Buying a home is one of the most important financial decisions most people will make in their lives. While the property’s location, size, price, and physical characteristics are key factors in the purchasing process, reviewing the property title records is just as important. This is because even if a property appears problem-free on the surface, it does not necessarily mean it is free of legal risks.
The information contained in the title deed reveals many important details, ranging from the property’s ownership status to any restrictions on it. For this reason, title deeds must be carefully reviewed before the sale is finalized.
So, what should you look for in the title deed when buying a home? Here are 7 important details you must review before making a purchase decision.
1. Check the Owner Information on the Title Deed
The first thing to check when buying a home is whose name the property is registered under on the title deed.
It must be verified that the person conducting the sale is indeed the owner of the property. If the seller consists of multiple co-owners, the ownership structure must also be examined.
In some cases, sales transactions may be conducted through a power of attorney. In such cases, the power of attorney must be valid and include the necessary authorizations regarding the sale of the property.
Consistency between the owner information listed in the land registry and the information of the person conducting the sale is one of the fundamental requirements for a secure real estate purchase.
It is particularly important to verify identity and authority to represent through official channels, especially in high-value transactions.
2. Check Whether There Are Any Mortgages or Liens on the Property in the Land Registry
A property title may contain a mortgage, lien, or other legal encumbrances.
A mortgage is generally a real right established on a property as security for a debt. A lien, on the other hand, is one of the legal proceedings imposed on a property due to a debt.
These encumbrances may affect the sale of the property or its use following the purchase.
For example, while it may be possible in some cases to sell a residential property with a mortgage, the existence of the mortgage can pose significant risks for the new owner.
For this reason, it is necessary to review the encumbrance information on the title deed prior to the sale.
If there is a mortgage or attachment, it must be clarified how these will be removed and under what conditions the sale will take place.
3. Review the Status of Condominium Rights and Condominium Ownership
The type of title deed provides important information regarding the legal status of the residential property to be purchased.
A condominium interest is a right established for the independent units of a building that is not yet completed or will be constructed in the future. Condominium ownership, on the other hand, is established on the independent units of completed buildings.
It is possible to purchase an apartment with a condominium interest. However, the building’s construction permit, occupancy status, and compliance with the approved project must also be evaluated.
A title deed indicating condominium ownership, on the other hand, shows that a property right has been established over an independent unit.
However, the existence of condominium ownership does not, by itself, guarantee the building’s current earthquake resistance or all of its technical specifications.
For this reason, the type of title deed should be examined along with other official documents.
4. Compare Lot, Parcel, and Independent Unit Information
The block and parcel information listed on the title deed indicates the specific plot of land on which the property is located.
For apartment units, details such as the building block, floor, and unit number are also important.
You must ensure that the apartment you intend to purchase matches the unit specified in the title deed records.
For example, if the apartment shown to the buyer differs from the unit registered on the title deed, this can lead to serious legal issues.
For this reason, the property’s title deed information should be compared with the approved architectural plans and the actual physical condition of the property.
Correctly matching unit numbers is particularly important in newly constructed buildings.
5. Check Whether the Land Share Has Been Correctly Determined
The land share refers to the ownership stake that a unit in a building holds in the land on which it is situated.
In apartment buildings, the land share for each apartment does not have to be the same. Land shares are determined in proportion to the values used as the basis when establishing condominium ownership or a condominium easement for the individual units.
For this reason, it is not possible to determine whether a land share is correct by looking solely at the apartment’s square meters.
The land share is particularly important in terms of urban renewal, joint ownership, and certain legal transactions.
It is advisable to review the land share specified in the title deed before purchasing a property and to seek expert advice if there are any concerns.
6. Check Whether There Are Any Annotations or Declarations on the Title Deed
In addition to ownership information, title deeds may also contain various annotations and declarations.
For example, you may encounter a lease encumbrance, a promise-to-sell encumbrance, or other entries that could affect the use of the property.
Not all of these entries have the same legal consequences. While some may affect the use of the property, others may relate to the rights of third parties.
Therefore, it is important to understand the meaning of the encumbrances and declarations listed in the land registry.
In particular, if there are third-party rights attached to the property being purchased, the legal implications of these must be assessed prior to the sale.
If necessary, you can seek assistance from an attorney specializing in real estate law.
7. Verify the Title Deed Through Official Channels
When buying a home, you should not rely solely on a photocopy of the title deed provided by the seller or on outdated documents.
Title records may change over time. A mortgage, lien, or other encumbrance that did not previously exist may have been recorded later.
For this reason, it is important to verify the current title information as close to the date of the sale as possible.
The owner of the property, their authorized representative, or persons authorized under relevant legislation may review the records through the services provided by the General Directorate of Land Registry and Cadastre.
In addition, during official sales transactions conducted at the land registry office, the current records pertaining to the property must be reviewed.
When buying a home, the details to consider at the land registry office are not limited to simply finding out who the owner is. The legal status of the property, any encumbrances on it, information regarding the independent units, and the land share must all be evaluated together.
These pre-purchase checks help prevent legal and financial problems that may arise in the future. In particular, if there is any unclear information or a suspicious situation in the property title records, it is important to seek expert advice before the sale is finalized.
