EVOLUTION IN TURKISH REAL ESTATE SECTOR

EVOLUTION IN TURKISH REAL ESTATE SECTOR: NOTARIES TO FACILITATE PROPERTY TRANSACTIONS

As of July 4, 2023, a significant transition will take place in the Turkish real estate market. The notaries, along with land registry offices, will now be entrusted with property transactions. How to proceed, where to apply, and the cost involved might be some of the questions on your mind. Here's an overview of everything you need to know about this new approach involving notaries in the property ownership transfer process.

What led to notaries' inclusion in Turkish real estate transactions?

The escalating volume of real estate transactions resulted in overburdening land registry offices, especially in urban areas, making it challenging to schedule appointments. To ease this load, a new methodology was introduced, thereby integrating notaries into the system.

Will notaries oversee only residential sales?

No, notaries will administer transactions for 'all types of immovable assets.' This includes not just residences but offices, shops, parcels of land, and agricultural fields as well.

PROCEDURAL GUIDELINES: APPOINTMENTS ARE A MUST

What is the application procedure and how does it work?

It is crucial to note that an appointment is mandatory to visit a notary. Prospective sellers will lodge their application through the e-Government portal via the Union of Notaries of Turkey's 'e-appointment / application' feature. During this process, specific real estate details for sale, the involved parties, the tax value of the property, the mutually agreed sale price, and related documents will be registered and uploaded to the Turkish Notaries Union Information System (TNBBS).

(The original versions of the uploaded documents will be presented at the appointment)

When lodging the application, applicants will also choose the notary who will handle their transaction. The selected notary will receive the application via the Union of Notaries of Turkey Information System. If any legal or factual discrepancies prevent the processing of the document, the notary will dismiss the application. However, the involved parties will have a chance to rectify the necessary information. All updates will be sent via text message to the registered numbers.

VERIFICATION OF DOCUMENTS

What does the final stage of the purchase and sale process entail?

The notary will issue an application document after receiving the application. This document will be sent to the General Directorate of Land Registry and Cadastre through the Land Registry and Cadastre Sharing System (TAKPAS). The notary will retrieve detailed land registry data and other documents related to the property for sale through TAKPAS. If any documentation is incomplete, the notary will request the land registry where the property is registered to provide the missing pieces. The notary will then draft a contract after confirming that there are no legal impediments to the sale of the property.

The Directorate will provide an e-collection serial number related to the transaction fee and land registry fee to the notary via TAKPAS. The parties will receive a text message from the notary that includes the e-collection serial number, payment method, and appointment date and time for contract signing.

Should the parties fail to appear at the notary office on the appointment date and time, they will receive a notification stating that the procedure will proceed if they visit any notary office in Turkey within 10 days; otherwise, the application will be cancelled.

TRANSFER OF OWNERSHIP

Upon the notary's confirmation that there are no legal hindrances preventing the property sale, the parties will sign the contract. The notary will register the contract and other relevant documents on the Land Registry and Cadastral Information System (TAKBIS) using a unique number. Upon registering the contract with TAKBIS, the property's registration with the land registry will be carried out by the land registry office. Along with the contract, all other necessary documentation will be preserved indefinitely in the Turkish Notaries Union Information System (TNBBS) by the notary. Simultaneously, physical copies of the documents will also be archived.

Once the contract is signed, the title deed will be handed over to the parties by the notary.

NOTARY TRANSACTION FEES

What fees will the notary charge for the transfer?

The 4% transfer tax on the sale price that is usually paid at the land registry office will still be applied. However, an extra fee will be levied by the notaries. The notary fee is subject to the value of the property and cannot be less than 500 liras or more than 4,000 liras. Furthermore, these charges will be adjusted annually based on revaluation rates.

POSITIVE OUTCOMES AND PENDING QUESTIONS

The new initiative allowing notaries to handle purchase-sale transactions will expedite the process for citizens. Unlike land registry offices which only operate on weekdays, transactions can now also be conducted on weekends thanks to the on-call notary service. However, the additional fee could influence the preference for this service. Moreover, the implications of the liability imposed on notaries by this new system are also raising curiosity. Notaries will now bear responsibility for damages resulting from property sale contracts they issue. If the state compensates for this damage, it has the right to seek compensation from the notary who issued the contract. This risk could potentially deter notaries from carrying out transactions.

For more complex or larger transactions, parties may wish to consult legal professionals, such as an Antalya lawyer, Istanbul lawyer, Alanya lawyer, or an Istanbul real estate lawyer. These experts can help navigate the legal landscape of real estate transactions, ensuring a smooth and successful process.