What does mytapu say? Enforcement of Habitation Certificate...?

28.02.18 10:05 PM

Are the authories in Turkey introducing new measures to enforce the use of Habitation Certificates (Iskan / Building Utilisation Permit) ?


From our clients mytapu.com has learned that fines are now being levied by the local fiscal authorities upon owners of properties without an Iskan (Habitation Certificate).


How are the properties detected? When does this occur? How much are the fines?


This is quite likely the result of an introduction of new and tighter enforcement measures- and this does not need confirmation from official sources, as such enforcement measures have long been promised - but are these measures being applied in all locations uniformly and immediately, or gradually with local variations?


If you have been notified of receiving a fine, or advised that you will likely receive one, please share your experiences with other readers in the comments below, and we shall endeavor to provide feedback.


Update Sep 2018

More about Fines for not having a Habitation Certificate:

  • Failure of constructors to pay the taxes and fees to obtain habitation certificates has deprived the Turkish Treasury of substantial sums over previous years.
  • This year fines are being levied upon the filing of tax returns- typically of villa owners that are generating holiday rental income... as with many things in Turkey, this is not yet applied with uniform consistency in all locations.
  • Fines are also levied as the result of court action, for example, where a complaint is filed concerning an illegal construction, extension etc.
  • The amnesty procedure provides for a cost effective way to collect the unpaid revenues due the Treasury- not a fine strictly speaking, but the revenues are collected just the same...
  • After the amnesty expires, one would expect the enforcement measures to be applied with another step up in severity and compliance. 
  • A reasonable presumption would be that this will ultimately lead to a prohibition of transfer of title at Land Registries on properties without iskan- meaning before you sell, you have to get the iskan; and this will likely be more costly after the amnesty expires. Finding buyers prepared to wait is not a viable sales strategy - how many will?
  • The amount of the amnesty application cost, and the amount of fines being levied now, is not 'unreasonable' in the context of the initial cost payable for the iskan at the time previously.
  • There is no telling what the fine may be in the future; it may have a punitive element in it; it may have an alternative procedure (the conventional procedure is exceptionally complicated, relies on third parties and can not be done by the home owner easily); it may have an indexed value; and it may likely be subject to increase by multiple percentages over the years, not unlike changes in the tax rates; so these are headaches hanging over a property owners head.

For these reasons this issue is not to be ignored, because it definitely will effect you, or your widow or heirs, the only question is when...and  perhaps that will be when you least expect it or can least deal with it.

 



More questions or clarification needed ? Find out more here…


No Habitation Certificate ?

Un-authorised additions and changes to your property ?

Fix it all with the ‘Iskan Amnesty’ ...  Read more here….         

 

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At mytapu.com our policy is to ensure our clients are fully informed, so that they may make fully informed decisions- this helps to ensure better outcomes all around. 

 

Additional Reading:

Legal Work on Property Matters

Property Selller’s  Tool-Kit for Turkey

ShowCase Solutions

Digital On-Line Sales Distribution

Peer-to-Peer On-Line Exchanges

Conveyancing & Completion

Advice for Property Matters in Turkey

All Articles

 

 

 

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