One of the most common situations encountered in real estate transactions is the following:
The agreement is signed, payment is made, and in many cases the property is even physically delivered… yet the transfer of title deed does not take place.
At this point, the buyer feels secure. The prevailing thought is: “I have a contract, I bought the property.” However, legally, what is decisive is not the contract, but the transfer of the title deed.
In the Turkish Republic of Northern Cyprus, ownership of immovable property is officially acquired through the transfer process carried out at the Land Registry Office. The sale agreement is merely one stage of this process and does not, on its own, confer ownership rights.
There Is a Contract but No Ownership
Many people assume that the sale agreement itself constitutes ownership. In fact, the agreement creates an obligation between the parties; in other words, the seller undertakes to transfer the title, and the buyer undertakes to pay the price.
However, until the title transfer is completed, the property remains legally registered in the name of the seller. This situation carries serious risks for the buyer.
What Are the Major Risks?
In transactions where the title transfer has not been completed, the buyer may face the following risks:
• The seller transferring the property to a third party
• The property being subject to a mortgage or seizure
• The property being exposed to risk due to the seller’s debts
• Failure to complete the required permission processes
In such cases, the buyer is often forced to rely solely on the contract, and the matter may be brought before the courts.
“But I Have a Contract” – Is That Enough?
This is the most commonly heard argument in practice. However, the existence of a contract does not always provide sufficient protection.
The content and form of the contract, whether it has been registered at the Land Registry, and how the obligations of the parties are regulated are of great importance. An incomplete or improperly drafted contract may be insufficient to protect the buyer’s rights.
The Issue of Annotation: Most People Are Not Aware
Registering (annotating) the sale agreement at the Land Registry provides significant protection for the buyer. This annotation creates a safeguard against third parties over the property.
However, in practice, many people either do not carry out this procedure at all or delay it. Yet, unless the annotation is made, the buyer’s legal position is significantly weakened.
The Real Problem: Incorrect Structuring of the Process
The delay in title transfer is usually not due to a single reason. Permission procedures, missing documents, defective contracts, or disputes between the parties may prolong the process.
However, the biggest issue is that the process is not properly structured from the outset. If a clear roadmap up to the title transfer is not established at the time of signing the agreement, problems in later stages become inevitable.
Conclusion: Without Title Transfer, the Transaction Is Not Complete
The most critical point in real estate transactions is this:
Without the transfer of the title deed, the transaction is not deemed complete.
Therefore, instead of relying solely on the contract, a proper legal framework should be established from the very beginning, and all steps should be carried out accordingly. Otherwise, the payment made and the agreement signed may not provide the expected security.
As BHLEX Law and Consultancy Bureau, we provide our clients with a secure legal framework from start to finish in real estate transactions, and we professionally manage the entire process from the contract stage to the transfer of the title deed.
BHLEX Law and Consultancy Bureau
Address: Mustafa Çağatay Street, Döveç Site 1/2 Block, Kyrenia
Phone: +90 539 109 13 75
