What is Transfer of Title Deed by Grant (Title Deed Donation)?

What is Transfer of Title Deed by Grant (Title Deed Donation)?

What is Transfer of Title Deed by Grant?

A grant is the transfer of immovable property (e.g., land, house, field, etc.) belonging to one person (the grantor) to another person (the grantee) without payment of any consideration. The transfer of title is an official procedure that must be carried out at the Land Registry Office for this transaction to be legally valid.

Transfer of title deed by way of donation is a donation transaction carried out in accordance with the provisions of the Turkish Code of Obligations and the Title Deed Law, and constitutes a transfer without consideration.

Similarities and Differences with the Donation Agreement

It is possible to say that the transfer of title by way of donation has a special form under the donation contract provided for in Article 285 of the Turkish Civil Code. Indeed, the Legislator states in Article 285 of the Turkish Civil Code: “A donation agreement is a contract whereby the donor undertakes to transfer property from their estate to the donee without consideration, with the intention of creating a legal effect between the parties.” However, while there are certain similarities between the transfer of title deeds by way of donation and a donation agreement, there are also differences between the two.

Similarities:

• Both are gratuitous gifts.
• Both involve the transfer of property.
• In both cases, the consent of the donor is essential.
• It requires a written form and official document.

Differences:

Under what circumstances can title deeds be transferred through grants?

Transfer of title deeds by way of donation is possible in the following circumstances:

• When you want to give property to family members such as children, grandchildren, spouses, or siblings without compensation,
• When you want to make a donation to a charity or association,
• When the transfer of immovable property is intended for social reasons such as personal friendship, gratitude, or assistance,
• Within the framework of practices such as inheritance distribution before death.

What are the requirements for transferring title deeds through a grant?

1. Consent of the Parties: The consent of both the donor and the recipient must be obtained during the transaction.
2. Full Capacity: The donor must have the capacity to discern and be of legal age (18 years or older).
3. Official Form: The transaction must be carried out by drawing up an official deed at the Land Registry Office.
4. Registration of the Real Estate: The real estate to be transferred must be registered in the land registry.
5. Tax Liability: Inheritance and transfer tax is payable on grant transactions.

What Documents Are Required for a Grant?

• Identity cards and photocopies of the donor and recipient
• 1 passport-size photograph (taken within the last 6 months)
• Title deed for real estate
• Real estate declaration value certificate (obtained from the municipality)
• Inheritance and Transfer Tax Return (from the tax office)
• If necessary, a map/plan example of the immovable property
• The parties must be present at the Land Registry Office or be represented by a power of attorney.

Is it possible to transfer title deeds within the family through a gift?

Yes, it is possible to transfer title deeds between family members by way of gift. The most common situations are:

• Parents transferring real estate to their children
• Unconditional transfer of immovable property between siblings,
• Donation between spouses.

However, in some cases, the property regime is taken into account in gifts between spouses. For example, if there is a separate property regime, gifts made by one spouse to the other are subject to tax.

However, in some cases, the property regime is taken into account in gifts between spouses. For example, if there is a separate property regime, gifts made by one spouse to the other are subject to tax.

Yes, under certain circumstances, this transaction may be considered asset stripping (cancellation of savings).

The transfer of property by a debtor to another person (especially a relative) by way of gift for the purpose of avoiding payment of debts may constitute a loss to creditors.

In this case, creditors Articles 277 et seq. of the Enforcement and Bankruptcy Law according to:

• They may file a lawsuit to cancel the savings.
• The court may declare the transfer invalid against the transferee.
• Thus, the transferred property may be seized and sold.

In What Situations Does Embezzlement Apply?

• If the debtor donates his property after his debts arise,
• If the intention to conceal assets from creditors is clearly evident (e.g., if the transaction is carried out hastily),
• If the transferee is a close relative of the debtor (e.g., child, spouse, sibling),
• If no consideration was received in exchange for the transfer of the immovable property (gratuitous transaction),
• If the intent to embezzle property can be proven by other evidence.

Conclusion and Evaluation

Transfer of title by way of grant is a legally valid and commonly used method of property transfer. However, if the debtor resorts to this method with the intention of concealing assets, the rights of creditors are protected and the transactions may be canceled.

What is Transfer of Title Deed by Grant (Title Deed Donation)?