What Are the Risks When Buying Property?

Why It's Important to Know About Risks in Advance

Turkey remains one of the most attractive destinations for property purchases among foreigners: warm climate, relatively affordable prices, the possibility of obtaining a residence permit or citizenship. In 2025, nearly 1.69 million home sales were completed here — a record figure in the market's history. However, it is precisely this high demand that attracts fraudsters and creates systemic risks for unprepared buyers.

Most problems for foreigners arise not from complicated schemes but from missed basic checks: not checking encumbrances in the TAPU, failing to verify the building's occupancy permit, paying a deposit before legal due diligence. Let's break down the main risks of buying property in Turkey and how to minimize them.

Main Risks When Buying Property in Turkey

1. Encumbrances on the Property (İpotek) and Hidden Debts

The most common and dangerous risk is buying an apartment with an encumbrance. İpotek is the Turkish equivalent of a mortgage or lien: if the previous owner took out a loan secured by the property and did not repay it, the debt "transfers" along with the property. You risk not only losing the apartment but also being left without your money.

Encumbrances are not only bank-related. The property may have court-ordered attachments, tax debts, or restrictions imposed by government authorities. There are known cases where buyers discovered problems years after the transaction — for example, a real story of a girl who didn't know for 10 years that her apartment was under an encumbrance.

How to protect yourself: The TAPU (certificate of ownership) must be verified in person at the Cadastral Office (Tapu ve Kadastro Genel Müdürlüğü) or through the official state portal. Do not trust copies provided by the seller — the document may be forged.

2. Missing İskan — Occupancy Permit

İskan (Yapı Kullanma İzin Belgesi) is the building's technical passport, confirming that the property was built in accordance with construction standards and is fit for habitation. Without İskan, the property is legally considered incomplete. The consequences of buying such a property:

• Inability to obtain full ownership rights of the "kat mülkiyeti" (condominium) type;
• Problems with permanent water, electricity, and gas connections;
• Difficulties obtaining a residence permit through property ownership;
• Significant loss in value upon resale.

There are two types of İskan: individual (for a specific apartment) and general — Toplu İskan (for the entire building or complex). If the developer has Toplu İskan, this is sufficient for registering ownership, but you should make sure the property is actually included in that document.

3. Inflated Prices for Foreigners

A common practice in the Turkish market is price discrimination against foreign buyers. The same property may be offered to a Turkish citizen and a foreigner at prices differing by 20–40%. Unscrupulous realtors and developers take advantage of the fact that foreigners are less familiar with the market and do not know the real cost per square meter in a specific area.

An additional factor: in Turkey, the area of an apartment is indicated by the external perimeter of the walls (gross area), not the internal area as many foreigners are used to. This can create a false impression of a favorable price per square meter.

How to protect yourself: Compare prices for at least 5–10 similar properties in the same area, request an official real estate appraisal report (required for citizenship-by-investment transactions), and work with licensed agencies that directly represent developers.

4. Fake TAPU and Power of Attorney Fraud

Forgery of the ownership certificate is one of the most dangerous fraud schemes. Criminals produce a fake TAPU and sell an apartment they do not own. Another option is a sale by power of attorney (vekaletname) on behalf of the owner, who may not even know about the transaction.

A separate problem is fraudulent listings. Scammers copy photos of real properties, list them at suspiciously low prices, and demand a deposit before the viewing. Once the money is received, contact with the 'seller' breaks off.

How to protect yourself: Never pay a deposit before the legal verification of the property and the seller's identity. Verify the TAPU through the cadastral office. In a power-of-attorney transaction, contact the owner directly. Refuse offers where the seller avoids video calls or in-person meetings.

5. Buying at the Construction Stage: Developer Bankruptcy and Delays

Attractive prices at the groundwork stage and developer installment plans lure many investors. However, buying unfinished housing carries risks:

• Bankruptcy of the construction company – not uncommon in Turkey, especially during periods of economic instability;
• Delays in completion for months or even years;
• Final quality not matching what was stated in the contract;
• Inability to obtain İskan if the developer committed construction violations.

How to protect yourself: Check the developer's reputation: portfolio of completed projects, reviews from real buyers, financial stability. Include clauses in the contract on penalties for missed deadlines. If possible, choose properties at the final stage of construction or fully completed.

6. Military and Restricted Zones

Foreign nationals are not entitled to purchase property in areas designated as military or strategic zones. Before each transaction for a foreigner, a check is conducted through the military authority (askeriye kontrolü). The procedure may take from a few weeks to several months, and if the response is negative, the transaction will be canceled.

In addition, there are restrictions on total area: one foreigner cannot own more than 30 hectares of land in Turkey, and citizens of one country cannot collectively own more than 10% of a particular district's territory.

How to protect yourself: Before signing the contract, request a check of the cadastral status of the plot from the agency or a lawyer. Make sure the property is not in a restricted zone and that transactions with foreigners have previously been registered for it.

7. Currency Risks

The Turkish lira is subject to significant fluctuations. If you plan to invest in property with the intention of reselling or renting, the currency factor can significantly affect profitability. On the other hand, for buyers with foreign currency income (dollar, euro), a weaker lira can make the purchase more advantageous.

How to protect yourself: Fix the price in the contract in a stable currency (dollar, euro). When using installments, clarify whether payments are linked to the lira exchange rate or to a hard currency.

8. Hidden Fees and Additional Costs

In addition to the property price itself, the buyer faces mandatory payments that are not always disclosed in advance:

• Title transfer tax – 4% of the cadastral value (in practice, often split equally between seller and buyer);
• Real estate expert appraisal – mandatory for transactions with foreigners;
• Licensed translator services during TAPU registration;
• Earthquake insurance (DASK) – mandatory;
• Utility connections and registration fees;
• Agency commission – typically 2–4% of the property value;
• Military check (askeriye kontrolü) – 2,500–5,000 TL.

In total, additional expenses can amount to 8–12% of the property value. Plan your budget taking these costs into account in advance.

How to Minimize Risks: A Practical Checklist

1. Verify the TAPU at the cadastral office in person or through the official portal – ensure there are no encumbrances, mortgages, or attachments.
2. Confirm the İskan is present – without it, the property is legally incomplete, and you risk issues with utilities and residence permits.
3. Work with a licensed agency – reputable realtors have official registration and a portfolio of completed transactions.
4. Engage an independent lawyer – a specialist will review the contract, documents, and perform due diligence on the property.
5. Do not pay a deposit before checks – the deposit is handed over only after confirming the property's legal clarity.
6. Make payment through a bank – an official transfer records the transaction and protects you in case of disputes.
7. Check the developer – study completed projects, reviews, and construction permits.
8. Request an expert appraisal – it will show the real market value of the property and prevent overpaying.

Conclusion

Buying property in Turkey can be a successful investment if approached with a cool head and all necessary checks are performed. Most risks – from hidden encumbrances to the absence of İskan – are revealed at the due diligence stage, and a savvy buyer can completely eliminate them before signing the contract.

The main safety rule on the Turkish property market: do not give in to pressure and do not make decisions in a hurry. "A great offer that will be gone tomorrow" is a classic trick to make you skip the checks. Remember: the cost of a mistake in a property purchase is measured in tens of thousands of euros, and the time spent on thorough verification is not an expense but an investment in your safety.