Regulatory Alerts2014-03-26
Added · Updated
Communiqué on Real Estate Certificates (VII-128.2)
The Capital Markets Board of Turkey issued Communiqué VII-128.2 to regulate the issuance, trading, and redemption of real estate certificates used to finance residential and commercial projects. The regulation establishes strict eligibility criteria for issuers, caps the issue amount at fifty percent of the project's appraised sales value, and mandates bank guarantees for certain offerings to protect investors. It further defines the primary obligation for investors to receive property units and the secondary obligation for issuers to sell unsold units and distribute proceeds if property transfer is not requested.
Topics
Share