Instead of direct payments, a system of protected accounts (escrow) is introduced:
? The buyer transfers funds to a special blocked account in an authorized bank.
?? The amount is frozen until the registration process is completed.
?? After the official transfer of ownership of the buyer, the bank automatically unlocks the funds and transfers them to the seller.
If the transaction did not take place or was declared invalid, the money is returned to the buyer in full.
The Turkish government has several objectives:
Protection against fraud. The most common scheme of defrauding foreign buyers is the receipt of cash and the subsequent disappearance of the seller before registration of the transaction. The escrow account excludes this possibility.
Transparency of the market. The reform forces to bring the real prices of transactions out of the shadows. The previously common practice of underestimating the official cost of an property (“gray scheme”) becomes impossible.
● Combating money laundering. Large amounts of cash in circulation created risks for the financial system. Transfer of payments to non-cash form allows the state to track the origin of funds.
Increase the confidence of foreign investors. The escrow system protects foreigners who are traditionally more vulnerable when dealing with local sellers.
Until July 1, 2026, the system operates in a test voluntary mode. Market participants can test the mechanism without sanctions for non-compliance. After the specified date, the use of an escrow account becomes mandatory for all real estate transactions without exceptions.
At Mercury Group, we only conduct transactions through secure schemes – with your savings protected and back-to-back? ¶??