All you want to know about home loan from A to Z is here.



    Action for Defect -The action filed by the customer against the seller on account of the defective nature of the goods purchased thereby for the termination of the sales contract or the discount out of the sales price by the rate of depreciation or the delivery of equivalents, if any, in defect-free condition.

    Annex - Any building and structures, which complement any intended uses of a house or a building.

    Annual Cost Rate -

    Annual Percentage Rate -

    Annuity -In the case of borrowing transactions, the amount with interests payable for the respective year.

    Apartment -Each section, used for residence purposes, of a building.

    Apostille - A document certification system, which ensures the authenticity of a document to be validated so that such document may be legally used in another country.

    Assignment of Receivables -The assignment of respective receivables by a person to a third party.


    Banking and Insurance Transactions Tax (BSMV) -The Banking and Insurance Transactions Tax is the tax levied on the basis of the income derived from or the amounts arising out of banking and insurance transactions.

    Blocked Check -The check, which ensures the amount, corresponding to the amount of the check, of the monies on the account to be blocked.

    Broker -Intermediary party, agent


    City Block -Any land parcel, which is surrounded by roads and mostly divided into parcels, and any set of structures covering such land parcel are collectively referred to as "block", and any such portion within zoning plans is referred to as "city block".

    Concept Design -The preliminary design, the initial form of the project, draft.

    Contractual Transactions -The transactions conducted through the issue of formal deeds with the land registry office. Example: Sales, donation, mortgage, usufruct rights.

    Conveyancen -Transfer, assignment, conveyance of a right to others.


    DASK (Turkish Catastrophe Insurance Pool)- The public legal entity, established for the submission of the earthquake insurance, which was instroduced as mandatory for the residential buildings within the respective scope as of September 27, 2000.

    Declared Real Property Value - The value declared as per the real property declarations filed with the municipalities by the owners or shareholders of real properties under the Real Property Tax Code at general declaration period.

    Defective Goods and Services - Any goods or services with such physical, legal or economic defects, which are in breach of the qualities and quantities as specified within the respective packages, labels, introduction and user’s manuals or warranted by the seller or specified by the applicable standards or decrease the value thereof in terms of allocation or intended use or decrease or eliminate the benefits expected by the consumer.

    Detached Building - Any building, which is not adjacent to those on the surrounding land parcels at any side.


    Environmental Plan - The plan, which lays the basis for such settlement and land use decisions as housing, industry, agriculture, tourism and transportation in accordance with national and regional zoning plans.

    Example - Establishment of property ownership on a real property, which is yet of land parcel nature.

    Example - In the mortgage system, the mortgage is established as maximum magrin mortgage to ensure that the mortgage amount equals to the sum of repayment installments.


    Fair Market Value - The ordinary, current and fair sales value, which would emerge in the event of the sales of the real property under ordinary circumstances, being the ordinary price of the real property.

    Family Residence Annotation - A family residence is the one, which is allocated for permanent residence of a family. According to Article 194, “Neither of the spouses may not terminate any lease contract related to the family residence, transfer the family residence to others or create any encumbrances on the family residence without the express consent of the other spouse.”

    Financial Leasing - The lessor’s granting the possession of any goods, which, upon the request and choice of the lessee, it has acquired or otherwise procured from third parties, to the lessee in consideration of the applicable rent for any use and on the condition that such transaction not be terminated for a specific period of time.

    First Hand Market - The market, on which banks (financial institutions) and the persons, who intend to purchase houses, transact.

    FX – Indexed Loan - The loan, which is extended in Turkish Liras, but for which the risk exposed by the borrower is monitored in foreign Exchange (For instance; mortgages in US Dollars, Euro, Pound Sterling, Swiss Francs or Japanese Yens).


    Gross Construction Area - The sum of all areas constructed of a building from zoning point of view.

    Guarantor Limit - The qualified credit line (loan limit), which lays the basis for the guarantee to be issued by the construction company in order for the extension of housing loans for the housing units within an ongoing housing construction project.

    Guarantor - The party, who issues guarantees on any matter.



    Independent Section - Any portion of the main real property, which is suitable for use separatly and independently, is referred to as an independent section. Such common spaces as the housekeeper’s apartment and the shelter are considered as independent sections. Each storey of the main building may be had registered to the title deed registry as an independent section if so willed.

    Infrastructure - The entirety of the basic structures such as bridges, dams, power generation plants, highways, railways, telecommunications systems, power, water, town gas and drainage installations.

    Interest - The income derived in consideration of monies lent out for operation purposes.

    Irrevocable - Any case, which does not allow for one to revoke.




    Land Parce - The parcel of a land, reserved for the construction of a building.

    Land Share - The common ownership share of the land, which is allocated for each independent section of a building, in respect of which servitude or property ownership has been established.

    Land - Any piece of earth, ground, soil.

    Letter of Guarantee - The letter, which, for the purpose of loan extension for the houses being constructed as a part of ongoing projects, contains the warranties of the concerned construction company to cover the customer risk in the event of any interruptions with the customer’s payments to be effectuated until the completion of the construction.

    Loss Payee - The loss payee of any insurance under the applicable policy.


    Main Real Property - The entirety of the real property subject to property ownership application. (Complete building, factory, shop, office etc.)

    Main Real Property - The entirety of the real property subject to property ownership.

    Maximum Building Area - The area within the land parcel that allows for the construction of a building.

    Maximum Margin Mortgage - The maximal mortgage, the upper limit mortgage, the real property lien, which indicates the maximum amount, for which the real property is put up as security guarantee.


    Non-Contractual Transactions - The transactions conducted with the land registry office by the unilateral will of the right-holder or owner. Example: Annotation of personal rights, de-registration, revision, modification, separation, unification, descent of heritage, which are not governed by Article 26 of the Land Registry Law and are not related to the establishment and transfer of personal rights.



    Parcel Plan - The small plan of the real property as copied in exact from the overall cadastral plan, which was solely illustrates the geometrical shape thereof, the map section that indicates the dimensions and borders of the structure and the land parcel.

    Peer - The nature of setting an example. Example: The comparison of a real property to a similar in kind in terms of sales or lease value.

    Planned Land Parcel - The portion of earth, which has undergone parcel planning for zoning purposes.

    Principal amount - The amount, on the basis of which the accruable interest is to be calculated.

    Prohibited Military Zone - The zone within the borders determined under a decree by the Council of Minister around the military facilities and zones, which are of vital importance for the defense of the homeland.


    Real Property Acquisition Tax - The tax payable by the purchaser or the constructing party in the cases of the acquisition for consideration of real properties or the construction of buildings on a self-owned land parcel without consideration.

    Real Property Tax - The tax, the subject matter of which is a building or a land parcel, which is payable by the owner, holder of usufruct right or, in the absence of either, the person acting as of owner and the basis of which is laid by the value of the subjected building or land parcel and the rate of which is provided by the law on individual basis for each case.

    Real Property - Immovable property

    Real Property - Real properties consisting of buildings, land parcels or lands, which are available for acquisition.

    Release - Release, elimination, termination or annulment of any legal encumbrance. Example: Release of mortgage.


    Stamp Duty - The duty levied and collected in respect of the land registration transactions as per the table (1), scheduled to the Stamp Duty Code No. 488.


    Termination - The declaration of intention that leads to dissolving novelty by concluding any ongoing legal relation unilaterally to be effective from the time thereof on, removal, termination of legal effect.

    Tied Loan - The loan extended on the condition of the execution of a contract with a specific seller for the purpose of a specific house. Banks may extend loans on the condition of the purchase of a specific house if they enter into contractual relations on the matter with construction companies. The extension of a tied loan requires the bank to execute a contract on the matter with the seller.

    Timeshare - The real property ownership, which entitles each co-owner of a structure suitable for utilization as residence or an independent section thereof to usufruct right in connection with the common ownership for the utilization of such structure or independent section within the specified periods of the year.

    To convey - The action taken by the property owner to transfer his/her title or to create any rights for the benefit of others on the real property and, to that end, to physically visit the land registry office, sign the formal deed issued and apply for the registration of such rights for the benefit of others.

    Type Modification - The transaction conducted for the modification of the type of a real property as per the respective map section and title deed registry thereof.


    Urgent Sales Value - The value of the real property that would emerge if the real property were to be sold urgently and without any delay (within 1 month at latest), being the minimum price of the real property.


    Variable Interest - The ability to apply varying interest rates throughout the maturity term of the loan



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