It is not always necessary to pay in cash when buying and selling real estate. Bartering, which is based on the mutual exchange of real estate, is an alternative method, especially for property owners. So, what is barter and how is this transaction carried out in the title deed? In order to manage the exchange process correctly, it is important to know the scope of the transaction, required documents, expenses and points to consider.
Land registry exchange is the process of two parties mutually transferring the real estate they own to each other. With this method, different real estate such as housing, land, land or workplace can be exchanged mutually. The values of the immovable properties do not have to be equal, and the difference in value can be covered by paying money by agreement of the parties. The exchange process is carried out at the land registry office and the ownership passes to the other party after the necessary procedures are completed and registered in the land registry.
How is the Exchange Transaction Done?
The barter process begins with the two parties agreeing to mutually transfer the real estate they own. The parties apply for title deed transactions after determining the real estate that will be subject to exchange and how the value difference, if any, will be covered. After the necessary checks are carried out, the fees and expenses are paid, and the parties complete the official procedures, the ownership of the real estate is mutually transferred.
Barter does not have to be made only between immovable properties of the same type. If the parties agree, housing, land, workplaces or immovable properties with different characteristics may be subject to bartering transactions. However, before the transaction, it is important to check the current values of the real estate, the title deed records and whether there are any mortgages, liens or similar restrictions on them.
What are the documents required for barter?
In order to carry out the exchange process in the title deed, the parties must prepare certain documents completely. These documents are mandatory for both identity verification and determination of the legal status of the real estate. During the transaction process, the land registry office may also request additional documents depending on the nature of the real estate.
The documents generally required for the barter transaction are as follows:
Identity document (T.R. ID card or identity card
Title deed or current title deed information of the real estate
Real estate declared value certificate
Compulsory Earthquake Insurance policy
Power of attorney (if any)
Land registry copy / encumbrance document
tax identification number
If a value difference payment will be made, bank receipt or payment information
Preparing these documents completely will ensure that the exchange process is completed faster and smoothly.
Where is the Bartering Transaction Done in the Title Deed?
Exchange transactions involving the mutual transfer of ownership of immovable properties are carried out in land registry offices. Following the application, the real estate and party information are examined and the procedures regarding the necessary fees and charges are completed. Once the official deed is issued and the parties complete the transaction, the new ownership information is registered in the land registry.
In order to carry out the exchange transaction in the land registry, the identity documents of the parties and information regarding the immovable properties subject to the transaction must be available. If the transaction is carried out through an attorney, a power of attorney containing appropriate authorities may be requested. Depending on the situation of the real estate and the parties, it is also possible to request additional documents or information by the land registry office.
What is Barter Agreement?
Barter contract is a contract in which the parties agree to mutually exchange the goods or immovable properties they own. In the barter agreement drawn up within the scope of the Turkish Code of Obligations, each party is the seller in terms of the goods it undertakes to deliver; He is the buyer in terms of the goods to be transferred to him.
If real estate is subject to barter, which real estate the parties will transfer, the value of the real estate and the difference in value, if any, that one of the parties will pay, must be clearly determined. The transfer of real estate ownership takes place by completing the necessary official procedures in the land registry and registration. For this reason, an agreement made between the parties alone does not ensure that title deed ownership passes to the other party.
What are the Bartering Costs in Title Deed?
The main expenses that the parties may encounter when exchanging land registry are title deed fees and revolving fund fees. In the barter transaction, fees are calculated for both properties in accordance with the relevant legislation. The amount to be paid may vary depending on the declared values of the real estate and the fee rates valid on the transaction date.
In addition, additional expenses may arise due to power of attorney, expertise or other documents that may be required for the transaction. Therefore, checking the current title deed fee and other transaction fees before exchanging allows a more accurate calculation of the total cost.
What Should Be Considered When Exchanging Title Deeds?
Before the exchange process, the legal, financial and physical status of the real estate, as well as its market value, must also be evaluated. The main points to consider when exchanging title deeds are:
The title deed records of the real estate should be examined and it should be checked whether the recorded information and the current situation are compatible with each other.
It should be investigated whether there is a mortgage, lien, provisional injunction, usufruct right, annotation or any other record that may affect the transfer on the real estate.
The market values of the real estate subject to bartering should be determined as up-to-date and realistic as possible.
If there is a difference between the values of the real estate, it should be decided before the transaction which party and how this difference will be covered.
In particular, the zoning status of plots and lands, and the harmony between the title deed nature of the real estate and its current usage should be examined for residences and workplaces.
Title deed fees, revolving fund fees and other expenses that may arise during the transaction should be evaluated in advance.
Applications for land registry transactions must be made through official channels. General Directorate of Land Registry and Cadastre (TKGM) offers the opportunity to apply for title deed transactions through the Web Title Deed system.
Since the records in the land registry may directly affect the exchange process and the transfer of the real estate, it is important to check current information before the transaction. Official information published by the General Directorate of Land Registry and Cadastre (TKGM) can be taken as basis regarding the application process, required documents and current practices.
Frequently Asked Questions
Do the Values of Immovable Properties Have to Be Equal in the Barter Transaction?
The values of the immovable properties subject to barter do not have to be equal. If there is a difference in value between real estate, the parties can determine how the difference will be covered. It is also possible to cover the difference in value with money.
Can land be exchanged for housing?
The immovable properties do not have to be of the same nature for bartering. If the parties agree and there is no obstacle to the transfer of real estate, real estate of different nature, such as a house and land, or a workplace and a house, can be exchanged.
Can the Exchange Transaction Be Cancelled?
The cancellation process varies depending on the stage of the transaction and the reason for cancellation. It may be possible for the parties to abandon the transaction before the transfer is completed in the land registry. In case of disputes that arise after registration, it may be necessary to resort to legal remedies depending on the characteristics of the concrete case.
