Borç (debt) in Turkish real estate – what does it mean for property owners?

Request a debt report from Tapu or BELEDİYE.

Foreign buyers can check for 'borç' through two main sources: the Land Registry (Tapu Dairesi) and the local municipality (belediye). A 'borç belgesi' (debt certificate) confirms unpaid taxes, utilities, or fines. For mortgages, request a 'ipoteği borcu' report.

Hire a Turkish lawyer or notary to obtain these documents, as some require a Turkish ID (TC kimlik). Online systems like E-Devlet may also provide partial records if you have access.

Yes, unpaid debts can block or delay the transfer.

Unsettled 'borç' can prevent the Tapu (title deed) transfer until debts are cleared. The Land Registry may reject the sale if property taxes, utility bills, or mortgage payments are overdue. Some debts, like homeowners’ association fees, may not block the transfer but become the new owner’s responsibility.

Sellers must provide a 'borç yoktur' (no debt) certificate for a smooth transaction. If debts exist, buyers can negotiate settlement before finalizing the purchase.

Taxes, utilities, mortgages, and HOA fees.

Common 'borç' types in Turkey include:

1. **Property tax (emlak vergisi):** Annual tax paid to the municipality.

2. **Utility debts (su, elektrik, doğalgaz):** Unpaid water, electricity, or gas bills.

3. **Mortgage loans (konut kredisi):** If the property is under a bank loan.

4. **Homeowners’ association fees (aidat):** Monthly dues for apartments or gated communities.

5. **Municipal fines (belediye cezaları):** Penalties for illegal constructions or zoning violations.

Yes, but debts transfer to the heir.

Foreigners can inherit Turkish property with 'borç,' but they also inherit the associated debts. The heir becomes responsible for settling unpaid taxes, utilities, or mortgages. If the debt exceeds the property’s value, the heir may reject the inheritance via a Turkish court.

To avoid surprises, request a debt report before accepting the inheritance. Turkish law requires settling debts before transferring the Tapu to the heir’s name.

No, ‘borç’ is debt; ‘ipotek’ is a mortgage lien.

‘Borç’ refers to any debt tied to the property, while ‘ipotek’ is a legal mortgage lien registered on the Tapu. An ‘ipotek’ secures a loan (e.g., a bank mortgage), whereas ‘borç’ includes unpaid bills, taxes, or fees.

For example, a property may have both: an ‘ipotek’ (mortgage) and ‘borç’ (unpaid electricity bills). Always check for both before purchasing, as ‘ipotek’ must be removed by the seller, but ‘borç’ may become your responsibility.

Buyers can sue for misrepresentation or fraud.

If a seller conceals ‘borç’ (e.g., unpaid taxes or utilities), the buyer can file a lawsuit under Turkish contract law (Türk Borçlar Kanunu). Courts may order the seller to pay damages or cancel the sale. However, proving fraud requires evidence, like falsified debt certificates.

To minimize risk, buyers should:

• Request official debt reports from Tapu and belediye.

• Include a ‘borç yoktur’ (no debt) clause in the sales contract.

• Use an escrow account to withhold payment until debts are verified.

Yes, some debts automatically transfer.

Certain ‘borç’ types transfer to the new owner after the Tapu transfer, including:

• **Property taxes (emlak vergisi):** Linked to the property, not the owner.

• **Homeowners’ association fees (aidat):** If unpaid, the new owner may be liable.

• **Utility debts (if not settled):** Some municipalities allow transfer of unpaid bills.

Mortgages (‘ipotek’) and personal loans do **not** transfer unless the buyer assumes the debt in writing. Always confirm which debts are cleared before purchasing.