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What does the term “Deposit” mean?
“Deposit” is a straightforward commercial term used by professionals across various economic sectors. It refers to the amount paid as part of a purchase transaction.
Who is responsible for paying the reservation deposit?
- The responsibility of paying the reservation deposit falls on the client (buyer) who intends to purchase a specific property.
- They make a small payment to reserve the property for an agreed-upon period between the parties.
Deposit in the Turkish Real Estate Market:
- Considering Turkish properties form an essential economic sector, it became imperative to introduce the concept of “Deposit”.
- and engage with it among prospective property owners and Turkish property holders, whether they are individuals, companies, or institutions.
What is the value of the Deposit in Turkish properties?
- It’s commonly understood in the Turkish real estate market that the Deposit’s value equals 1% of the property’s total value.
- For example, if the property is valued at $100,000, the Deposit would amount to $1,000.
What is the purpose of paying the Deposit?
- Some clients wish to reserve a specific property for a defined period, typically a week or a maximum of two.
- To secure the reservation, they are required to pay 1% of the property’s value as the Deposit, regardless of the property’s price.
- Once the designated period ends, the client completes the payment for the property’s full value.
Is the Deposit removed from the property’s value upon completing the deal?
Yes, if the client has paid $1,000 out of a total of $100,000, they would be required to pay $99,000 upon finishing the transaction.
How is the Deposit payment made?
- After contacting a trusted real estate advisor in Turkey and obtaining a suitable property offer while the client is still in their home country, the client electronically reserves the property.
- This is done while their travel documents to Turkey are being processed, including obtaining a travel visa, booking flights, arranging accommodation, and other preparations.
- During this period, there is a concern that the property they like might be sold to another client.
- As a result, the client requests the real estate company to reserve the property under their name.
What is the process of property reservation in Turkey and paying the Deposit?
While in their home country, the client initiates a bank transfer to the real estate company’s account in Turkey, equivalent to 1% of the property’s price, to secure the reservation in their name.
If the client decides not to move with the purchase, is the Deposit refunded?
- In the general commercial market, a reservation deposit is typically non-refundable unless a reservation is canceled within a week or two before retracting from the purchase process.
- However, the Turkish real estate market splits up from this norm and allows for the refund of the Deposit after the agreed-upon period of one or two weeks.
- if the client has not been able to travel to Turkey or if the property did not meet their expectations upon visiting.
How can I ensure that the Deposit payment is transferred to the right place and is indeed refundable?
- The answer to this question lies in beginning communication from the outset with a reputable real estate company with experience in the Turkish market, a strong reputation, and positive client feedback.
- Additionally, the value of the Deposit is quite minimal compared to the property’s overall value, not exceeding 1%.
- This modest amount covers reserving the property for approximately 14 days.
What is the benefit of property reservation and paying the Deposit?
- The advantage of paying the Deposit extends beyond just stopping the property from being sold during the specified period.
- It also serves to fix the property’s value at a certain point and prevents the construction company from raising its price during the reservation period.
- This holds even if Turkish property prices, in general, and prices within the specific project the client is interested in, increase.
However, the client is required to stick to the two weeks, after which they can choose to proceed with the purchase or seek a refund.
