Beware of Title Deed Fees: Your Property Could Be at Risk!

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Tapu Harcına Dikkat: Yanlış Beyan Evinize Mal Olabilir! — *Samaram Investment Group News Bulletin*

Samaram Investment Group News Bulletin

In real estate transactions, underreporting the actual value of property to reduce title deed fees is a common yet risky practice. Whether it’s a house, office, land, or field, declaring a property’s value below its actual worth can lead to severe financial and legal consequences. As Samaram Investment Group, we aim to inform you about these risks through expert analysis.

Tax expert and attorney Dr. Burak Aslanpınar emphasizes that failing to declare the actual sales value at the title office may result in substantial fines, interest penalties, and even the loss of the property itself.

Declaring the Real Value Is Mandatory

According to current laws, it is mandatory to declare the real sales value of a property in all title deed transactions. While mandatory appraisal reports are currently not required, this does not mean underreporting is allowed. Providing an inaccurate value can lead to significant financial penalties and legal disputes.

Your Property Could Be at Risk!

The Risks and Penalties of Underreporting

Additional Title Fees and Interest:If it is discovered that the property’s actual value was underreported, the unpaid title fee is charged with a monthly interest rate of 4.5%. Additionally, a tax penalty amounting to 25% of the unpaid fee is imposed.
Liability of Both Buyer and Seller:According to the law, both the buyer and the seller are jointly responsible for the title deed fees. This means both parties will face the consequences of underreporting.
Risk of Losing the Property:In cases of co-ownership, underreporting may enable other stakeholders to exercise their preemption rights at the declared value. This could result in losing a property worth far more for a significantly lower amount.
Additional Tax Penalties:Apart from title fees, income tax or corporate tax (for companies) may also be levied on the difference between the declared and actual sale price, with interest and additional penalties.
Risk of Transaction Cancellation:Underreporting may lead to the cancellation of the sale if creditors of the selling party challenge the transaction in court.

How Underreporting Is Detected

Authorities use various methods to identify discrepancies in declared values:

Bank Transactions (IBAN Investigations): Real transaction amounts can be traced through bank account movements.
Appraisal Reports: Reports prepared by banks during mortgage transactions often reveal discrepancies.
Comparable Sales Analysis: Differences between declared and actual sales prices are identified through sales data from similar properties in the same area.

Samaram Investment Group’s Recommendations

Report the Real Value Accurately:Avoid legal and financial complications by declaring the actual property value during title transactions.
Utilize Correction Mechanisms:If a property was previously underreported, corrections can be made by paying the difference along with a “regret fee” (4.5% monthly interest). This prevents further penalties and risks.
Reform on Fee Rates:Samaram Investment Group advocates for reducing title fee rates to 0.5%-1% to encourage compliance, minimize risks, and increase government revenue.

Key Takeaways from Samaram Investment Group

Seek Expert Guidance: Professional legal and financial advice is essential to navigate these processes.
Use Appraisal Reports: Accurate valuation protects both buyers and sellers.
Transparency in Transactions: Declaring the real value ensures the security of all parties involved.