Articles

MEDIATION PRACTICES IN LAND REGISTRY TRANSACTIONS

1. Introduction

Recent amendments to the Mediation in Legal Disputes Law No. 6325, brought about by Laws No. 7445 and 7531, have introduced significant changes. These updates have extended mediation to cover disputes involving the transfer of real estate, the establishment of limited property rights over real estate, partitioning, and the dissolution of co-ownership.

The purpose of these amendments is to ensure that disputes are resolved faster, more effectively, and in an amicable manner.

2. Implementation of Mediation Agreements in Land Registries

When parties reach an agreement through mediation, it is possible to register this agreement in the land registry. However, certain conditions and procedures must be fulfilled.

2.1. Obtaining Enforceability Annotation

To process a mediation agreement in the land registry, the agreement must be endorsed with an enforceability annotation by the court. This annotation is issued by the civil court of peace in the jurisdiction where the property is located.

The court examines the agreement based on:

• Whether it is suitable for mediation and enforceable through legal means,
• Compliance with legal limitations, procedures, and principles concerning the transfer or establishment of limited property rights on the real estate.

2.2. Contents of the Agreement

To be processed in the land registry, the mediation agreement must include the following:

• Identity details of the parties: Turkish identification number, name, surname, parents' names, date of birth, and ID card serial number.
• Details of power of attorney, if signed through a representative: The notary, date, and registration number of the power of attorney.
• Descriptive details of the property: Province, district, neighborhood/village, block, plot, block (if any), floor, and independent section number; if the property is shared, the share ratio.
• Agreement value: The amount for the transfer or establishment of rights over the property.
• Current limitations on the property: Mortgages, annotations, declarations, rights, and obligations.
• Signatures of the parties and the mediator.

The declarations of intent in the agreement must be clear, explicit, and leave no room for ambiguity.

2.3. Registration in the Land Registry

Once the enforceability annotation is obtained, the registration process in the land registry proceeds as follows:

• Necessary Examination and Evaluation: The land registry office evaluates the property’s legal status, including any existing limitations, mortgages, and other restrictions.
• Payment of Fees and Charges: Land registry fees and service charges are collected based on the nature of the transaction.
• Preparation of Registration Request Form: The process is finalized by preparing a registration request form without requiring an official deed.

2.4. Special Circumstances

• Guardianship or Custodianship: If any party is under guardianship or custodianship, their legal representatives must participate, and necessary permissions must be obtained.
• Legal Entities: For transactions involving legal entities, authorized representatives must sign the agreement and submit proof of authority.
• Inheritance Situations: Mediation can facilitate the conversion of inheritance shares into co-ownership or other agreements among heirs.

3. Mediation as a Precondition for Litigation (Article 18/B)

In some disputes, mediation has been made a precondition for initiating legal proceedings. These disputes include:

• Partitioning and dissolution of co-ownership of movable and immovable properties,
• Disputes arising from rental agreements (excluding evictions through proceedings without judgment),
• Disputes under the Condominium Law,
• Neighborhood rights disputes.

In such cases, a lawsuit cannot be filed without first attempting mediation.

3.1. Agreement at the End of Mediation

If the parties reach an agreement through mediation:

• An enforceability annotation is required.
• The agreement must comply with the legal restrictions, procedures, and principles related to the property.
• The enforceability annotation allows for the agreement to be registered in the land registry.

4. Important Considerations

• Restriction of Disposition Authority (Article 17/B): During mediation, a notation can be added to the land registry to temporarily restrict disposition authority for a maximum of three months. This notation is removed if no agreement is reached or upon the request of the parties.
• Encumbrances on the Property: If there are encumbrances that prevent transactions, such as prohibitions on disposition, these must be lifted or necessary permissions obtained before processing the mediation agreement.
• Emerging Restrictions: If new restrictions are placed on the property between the signing of the agreement and its registration, additional approval from all parties may be required.
• Fees and Charges: Land registry fees and service charges must be paid based on the type of transaction. For notations restricting disposition authority, no land registry fee is charged, but service charges apply.

5. Services Offered by Nexpo Legal

At Nexpo Legal, we provide comprehensive legal support in mediation processes and land registry transactions. Our experienced team offers:

• Initiation and management of mediation processes,
• Drafting and obtaining enforceability annotations for mediation agreements,
• Conducting registration processes in the land registry,
• Comprehensive legal consultancy on all real estate matters.

We are here to ensure your property-related disputes are resolved quickly and effectively under the new regulations.

Nexpo Legal

This document provides general guidance on mediation practices in land registry transactions. For detailed information and legal support, please contact our expert team.