What is a Title Deed?
A title deed is an official document that certifies the ownership rights of a real estate property (house, land, building, etc.). In Turkey, these documents are issued and provided by the General Directorate of Land Registry and Cadastre. The title deed identifies the legal owner of a real estate property.
Without a title deed, it is legally impossible to own or purchase a real estate property. Furthermore, the title deed indicates whether there are any mortgages, liens, or legal restrictions on the property, which is critical for both buyers and sellers.
Especially during purchase and sale transactions, buyers should check the property's title deed. The information on the deed provides important details about the physical features and ownership status of the property. For this reason, the title deed is the most important document in real estate transactions and ensures that these transactions are carried out legally and securely.
What Are the Types of Title Deeds?
Before purchasing a real estate property, it is important to first check how the property is registered in the title deed. In our country, there are three types of title deeds: condominium ownership, condominium servitude, and shared ownership. The type of title deed you have or will have directly affects the value of your property.
Condominium Ownership Title Deed
A condominium ownership title deed is a type of title deed that certifies the ownership rights of each independent section in a building, such as an apartment, office, store, or parking space. Condominium ownership title deeds can be used to buy and sell these independent sections. It also grants the owner rights over both their independent section and shared common areas.
The most significant feature of the condominium ownership title deed is that the property can be divided, allowing multiple people to own different independent sections within the same building. Properties with condominium ownership deeds can also be subject to mortgages or liens. Therefore, it is important to check if a condominium ownership title deed exists when buying or selling an apartment or office building, as it defines your rights and obligations over the property.
Condominium Servitude Title Deed
A condominium servitude title deed is a type of title deed that certifies the right to use independent sections of a building that is under construction or in the planning stage on a plot of land. This type of deed is generally used when a building is still under construction, and condominium ownership has not yet been established. It grants the holder certain usage rights but not full ownership over a specific area.
Once the construction of the building is completed and the independent sections are fully determined, the holder of the condominium servitude title deed has the right to transition to a full condominium ownership title deed, which certifies complete ownership. This transformation typically occurs after the building is finished and necessary legal documents are obtained. During this process, the holder of the servitude title deed must wait until the building is completed and the independent sections are defined.
Although condominium servitude and ownership title deeds are often compared, there are distinct differences between them. A condominium ownership title deed certifies ownership of independent sections, such as an apartment, whereas a servitude title deed is used when the building is still under construction and full ownership cannot yet be established. The owner of a condominium ownership title deed has full rights over their independent section, whereas a servitude title deed grants limited usage rights until the building is complete.
Shared Ownership Title Deed
A shared ownership title deed is used when a property is jointly owned by multiple individuals. In a shared ownership title deed, each person's share in the property is indicated as a percentage, defining their rights and responsibilities over the property.
For example, if three people share the ownership of a plot of land, they will all be joint owners of the land. Their rights and responsibilities over the property are defined according to the percentage stated in the shared ownership title deed. This deed plays an important role in property transactions and certifies ownership rights. However, any transfer of ownership requires the consent of all co-owners. Therefore, when buying or selling a property with a shared ownership title deed, it is important to ensure that all co-owners are informed and agree to the transaction.
How Are Title Deed Transactions Conducted?
The title deed process must be handled carefully as it plays a crucial role in ensuring that the purchase and sale of a property proceed smoothly. These transactions legally transfer ownership from one person to another. If not conducted properly, the ownership of the property may be legally unclear.
During the title deed process, all rights, obligations, and restrictions on the property are identified. Whether there is any mortgage, lien, or legal limitation on the property is checked, helping protect the buyer by revealing potential issues before the property is purchased. Additionally, title deed transactions help the government maintain a record of property ownership, aiding in tax, planning, and other decisions. Thus, title deed transactions are highly important for both individuals and the state.
Pre-Title Deed Day Procedures:
Clarify who will pay the title deed fee and property tax.
Pay the necessary costs for the title deed, file, and real estate agent.
If using a mortgage, learn the loan amount and apply for the loan with the required documents, including a copy of the title deed.
Obtain earthquake insurance (DASK) or ensure it is valid.
Obtain the property’s appraised value from the local municipality and pay the property tax.
The title deed holder or their proxy must apply to the title deed office with the necessary documents.
Pay the required fees based on the SMS notification.
Title Deed Day Procedures:
The buyer and seller must be at the title deed office with their identification at the appointment time.
If you cannot read or write, bring two witnesses who are not related to you.
Submit the fee receipts to the processing officer.
All buyers and sellers must sign the documents in the contract room.
If using a mortgage, sign the loan documents at the bank.
Post-Title Deed Day Procedures:
Visit the relevant institutions to complete utility transfer processes.
Notify the municipality where the property is located to pay the property tax.
Register your residence at the local population directorate.
Title deeds and transactions are of vital importance for protecting property rights and ensuring the smooth sale of immovable properties in our country. These processes provide clear and transparent communication between the parties involved, ensuring that everyone is aware of the legal framework surrounding property rights and transactions. The existence and importance of the title deed allow individuals, families, and businesses to manage their properties securely, plan for the future, and be legally protected. Therefore, ensuring the proper and complete execution of title deed transactions is crucial for the healthy functioning of property law.