Re-sale or Re-assignment

A re-sale is when the occupier has paid for the property in full and also has the Koçan (title deed) in their name.

A re-assignment is when the occupiers have paid for the property in part or full and are waiting for transfer of the Koçan to their name.

A re-sale is simple and the sales agreement is between the two parties only.  Also, if the vendor is a first time seller, he is excempt from taxes which means the buyer only pays 6% (with a possible 50% discount option) transfer tax.  If it is not the first property the vendor has sold but he sells less than three properties in any one year he is only liable for 3.25% Capital Gains/Stopaj Tax and there is no VAT (KDV).

A re-assignment is slightly more complicated, with three parties involved

All three parties must sign the re-assigned sales agreement.

You should check the Koçan to see who is the current registered owner of the land.  If it is not the previous buyer please ask for a copy of the sales agreement between him and the titled owner and make sure there are no unacceptable clauses in it.  Your sales agreement (re-assignment) must show the titled owner as the Vendor and reference should be made to the original agreement between the previous buyer and the titled owner.

In many re-assignment sales the vendor is a professional seller and therefore VAT is applicable on the contract price and the vendor is laible for 6.25% Capital Gains/Stopaj Tax.

PLEASE NOTE:  by law the vendor is liable to pay the Capital Gains/Stopaj Tax.

03 July 2008