New Real Estate Legislation

New Real Estate Legislation

Regulation to Add Value to the Real Estate Industry

There are now new legal regulations which aim to eliminate unfair competition in the real estate consultancy sector and to prevent informality. This will make a significant contribution to the quality of the workforce in the sector and that it will make it possible for consumers to receive better quality service.

The 'Regulation on Amending the Regulation on Trade in Real Estate' prepared by the Ministry of Commerce was published in the Official Gazette. Pursuant to the regulation that outlines the services that can be provided together with the purchase-sale and rental services for real estate, real estate activities will no longer be possible without obtaining an authorization certificate, and businesses that do not have a certificate will not be able to become a member of the advertisement sites.

What does the new regulation bring?

Any person who opens a new real estate business will be required to have received at least 100 hours of training on real estate trade and to have provided real estate consultancy for at least 12 months or 6 months depending on the graduation status. In addition, real estate business owners and company officials will be obliged to operate with a Level 5 professional qualification certificate, and insured employees in a real estate business with a Level 4 professional qualification certificate. The certificate of authorisation will be given, renewed and canceled by the provincial directorate of trade in the place where the enterprise is located, through the Immovable Trade Information System. The authorisation certificate will be issued separately for each enterprise and contracted enterprise and cannot be transferred.

With the regulation, a limitation was brought to the real estate agent commission fee. Accordingly, the service fee rate for brokerage services for purchase and sale cannot be more than 4 percent of the sales price excluding value added tax, and cannot exceed one month's rent in rentals.

“The quality of the workforce will increase, the winner will be the consumer”

Many real estate companies have stated that they support the new regulation which aims to eliminate unfair competition in the real estate consultancy sector and prevent informality, and that they will follow its implementation. With the new regulation brought to the agenda by our Ministry of Commerce, the main framework of the services is that people who do not have a certificate of authorisation will not be able to carry out real estate activities and businesses that do not have a certificate will not be able to post advertisements on the internet.

What is the Vocational Qualifications Authority Certificate (VQA)?

Vocational Qualification Certificate is the document given to successful persons as a result of the measurement and evaluation activities carried out by the 'Authorised Certification Bodies' authorised by the Vocational Qualifications Authority (MYK). In order to obtain a Vocational Qualification Certificate, it is required that the person is at least a primary school graduate.

What is the Real Estate Trade Authorization Certificate (TTY)?

The document issued on behalf of real estate offices in order to be able to engage in real estate trade is called 'Authorization Certificate'. This document is issued by the Provincial Trade Directorates.

Requirements for obtaining a Certificate of Authority:

• Being registered in the professional chamber,

• Being an income or corporate taxpayer,

• Existence of immovable trade activity among the fields of activity in the professional chamber and tax records,

• At least one of the responsible real estate consultants has a Level 5 professional qualification certificate,

• Responsible real estate consultants;

  • Over the age of eighteen
  •  At least high school graduate,
  • Is not bankrupt,
  •  Has not received a finalised prison sentence of more than five years for an intentionally committed crime,
  •  Successful in at least 100 hours of training on real estate trade given by the Ministry of National Education, universities or institutions and organizations authorized by the Ministry of National Education,
  •  At least twelve months for secondary school graduates in the last five years prior to the date of application for the authorization certificate; associate degree, undergraduate and graduate graduates must have at least six months of real estate consultancy or responsible real estate consultancy.