Persons or banks, who are in the position of creditors due to a business or transaction, resort to certain methods in order to secure their receivables. Mortgage is one of the legal institutions that guarantee the receivables. The pledge of the title deed of the immovable property owned by the debtor to the bank or creditor due to the possibility of the debtor’s failure or inability to pay the debt is called a mortgage.
Mortgage and bank mortgage transactions are transactions that are established only on immovable properties and can only be carried out in the land registry offices. Establishing a mortgage before a notary public or in other ways is not valid.
How are Bank Mortgage Transactions Performed?
The first issue to be considered when establishing a bank mortgage is to determine whether the debtor is the owner of the immovable subject to the mortgage. In addition to being the owner of the immovable, the debtor must also have the authority to dispose of the immovable. Again, there should not be any records on the immovable subject to the mortgage that would constitute an obstacle to establishing a mortgage.
It is possible to execute a bank mortgage on the basis of a loan or debt agreement concluded between the bank and the owner, without the issuance of an official deed. The bank may issue a printed deed for the mortgage transaction. The bank mortgage transaction is established by signing the relevant documents by the parties at the land registry office. Upon the request of the parties, an official deed regarding the bank mortgage transaction is issued at the land registry office. The official deed is also signed by the parties. The creditor bank is given a certified copy of the mortgage certificate and the official deed. After all these procedures are completed, the bank mortgage is registered in the land registry.
If the bank mortgage is established for loans extended by banks and participation banks, it is exempt from fees and stamp tax, without prejudice to exceptions.