The Law on Amendments to the Law on Judges and Prosecutors and Certain Laws (“Right“) was published in Official Gazette No. 31880 and dated June 28, 2022. The law introduces significant changes to Law No. 1512 on the notary profession and authorizes notaries to execute contracts for the sale of real estate.
What does the law introduce?
The long-discussed regulation allowing the execution of real estate sales contracts by notaries, which is seen as an opportunity for easier and faster execution of real estate sales transactions citing examples in other countries, will come into force on January 1, 2023 at the latest.
In accordance with the regulations, following the exchange of documents, the notaries will examine the title deed registers and the documents relating to the property with the land registry offices through the information system of the land register. As a result of this examination, if there are no legal obstacles to the sale of the real estate, the notaries will draw up a real estate sales contract and transfer it to the cadastre information system.
Following the registration of the contract with the information system, the land registry office will register the contract with the respective land registers. In this respect, the power to modify the registers of title deeds is not given to notaries, but is left to the land registration offices.
The financial aspect of real estate sales operations that will be carried out by notaries will not be very different from that of land registry offices. In accordance with the law, real estate contracts signed by notaries will be exempt from stamp duty, and documents issued in connection with these transactions will also be exempt from precious paper fees. The following fees will be charged on real estate transactions executed by notaries:
- Title Deed Fees set forth in Subparagraph (a) of Subsection (20) of the Section titled “I-Title Transactions” of Numbered Tariff (4) annexed to Numbered Law 492 on Fees
- Notary fees indicated in the fee schedule, as long as they are not less than TRY 500 and not more than TRY 4,000 depending on the value of the property
- Service fee to be recorded as income to the working capital management of the General Directorate of Land Registry and Cadastre
In accordance with article 14 of the law, the regulation allowing notaries to execute contracts for the sale of real estate will enter into force when the completion of the installation of the mentioned information system is announced on the website of the Ministry of Justice until January 1, 2023.
The regulation, allowing notaries to execute real estate sales transactions, is an amendment aimed at executing real estate transactions in a faster and easier way. Following this development, the Ministry of Justice should regulate the procedures and principles with a secondary regulation in the coming days. In this regard, it is necessary to follow both the announcements concerning the information system concerned and the secondary regulations to be published.