Investor Guide to Europe 2014
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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 mea-
sure.
•
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
Î
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 domi-
nant property.
•
An easement right is created by entry in the land registry.
Î
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 notwit-
hstanding any fluctuations in the secured amount.
•
Unlike many countries in Europe, the beneficiary of the mor-
tgage 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.
Î
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:
KEY STaGES
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.
Î
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 only 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.
Î
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 exe-
cuted before the Turkish notary public or before the land regis-
trar. 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.
CoMMERCIaL 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
PRoPERTY LaW
