What is a barter and how is it made?
Barter, which literally means “exchange”, means the exchange of one property for another. In order to exchange real estate with each other, and not for money, barter is treated in the title deed. Real estate values do not have to be equal to each other in order to make a barter transaction. If both parties wish to obtain the difference between the properties in cash. Land registry offices do not set or equal real estate values. However, at the request of the parties, information about the collection of the difference can be included in the official deed that will be drawn up at the Land Registry Office.
What are the exchange terms?
In order to realize the barter, registration in the Land Registry is required. Transactions can be made at the Land Registry office that any of the real estate is affiliated with. The Title Deed Directorate for which the swap is requested requires an authorization from the Title Deed Directorate where the other property is located. After completing the transaction, the Land Registry Directorate sends a certified copy of the official document to the other Land Registry Directorate. With this document, the other directorate also performs the registration process.
What are the documents required for barter in the Land Registry?
The documents that the parties must submit in order to make a barter transaction in the title deed are as follows:
- Identity cards of the property owner or his representatives with ID number TR
- The title deed, if any, of the property to be exchanged, or the document showing the number of the plot of land, if not
- An official power of attorney or an authorization document if the transaction is to be done through a representative
- One passport size 4×6 photo of real people
- Compulsory earthquake insurance (DASK) for building property exchange
- The document showing the value of the real estate, i.e. the current value obtained from the municipalities in which the real estate is located.
In order to carry out the transaction, the title deed fee and the revolving fund fee must be paid. Based on properties with a high current market value, payment is made at the title deed fee rate that is determined each year. Even if both parties specify a property value that is higher than the present value, the title deed fee is charged at that price. The revolving fund fee is paid each year at a rate established by the business of the revolving fund.
