Turkey has announced a range of changes and new regulations to
real estate certificates, intended to improve effectiveness of
these instruments. In particular, rules and requirements are
introduced for real estate certificates issued within the urban
transformation projects. A detailed regime is established for
issuing and applying for such certificates.
Amendments Communique (VII-128.2a) on the Real Estate
Certificates Communique (VII-128.2) ("Communique") was
published in Official Gazette number 29790 on 03 August 2016,
entering into effect on the same date.
Key points under the Communique include:
Municipalities, İller Bank
Corporation and TOKİ (housing development administration of
Turkey) can be authorized to issue urban transformation real estate
To issue real estate certificates,
the issuer's total amount of owner's equity should be more
than the total amount of issued capital. However, this term does
not apply to TOKİ, İller Bank Corporation and their
Issuers should obtain a long term
credit rating from a credit rating agency (except TOKİ,
İller Bank Corporation and their subsidiaries).
Real estate certificates for urban
transformation projects can be issued to persons determined as an
owners of a right under the Laws numbered 6306, 5393, 2985 and
An independent auditing firm
competent to act in capital markets will check performance and
audit ownership rights, reporting the outcomes via the Public
Real estate certificate can be issued
for more than one real estate project.
For incomplete real estate projects,
a preliminary contract for sale or pre-emption can be concluded if
the contact is annotated to the land registry.
Please see this link for all other changes and full
text of the relevant Communique (only available in Turkish).
Information first published in the MA | Gazette, a fortnightly legal
update newsletter produced by Moroğlu Arseven.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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