for real estate trade, it cannot engage in commercial activities other than services subject to real estate trade.
b) Cannot use any phrase other than expressions defining the profession during its activities, including the business sign and printed documents.
c) Cannot disclose and use the information and documents obtained due to the service provided, other than the authorization agreement’s principles.
d) Acts in an ethical, fair, honest, attentive, and reasonable manner while providing services; cannot provide misleading information.
e) Cannot engage in unfair and unlawful behavior and commercial practices.
f) Cannot conceal information that may affect the people’s trading and rental preferences it provides services.
g) Cannot act contrary to the interests of the persons to whom it provides services.
h) Cannot encourage people to whom it provides services to illegal and unethical practices.
i) Cannot threaten or harass people to whom it provides services.
j) It gives sufficient time to the persons to whom it provides services to read these documents, explains the provisions in the records, and delivers a copy of the signed forms to these persons.
k) It submits every offer and counteroffers it receives accurately and objectively as soon as possible.
l) If the immovable is sold or leased or the sale or lease is withdrawn, or the authorization agreement is terminated, it ceases to be advertised and announced within the first business day following the termination date.
m) In all written or visual postings and advertisements for the sale or lease of the immovable property; acts following the authorization agreement and the business owner’s wishes in matters such as terms of purchase or lease.
n) In the announcements and advertisements for the sale or lease of immovable property, including those made electronically, the authorization agreement, excluding the address and title deed information, includes the minimum information about the purchase, sale and leasing, contact information, and authorization number in an easily readable manner.
o) Creates files physically or electronically for each authorization agreement. It keeps the authorization agreement and the documents issued within the scope of the services provided within this agreement’s framework in its file for at least five years.
p) It keeps in its establishment elements such as newspaper advertisements, handbooks, catalogs, photographs, site plans, and zoning status to promote the real estate.
What are the Principles and Rules that Real Estate Tradesmen Must Follow?
The authorization certificate of the enterprises that are found to be in breach of any of the articles mentioned above three times in a calendar year will be canceled. These enterprises will not be given an authorization certificate for two years.
Types of contracts to be made by those who deal with real estate trade during their activities:
a) Authorization Agreement
b) Purchase – Sale Mediation Agreement
c) Rental Agency Agreement
d) Service partnership agreement
e) Immovable show certificate
Real estate trading services will be provided based on a written authorization agreement between the employer and the enterprise.
The authorization agreement will be prepared in at least two copies, one copy of which remains with the parties.
At least the following information about trading and leasing should be included in the authorization agreement:
a) Authorization certificate number of the company, contact information, name and signature of the person authorized to represent; name and surname of the business owner, T.R. identification number or foreign identification number, contact information, and signature if the business owner is a legal person, the title and contact information of the legal person and the name, surname, and signature of the person authorized to represent.
b) Real estate subject to the authorization agreement;
Zoning and building use permit status,
Title deed registration information, type, and address
Size, age, and actual use case
Location features such as floors, facades, and views
Approximate distance to stops of public vehicles such as minibusses, buses, and metro,
Approximate distance to places such as schools, places of worship, hospitals and shopping centers and social areas such as cinema, theater, park, and picnic area,
Number of rooms, living rooms, bathrooms, toilets, and balconies and their net size, kitchen, shower cabin, and cabinet contents; interior features such as parquet and woodwork, electricity, water, natural gas, telephone and satellite installations,
Status of being an apartment, site, building or detached; the number of blocks, floors, and flats on each floor; open and closed car parks with hydrophore, water tank, heating system, fire escape, and elevator; external features such as security, football, basketball, swimming, and similar sports areas and whether there is a playground,
For the lands, share, equivalent, and projected building height information and whether there is any cultivated or planted product on it,
Whether there are any mortgages, lien, and similar restrictions on it.
c) The service fee rate or the service fee determined within the framework of the second paragraph of the same article and the service fee defined for each or all of the services other than trading and leasing.
d) The nature and scope of the service to be provided by the enterprise and the matters that the parties are obliged to perform within the size of the contract.
e) If agreed and the rate or amount does not exceed the service fee for the enterprise, the withdrawal money to be paid in case the employer or the enterprise withdraws from the contract, and the penalty to be applied in case the contract is not performed at all or as required, and other financial and legal responsibilities of the parties.
f) The issue that the duration of the contract will not exceed three months, and if one of the parties does not make a written notice within the contract period, the period will extend as much as the contract period.
g) Notification addresses of the parties.
Purchase – Sale Brokerage Agreement
As a result of the business’s brokerage service, a brokerage contract is drawn up between the buyer, seller, and the company.
At least the following information should be included in this contract.
a) Authorization certificate number of the enterprise, contact information, name, surname, and signature of the person authorized to represent; the name and surname of the business owner and the recipient, T.C. identification number or foreign identification number, contact information, and signature if the business owner and the recipient are legal persons, the title and contact information of the legal person and the name, surname, and signature of the person authorized to represent.
b) Title registration information, type, and address of the immovable.
c) The purchase and sale price of the immovable and the method of payment of this price.
ç) If agreed and the rate or amount does not exceed the service fee for the enterprise, the withdrawal fee to be paid if the employer or the buyer withdraws from the contract, and the penalty condition to be applied if the contract is not performed at all or properly
d) The service fee and the method of sharing this fee between the business owner and the buyer.
e) The method of sharing expenses such as title deed and revolving fund service fee between the employer and the buyer.
f) Regarding which provincial courts and enforcement offices are authorized in disputes arising from the execution of the contract following the relevant law, records regarding the use of alternative remedies such as mediation or arbitration for the resolution of the dispute, and other legal and financial responsibilities of the parties in case of their decision.
Renting Brokerage Agreement
As a result of the enterprise’s lease intermediation service, a lease intermediation agreement is drawn up between the tenant, the lessor, and the enterprise.
At least the following information should be included in this contract:
a) Authorization certificate number of the enterprise, contact information, name, surname, and signature of the person authorized to represent; the name and surname of the owner and tenant, T.C. identity number or foreigner identification number, contact information, and signature if the business owner and tenant is a legal person, the title and contact information of the legal person and the name, surname, and signature of the person authorized to represent.
b) Title registration information, type, address, and characteristics of the immovable.
c) The annual rate of increase and payment method of the rental price of the immovable property.
d) If agreed and the rate or amount does not exceed the service fee for the enterprise, the withdrawal fee to be paid if the employer or the buyer withdraws from the contract, and the penalty condition to be applied if the contract is not performed at all or properly
e) The service fee and the method of sharing this fee between the business owner and the tenant.
f) Regarding which provincial courts and enforcement offices are authorized in disputes arising from the execution of the contract following the relevant law, records regarding the use of alternative remedies such as mediation or arbitration for the resolution of the dispute, and other legal and financial responsibilities of the parties if they decide.
Service Partnership Agreement
Provided that it is included in the authorization agreement, the enterprise may cooperate with one or more other enterprises regarding the authorization agreement’s subject regarding the joint provision of the service. In this case, a service partnership agreement must be made.
The employer should be informed that the service partnership contract is drawn up, and a copy of the agreement must be submitted to the business owner within two business days from the date of issuance.
The contract must contain, as a minimum, the authorization certificate number, title and contact information of the enterprises, the name, surname, and signature of the person authorized to represent, the subject of the contract, the method of sharing the service fee, the rights, and obligations of the parties.
Immovable Demonstration Certificate
The service of showing the immovable whose purchase, sale, or lease is mediated to the buyer or tenant will be provided by issuing a separate immovable demonstration document for each immovable.
No fee will be requested for the service of showing the immovable; however, transportation costs may be requested from the person to whom the immovable is displayed for the immovable display service provided outside the boundary of the district where the business is located.
Service Fee and Qualification
The service fee rate in the purchase and sale transactions cannot be more than four percent of the brokerage agreement’s sales price, excluding the value-added tax.
The service fee in leasing transactions cannot be more than a monthly amount of the rental fee included in the lease brokerage agreement, excluding the value-added tax.
The service fee will be shared equally between the business owner and the buyer or tenant. However, a different decision may be made in the contract with the employer.
The business is entitled to the service fee by registering the real estate purchase and sale in the land registry or establishing the lease agreement between the employer and the tenant.
Within the term of the immovable property’s authorization agreement, the business that issued the immovable demonstration certificate is disposed of and purchased or leased directly from the employer.
Administrative Fine to be Applied in Case of Violation of the Regulation
An administrative fine of 3000 TL is imposed on those who act against the regulation by the competent authorities upon the request of the Ministry; those who do not provide information and documents to those who are authorized to audit, give deficiencies, or prevent the auditors from performing their duties, 2000 TL administrative fine is imposed by the Ministry.