Protection of Property Rights in Real Estate Law: Title Deed Cancellation and Registration Actions
The right of property, protected by the Constitution and the Turkish Civil Code, gives the owner the authority to use, benefit from and dispose of real estate. Transfer and registration of real-estate ownership in Türkiye are carried out through the land registry. Registrations made unlawfully, contrary to the facts or on the basis of defective consent may legally constitute “improper registration” .
Where the land registry does not reflect the true legal position and the right of property has been infringed, one of the principal legal remedies is an Action for Cancellation and Registration of Title DeedIn this article, we examine two common grounds for such actions in real-estate disputes: collusive transfer by the deceased to deprive heirs and abuse of authority under a power of attorney together with their legal aspects and limitation issues.
1. Depriving Heirs of Property: Title Deed Cancellation Based on Collusive Transfer by the Deceased
In practice, a significant number of real-estate disputes involve collusive transfers by a deceased person. This refers to a situation in which a person, with the aim of depriving heirs of property, presents a real transfer by gift before the land registry as a “sale” or a “contract for care until death.”
- Elements of Collusion: In such a situation there are two agreements: the first is the concealed “gift” reflecting the parties’ true intention, which may be invalid for failure to comply with formal requirements; the second is the apparent collusive “sale,” which may be invalid because it does not reflect the true intention.
- Who May Bring the Action? Under the Court of Cassation’s longstanding unification-of-judgments decision dated 1 April 1974, all heirs whose inheritance rights have been infringed including descendants, a spouse or parents, may have standing to bring such an action, regardless of whether they hold a reserved share.
- Assessment of Time Limits: As a rule, claims for title deed cancellation and registration based on collusive transfer by the deceased are not subject to a limitation or forfeiture period. However, the legal nature of the claim, rights of good-faith third parties and other circumstances of the case should be examined separately.
2. Abuse of a Relationship of Trust: Misuse of Authority Under a Power of Attorney
It is common for real-estate owners to grant a notarised power of attorney to another person for a sale because of age, residence abroad or business commitments. This relationship of trust may sometimes be abused.
- Agent’s Duties of Loyalty and Care: Under the Turkish Code of Obligations, an agent must act in the principal’s interests and in accordance with the principal’s instructions. An agent who transfers real estate contrary to the principal’s wishes, at a grossly low price or to close associates may breach the duty of loyalty.
- Position of the Third Party: The transferee’s good faith is examined under Article 1023 of the Turkish Civil Code and in light of the specific evidence. Relationship or a price difference alone does not determine the outcome; it must be established that the transferee knew or should have known the true situation.
- Assessment of Time Limits: It is not correct to assume in every case that a title deed cancellation and registration action based on abuse of a power of attorney is limited to five years from discovery and ten years from the transaction. The legal basis and limitation period for title deed cancellation and any compensation claim against the agent should be assessed separately.
3. Importance of Interim Injunctions in Title Deed Litigation
Filing the action does not automatically prevent a transfer. If the legal conditions are met, an interim injunction may be requested; the effect of subsequent transfers on the proceedings and good-faith analysis depends on the specific case.
4. Court with Subject-Matter and Territorial Jurisdiction
The rules on jurisdiction in title deed cancellation and registration actions concerning rights in rem over real estate are as follows:
- Court with Subject-Matter Jurisdiction: Irrespective of the value of the claim or property, the competent court of first instance is the Civil Court of First Instance.
- Court with Territorial Jurisdiction: Under Article 12 of the Code of Civil Procedure, actions concerning rights in rem over real estate must be filed before the court of the place where the property is located This is a mandatory jurisdiction rule. For example, an action concerning a plot of land in Seyhan, Adana must be filed before the competent courts in Adana.
Title deed cancellation and registration actions are technically demanding cases involving land-registry records, site inspections, expert reports, witness statements and banking records. Procedural mistakes may lead to significant loss of rights, so careful legal management of the process is important.
Kaplan Law Firm We provide legal services in disputes concerning collusive transfers by the deceased, abuse of authority under powers of attorney, title deed cancellation arising from zoning applications, prevention of unlawful interference and dissolution of co-ownership. For disputes and court proceedings concerning real estate, you may contact us through our Contact page.
Legislation: Turkish Civil Code Art. 1023; Code of Civil Procedure Art. 12.
