WHAT DOES MORTGAGE MEAN?

TYPES OF MORTGAGES IN TURKEY

According to the Turkish Civil Code, the types of mortgage in Turkey are the principal mortgage and the upper limit mortgage.

a) Principal (Debt) Mortgage:

This type of mortgage in Turkey is taken for a specific, current and definite debt. Since the debt mortgage is established for a current debt, it does not provide security for the other debts of the creditor (bank). Therefore, if the debt secured by the mortgage is paid, the creditor (bank) can no longer benefit from this mortgage, even if it is registered in the land registry records. In addition to the principal amount written in the mortgage deed, the principal mortgage also secures the default interest, contract (agreement) fees, and legal fees that are included in the mortgage. Principal mortgages can be established in Turkish Lira or in foreign currency.

The advantage of a principal (debt) mortgage in Turkey is that if it is converted to money, the debtor can be served with an execution order since the debt recognition is included in the deed.

In practice, principal mortgages are taken as collateral for consumer loans (such as housing finance loans, business loans, personal loans, vehicle loans, etc.) given to the borrower. As the amount of these loans is a certain amount of cash bank credit in Turkey, the mortgage is established for a specific debt.

However, if a third-party mortgage is taken as collateral for these loans, according to settled Turkish Court of Appeals precedents, a “upper limit mortgage” must be established instead.

b) Collateral (Upper Limit) Mortgage:

It is a type of mortgage established to secure existing, future or potential receivables. In a collateral mortgage in Turkey, the upper limit of the receivable secured by the mortgage is determined. Interest and follow-up expenses are covered only within the mortgage amount. Therefore, if there is a potential debt that may arise in the future, it is not possible to determine the amount of this debt at the time of the mortgage establishment.

Therefore, the amount for which the property will serve as collateral at maximum must be shown in the mortgage application and the official mortgage document. Therefore, when banks establish a mortgage, they consider the interest rates and the appreciation of the property value and set the mortgage marginally based on the property appraisal value.

In non-cash loans, since the bank takes on a potential risk, and since there is no specific receivable, it is obligatory to take a collateral (upper limit) mortgage in Turkey. According to Article 95 of the Turkish Commercial Code, since none of the parties are considered as creditor or debtor before the account of the loan is closed, it is necessary to take an upper limit mortgage for loans that operate as a current account.

The advantage of a collateral (upper limit) mortgage in Turkey is that the bank can create security for all of its existing and potential receivables -provided that they are specified in the contract- through the mortgage. The upper limit mortgage registered in the land registry continues indefinitely unless it is terminated.

In a collateral mortgage in Turkey, the maximum liability due to the property is limited to the mortgage amount (including principal, contractual interest, default interest, and all kinds of expenses). The mortgagee (bank) cannot make any claim beyond the amount specified in the mortgage document (mortgage limit), even if the receivable exceeds the mortgage limit (even if the mortgage limit does not cover the entire receivable). The excess part cannot be covered from the mortgage amount.

WHAT IS THE DEGREE OF A MORTGAGE?

Mortgages create security according to the rank in which they are registered. Accordingly, the security provided by the mortgage is limited to the degree specified in the land registry. Depending on the degree in which the mortgage exists, the receivables of each degree mortgage have priority over the receivables of subsequent degree mortgages. If second and subsequent degree mortgages are established with the “right to benefit from the free degree”, the mortgages in the subsequent degree can automatically pass to the vacant previous degree (e.g. the first degree).

If the right to benefit from the free degree is not granted to the mortgage holder (the bank), the mortgage in the subsequent degree cannot pass to the previous degree automatically. In this case, the owner of the immovable property subject to the mortgage may establish a mortgage in the same degree in the vacant degree if desired. Therefore, this issue should be carefully considered when taking out a mortgage.

CAN MORTGAGED PROPERTY BE SOLD?

It is possible to transfer (sell) mortgaged immovable property to another person without the consent of the mortgage creditor (bank). In case of the sale of all or part of the mortgaged immovable property taken as collateral with a mortgage to a third party, the relevant Land Registry Office informs the branch about the sale transaction and provides the addresses of the old and new owners in writing.

Although the answer to the question of “can mortgaged property be sold?” is positive, this sale carries many risks for the new owner.In case of the sale of the mortgaged immovable property, the new owner will continue to be responsible for the mortgage.

In other words, in case of a possible default by the previous owner, who is the debtor, the mortgage creditor may initiate the necessary procedures to convert the immovable property into cash. Since the new owner has purchased the property with a mortgage, they are responsible for the mortgage and have no right to object.

MORTGAGE ESTABLISHMENT OVER FOREIGN CURRENCY

According to Article 851 of the Civil Code, credit institutions operating domestically or internationally may establish mortgages over foreign currency or based on foreign currency measurement (indexed to foreign currency) to secure loans granted in foreign currency. In this case, the amount represented by each rank will be shown based on the currency of the debt being pledged, but a mortgage cannot be established using multiple currency types for the same rank.

Without the right of free degree utilization, if a rank in a mortgage established over foreign currency is vacated, it can be replaced by a mortgage registered in Turkish Lira or foreign currency at the equivalent rate at the time of registration.

If the lower rank mortgage creditor does not have the right of free degree utilization, another creditor can have a mortgage established in their favor for the amount vacated in the vacated rank.

If a foreign currency mortgage is taken as collateral for the initial loan granted to a creditworthy customer, this foreign currency mortgage cannot serve as collateral for any subsequent loan granted in Turkish Lira. A real estate mortgage cannot be established over foreign currency for the collateral of loans granted in Turkish Lira according to Turkish Real Estate Law.

However, mortgages established in Turkish Lira can also serve as collateral for loans granted in foreign currency.

WHAT DOES MORTGAGING A HOUSE MEAN?

Mortgaging a house can be a method not only for loans obtained through banks but also for debts taken from third parties outside of banks. These third parties are usually family members, friends, or business partners. The purpose of mortgaging a house is to secure the debts taken from these individuals and to allow the mortgage holder to become a creditor if the debt is not repaid.

The following steps can be taken to mortgage a house:

1. Debt Agreement: A debt agreement is made between the individual and the third party. This agreement details the amount of the debt, repayment terms, interest rates, and maturity.
2. Establishing the Mortgage: The third-party creditor has the debtor mortgage their owned real estate as security for the debt. The mortgage establishment process is recorded in the land registry.
3. Debt Payment: The debtor begins to make regular payments on the debt within the agreed-upon timeframe. These payments are made according to the previously established agreement terms.
4. Removing the Mortgage: Once the debt is fully paid, the third-party creditor can apply to the land registry office to remove the mortgage. This process officially terminates the mortgage right on the real estate.

Mortgaging a house for third-party debts outside of a bank is an important step for ensuring trust and securing the debt between the parties. However, it is recommended that the parties seek legal advice from a lawyer before proceeding with this transaction.

• MORTGAGE ESTABLISHMENT FOR HOME LOANS IN TURKEY

Individuals who want to get a home loan in Turkey can take advantage of the credit facilities provided by banks. However, banks require certain guarantees before providing these loans. One of these guarantees is known as a mortgage establishment.

Mortgage refers to giving a property (usually a house or land) as collateral for a debt. A mortgaged house is held by the bank until the loan is fully repaid. Therefore, mortgage establishment provides an important way for banks to reduce their risks.

Individuals who want to get a home loan in Turkey can mortgage their homes after meeting the conditions set by banks. During the mortgage establishment, the real value of the house is determined by the bank, and the specified amount of bank credit in Turkey is provided. If there is an unpaid loan debt on the house, the bank can sell the mortgaged property to collect the debt.

To establish a mortgage in Turkey, the property deed or official registration document of the house is required. The deed shows the owner of the house and serves as proof of ownership. The property deed or official registration document is requested by the bank and is a necessary document for loan applications.

Individuals who want to get a home loan in Turkey can use mortgage establishment to borrow from banks. However, it should not be forgotten that loan payments must be made regularly and debts must be paid on time before establishing a mortgage in Turkey. Otherwise, there may be a risk of losing the mortgaged property.

• MORTGAGE ESTABLISHMENT FOR COMMERCIAL CREDIT IN TURKEY

Businesses that want to obtain commercial bank credit in Turkey must meet the credit conditions set by banks. One of the most important conditions among these is known as mortgage establishment. Mortgage refers to pledging an immovable property (usually a land, building, or other business asset) as collateral.

Establishing a mortgage for commercial bank credit in Turkey is an important way to reduce the creditor’s risk. If the business is unable to pay its debt, the creditor can collect the debt by selling the mortgaged property. Therefore, mortgage establishment provides security for creditors.

Businesses in Turkey that want to obtain commercial bank credit in Turkey can mortgage their immovable properties after fulfilling the conditions set by banks. During the mortgage establishment process, the actual value of the immovable property is determined by the bank, and the specified amount of credit is provided. In case of unpaid debt, the bank collects the debt by selling the mortgaged immovable property.

Establishing a mortgage for commercial credit can provide many advantages for businesses. Mortgage-backed credit interest rates are lower than other types of commercial credit, and higher credit amounts can be obtained. Additionally, mortgage-backed credit can help businesses achieve their growth and expansion plans.

However, establishing a mortgage for commercial bank credit in Turkey can also pose some risks for businesses. Especially, if the business is unable to pay its debt, selling the mortgaged immovable property can further worsen the business’s financial situation. Therefore, it is crucial for businesses to make their credit payments regularly and to pay their debts on time.

Businesses in Turkey that want to obtain commercial credit have the option to mortgage their immovable properties to obtain credit. When establishing a mortgage in Turkey, the actual value of the immovable property should be determined, and credit payments should be made regularly. It is important for businesses to be disciplined in paying their debts on time and to adhere to their payment plans. This way, commercial bank credit in Turkey can be used to support the growth and development of businesses.

• ESTABLISHING A MORTGAGE FOR INDIVIDUAL DEBTS

A mortgage can be established between third parties, both individuals and legal entities, outside of banks and credit institutions, to provide mutual security in private debt relationships. This method is used to secure the fulfillment of a debt undertaken by the debtor. A mortgage, as a reflection of the agreement between the parties, is used as a security on a real estate property or right designated by the debtor, especially in private debt relationships. This ensures that the creditor has a legal guarantee over the property or right secured by the mortgage in case the debtor fails to fulfill their obligations. This process allows for the enhancement of mutual trust between the parties and helps to establish debt relationships on more solid foundations.

MORTGAGE PROCESS IN TURKEY

In Turkey, a legal procedure must be followed to establish a mortgage in Turkey for both commercial and residential loans. The steps involved in this process are as follows:

• Step 1: Property Registration

The first step in the mortgage in Turkey is to have the property registered in the Land Registry. The Land Registry is an official document that shows the owner and ownership of the immovable property. The title deed of the property to be mortgaged is necessary to initiate the mortgage process.

• Step 2: Contacting a Bank

The second step in the mortgage in Turkey is to contact a bank. Individuals or institutions who want to apply for a loan for the property to be mortgaged can apply by contacting a bank.

• Step 3: Assessment Process

The bank evaluates the mortgage loan in Turkey application and determines the value of the property to be mortgaged. An expert assesses the property’s actual value by taking into account its location, size, characteristics, and other factors.

• Step 4: Loan Approval

After reviewing the mortgage loan in Turkey application and the results of the property evaluation, the bank can approve or reject the loan application. When the mortgage loan in Turkey application is approved, the bank determines the loan amount and repayment plan.

• Step 5: Mortgage Contract

After the mortgage loan in Turkey application is approved, a mortgage contract is signed between the bank and the property owner. The mortgage contract states that the property is mortgaged as debt. The contract includes the loan amount, interest rate, repayment plan, and other loan conditions.

• Step 6: Transaction Fees

Several different fees may need to be paid during the mortgage process. These fees may include land registry fees, mortgage establishment fees, evaluation fees, loan allocation fees, and insurance premiums. These fees are paid to cover the expenses incurred during the mortgage process.

• Step 7: Land Registry Procedures

The final step in the mortgage in Turkey is the land registry procedures. The mortgage contract of the property to be mortgaged is signed at the Land Registry Office and registered, and the mortgage process on the property is completed. This transaction is recorded in the land registry and shows that the property is mortgaged.

In conclusion, the mortgage in Turkey involves starting from the property’s registration in the Land Registry, contacting a bank, assessment process, loan approval, mortgage contract, transaction fees, and land registry procedures. In the mortgage process, the property’s actual value should be determined, and loan payments should be made regularly. Therefore, it is essential for loan recipients and businesses to be disciplined in paying their debts on time and to adhere to their repayment plans.

IS IT POSSIBLE TO PLACE A MORTGAGE ON A SHARED TITLE DEED?

The process of placing a mortgage on a shared title deed involves situations where a property has multiple owners. This process often raises questions about whether the consent of other owners is required to place a mortgage on a specific share.

To place a mortgage on a shared title deed, the consent of only the owner of the relevant share is sufficient. This means that the shareholder can establish a mortgage on their own share without the need for approval from other owners. However, if the property is subject to joint ownership (where multiple people collectively own the entire property), the consent of all owners is required to place a mortgage. In this case, it is important to reach an agreement among the owners, and the mortgage process requires the approval of all shareholders. Joint ownership usually arises in the context of inheritance law, following inheritance transfer procedures.

Legal regulations define the details of this process and the rules regarding placing a mortgage on a shared title deed. Therefore, it is important for individuals with a shared title deed to act in accordance with local laws and the relevant practices of the land registry office.

WHAT ARE THE TITLE DEED MORTGAGE FEES?

Title deed mortgage fees and expenses can vary depending on the amount of the mortgage, the type of loan, the financial institution used, and the tax regulations of the country.

In Turkey, the title deed mortgage fees and expenses for mortgage transactions can be summarized as follows:

1. Title Deed Mortgage Fee: A title deed mortgage fee is charged at a rate of 0.455% of the mortgage amount. This rate is calculated based on the amount for which the mortgage is established.
2. Stamp Duty: Stamp duty is charged at a rate of 0.948% of the mortgage amount. Again, this rate may vary depending on the amount of the mortgage.
3. Revolving Fund Fee: A revolving fund fee is charged by the land registry offices during the mortgage establishment process. This fee varies depending on the region where the land registry office is located.

There may be exemptions from title deed mortgage fees and stamp duty for mortgages established due to agricultural loans, tradesmen loans, and financial leasing. Similarly, exemptions may apply to mortgages based on loans provided by certain banks and international institutions that meet specific conditions.

However, since tax rates and exemption statuses can change over time, it is important to contact the relevant institutions and obtain updated information before proceeding with mortgage transactions.

WHAT ARE THE REASONS FOR OBSTACLES TO A MORTGAGE?

Those who want to take out a loan must ensure that they meet the necessary conditions for obtaining a loan. Some of the obstacles to obtaining a mortgage in Turkey are as follows:

• Low Credit Score: Credit score is an indicator of your financial history, and lenders require a high credit score for a mortgage application. A low credit score can lead to a mortgage application being rejected or facing high-interest rates.
• Insufficient Income: When applying for a mortgage loan in Turkey, your income must be sufficient. Lenders look at whether you have a regular job, how much your salary is, and how much you allocate for monthly debt payments when determining your income. Insufficient income is one of the obstacles to obtaining a mortgage in Turkey and can lead to a rejection of your application or high-interest rates if the loan is approved.
• Decline in Asset Value: Mortgage loans are usually based on the asset purchased. However, over time, the value of the purchased asset may decrease. In this case, lenders in Turkey may have the option to reject the mortgage application or offer a lower loan amount.
• Payment History: Delays in your previous debt payments or inability to collect your debts can lead lenders to reject your mortgage application in Turkey. Payment history is one of the most important factors that determine whether lenders trust you.
• Restrictions on the Property: There may be liens and declarations that restrict or reduce the value of the property to be mortgaged in Turkey. These restrictions and declarations can be obstacles to obtaining a mortgage. In this case, your mortgage application in Turkey may be rejected or a lower loan offer may be made.

In conclusion, mortgage loan in Turkey are large financial transactions, and lenders consider many factors before approving a loan. Before applying for a mortgage in Turkey, it is necessary to meet the requirements of the lenders.

HOW TO REMOVE A MORTGAGE FROM TITLE DEED RECORD?

A mortgage is a form of security placed on a property, typically serving as collateral for a debt. A mortgage includes an obligation that can be lifted once the debt is fully paid. The process of removing a mortgage is usually carried out at the land registry office and takes place after the debt has been completely settled.

When the borrower completes the payment of the loan or debt, they can request the removal of the mortgage from the creditor who holds the mortgage right. This request involves the creditor verifying the payment with certain documents and updating the land registry records. Once the creditor confirms that the debt has been fully paid, the mortgage is removed from the land registry records.

However, if the creditor fails to remove the mortgage despite the debt being paid, the property owner can rectify the situation through legal means. In such cases, the property owner may file a lawsuit known as an “action for cancellation of mortgage” by claiming that the mortgage is unjustly continuing. If the court determines that the debt has been paid and the mortgage should be removed, the land registry records will be updated, and the mortgage will be officially lifted.

This process ensures that property owners have the right to remove the mortgage when they have paid their debts regularly. Additionally, there is a legal remedy available to remove a mortgage that is not compliant with the law.

HOW TO REMOVE AN OLD MORTGAGE AND THE TITLE DEED MORTGAGE REMOVAL PROCESS

Before answering how to remove an old mortgage, it’s essential to identify the reason behind the mortgage on the property. Once the mortgage has been identified, the process of removing the mortgage from the title deed should begin.

To understand and remove a mortgage on a purchased property, it’s crucial first to determine the reason for the mortgage. Usually, mortgages on purchased properties are due to bank loans or loans taken out by the contractor for construction financing. The process for removing a mortgage varies depending on these scenarios.

• Removing a Bank Mortgage on a Purchased Property

A mortgage placed due to a bank loan is typically part of the loan agreement related to the purchased property. When the borrower has fully repaid the loan, they can contact the bank and submit the necessary documents to request the removal of the mortgage. After the bank confirms that the debt has been fully paid, the mortgage can be removed from the title deed records.

The process of removing a mortgage placed for construction financing by a contractor can be somewhat more complex. A contractor might take out a loan from a bank to cover construction costs before transferring the property to the rightful owner, and this loan can be secured with a mortgage. In such cases, removing the mortgage due to the contractor’s debt is generally a more challenging process. However, courts can decide to remove the mortgage if the contractor pays off the debt and the conditions are met.

In this process, obtaining legal assistance is crucial. The borrower or property owner can initiate the mortgage removal process by gathering the necessary documents, paying off the debt, and, if necessary, filing a lawsuit.

• Removing a Mortgage Due to the Property Owner’s Loan

With the significant increase in property prices, many people looking to buy a home are forced to take out loans. This tendency to purchase a home using a loan, in addition to a down payment, leads banks to demand a mortgage right against the loan debt.

Banks secure their loans by placing a mortgage on the property, ensuring repayment. This means a mortgage remains on the title deed until the loan is fully paid off.

Homeowners must fully repay their loan to have the mortgage removed. After the debt is paid in full, the bank will automatically send a “removal letter” to the land registry office to remove the mortgage.

However, if the bank fails to send the removal letter, negotiations typically begin between the homeowner and the bank. In this process, an agreement is reached to remove the mortgage from the property that no longer has any loan debt.

If the bank unjustly and unlawfully refuses to remove the mortgage, the homeowner can seek legal recourse. In such a case, a lawsuit can be filed to have the mortgage removed, and it is crucial to prove that the debt secured by the mortgage has been paid.

• Removing a Mortgage Due to the Contractor’s Debt

The process of removing a mortgage due to the contractor’s debt often focuses on the financial issues arising in large-scale construction projects. In these projects, contractors sell unfinished properties and provide buyers with a guarantee of completion. However, the contractor may take out a loan to finance the construction, which involves placing a mortgage on the property.

If the contractor fails to repay the loan, the property buyers may find themselves facing a bank mortgage on their property. In such cases, homeowners may need to seek legal action to remove the mortgage placed on the property they purchased.

It is a general rule that a person who acquires a real right based on title deed records should file a lawsuit to protect this right. However, a critical point here is that the law imposes a special and heightened responsibility on banks, requiring them to act honestly and in good faith when establishing a mortgage in Turkey. If a bank is aware or should be aware that the constructed property is to be sold to third parties, the mortgage it places could be considered invalid and lacking good faith.

Therefore, if homeowners believe that the bank acted in bad faith, they can seek legal counsel and challenge the bank. In cases of invalid mortgages, a court ruling can remove the mortgage, protecting the homeowners’ rights.

• Removing a Mortgage Placed Due to a Third Party’s Debt

The process of removing a mortgage placed due to a third party’s debt usually involves a creditor placing a mortgage on a property owned by the debtor. This gives the creditor the right and authority to sell the property if the debt is not repaid. However, removing this mortgage can be subject to various methods and legal processes.

First, if the debt is fully paid by the debtor or the person who pays the debt, the creditor can send a mortgage removal letter to the land registry office to remove the mortgage. Alternatively, the mortgage can be removed through a written agreement between the parties.

However, if the debt is not paid or the parties cannot reach an agreement, a legal process may be necessary. The debtor can file a lawsuit to request the removal of the mortgage. This process can be time-consuming and costly. Alternatively, a third party may claim that the mortgage is unlawful and file a lawsuit to have it declared invalid.

MORTGAGE CANCELLATION LAWSUIT

Since a mortgage is a right established by registering it on the title deed, its termination requires a cancellation process from the land registry. A lawsuit for the cancellation of a mortgage refers to a legal process aimed at achieving this purpose and is often also referred to as a “lawsuit for correction of the title deed record.” This type of lawsuit is based on the claim that the mortgage registered on the title deed has no legal basis.

The plaintiff, who claims that the mortgage is not legally valid, files a lawsuit for mortgage cancellation, requesting the court to determine this situation and declare that an invalid registration has been made. Therefore, this lawsuit typically has the nature of a declaratory action. If the court issues a declaratory judgment, the person who appears to hold the mortgage right in the land registry must apply to the land registry office to have the record deleted.

However, if the person who appears to hold the right does not request the deletion, the property owner may file a lawsuit to compel the deletion. As a result of this lawsuit, the mortgage right is deleted by a court decision. As a practical approach, some courts may prefer to combine these two stages into a single mortgage cancellation lawsuit, rather than handling them as separate declaratory and deletion lawsuits. In this case, by filing a declaratory lawsuit and having the judge also issue a deletion order, the process is intended to be completed more quickly and efficiently.

COMPETENT AND AUTHORIZED COURT IN A MORTGAGE CANCELLATION LAWSUIT IN TURKEY

Since the cancellation of a mortgage and the mortgage cancellation lawsuit are directly related to the property, this type of case falls under the jurisdiction of the civil courts of first instance.

Moreover, the Code of Civil Procedure stipulates certain courts as having exclusive jurisdiction for specific types of cases. Because a mortgage right is directly associated with the property itself, the court with jurisdiction in a mortgage cancellation lawsuit is the court located in the place where the mortgaged property is situated. This rule is based on the location of the property, rather than the residence of the plaintiff or defendant.

CAN FOREIGNERS GET LOAN IN TURKEY?

Although the answer to the question “can foreigners get loan in Turkey?” is positive; foreigners who wish to obtain bank credit in Turkey need to fulfill a series of procedures, particularly those related to financial institutions. These procedures must comply with Turkish laws and the conditions of financial institutions for foreigners get loan in Turkey. Therefore, foreigners who want to obtain bank credit in Turkey should conduct detailed research on the credit process in Turkey before applying for credit.

• Step One: Research Banks in Turkey

There are numerous banks in Turkey. The first step for foreigners who want to obtain bank credit in Turkey is to select a suitable bank. The websites of banks in Turkey provide information about the credit process and the required documents. Therefore, foreigners should examine the credit interest rates and obtain detailed information about the credit process when selecting a suitable bank.

• Step Two: Gather Required Documents

Banks in Turkey require a specific list of documents before granting credit. Foreigners who want to obtain bank credit in Turkey need to provide the documents required by banks. These documents may include a passport, residency permit, salary slip, tax return, property deeds, and credit score.

• Step Three: Prove Your Income

Banks usually require the following documents to prove your income:

• Employer certificate
• Salary slip
• Tax return
• Bank account statements
• Rental agreements and income declarations (for property owners)

In addition to these documents, some banks may also refer to international credit reports to verify the income of foreigners. These reports may provide information about foreigners’ previous credit payment history and financial status.

Proving your income is a requirement for banks to lend credit to foreigners. Therefore, it is important for foreigners to prepare their income documents to get bank credit in Turkey.

•  Step Four: Show Real Estate Collateral

Real estate collateral is usually preferred when foreigners need to reside in Turkey or establish a company in Turkey. Foreigners can obtain credit by showing the real estate they own in Turkey as collateral. However, there are some important points to consider when showing real estate collateral. First of all, the property must be legally owned. In addition, the value of the property in Turkish Lira must be determined. When foreigners want to obtain credit by showing real estate collateral, banks usually request documents such as the title deed, title registry declaration, zoning status, and a no municipal tax debt certificate. In addition, an independent appraisal report may also be requested to determine the value of the property.

• Step Five: Open a Bank Account in Turkey

Foreigners who want to obtain bank credit in Turkey must open an account in a Turkish bank. The account opening process is completed by providing certain documents and waiting for the time given by the bank. Therefore, it is important for foreigners to start their account opening process on time.

• Step Six: Apply for Bank Credit in Turkey

After collecting the necessary documents and opening an account in a Turkish bank, foreigners can apply for credit. The credit application process in Turkey may vary depending on the bank’s terms and the type of credit. It may be necessary to wait for a certain period of time for the credit application to be processed.

Conclusion Foreign nationals who want to obtain bank credit in Turkey must follow the steps outlined above. The credit process for foreigners in Turkey consists of selecting a suitable bank, providing the necessary documents, checking the credit score, obtaining credit in Turkish Lira, opening an account in a Turkish bank, and applying for credit. Following the credit process and fulfilling the conditions during the credit process will make it easier for foreigners to obtain bank credit in Turkey.

LEGAL ASSISTANCE FROM A LAWYER FOR MORTGAGES IN TURKEY

When you take out a mortgage loan in Turkey, the lender will ask you to register the mortgage on the property’s title deed. It is extremely important to seek legal assistance to ensure that the process is carried out correctly and legally.

A property lawyer in Turkey can assist with the following:

• Preparation and review of the mortgage contract: The lawyer can help you understand the terms and conditions of the mortgage contract and make it legally binding.
• Application to the Land Registry Office: You need to apply to the Land Registry Office where the property is located. The application should include the mortgage contract, the property’s title deed, and other necessary documents.
• Payment of fees: You need to pay the necessary fees for establishing the mortgagein Turkey. These fees vary depending on the value of the property and the amount of the loan.
• Establishment of the mortgage in Turkey: After your application is approved and the fees are paid, the Land Registry Office will record the mortgage on the property’s title deed.
• Legal representation in matters related to mortgages: If you encounter any legal issues with parties such as the lender or seller during the mortgage process, the lawyer can represent you and protect your rights.

In conclusion, obtaining a mortgage in Turkey is a suitable option for property buyers and commercial enterprises. To obtain a mortgage, you need to choose a property, find a lender, prepare your documents, apply for a mortgage loan in Turkey, and complete the agreement.

It is important to remember that the mortgage process in Turkey may be different from other countries and may require a bit more patience and perseverance. However, with the right approach and preparation, a mortgage can be successfully obtained in Turkey, and you can become a property owner. It is recommended to research various lenders and their offers and seek advice from professionals such as real estate lawyers to make informed decisions throughout the process.