Last Updated on 03/01/2024
As the Turkish real estate landscape evolves, the focus on precision and dependability in real estate valuation reports in Turkey has become increasingly pronounced. In response to this imperative need, The General Directorate of Land Registry and Cadastre (TKGM) and the Real Estate Information Center (GABIM) have spearheaded a series of groundbreaking regulations. These regulations aim not only to elevate the quality control of real estate valuation reports in Turkey but also to align the country’s valuation standards with international norms. In this comprehensive guide, we will unravel the intricacies of these regulations, shedding light on their far-reaching implications for both valuation experts and stakeholders in the Turkish real estate market.
New Regulations Paving the Way for Accuracy in Real Estate valuation Reports in Turkey
In recent times, the Turkish real estate industry has witnessed a significant shift towards enhancing the accuracy and reliability of valuation reports. Consequently, this transformation occurs by the proactive measures taken by The General Directorate of Land Registry and Cadastre (TKGM) and the Real Estate Information Center (GABIM). Therefore, the introduction of new regulations aims to align valuation standards with international norms and ensure adherence to guidelines set by regulatory bodies. Let’s explore the details of these regulations and understand their implications for valuation experts and stakeholders in the Turkish real estate market.
Defining Boundaries and Condominium Structures in Valuation Reports
One critical aspect addressed by the new regulations involves the determination of independent unit boundaries within the scope of the valuation report, particularly in areas with condominium or ownership structures. Moreover, the report outlines the meticulous process of defining condominium boundaries or, in the absence of a condominium, determining parcel boundaries.Besides, understanding these definitions is essential for a comprehensive real estate evaluation report in Turkey.
Real estate valuation reports under the controle of GABIM for Enhanced Accuracy
Another significant regulation focuses on the application process for valuation reports. This includes a thorough examination of the dates of the report in comparison to any changes in title deed information, ensuring a comprehensive evaluation. The authorities check specific changes during the application process such as alterations in property type, abandonment of easement. This section delves into the crucial role these applications play in maintaining accuracy and reliability in the real estate valuation process.
Within the collaborative framework established through the protocol between TKGM and GABIM, valuation experts employed by GABIM assume the responsibility of conducting essential verifications on reports prepared by authorized valuation institutions. These verifications predominantly concentrate on assessing the conformity of reports with the International Valuation Standards, regulations sanctioned by the Capital Markets Board, directives issued by TKGM, and guidelines disseminated by the Turkish Valuation Experts Association. The checks also ascertain the accuracy of the appraised market value (TL) in the reports. Upon the completion of these checks with no discrepancies, the reports receive a designation of “USABLE” and subsequently transmit to the Integrated Real Estate Information System (TAKBiS).”
Actions and Responsibilities of Authorized Valuation Institutions
The final regulation outlines the actions to be taken by official valuation institutions. It details the conditions under which the market value of real estate can be appreciated for buildings at different stages of construction. The article explains the nuances of the directive that came into effect on November 27, 2023, shedding light on the responsibilities of authorized institutions and the impact on the valuation process.
The recent regulations in Turkey’s real estate industry mark a pivotal moment in ensuring the accuracy and accountability of valuation reports. By understanding the definitions, application processes, comparative analyses, and actions required of authorized institutions, stakeholders can navigate the complexities of real estate evaluation with confidence. These measures not only protect the integrity of the valuation process but also contribute to a more transparent and reliable real estate market in Turkey.