Estate agent commission in Turkey: the legal cap, who pays and when

The commission question usually comes up late, on tapu (title deed) day, and turns into an uncomfortable surprise. It is better to know the rule from the start and to ask about it at the first meeting.

The legal cap

Agency commission is governed by the “Real Estate Trade Regulation” issued by Turkey’s Ministry of Trade:

For sales

• Maximum: 4% of the sale price, excluding VAT.
• Split: equally between buyer and seller unless otherwise agreed in writing, so usually 2% from each side.
• Tax: VAT (20%) is added to the commission amount.

For rentals

• Maximum: one month’s rent, plus VAT.

These are maximums; the agency is free to ask for less.

Example

A property priced at 5,000,000 lira:

• Buyer’s commission at the maximum: 2% = 100,000 lira.
• VAT on it: 20,000 lira.
• Total: 120,000 lira.

Conditions that must be met

1. Agency licence: an authorisation certificate from the Ministry of Trade, with its number shown in listings.
2. Written contract: the regulation requires a contract between agency and client setting out the service and the commission.
3. Official invoice: ask for it when you pay.

When is the commission paid?

Usually when the deal is completed on tapu day, as set out in the contract. Do not pay the full commission upfront before the deal goes through. When buying in new projects, the developer pays the commission in many cases, so ask.

What should you get in return for the commission?

• Properties shown to suit your goal and budget.
• Checks on the title deed, restrictions, building permit and iskan (occupancy certificate). See the pre-purchase checklist.
• Negotiation of the price and terms.
• Coordination of the valuation report, insurance, the tapu appointment and the translator.
• Being with you on tapu day. See the tapu day guide.
• Help after the purchase: utility subscriptions, residence, management and letting.

Warning signs

• A demand for the full commission before any service.
• Extra “service fees” not written in the contract.
• Commission calculated on a price other than the registered price.
• An agency that will not give you its licence number.

More in the guide to property scam warning signs and the guide to questions to ask an estate agent.

Summary

Commission in Turkey is set by law: 4% plus tax for sales, usually split between the two sides, and one month’s rent for rentals. Ask about it at the start, put it in the contract, and pay it to a licensed agency when the deal is completed.

Contact us and we will set out in writing the full cost of your purchase before you start.