Real estate is the generalized common name for commercial immovables such as houses, land, field, building, vineyard or offices, workplaces, and stores. Regardless of its type, each type of real estate property falls under a subcategory of the real estate title. Furthermore, people, who make this job a profession are called real estate agents in general. Real estate brokerage is the job of establishing a connection between the buyer and the seller in the real estate buying and selling and leasing business. Establishments that carry out real estate business as a corporate today, apart from real estate, as a sub-task in this profession; are also known as real estate consultants, and sales managers.
How Does Real Estate Work?
To enter the real estate sector, it is necessary to start with the legal part of the business. If you are 18 years old and have a high school diploma, you can get your real estate certificate by taking advantage of the courses opened by the chambers of commerce or real estate associations in your region. Real estate is not only a place where buyers and sellers meet but also a working area for trained professionals. To know more about real estate, you can check the list below:
1. New Property Construction
We can divide the process of buying a house from construction projects into two. The first of these has not started or is under construction; the second is the projects whose construction phase has been completed and which are generally called turnkey projects. Some processes may vary in completed projects. However, the legal processes such as the title deed transfer of the house and the removal of the mortgage are the same. After buying a house from the construction project and performing the deed transfer process, processes such as moving, removing the mortgage, and notifying the municipality must be completed. The legal processes after buying a house are briefly listed below:
- How is the title deed transfer made in the houses purchased from the project?
When the construction process of the house purchased from the project is completed, the transfer takes place from the construction company to the buyer at the title deed office. During this process, a title deed fee of 4% of the sales amount of the house is paid. 2% of the title deed fee is paid by the buyer and 2% by the construction company. These rates are fixed unless legally changed. However, in some cases, selling companies may include the title deed fee in the sales price. In such a case, the buyer may not need to pay an extra fee. In addition to the title deed fee, the title deed revolving fund fee must be paid. As of 2021, the title deed revolving fund cost is 385 TL. When this fee is paid, the title deed passes to the buyer and the owner of the house becomes official. In addition, Compulsory Earthquake Insurance must be taken out for title deed transfer. Otherwise, the transfer of the house cannot be carried out.
When the deed is completed, the mortgage, if any, must be removed.
- How to remove mortgages on houses purchased from the project?
Not all houses sold from the project are mortgaged. The title mortgage, which may be encountered in installment and credit payment options, may prevent the sale of the house in some cases, and various problems such as not being able to sell the house may occur if the debts are not paid. For this reason, if there is a mortgage on the house and the debt is at a level that can be closed, it is recommended to pay quickly. If the subject of the mortgage is debt such as a housing loan and the installments cannot be paid both in the long term and in one go, no disruption should be made.
After receiving the title deed and completing the mortgage, there is a notification process to the municipality.
- How is the property tax notification of the house purchased from the project made?
After purchasing a house from the project, an application should be made to the affiliated municipality for the Real Estate Tax and a notification should be made. When applying to the municipality, the title deed of the property must be with the buyer. This transaction can be made until 31 December of the year in which the transfer takes place.
- How to change residence in the houses purchased from the project?
After the title deed transfer of the house purchased from the project is completed, it is obligatory to make a change of residence if it is to be lived in the purchased house. Change of residence can be done easily by going to the civil registration office.
- How to make subscription transactions in the houses purchased from the project?
After all the processes of the house purchased from the project are completed, the subscription process for services such as electricity, water, natural gas, and internet should be started. Existing subscriptions can be moved to the new home or new subscriptions can be created. Finally, we should mention that there may be a difference between unfinished houses and turnkey houses in this process. In turnkey houses, the connection of infrastructures such as the internet is usually completed. In construction projects, this process may take longer. For this reason, it is important to question whether there is a connection through infrastructure companies before moving into the house.
2. Buying and Selling Residential Property
The transfer of ownership of an immovable or real estate is called title deed transfer. As it is known, transactions related to real estate are realized by registration in the land registry. In cases of inheritance, court decision, forced execution, occupation, expropriation, and other cases stipulated in the law, the property is acquired before registration. However, in these cases, the owner’s ability to make savings depends on the fact that the property is registered in the land registry. Acquisition of ownership by registration occurs with a valid contract and completion of official forms. Some documents need to be completed for the deed process.
The documents are listed below;
- Identity card and a copy of it,
- Written document from the relevant municipality stating that there is no tax debt and a Paid receipt for old debts,
- Original or photocopy of the previous deed in purchases and sales,
- The title deed fee and property tax payment must be made before the deed transactions.
- DASK should be made or updated.
- If the transaction will be made by proxy, a notarized power of attorney is required.
The procedures to be done in the land registry office begin with the complete collection of these documents. The person who will make the sale must have the original title deed, the municipality’s current certificate, and the mortgage certificate if the house is under the mortgage. A preliminary application is made with the documents at the land registry office. If there are no missing documents, your application will be approved. In case of confirmation, a confirmation message will be sent to your phone, and the appointment time and date will be specified. Before going to the appointment, the title deed fee must be deposited at the relevant bank branch. You must have the receipt of your payment with you at the appointment. At the time of the appointment, the buyer and the seller are ready and simultaneously sign the documents in the contracting room. After the signatures of the parties are completed, the title deed manager also signs the document, and the sale transaction is completed. In addition, we should note that during the busy period, be careful not to give credit to unauthorized persons who promise to speed up your transactions at the land registry offices. The official form is given by the land registry officer. Notaries have no authority. Your ownership will be transferred to you after your transactions in the land registry are recorded by the relevant civil servant.
3. Property Investment
Investing in real estate is one of the critical decisions that many people will make in their lifetime. At this point, short, medium, and long-term profit expectations are important in determining the real estate investment instrument. Some important points are about property investments listed below:
- First of all, it is necessary to decide on the type of real estate to be purchased. In the list of preferences, there are options such as apartment, summer house, workplace, land, land, field, shop, residence flat, or villa.
- Experts recommend that the payback period of the investment should be analyzed in detail when choosing the type of real estate. For example; If a person who decides to invest in the land has a short-term income expectation; He needs to focus on lands that are open to development and that can be located on the routes of some projects due to their location, as well as lands that have zoning permits. To give another example; It is known that the payback period (depreciation) is much shorter than the payback period of an apartment to be rented since the rental price of a workplace to be rented is higher.
- Will you make a profit when you buy?
One of the requirements that real estate professionals often emphasize on investors is “make a profit when you buy”. Behind this requirement lies the fact that although you can control the amount of payment you will make for real estate, you cannot control how the market will position the value of that real estate over time. It is thought that a real estate to be purchased from regions with an increasing trend in real estate value will both create a positive cash flow in case of renting and provide capital growth in a short time. Investing in real estate with all these conditions can only become a reality with the right investment strategy.
- Finding a good real estate investment opportunity
In the selection of the right region to invest in real estate; the Presence of places such as hospitals, schools, and shopping centers in the immediate vicinity or being planned for the near future, the number of real estate advertisements in the location in question, transportation, and infrastructure investment plans play an effective role to catch clues about the population growth rate, supply-demand balance.
What are the Real Estate Types?
Real estate refers to precious materials that are not movable, have economic value, and can be converted into money or expressed in money. In other words, it is the goods that cannot be taken from one place to another without losing their value and quality. Although goods such as houses, land, shops, and workplaces are immovable, they have a monetary value. In addition, it is especially important for those who want to invest. It is ensured that the real estate is changed hands by leasing or purchasing the money value. The types are real estate listed below:
Residential Real Estate has both new constructions and second-hand homes sold. The most common category is single-family homes. There are also condominiums, cooperatives, town halls, duplexes, three-story buildings, four-story flats, high-value homes, and holiday homes.
Commercial real estate includes shopping malls, medical and educational buildings, hotels, and offices. Apartments are generally considered commercial even though they are used for residential purposes. For further information, you can check out our article How to Invest Commercial Property.
3. Raw land
The land includes vacant land, and farms. Subcategories of vacant land include undeveloped, early development or reuse, subdivision, and site assembly. When considered in terms of investment, it is said that one of the most profitable varieties island.
In Industry, it includes the manufacture of buildings and properties as well as warehouses. The buildings can be used for research, production, storage, and distribution of goods. Some buildings that distribute goods are considered commercial real estate. Classification is important as zoning, construction, and sales are handled differently.
5. Special purpose
It mostly includes real estate allocated for use in a private area. Examples include schools, places of worship, hospitals, and even golf courses. It is also known as real estate which is not easy to evaluate because they do not change hands frequently in the real estate market.