Türkiye acts to make secure payment system mandatory for property sales

ANKARA

Turkish authorities are preparing to introduce a secure payment system for property transactions aimed at reducing fraud, unregistered payments and security risks in the real estate market.

According to information from the Trade Ministry, the payment system — already in use for second-hand vehicle sales — will become compulsory for all real estate transactions, including housing and land sales, as of May 1.

Property sales in Türkiye are often conducted through direct, face-to-face payments between buyers and sellers.

Authorities say this practice has led to several problems.

These include unregistered (off-the-books) transactions, fraud and document forgery and theft risks due to the transfer of large amounts of cash.

Officials aim to eliminate these risks by ensuring that payment and property transfer occur simultaneously through a secure, traceable system.

The secure payment system is a digital payment mechanism developed by the ministry in cooperation with the Turkish Notaries Union.

It ensures that the purchase price is transferred securely and only released to the seller once the legal ownership transfer is completed.

Under the system, the buyer first transfers the payment to a secure, system-registered account. The funds are held temporarily until the title deed transfer is completed at the land registry. Once the official transfer is finalized, the payment is automatically released to the seller's account.

This prevents situations where either party could be defrauded, such as paying without receiving ownership or transferring ownership without receiving payment.

With the amendments being prepared to the Regulation on Real Estate Trade, any property sale involving payment in cash, via bank transfer, or by electronic funds transfer (EFT) will be required to use the secure payment system.

Starting from May 1, property ownership and payment must change hands simultaneously through the system.

The draft regulation is currently undergoing a rigorous review process by key public institutions and industry stakeholders to ensure its effectiveness.

Following this collaborative feedback phase, the ministry will finalize the regulatory framework for official implementation.