What the SPK-licensed valuation report required in sales to foreigners shows, how it is prepared and what information it offers the buyer.
One of the documents a foreign buyer most often hears about when acquiring property in Türkiye is the valuation report. Commonly referred to as an “ekspertiz” report, it is frequently seen as no more than a precondition for the title transfer. In fact the report is more than a formality; it gathers information about the property that a buyer would find hard to compile from other sources.
What is a valuation report?
A valuation report is a document prepared by a valuation firm licensed by the Capital Markets Board of Türkiye (SPK) and its licensed valuers, setting out an opinion on the market value of the property at a given date. It is based on methods such as a site inspection, searches of official records and comparison with similar properties.
In sales to foreign buyers, a report of this kind is generally required as part of the land registry procedure. The valuation firm enters the report into the relevant system, and it is treated as valid for a limited period.
What does the report contain?
A valuation report is rarely just a figure. It typically includes:
- A summary of the land register entry and any encumbrances (mortgages, attachments, annotations and declarations)
- Zoning status, the approved project, building permit and occupancy permit details
- The actual condition observed on site and any departures from the project
- Comparisons drawn from sales and listings of similar properties in the area
- The opinion of market value and the assumptions on which it rests
Its value to the buyer
The main contribution of the report is an independently prepared body of information. Where there is a marked gap between the agreed price and the value stated in the report, it is sensible to try to understand why. Likewise, if the report notes a departure from the project or the absence of an occupancy permit, this can be taken into account when the contract is drafted.
It should also be said that a valuation report does not replace a legal review. The report focuses on value and physical condition; matters such as the content of the contract, the obligations of the parties and the restrictions applicable to foreign nationals are dealt with separately.
Value, tax and other applications
Declaring a sale price at the land registry that reflects the actual transaction matters later, both for tax purposes and for other official applications. The valuation report offers an indication of whether the declared price has a reasonable basis. In residence or citizenship applications linked to property ownership, the date and content of the report are also assessed; as the conditions for these applications may change, it is advisable to confirm the current rules with official sources.
Timing
Obtaining the report too long before completion may mean it has to be renewed because of its limited validity; obtaining it too late may delay the land registry appointment. The valuation request is therefore usually planned alongside the sale agreement and the title transfer application.
In short
The SPK-licensed valuation report is often required in sales to foreign buyers, but beyond that it brings together the register entry, zoning status and market value of the property. Its findings may inform the contract and the negotiation, yet it does not take the place of a legal review. In every transaction the report should be read in the light of the specific circumstances.
This content is for general information only and does not constitute legal advice.