Yes, you can legally sell a property with an existing mortgage in Turkey, but it’s not as straightforward as selling a debt-free home. The sale of a mortgaged property involves additional legal and financial procedures, and it’s important to understand your options before proceeding.
In Turkey, a mortgage is a legal claim placed on a property by a lender—usually a bank—as collateral for a loan. As long as the mortgage exists, the property has restrictions that must be addressed during the sale process.
There are two common ways to sell a mortgaged home:
1. Paying Off the Mortgage Before Sale
This is the most secure option. The current owner repays the remaining mortgage balance to the bank before the transaction takes place. Once the debt is cleared, the bank issues a release document, and the lien is removed from the title deed. The property can then be sold with a clean title.
2. Transferring the Mortgage to the New Buyer
In some cases, the buyer agrees to purchase the property while keeping the existing mortgage. This usually involves the buyer assuming the current loan, or arranging a new loan under their own name. The bank must approve this arrangement, and the title transfer is carried out at the Land Registry Office with updated documents.
Regardless of which method is used, communication with the bank is crucial. The bank’s consent is needed, and the necessary paperwork must be presented to the Title Deed Office (Tapu Müdürlüğü) to finalize the sale.
For foreign investors and expats considering buying property in Istanbul or other Turkish cities, it’s important to work with a professional real estate consultant who understands these procedures. Especially in prime locations like Maslak, where luxury properties are in high demand, mortgage-related transactions are quite common.
