In recent years in Turkey, the preferred collateral for the financing of immovable investments in banking applications is the immovable pledge, in other words, “mortgage”. The mortgage guarantee is to show the same house as collateral to the bank so that the consumer can create a loan guarantee for the house he/she wants to buy. Mortgage Agreement is an agreement that must be realized before the official officer in the title deed, as stated in the Turkish Civil Code and Title Deed Regulation. In this context, since the Mortgage Agreement is subject to the official form, it shall be null and void if executed in the presence of a notary public or between the parties.
According to the Article 1020 of the Turkish Civil Code, anyone who proves to be relevant can examine the land registry records before the land registry officer and can request copies of these records. In this context, the concept of “interest” has been interpreted doctrinally as a proof of the existence of an interest that must be protected legally for the purpose of examining the record. However, there is no legal sense of openness and concrete criteria for the concept of “interest”. With the legal regulations in the 08.08.2001 dated 2001/11 numbered General Directorate of Land Registers circular, and in the 1st and 2nd Articles of the Attorney’s Law, lawyers will be able to check the documents they need in the title deeds and receive copies of these documents, provided they submit their power of attorney.
According to the Article 504 of the Turkish Code of Obligations, the attorney to be performed in the mortgage transactions shall be specifically authorized to execute the mortgage transaction. The power of attorney to be used in mortgage transactions should be prepared in the statutory form.
With the Regulation published in the Official Gazette dated 30.04.2011 numbered 27920, it has been enforced to carry out the transactions related to the immovables that are not within the scope of their own jurisdiction by the land registry directorates. Lawyers can now apply to any title deed, and they will be able to handle transactions easily outside of the place where the immovable is located. For example, if a resident in Istanbul wishes to mortgage the immovable property in the Urla province of Izmir for the loan to be used by the bank, the lawyer who performs the transactions of this person by power of attorney may apply to one of the title deed offices in Istanbul to request the transaction to be carried out in the relevant title deed.