New Area for Sale of Real Estates in Turkey: Notaries are also allowed to execute real estate sale transactions.
On 28 June 2022, the Law numbered 7413 (the “Law) has been published in the official gazette and introduced major changes to the execution of real estate sale agreements.
Prior to the Law, the monopole of real estate sale transactions belonged to the land registry and notaries were only allowed to execute promise- sale agreements. A real estate sale agreement not executed before the competent land registry was considered as null and void.
Turkey has decided to follow the footprint of many European Countries by allowing the execution of real estate sales agreement before notary publics in addition to land registries. This change would enable a faster and easier way to execute real estate sales agreements.
As per the Law, upon the application of the seller and the buyer, the notaries would issue an sale application document and access to the title deed record and required documents on the real estate through the land registry information system. The system would also enable notaries to request any missing information from the land registry. Once the notaries determined that there is no legal obstacle for the execution of the real estate agreement, they would prepare the real estate sales agreement which is then to be executed by the parties. Upon the execution of the sales agreement the notaries would register the agreement to the land registry information system. The land registry would register the real estate to the land registry records.
Pursuant to the Law, the following charges are to be applied to real estate sales transactions:
- Title deed fees stipulated under paragraph 20 (a) of the section titled “I-Title deed transactions” of the tariff numbered (4) attached to the Law numbered 492 on Fees,
- A Notary fee to vary between TRY 500 and TRY 4,000 depending on the value of the real estate,
- Service fee to be registered as revenue to the Land Registry and Cadastre.
The Law would enter into force once the land registry information system has been set up but no later than 01.01.2023. The President has the right to extend this deadline for six months.
This change would enable parties to execute real estate sales agreement before notaries, which are easily accessible, without required to apply to the land registry and be present before the competent land registry on the appointment date. It is expected that most of the sellers and buyers would choose to execute such sales transactions before a notary public.
Att. Derya ŞAHİNER
(06.07.2022)
