Whereas, by dint of the amendments of the above mentioned law, the decree taking place in the Village Law’s Number 442 Article 87 that prohibiting the foreigners purchasing real estates within the boundaries was thoroughly abrogated and the decrees in the title Deed Law’s amended Article Number 36, had been transferred to its Article Number 35.

We can summarize the general rules providing the foreigners purchasing real estates in Turkey, as follows:
According to the Article 35 of the title Deed Law, purchasing real estates in Turkey is subject to the reciprocity principle that means it is a mutually applied between at least two states providing their citizen’s to obtain the same rights, reciprocally.
As a requisite of the reciprocity principle actual applications bears importance along with the legislation. It means that in order to purchase real estates in Turkey by a foreign legal-entity or a citizen, a Turkish legal-entity or citizen should have the same right of purchasing real estates actually and legally in the same foreign state.

The exceptions of the reciprocity principles are, as follows:
Those who are Heimatlos people can’t be benefited from the same principle.
In compliance with the convention about the Immigrant’s Legal Statue, refugees can be exempted from the stipulations of reciprocity in case they officially prove their 3 years residence in the country they took refuge in.
According to the Tourism Encouraging Law, Number 2634, the foreigners who make investments aiming tourism, can purchase real estates within touristic regions and centers without being subject to the reciprocity principle and restrictions for them.

Besides, there are three restrictive rules in other laws, for the foreigners purchasing real estates:
According to the Military Prohibited Zones and Security Regions Law, Number 2565, the real estates situated in those areas are prohibited to be sold or rented and inalienable to the foreign legal entities or people.
According to the title Deed Law’s Article 35, purchasing more then 30 hectare real estates by foreigners, is prohibited. Unless a Cabinet verdict prevails but legal inheritance is an exception.
According to the Village Law’s, Number 442, amended Article 87 the foreigners can purchase real estates within the boundary of the villages contrary to the one of the former restrictions.

Due to the recent system implemented in 2003, purchasing real properties by foreigners in Turkey, has been facilitated in a large scale.
In 2004 a boom in that sector has been noticed. Mainly in small residential areas and touristic regions such as in Muğla 4000; in Istanbul 9.500; in Antalya 7.000 dwellings and in Hatay, Kilis and Mardin 240 billion square miles land purchasing was approximately, realized.

Following all these fruitful developments, the Constitutional Court cancelled the above mentioned law Number 4916, about the allowances of purchasing real properties by foreigners, stating that the legal guarantees and restrictions are insufficient from the standpoint of the Constitution.

However, real estate sellings are valid until the end year 2005, as the Constitutional Court’s decree can’t be technically applied immediately and also it isn’t retrospective and the Government already has announced that a new law is going to be legislated by the Parliament. It is not expected the said revoked law will have repercussions to Turkey’s relations with the European Community.
However, as a result of the revocation of the law facilitating the foreigners to have real estates in Turkey, there’s going to be a loss of income, for the time being. Because from 2003 on, we have already obtained 2-3 billion dollars income.

Then, as a summary what will probably happen until the end of 2005 can be stated that way:
The Supreme Court isn’t expected issuing its written verdict less than 3 or 4 months. The date of commencement of the written verdict is 3 months after its publishing in the Official Newspaper.
Consequently, the foreigners can obtain real estates during these 7-8 months period before the date of commencement of the law. Since the Decree of the Constitutional Court isn’t retrospective then those who have already obtained real estates from 2003 on won’t be affected.
We hope that, the Government will find a solution to this problem, by legislating a new law considering the matters pointed out by the Constitutional Court and also Turkey’s undertaking towards European Community as a component of Globalization.