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COMMERC I AL LAW
67
The Acquisition of Real Property and Limited Rights In Rem
by Companies with Foreign Capital
*
The procedures and principles regarding the acquisition of real estate
and limited rights in rem and their use by legal entities established in
or associated with Turkey by foreign investors were regulated by the
Regulation concerning the Acquisition of Real Estate by Companies With
Foreign Capital (Official Gazette No 27052 dated November 12, 2008).
The acquisition of real estate and limited rights
in rem
was reformed by the
Regulation concerning the Acquisition of Real Estate and Limited Rights
in Rem
by Companies With Foreign Capital (Official Gazette No 27721
dated October 6, 2010), and the Regulation dated 2008 was abrogated.
Legal Grounds Concerning the Acquisition of Real Property and
Limited Rights in Rem by Companies with Foreign Capital
The acquisition of real property by legal entities established in or
associated with Turkey by foreign investors was regulated by the Direct
Foreign Investment Act numbered 4875 (hereinafter referred to as the
“DFIA”), in Article 3/d. Pursuant to this article, the acquisition of real
estate or limited rights
in rem
by legal entities established in or associated
with Turkey by foreign investors was permitted in the zones where
the acquisition of these rights was also permitted to Turkish citizens.
Nevertheless, this article was cancelled by the Constitutional Court in its
decision of March 11, 2008.
The legal gap formed because of the cancellation decision of the
Constitutional Court has been filled by the Regulation concerning the
Acquisition of Real Estate by Companies with Foreign Capital (hereinafter
referred to as the “Former Regulation”). The Former Regulationwas applied
until the entry into force of the Regulation concerning the Acquisition of
Real Estate and Limited Rights
in Rem
by Companies with Foreign Capital
(hereinafter referred to as the “Current Regulation”), on October 6, 2010.
Clauses to be applied to Turkish Citizens Residing Abroad
In Article 1 of the Former Regulation, the object of the Regulation
was defined as establishing the procedures and principles regarding the
*
Article of September 2010 – Prof. Dr. H. Ercüment Erdem