New Housing Finance Program has come into force

The New Housing Financing Program was published in the Official Gazette. The Presidency's "Decision on the New Housing Financing Program" was published in the Official Gazette. The purpose of the decision was stated as the regulation of the procedures and principles regarding housing financing to be provided by deposit and participation banks and the contributions to be provided to them, within the framework of the temporary article 37 of the Law on Public Finance and Debt Management No. 4749 dated March 28, 2002. Within the scope of this decision, contributions can be made to the financing to be provided to houses that have not been previously subject to sale and whose construction is 100% completed, provided that they are owned by the contractors, housing projects that are owned by the contractors or whose construction is ongoing, provided that their ownership will pass to the contractors upon completion, housing projects that have not started construction, provided that the necessary permits have been obtained and a guarantee agreement has been signed with the banks that will provide the financing, and that are owned by the contractors or whose ownership will pass to the contractors upon completion. The valuation report to be prepared by real estate appraisers will be taken as basis for the completion rate. Within the scope of this Decision; Istanbul will be evaluated as the 1st region, Ankara, Izmir, Bursa, Antalya, Mersin and Muğla will be evaluated as the 2nd region, and the provinces outside the 1st and 2nd regions will be evaluated as the 3rd region. Within the scope of the Decision, upon the request of the bank providing the financing, an indication will be made in the declarations section of the real estates stating that the real estates acquired within the scope of the Decision cannot be transferred or assigned for a period of 5 years from the reported financing date, except for unregistered acquisition cases, and cannot be subject to a sales promise. At the end of the period, the indication will be cancelled ex officio by the land registry office. In the event that the enforcement proceedings are initiated due to the default of the debtor in the financings within the scope of this Decision, this indication will be cancelled upon the request of the bank providing the financing. Within the scope of the Decision, in order to use financing for houses to be sold with a real estate sales promise contract/prepaid housing sales contract, it will be a requirement that the relevant contract includes a provision stating that the house in question cannot be subject to sale for a period of 5 years from the financing date. Natural persons who are citizens of the Republic of Turkey and are 18 years of age or older will be able to benefit from the contributions and flexible payment application within the scope of the decision. The financing will be used for a maximum term of 15 years.