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1. Property Rights
1.1 Legal Protection
1.2 Registries
1.3 Formal Ownership
In-Country Assessment Information

 

1. Property Rights

 

Goal – Property rights that are legally protected, secure, recorded in a single, accurate, widely accessible electronic registry and that lead to high levels of formal ownership for all citizens

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1.1 Legal Protection

 

Core Question:         Does an effective and sufficient legal framework exist to protect property rights for all citizens?  Yes – Strong, Everyone has the right to own and inherit property. These rights may be limited by law in view of public interest. Foreign owners have equal property ownership rights.

 Legal Framework

1.1.1   Are property rights clearly defined and protected by law? YesStrong – Ranking 57th out of 144; Score 4.5 out of 7

Security of Tenure

1.1.2   Can citizens challenge the legality of government takings? YesStrong56th out of 144; Score 3.9 out of 7

Source: Global Competitiveness Report 2012-2013 – World Economic Forum
http://www.weforum.org/issues/global-competitiveness

http://www.turkpropertylaw.com/index.php?p=legal-framework

Bundle of Rights

Survey Question

SQ1    What is the bundle of rights (group of rights such as occupancy, use and the right to sell or lease) associated with both residential and commercial property ownership?  Strong – there are some government limitations.

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1.2 Registries

Core Question:  Does a reliable property registry exist including cadastral, title and mortgage lien information?    Yes – Strong, a Cadastre Modernization Project is underway.


1.2.1  Cadastral Information

Status – Strong

Survey Questions

SQ 2   Is cadastral information (information about the dimensions and location of land parcels) accessible to the public? Yes.

SQ 3   Is zoning/permitted use information included are use regulations respected and enforced?  Yes.

SQ 4   Are Geographic Information Systems (GIS) including Global Positioning Satellite (GPS) information used to create and update the registry? Yes.

Source: Turkey Land Registration and Cadastre Modernization Project http://www.worldbank.org/projects/P106284/turkey-land-registration-cadastre-modernization-project?lang=en

 

1.2.2  Title Registry

 

Very Strong 42nd out of 185; Trend

1.2.2.1          What is the number of procedures required to register the transfer of a property from one owner to another? 6

1.2.2.2          What is the duration of time in calendar days that it would take to complete the transfer? 6

1.2.2.3          What is the total cost of the transfer including all fees, taxes, etc. expressed as a percentage of the value of the property? 3.3% of property value

Source – Doing Business 2013 – Registering Property, World Bank
http://www.doingbusiness.org/data/exploreeconomies/turkey#registering-property


1.2.3  Mortgage Registry

Status –  Strong

Survey Questions

SQ 5   The mandatory use of notaries or similar officials slows down and adds cost to the process. Does a notary need to be involved in the registration process?  Yes.

SQ 6   Is information in the registry available electronically? Yes.

SQ 7   Title insurance is indemnity insurance against financial loss from defects in title and from the invalidity or unenforceability of mortgage liens. Is title insurance available to lenders? Yes.

Source – Financing Homes 2008, World Bank and International Housing Finance Corporation
http://www.cipe.org/sites/default/files/publication-docs/Financing%20Homes%202008.pdf

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1.3 Formal Ownership

Core Question:         Do citizens understand and trust property rights institutions and avoid the informal sector?  No – Weak, illegal uses of property continue to go unchecked.

Survey Questions

Land

SQ 8   What is the status of land ownership?   Weak – large amounts of land are still controlled by the government.

 

Home Ownership

SQ 9   What is the percentage of formal home ownership? 84.5% Very Strong

Source: U.N. Habitat Urban Indicators Website –http://www.unhabitat.org/stats/Default.aspx

Informal Sector

SQ 10  What is the percentage of service firms that report competition with unregistered or informal firms? 54.2% (2008) Very Weak

Source: Enterprise Surveys Website- www.enterprisesurveys.org/

 

In-Country Assessment Information (as of 2011)


Field Question (FQ) 1. What is the actual status of property rights and ownership for citizens?

The government can force citizens to move similar to eminent domain. For example, in Istanbul some land is very expensive and are under utilized. The government in this case forces the residents to relocate and in turn make money on the land. There is typically not enough time for residents to seek legal counseling or court action.

 

FQ 2.              What is the actual experience of transferring a property?

 

On a local level, real estate transactions may involve an extra line for “municipality office equipment,” which roughly translates into foreign cars for the officials. Specifically, officials may ask for assistance with office equipment that will help them to improve their productivity and facilitate permitting processes.

 

FQ 3.              What are the actual housing conditions for all groups including the poor, minorities and other marginalized groups?

There is a large gap between housing conditions in Turkey, esp. between Eastern Turkey and Western Turkey. Western Turkey is more religiously liberal and socio-economically more successful.

Source: Summer 2011 Field Research Visit by Lin Mao, CIPE Intern and student at Johns Hopkins University

 

 

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