Real Estate Purchase and Sale Tax, officially known as Land Registry Fee, is a legal fee paid during the transfer of title of properties such as land, plots, houses, and commercial premises. This fee must be paid in accordance with the relevant legislation for the completion of land registry transactions.
The land registry fee is calculated based on the sales price of the property and is paid by both the buyer and the seller according to the current legal rates.
👥 Who Pays the Land Registry Fee?
According to the legislation, the land registry fee is paid separately by both the buyer and the seller.
However, the parties can agree on a different payment sharing arrangement among themselves. Such agreements are private legal arrangements between the parties and do not change the official obligations.
📊 How is the Land Registry Fee Calculated?
The land registry fee is calculated based on the declared sales price of the property.
However, the declared sales price must not be lower than the property tax value (current value) determined by the relevant municipality. If the declared price is below this value, the transaction is evaluated within the framework of the legal legislation, and necessary corrections may be requested.
📋 Things to Consider When Calculating the Land Registry Fee
- ✔️ The sales price must be declared correctly and truthfully
- ✔️ The property tax value must be taken into account
- ✔️ The current land registry fee rates must be checked
- ✔️ All expenses that will arise before the land registry transactions must be planned
⚠️ Consequences of Incorrect Declaration
Declaring a sales price that is not truthful in land registry transactions can result in various legal and financial penalties.
These include;
- ✔️ Collection of unpaid fees
- ✔️ Application of late payment interest
- ✔️ Imposition of tax penalties
- ✔️ Initiation of audit and inspection processes
Therefore, it is crucial to declare the sales price correctly.
🏦 Properties Purchased with Credit
In purchases made using a housing loan, the expert report prepared by the bank can also play an important role in the transaction process.
Carrying out both financial planning and land registry transactions with expert support during the purchasing process ensures that the transactions are completed more safely and smoothly.
🤝 Manage Your Land Registry Transactions Securely
In real estate purchase and sale transactions, the land registry fee is an important part of the official process. Conducting transactions in accordance with the legal legislation and correctly calculating financial obligations prevents potential legal and financial risks.
Our expert consultants provide professional support in land registry transactions and related financial processes, helping you to complete your transactions securely, quickly, and flawlessly.