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Old 25th May 2007, 23:23   #1 (permalink)
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Cost of Tapu - Who pays

Regarding the cost of the Tapu which is 3% of the property value, is this always split 50/50 between the seller and the buyer or is the buyer obliged to pay the full 3%.

I have tried to determine this from past posts on this site but there are many conflicting accounts.

We are soon to collect our Tapu for a propery completed in Sep 2005, and it looks like the estate agent (who is also the developer) is going to demand the full 3% is paid by the buyer and also on the true purchase price and not some made up valuation.

I was wondering if anyone can clarify this question, and wether or not there is any legal obligation on the Estate agent/developer to pay their 1.5% share.

Also are there any different situations/scenarios where the 3% is sometimes met by the buyer and on other occassions split equally between the buyer and the seller (i.e. is it any different if the property in question is a resale or a new bulid.).

Thanks in advance if anyone can shed some light on this.
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Old 26th May 2007, 05:19   #2 (permalink)
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Re: Cost of Tapu - Who pays

Usually the property sales tax is split between the buyer and seller, but this can be different depending on the sales agreement, so check your contract, it should be stated in there how the fees are split.
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Old 26th May 2007, 09:14   #3 (permalink)
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Re: Cost of Tapu - Who pays

Quote:
Originally Posted by mushtaq
Usually the property sales tax is split between the buyer and seller, but this can be different depending on the sales agreement, so check your contract, it should be stated in there how the fees are split.
Thanks for the info Mushtaq.

When we bought the property we used the Estate Agents standard contract. I have just checked and it says 'All Expenditure, including purchase tax, water and electric connection charges, to be paid by the buyer'.

I assume Purchase tax and Property Sales Tax are the same thing, so it looks like we are liable to pay the full Tapu cost.

I don't know yet what the cost of the Tapu is, nor the purchase price put down on the Tapu (I'am awaiting this information from the Estate Agent).

We were told that our Tapu was available late last year. Do you know at what point the purchase price of the property is put down on the Tapu. Would it have been done late last year when we were told it was ready (i.e. likely to be a lower valuation) or is it done when you go to the Tapu office to collect it (likely to be the correct valuation).

Finally, do you know what the norm is for the Tapu payment on a new build i.e. Does the buyer normally pay the full 3% or is it more common to split the cost 50/50 with the developer?

When you calculate 3% on a purchase price of 50k, 1,500 is quite a shock (especially when the estate agent put this down as a likely 400 to 600 cost when we bought the house).

Thanks
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Old 26th May 2007, 10:38   #4 (permalink)
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Re: Cost of Tapu - Who pays

Sometimes the builder agrees to pay half (or even all of it) and sometimes the buyer gets to pay the whole 3%. This is something you need to agree at the point of purchase.
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Old 26th May 2007, 11:07   #5 (permalink)
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Re: Cost of Tapu - Who pays

It is supposed to be 50-50, on a private sale it is more often than not the buyer who pays it all, but in that situation it often becomes part of the general price negotiation. Buying from a developer on a contract stipulation like that (and it is what the Turkish version says that counts, not some ropey translation) you may have agreed to pay the lot, or they may be trying to persuade you that you have. However, it is a buyer's market, so you might have some leverage.
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Old 26th May 2007, 20:33   #6 (permalink)
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Re: Cost of Tapu - Who pays

The tax will be calculated when you go to transfer the TAPU in your name, so the valuation will be the current one.
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Old 26th May 2007, 21:20   #7 (permalink)
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Re: Cost of Tapu - Who pays

According to the info on the government site the sale and aquisition levy is 1.5% of value declared payable by both seller and buyer. Had this dicussion with sellers before they are expected to pay and even if on contract it says you pay purchase price that is correct BUT you pay the aquisiton levy of 1.5% not all the 3%. This is when a lawyer can be useful..
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Old 26th May 2007, 23:32   #8 (permalink)
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Re: Cost of Tapu - Who pays

Thanks for your contribution everyone, however the answer is still not clear!!

I checked the Turkish Consulate's website that Lynda reffered to and it says:

"Taxes: Both purchaser and seller are liable for a 1.5 per cent
property transfer tax, based on the declared price of the property".

Mushtaq say it depends on the terms specified in the contract but Lynda and the Turkish Consulate website say differently.

We have a loosely worded contract that states 'purchase tax to met by the buyer', but could this intrepreted to mean that the purchaser must meet his liability which is the 1.5 percent , and the other 1.5 per cent was always the sellers liability and will always remains with the seller.

The purchase tax is a major cost , on a 50k property the difference between paying 1.5 or 3 per cent is 750.

Surely other owners in the forum have encountered this issue recently ... any estate agents or lawyers out there that know the ruling on this?

Last edited by GarryP; 27th May 2007 at 01:59..
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Old 27th May 2007, 13:19   #9 (permalink)
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Re: Cost of Tapu - Who pays

Property Transfer Tax is always 3 percent of the property s purchase price. Usually buyer pays this fee however this is depend on your agreement with the seller.
If there is not any clause in the agreement s articles then its the buyers obligation to pay all the fee.

Do you know what does your estate agent do in his normal course of business
for example you can find out another purchaser who bought a property through him and ask how s/he has paid.

Alternatively if you could give your estate agents details I can resarch this on your behalf.

Sellers are tend to state the price lower than its actual amount on the deed.You can also negotiate this with him if thats what you want. However bare in mind the capital gain tax will be paid upon the profit you make if you decide to sell the property after 4 years you received the title deed.
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Old 27th May 2007, 15:26   #10 (permalink)
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Re: Cost of Tapu - Who pays

Hi

Unfortunately i found this place after we had bought, and I remember reading about the tax when I first joined so I e-mailed our agents about the 1.5% v 3% but to be fair to them they had stated at the outset we would be paying 3%, if I'd know what I know now I could have made a stance at the beginning of the purchasing process. But as usual we will pay for the price of our ignorance and hopefully others may have a chance to learn.

When it comes to paying it one thing I will be making sure of - the correct price will be documented - even if it means a hefty bill.
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