Circular on the Procedures and Principles Regarding the Valuation Reports that are issued through TADEBIS – Web Tapu System has been Promulgated

In this context, application standard has been brought and valuation processes have been transferred to the electronic environment in order to eliminate the material errors that may appear in the reports within the scope of TADEBIS (Immovable Valuation Information System) - WEB TAPU System (System established by Land Title Registry for electronical applications) (“WEB-TAPU”),

You may find the application standards that are foreseen by the Circular as follows;

I. APPLICATIONS FOR EVALUATION REPORTS
Requests for valuation reports in transactions involving foreigners can be made from the official address of https://webtapu.tkgm.gov.tr/ or through the ALO-181 Call Center in case that the owner of the immovable is a citizen of the Republic of Turkey.

Subsequent to the payment of the service fee for the valuation report, the valuation request is assigned to an authorized valuation institution electronically by virtue of the algorithm that is used by the system. Moreover, each relevant transaction stage regarding the request can be followed instantly via WEB-TAPU.

Following the preparation and approval of the valuation report by the authorized institution, the valuation report is signed¹ and transferred to the Land Registry and Cadastre Information System (TAKBİS) via the system. Moreover, the person concerned can examine the report on WEB-TAPU at any given time. In case a mistake (a simple typo etc.) is found within the report besides the market value determined in the report, the concerned party could request a correction via WEB-TAPU up to 3 (three) times.

However, it is not possible to request a correction for the market value determined in the evaluation report. If the market value determined within the report is believed to be at fault, it is only possible to request a new report.

Requests for correction can be made until a document number is assigned by the relevant land title registry. After a number is assigned by the relevant land title registry, a correction request shall be made through WEB-TAPU if any deficiencies and/or errors are detected by the officers.

Furthermore, those concerned can notify Turkish Appraisers Association (“TDUB”) on any complaint, advice, or requests regarding the preparation of the valuation reports by the valuation institutions. TDUB executes the necessary investigations and informs the concerned parties and the General Directorate in due time.

II. TRANSACTIONS TO BE CONCLUDED BY AUTHORIZED VALUATION INSTITUTIONS
Authorized valuation institutions prepare valuation reports in accordance with the International Valuation Standards and the norms set forth in TUDES-310 Good Practices for Lending and Collateral Property Guide published by TDUB. The reports are initially signed by the experts and then provided to the relevant person and TAKBIS through WEB-TAPU.

Througout the preaparation of the valuation report the authorized valuation institution shall follow the belowmentioned criteria;
(a) In case that, more than one method is used in the valuation, the reconciliation should be made clear in the report.
(b) In case, the real estate subject to the valuation has not been finalized, the status table showing the current construction level as of the valuation day should be included in the report. In case that, there is a difference between the legal status of the immovable subject to the valuation and the actual situation, these inconsistencies should be measured and shown on the architectural project.
(c) Three images from the interior and exterior -as per the characteristics of the immovable- of the immovable that is subject to the valuation, shall be stated in the valuation report. In case of detached sections, the location inside the main building shall be shown.
(d) In sections “Valuation Account Statement by Valuation Account and Reconciliation”, mathematical processes that exhibits how the designated value is reached are explained comprehensively with justifications. In the section “Immovable Valuation Result”, Market Value Based on Current Use (₺) and Market Value for Legal Use (₺) of the real estate subject to the valuation are given.
(e) In addition, the final value in case where immovables that are actually unfinished on the ground or under construction and with construction servitude become a finished building is set forth in the report’s relevant part. If the value of the unfinished immovable in the case where it becomes finished is not appraised, it shall be shown as “unaccounted” in the report.
(f) In the valuation reports qualified as Detached Section with Legal Limitations and/or belonging to Residential immovable, the phrase “unaccounted” shall be put in the relevant value space if the valuation report does not appraise the Present State and/or Legal State value.
Subsequent to preparation of the report, the authorized valuation institution shall check all these matters and send the valuation report to TAKBIS via TADEBIS system.

III. TRANSACTIONS TO BE CONDUCTED BY THE LAND TITLE REGISTRY
Land Title Registry Offices makes no evaluation on the merits and the value on the valuation reports that has been sent to TAKBİS. However, in case that a simple typographical/material error is detected by the officers in the valuation report that is sent to the Land Title Registry via WEB-TAPU, the person applying for the valuation will be informed that a correction request must be made through WEB-TAPU until the document number is received.

Valuation reports that are issued by the authorized valuation institution shall be taken as a basis for valuation, regarding proceedings involving a request for a certificate of suitability within the scope of the circular dated 30.05.2019 and numbered 2019/5 (1799).

IV. TRANSACTIONS TO BE CONDUCTED BY THE AUTHORITY TO GIVE A CERTIFICATE OF SUITABILITY
Within the scope of the circular dated 30.05.2019 and numbered 2019/5 (1799), how the reports shall be examined by the General Directorate/Provincial Directorate is detailly explained. All the reviews to be executed by the General Directorate/Provincial Directorate are limited to procedural review and are not qualified with review of expediency. Therefore, only the consistency of the information stated in the reports are to be reviewed and hesitations regarding matters that would directly affect the value in the reviews are to be forwarded to the Department of Real Estate Valuation (“Department”). Transactions that has to be conducted by the General Directorate/Provincial Directorate shall be explained as follows;

(a) In case of deficiencies and material errors that may arise during the preparation of the certificate of suitability, the owner and the related parties are requested to demand correction via WEB TAPU.

(b) In case that there is a deficiency in the valuation report, a new report is requested by the owner or the relevant person who requests a Certificate of Suitability by the General Directorate/Provincial Directorate. Within the scope of the Circular, deficiencies are explained as not including photographs in the valuation report, not specifying the valuation approaches that is used, not presenting the calculations regarding the valuation and the adjustment.

(c) The land title deed registry information of the real estate subject to the valuation, the nature and number of the precedents (if any), and similar features with the subject real estate are examined. In case of any hesitation, the matter is directly referred to the Department.

(d) The fact that whether if a prior transaction has been conducted regarding the preparation of a valuation report regarding the aforementioned immovable has to be checked from TAKBIS records. In case that there are valuation reports prepared in 6 months prior to the immovable’s last sale/promise-to-sell transaction, Market Values Based on Present Use (₺) are reported via the system. In cases where findings of valuation differences are more than 20%, the immovable’s information with the cover letter (reports are not given in the annexes) is asked to the Department via EBYS (Electronic Application Management System) while in cases where the valuation differences are less than 20%, the transactions are directed based on the latest report.

(e) As the unfinished immovable’s Market Value Based on Present Use (₺) might show variabilities during different stages of construction, the section “Values In Case of Completion” stated in the relevant part of the valuation report are calculated manually by the personnel of the General Directorate/Provincial Directorate and a similar procedure with the procedures specified in subparagraph (d) shall be conducted in case that the value difference exceeds 20%.

(f) In the event that the errors regarding the issues specified in this circular persist in the prepared valuation reports, an explanatory cover letter is sent to the Department for necessary evaluations. The Department examines the valuation reports that are sent to by the General Directorate/Provincial Directorate in context of subparagraphs (d) and (e), in a procedural aspect. The Department conducts its decision relying on Consumer Price Index, Real Estate Price Index that is promulgated by Central Bank of Turkey and other indexes that are determined by the Department. In case that the Department detects that the report is not prepared in adherence to the abovementioned procedures, it sends the report back to the General Directorate/Provincial Directorate and enunciates the institution who prepared the report to TDUB.

All kinds of criminal and legal responsibility for all disputes and damages that may arise due to incorrect, misleading and/or incomplete information belongs to the authorized valuation institution and persons who issue the report respectively.

You may reach the full text of the Announcement published by the General Directorate here.

¹ Within the framework of Electronic Signature Law No. 5070, it must be signed with e-signature.

Aybike Gürcan, Associate
Egemen Akyol, Associate
Orçun Turan, Trainee Lawyer
Dilara Kürkçüoğlu, Trainee Lawyer<