Last Minute News: Discount on Title Deed Fees Coming Soon
Changes are underway in deed fee rates for real estate transactions, with the goal of reducing the total 4 percent fee collected from buyers and sellers. The regulation, which is still in the working phase, aims to streamline the process of determining stamp duty for real estate transactions.
Typically, the fee amount for real estate transactions is calculated based on the declared value set by municipalities. However, there can often be discrepancies between the municipality’s valuation and the actual market value of the property.
Under the current system, the fee rate is set at 20 per thousand of the sales price, with both buyers and sellers required to pay their share. This means that in a property sale worth 1 million TL, the total title deed fees paid by both parties amount to 40 thousand TL.
One of the proposed changes includes making valuation reports mandatory for all real estate sales. This proposal had been previously rejected by Parliament 3.5 years ago, preventing the establishment of a Collective Value System. Instead, there was a suggestion to create a Real Estate Value Information Center integrated with the Land Registry and Cadastre Information System, to monitor real estate value changes and record prices realized in land registry transactions.
In the new preparations regarding title deed fees, there is a focus on increasing fee revenues through collective or individual valuation methods in the Land Registry and Cadastre Legislation. Additionally, the importance of utilizing secure money transfer systems for citizens in land registry transactions is emphasized for the regulation.
The regulation on title deed fees is expected to be presented after the Parliament reconvenes on October 1st. Stay tuned for updates on this developing story.
