In Turkey, with Law No. 413 dated 23.06.2022, amendments to the Law on Judges and Prosecutors and Certain Laws ("Law"), published in the Official Gazette No. 31880 on 28.06.2022, came into effect. This Law introduces significant regulations not only in the Law on Judges and Prosecutors but also within the scope of Law No. 1512 on Public Notaries.
Under the Law, notaries are granted the authority to make preliminary sales contracts for real estate and to annotate these contracts in the land registry via the land registry information system, upon the request of one of the parties and upon payment of fees and expenses. Additionally, notaries are authorized to directly carry out real estate sales contracts and related transactions.
With the new regulation, notaries along with the Land Registry Offices, are now authorized to conduct real estate sales transactions. This includes not only residential properties but also commercial properties such as offices, shops, plots, and agricultural lands. The implementation of real estate transactions at notaries started on July 4th.
In this article, we will discuss the implementation and detailed examination of the authority granted to notaries in real estate sales.
A. Scope of Notaries' Authority in Real Estate Sales
As of 28.06.2023, which is the publication date of the aforementioned law, the public notaries authorized to make preliminary sales contracts and final sales contracts for real estate. Although the regulation was expected to take effect on January 1st, it started on July 4th, as announced by the Minister of Justice.
Upon the request of one of the parties, public notaries have the authority to make preliminary sales contracts and annotate them in the land registry via the land registry information system, upon payment of fees and expenses. Additionally, notaries are authorized to directly carry out real estate sales contracts and other related transactions.
B. Procedure and Principles of Real Estate Sales Transactions at Public Notaries
According to the Law, notaries personally conduct the procedures related to real estate sales contracts. Notaries prepare the application document upon the real estate sales application.
Notaries are responsible for considering any restrictions on the property and complying with the limitations and procedural rules specified in other laws related to real estate sales.
The General Directorate of Land Registry and Cadastre shares the land registry excerpt and other documents with notaries through the land registry information system. After identifying the rightful owner and confirming the absence of any legal impediments to the sale, notaries prepare the real estate sales contract.
Once the contract is signed by the parties, the notary records the contract in the land registry information system and obtains a journal number. After the registration in the system, the Land Registry Directorate completes the registration process in the land registry.
However, if the rightful owner cannot be identified based on the land registry excerpt and other documents, or if there is a legal impediment to the sale, notaries do not proceed with the sale transaction.
Notaries are also liable for damages arising from the preparation of the real estate sales contract. If the State is responsible for compensating such damages, the State has the right of recourse against the notary who prepared the contract. Lawsuits against notaries are heard in the local court where the land registry is located.
C. Payments for Real Estate Sales Transactions at Public Notaries
For real estate sales contracts conducted by notaries, only land registry fees are collected, while stamp duties and valuable paper fees related to the documents are exempted.
No additional fees are charged for sales transactions conducted at notaries, apart from notary fees. The notary fees depend on the value of the real estate and are specified in the fee schedule.
In addition, a service fee is paid to the General Directorate of Land Registry and Cadastre as revolving capital for real estate sales transactions. However, no fees or dues are paid to notaries for these transactions.
General Evaluation and Conclusion
In conclusion, granting new authority to notaries in real estate buying and selling enables transactions to be carried out with legal assurance and provides convenience for citizens. By using the e-appointment system of the Notary Association via the e-Government platform, citizens can upload their documents and be present at the notary at the scheduled appointment time to complete the transactions.
With these new regulations, the role of notaries in the real estate sales process has significantly increased. Notaries ensure the legal validity of contracts between parties and facilitate the registration of transactions in the land registry. As a result, the procedural rules and principles regarding real estate sales are now on a more solid foundation.
In conclusion, the new authority granted to notaries allows for real estate transactions to be easily conducted through notaries. This regulation improves the real estate sales process by ensuring transactions are carried out with legal assurance and in a more transparent manner.