MEDIATION PRACTICES IN TITLE DEED TRANSACTIONS
Introduction
With the recent amendments introduced by Law No. 7445 and Law No. 7531, significant changes have been made to the Law on Mediation in Civil Disputes No. 6325. With these changes, disputes concerning the transfer of immovable property, the establishment of limited real rights over immovable property, the division of immovable property, and the termination of co-ownership have been brought within the scope of mediation.
These regulations aim to ensure that disputes are resolved in a faster, more effective, and amicable manner.
Implementation of Mediation Settlement Agreements in the Land Registry
If the parties reach an agreement at the end of the mediation process, it is possible to register this agreement with the land registry. However, certain conditions and procedures must be fulfilled for this to occur.
2.1. Obtaining an Enforceability Annotation
In order for a mediation settlement agreement to be processed in the land registry, it is mandatory to obtain an enforceability annotation from the court. This annotation is obtained from the civil peace court (Sulh Hukuk Mahkemesi) where the immovable property is located.
The court examines the settlement agreement in terms of:
- Whether it is suitable for mediation and enforceable by execution,
- Whether legal restrictions, procedures, and principles regarding the transfer of immovable property or the establishment of limited real rights have been complied with.
2.2. Content of the Settlement Agreement
For the settlement agreement to be accepted in land registry procedures, it must include the following elements:
- Identity information of the parties: Turkish ID number, full name, parents’ names, date of birth, ID card serial number.
- If signed through a representative: power of attorney details including the notary, date, and registry number.
- Descriptive information of the immovable: province, district, neighborhood/village, block, parcel, and if applicable block, floor, and unit number; if co-owned, share ratios.
- Agreement price: the consideration related to the transfer or establishment of rights over the immovable.
- Current encumbrances in the land registry: mortgages, annotations, declarations, rights, and obligations.
- Wet signatures of the parties and the mediator.
The declarations of intent of the parties in the agreement must be clear, explicit, and free from ambiguity.
2.3. Land Registry Registration Process
When applying to the land registry office with a mediation settlement agreement that has obtained an enforceability annotation, the following steps are followed:
- Review and Evaluation: The land registry office examines the transaction in accordance with applicable legislation. Existing restrictions, mortgages, and encumbrances on the immovable are assessed.
- Payment of Fees and Charges: Title deed fees and revolving fund charges are collected depending on the nature of the transaction.
- Preparation of Registration Request Document: The transaction is completed by preparing a registration request document without issuing an official deed.
2.4. Special Cases
- Guardianship or Custody: If one of the parties is under guardianship or custody, participation of legal representatives and necessary approvals are required.
- Legal Entities: For transactions on behalf of legal entities, authorized representatives must sign the agreement and submit authorization documents.
- Inheritance Cases: Division of inheritance shares into co-ownership or agreements between heirs may be carried out through mediation.
Mediation as a Condition for Filing a Lawsuit (Article 18/B)
In certain disputes, applying to a mediator before filing a lawsuit is a mandatory precondition. These disputes include:
- Partition of movable and immovable property and termination of co-ownership,
- Disputes arising from lease relationships (excluding eviction via non-judicial enforcement),
- Disputes arising from the Condominium Law,
- Disputes arising from neighbor rights.
In such cases, it is not possible to file a lawsuit without first resorting to mediation.
3.1. Settlement at the End of the Mediation Process
If the parties reach an agreement at the end of mediation:
- Obtaining an enforceability annotation is mandatory.
- The settlement agreement must be prepared in compliance with legal limitations and procedures applicable to immovable property.
- Registration in the land registry can be carried out with an agreement bearing an enforceability annotation.
Important Considerations
- Restriction Annotation on Disposition Authority (Article 17/B): This annotation may be placed in the land registry upon the request of the parties during mediation and restricts disposition authority for up to three months. It is removed upon settlement or by request of the parties.
- Encumbrances on the Immovable: If there are restrictive annotations prohibiting disposition, registration based on a mediation agreement may not be possible. Such restrictions must be lifted or necessary approvals obtained.
- New Encumbrances: If a new restriction is placed on the property between the signing of the agreement and registration, the participation of all parties may be required.
- Fees and Charges: Title deed fees and revolving fund charges are collected depending on the nature of the transaction. No title deed fee is charged for restriction annotations, but revolving fund fees apply.
Our Services as Nexpo Legal
At Nexpo Legal, we provide comprehensive legal support to our clients in mediation processes and land registry transactions. With our experienced team, we assist in:
- Initiating and managing the mediation process,
- Preparing settlement agreements and obtaining enforceability annotations,
- Conducting land registry registration procedures,
- Providing legal consultancy services related to immovable property matters.
In light of these new regulations, you may contact us to ensure the fast and effective resolution of your property disputes.
Nexpo Legal
