What's Changing and How It Will Work
From 1 July 2026, Turkey will introduce a mandatory escrow system for property transactions. Instead of paying the seller directly, the buyer's funds will be held in a dedicated bank account until the title deed — known as the tapu — has been formally registered. Once ownership is confirmed, the transfer completes automatically and the funds are released to the seller.
Before this change, transactions were settled using cash, bank transfers and other conventional payment methods, with no requirement for an escrow mechanism. This gave buyers and sellers considerably more flexibility in how they structured their payments.
Why This Is Being Introduced
The primary aim is to reduce fraud, cut out grey-market schemes and make property transactions more transparent. By tying the release of funds to the legal completion of the sale — rather than to verbal agreements between the parties — the regulator is adding a meaningful layer of protection.
Who and What This Affects
The new rules apply not just to cash payments but to bank transfers and other forms of payment as well. The mortgage portion of a transaction is generally excluded from the escrow requirement and processed separately. For buyers, this means a safer but more structured payment process. For estate agents and sellers, the familiar mechanics of closing a deal are changing: a direct transfer of funds is no longer the standard way to complete a transaction.
Timeline and Significance
The deadline could still shift — Turkey's Ministry of Trade has indicated that a three-month extension is possible. So while 1 July remains the key date, a transitional period may yet be granted. Either way, this is one of the most significant regulatory changes to hit Turkey's property market in 2026: transactions will become more predictable, disputes less likely, and both buyers and sellers better protected.