Which Law Governs a Property Contract in Turkey? MÖHUK Article 25, Lex Situs and Foreign Buyers

1. Article 25 is a special rule that displaces the general contract rule

Article 24 supplies the general conflict rule for contracts, but Article 25 specifically governs contracts relating to immovable property or the use of immovable property. A specific rule prevails over the general rule for its subject matter.

The parties therefore cannot begin with characteristic performance or closest connection where Article 25 applies. The location of the immovable supplies the governing law.

This classification should be made before analysing any governing-law clause.

2. The lex situs rule connects property contracts to the legal system controlling the land

Immovable property is subject to a strong territorial legal regime. Registration systems, zoning, ownership restrictions, mortgages, leases and compulsory form rules are administered by the state where the property physically exists.

For Turkish property, Turkish courts and authorities therefore apply Turkish substantive rules to the relevant property contract.

The rule also avoids contradictory ownership results where a foreign contract law would attempt to transfer rights in a registry governed by another state.

3. A sale of Turkish real estate is governed by Turkish law

A buyer living in Germany, the United Kingdom, Gulf countries or Russia can sign preliminary documents abroad, but the contract concerning Turkish real estate falls within Turkish property law.

The Turkish Civil Code, Code of Obligations, Land Registry Law and special foreign-acquisition rules can all become relevant.

The buyer should separate a broker/reservation document from the official legal act transferring ownership.

4. A promise to sell is not a private workaround around Turkish form rules

Turkish law imposes formal requirements on enforceable promises concerning immovable property. A simple e-mail or broker form may establish evidentiary or restitution issues but should not be assumed to create the same proprietary or registration effect as a properly executed statutory promise.

For investment citizenship, the regulated promise-to-sell route carries additional conditions and annotations. Our citizenship-by-investment guide addresses that separate regime.

Article 25 means the enforceability of the property promise is judged through Turkish law when the property is in Türkiye.

5. Turkish leases remain governed by Turkish law even when the landlord lives abroad

A foreign landlord can own an apartment in Türkiye and sign a lease while abroad. The location of the rented property keeps the lease within Article 25.

Mandatory Turkish tenancy rules concerning rent increases, termination, deposits, eviction and residential/business premises cannot be replaced casually by a foreign-law clause.

A landlord should therefore use a Turkish-law lease structure even if rent is paid to a foreign bank account.

6. Article 25 covers contracts concerning the use of immovable property

The statutory text is not limited to outright sale. Contracts granting use of real estate—especially leases—fall within the special rule.

Timeshare, long-term occupation and other use arrangements require classification under Turkish property/consumer rules depending on the exact structure.

The commercial label given by the seller does not determine the governing law.

7. A foreign-law clause cannot simply displace Article 25

If a contract for a Turkish apartment says it is governed by Swiss, English or German law, that clause must be tested against the mandatory Article 25 rule.

Parties remain free to choose law for separate obligations that do not fall within the immovable-contract rule, such as certain consultancy or financing contracts. But the property contract itself remains territorially anchored.

Mixed contracts should therefore be separated by legal function.

8. Formal validity is especially important in Turkish real-estate transactions

Turkish law requires official form for transfer of ownership. A foreign notarisation can authenticate signatures without itself creating Turkish title.

The same principle applies to powers of attorney: a valid foreign power can authorise a representative, but the representative must still complete the Turkish official title act.

Our foreign property power-of-attorney guide explains the document route.

9. Ownership changes when the Turkish land-registry process is completed

Payment of the price, possession of keys and a signed private agreement are commercially important but should not be confused with the legal registration of ownership.

The title register should be checked before payment for mortgages, attachments, usufruct rights, annotations and ownership shares.

Article 25’s territorial rule ensures that these Turkish registry consequences are analysed under Turkish law.

10. Foreign natural persons also face Article 35 Land Registry Law restrictions

Foreign buyers are subject to nationality, area, security-zone and property-use restrictions under Turkish land law.

Our Buying Property in Turkey for Foreigners guide explains the current 30-hectare and district-limit framework.

A foreign-law clause cannot contract around those public-law restrictions.

11. A reservation deposit dispute can involve both property and ordinary obligations

A buyer may pay a deposit before the official property contract exists. The legal character of that payment—deposit, advance, penalty or unjust enrichment—depends on the agreement and Turkish law.

Where the property contract fails for lack of form, restitution claims can remain possible even if specific performance is unavailable.

Our property reservation deposit guide addresses that narrower claim.

12. Developer contracts can combine property, construction and consumer rules

Off-plan sales, prepaid housing and construction projects can trigger consumer law, building-completion guarantees and special contractual rules.

Article 25 still anchors the immovable contract to Turkish law, while specific Turkish statutes determine buyer protections.

The buyer should verify the parcel, project approvals, developer authority and the relationship between the marketed unit and registry records before major payment.

13. Mortgages and other rights in rem follow Turkish property law

A contract financing a property purchase can choose foreign law for the loan, but creation, ranking and enforcement of a mortgage over Turkish real estate are territorial property-law questions.

Our mortgaged property guide explains title safeguards for buyers.

Loan law and security law should therefore be separated in drafting.

14. An inheritance-sharing contract involving Turkish property must also respect Turkish property law

International succession can involve foreign inheritance law, but transfer and contractual disposition of Turkish real estate remain subject to Turkish property rules.

MÖHUK Article 20 additionally applies Turkish inheritance law to immovable property situated in Türkiye.

Our inheritance law for foreigners guide explains that conflict rule.

15. Governing law and court jurisdiction remain separate

Article 25 answers the applicable substantive law. The competent court is determined by jurisdiction rules, including exclusive Turkish venue rules concerning rights in rem over Turkish property where applicable.

A foreign arbitration or jurisdiction clause should therefore be reviewed for enforceability against mandatory Turkish jurisdiction provisions.

Contract drafting should never assume that choosing a foreign forum changes the law of the property’s location.

16. A Turkish court can need foreign property law when the immovable is abroad

If a Turkish court has jurisdiction over a dispute involving property outside Türkiye, Article 25 points to the law of the country where that property is located.

The Turkish judge then applies the designated foreign law under Article 2.

Foreign registry documents and legal opinions can become necessary.

17. Foreign-law content must be established where property lies outside Türkiye

Parties can assist the Turkish court with official foreign statutes, registry rules, certified translations and expert legal opinions.

If foreign law cannot be established despite all research, Article 2(2) allows Turkish law to be applied, but that is a fallback rather than a reason to ignore foreign law from the outset.

For Turkish property, the legal-source problem is simpler because Turkish law directly governs under Article 25.

Conclusion

MÖHUK Article 25 gives international property contracts a clear territorial rule: the law of the place where the immovable is situated governs the contract. For Turkish real estate, Turkish law controls sale, use, form and related contractual effects regardless of the parties’ nationality or residence. Overseas buyers and sellers should therefore structure the transaction around Turkish title, form, foreign-acquisition and mandatory rules rather than rely on a foreign-law clause.