Understanding Real Estate Sales Promise Agreements in Turkey
A real estate sales promise agreement is a legally binding contract that facilitates the future transfer of property ownership based on predetermined conditions.
It is an important issue when you are waiting for the delivery of the newly started real estate while the construction company you agreed with are still in the ground.
Bayraktar Attorneys, a leading law firm specializing in immigration and business legal matters in Turkey, provides valuable insights into this topic.
Overview of Real Estate Sales Promise Agreements
A real estate sales promise agreement is a commitment made by the promisor (debtor) to sell a specific immovable property to the promisee (creditor). This agreement establishes a mutual obligation between both parties, granting them relative rights enforceable by law.
Notarization plays a crucial role fort his type of contracts. Its a common mistake to make a simple written contract which puts your right to transfer the title of the purchased property under your name in the future.
Feasibility of Promise Agreements for Properties not Owned by the Promisor
Real estate sales promise agreements can be entered into even if the promisor does not currently own the property. As commitment transactions, these agreements solely commit the promisor to execute a future real estate sales contract. The promisor assumes the responsibility to transfer the property to the promisee at a later date, despite not being the current owner. Failure to fulfill this commitment may result in the promisor’s liability for compensation under the Turkish Code of Obligations.
Requirements for Validity
To be legally valid, real estate sales promise agreements must be executed in an official manner, following the regulations outlined in Article 706 of the Turkish Civil Code. The agreement must be prepared as a notarial deed and signed by both parties in the presence of a notary public. If the agreement is not prepared by a notary but merely approved by one, it becomes invalid.
Subject Property and Ownership Requirements
The subject of a real estate sales promise agreement must be an immovable property registered in the land registry, with a valid title deed granting ownership rights under Article 1008 of the Turkish Civil Code. It is essential to note that making such an agreement for properties without a title deed is not permissible and will not be considered legally valid.
Considerations for Jointly Owned Properties
If the property subject to the agreement is jointly owned, the agreement functions as a debt-creating transaction and maintains its validity as a commitment transaction. However, if the consent of all joint owners is lacking, the transfer of ownership is not binding. In such cases, the sale promise agreement holds the parties responsible for their commitments, and failure to fulfill these obligations results in default.
Inclusion of Conditions and Remedies: Real estate sales promise agreements can include specific conditions or contingencies that must be fulfilled before the final sales contract can be executed.
These conditions might involve obtaining necessary permits or approvals, conducting inspections, or securing financing. It is crucial to define these conditions clearly and outline the consequences if they are not met within the agreed-upon timeframe.
Legal Remedies and Damages: In the event of a breach by either party, the non-breaching party has the right to seek legal remedies. The injured party can claim damages for any losses suffered due to the breach, with the amount typically determined based on the actual harm endured.
Understanding the intricacies of real estate sales promise agreements is essential when engaging in property transactions in Turkey. To navigate the legal complexities successfully, it is advisable to consult with Bayraktar Attorneys, a specialized law firm experienced in immigration and business legal matters.
Ensure compliance with local laws and receive expert guidance throughout the process to protect your interests and secure a seamless transaction. Contact Bayraktar Attorneys today for personalized legal advice and assistance.
