Because of Turkey's rising economy, the country has been a very popular investment option for many foreigners. Behind of Turkey's vivid economy, there are multiple reasons like tourism and a strong commercial market.
If your goal is to invest in Turkey property then you should know and a few steps you should follow.
Buying property in Turkey for foreigners is actually very easy. All you need to do is showing some documents.
Being a shareholder of the great economy in Turkey can make you obtain a very high level of profit. But before you invest in Turkey there are things you should learn about. The property you are going to buy should be built according to the law and its plan. So, there are due diligence reports to make sure of it.
If you were wondering about how to buy property in Turkey, and you needed to learn about due diligence. Here is an explanation;
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1. What Is Due Diligence?
One of the preconditions of a property in Turkey is having a due diligence report. For obtaining that report you have to go through a process.
But what is due diligence?
Due Diligence report is usually prepared for a company. There are differences in each due diligence report.
In the most basic way, we can say that due diligence is a detailed evaluation test. When it is made for a real estate, it is the goal to determine the current status of the property. It will also show all the risks with the documented proof.
2. What Are The Kinds?
There are four kinds of due diligence process for real estate in Turkey. These can be listed as tax, technical, legal and environmental due diligence.
These reports will be prepared by experts and they will contain all the evidence for their assertions.
3. What Do They Cover?
Every due diligence report covers a different aspect of your investment. For example, when it comes to the environmental report, the experts will do their observation to examine the levels of pollution, they will determine if the area was used as an industrial plant before.
For the tax report, the experts will make sure the numbers they were given was correct. This step is specifically important for you because in this way you will make sure you are not being deceived.
For the technical report, experts will examine everything that was made during construction. If there are any differences between the plan and the reality their report will show that.
But when it comes to the legal due diligence it can take longer than the other reports. The legal team will control almost everything about the property. They will start from the title deed and they will go through all the contracts, insurances, lease agreements, zoning status, and zoning applications. In short, they will look at all the legal aspects of your investment.
Depending on your property, you might not need to have all the reports. But having due diligence will eliminate the possibility of fraud cases.
