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PROPERTY LAW
Types of ownership
Ownership
• Turkish Civil Code defines ownership as the broadest in rem
right which enables the owner to use, receive the benefits of,
and dispose of a property, subject only to the law.
• The owner has the right to reclaim it from anyone withholding
it from him or her and to protect it against any unwarranted
interference. Any title, transfer or charge on the ownership
right must be registered on the local land registry (tapu sicili)
Joint Ownership
• Defined by Law.
• Joint ownership exists where several persons own a share on
a property which is physically undivided.
• Unless otherwise stipulated, they are co-owners in equal
measure.
• Each joint owner has the rights and obligations of ownership
in respect of his or her share on the property/immovable, and
said share may be alienated and pledged by him or her, or
distained by his or her creditors.
Co-ownership
• Defined by Law.
• Co-ownership exists where none of the co-owners can
dispose of his share without the consent of the others and
none of them holds a separate part of the property.
Rights affecting ownership
Easement right
• Is an in rem right where a parcel of land is encumbered in
favour of another property such that the owner must permit
the owner of the dominant property to exercise certain rights
over it to or may not exercise certain of the rights attaching
to his or her property for the benefit of the owner of the
dominant property.
• An easement right is created by entry in the land registry.
Mortgage
• A mortgage may be created to secure any kind of debt, be it
current or future (either definete or possible).
• The mortgaged property does not need to be owned by the
debtor.
• Mortgages can be created for an amount debt described in
Turkish Lira or the Turkish Lira equivalent of a debt in foreign
currency.
• A mortgage is created in a specific rank, even if the secured
amount is indefinite or variable, and it retains such rank
notwithstanding any fluctuations in the secured amount.
• Unlike many countries in Europe, the beneficiary of the
mortgage on a property/immovable cannot automatically
possess the ownership of the mortgaged immovable (lex
commissaria) in case of the nonfulfillment of the debt, but
the mortgage beneficiary must in any case put the immovable
on sale, via Execution Office, in order to collect his/her
receivables.
Pre-emption right
• The joint owners of a property may exercise their pre-emption
right in the event of a sale of a portion of the jointly owned
property by any of the joint owners.
ACQUISITION PROCESS
BY TURKISH LEGAL
ENITIES HAVING FOREIGN
SHAREHOLDING
• In case a foreign investor holds more than 50% of the shares
of a company established in Turkey or has the right to appoint
or dismiss the people having the management authority in
the same company, such company can acquire the ownership
of an immovable/real estate only by applying to the relevant
Provincial Planning and Coordination Directorate under the
Governorship of the relevant city, to obtain permission for the
acquisition.
Land registry deed and deed of sale
• Land registry deed is a document showing that a real
person(s) and/or legal person(s) own a specific immovable,
an in rem right or a right in personam on an immovable. In
case there is a discrepancy between the land registry deed
and the official records of the Land Registry Office, the records
of the Land Registry Office will prevail. In case an ownership
of a property/immovable or another in rem right or a right in
personam is transferred to others, such transfer can onlşy be
deemed as valid provided that the transfer is executed before
the land registrar in the Land Registry Office. The official Deed
of Sale is kept by the relevant Land Registry Office.
Promise to sale agreement
• The buyer and the seller of a property/immovable may
execute a promise to sale agreement to set forth the
conditions of the sale and where the buyer can be forced to
sell and the seller can be forced to buy the property in line
with the conditions set forth in the promise to sale agreement.
• The promise to sale agreement is only valid, if it is either
executed before the Turkish notary public or before the land
registrar. In case the promise to sale agreement is executed
before the Notary Public, it is advisable to annotate the
promise to sale agreement with the relevant land registry
records.
LEASES
• Lease of a property is covered in the relevant provisions of the
Turkish Code of Obligations.
• Certain provisions of the lease agreements may be freely
agreed by the parties, including but not limited to the below:
–– the initial rental;
–– the duration of the lease;
–– sub-lease restrictions on the lease property.
• However, lease agreements must comply with some
mandatory rules including, but not limited to the below:
–– in fixed term business place lease agreements, unless the
tenant notifies in writing that he will evacuate the leased
area at the latest fifteen days prior to the termination of
the lease agreement, the lease agreement will be renewed
for a term of one year with the same conditions;
–– any clause in a lease agreement which is against the
benefit of the tenant other than determination of the lease
amount is deemed invalid. However this rule will come in
force in July 1st, 2020;
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Investors Guide to Europe 2015