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Title & Cadastre

Mortgage (İpotek)

Limited real right over real estate securing a debt. Governed by Turkish Civil Code arts. 850-881. Arises on registration; if the debt is unpaid, the creditor can have the property sold through enforcement.

A mortgage (Turkish: *İpotek*) is a limited real right giving the creditor authority to realise the property and recover the debt if unpaid. Under Turkish Civil Code (TMK) arts. 850-881. TMK art. 850 provides that a real-estate pledge can be created in only three forms: mortgage, mortgage debt bond and annuity bond. No other pledge type is allowed (*numerus clausus*). In practice, nearly all real-estate pledges in Turkey are mortgages.

Requirements: (1) The property must be title-registered (TMK art. 853). In undivided co-ownership, a person can mortgage only their own share. (2) Official form — a mortgage deed signed before an official at the land registry office (TMK art. 856). (3) Registration — the mortgage right arises with registration. (4) Definite amount — under TMK art. 851, the mortgage amount must be stated definitively in Turkish lira; foreign-currency mortgages are permitted only for credit-institution foreign-currency loans.

Types: - Principal (fixed) mortgage: Debt amount known. E.g. a TRY 200,000 mortgage for a TRY 200,000 debt. Under TMK art. 875, default interest and enforcement costs are also secured alongside the principal. - Maximum-limit mortgage: Debt amount indeterminate; parties fix a ceiling. Widely used by banks for commercial and current-account credit. Total debt (principal + interest + costs) cannot exceed the ceiling (TMK art. 851/1-2). - Statutory mortgage: Mortgage arising from law. The most important is the builder's mortgage (TMK art. 893) — contractors and artisans have 3 months from completion to register the lien.

Release (terkin): When the debt is paid, the creditor issues a mortgage release letter; the owner then applies to the land registry for cancellation. Until the cancellation is performed, the mortgage remains on record even if the debt is paid — so follow-up is critical.

Realisation (ICC): If the debt is unpaid, the creditor initiates enforcement under the Enforcement and Bankruptcy Code. The property is sold through enforcement; the mortgage creditor has priority over the sale proceeds. Any surplus goes to other creditors and the owner.

Examples

  • 1.Housing loan: Bank lent TRY 2 million, appraisal valued the property at TRY 2.5 million → bank placed a maximum-limit mortgage of TRY 2.5 million. After 10 years of payments the bank issued a release letter; the owner had the mortgage cancelled at the land registry.
  • 2.Builder's mortgage: The contractor, unable to deliver units to the client (TMK art. 893), registered a statutory mortgage within 3 months of completion; the claim was secured.
  • 3.Mortgage realisation: The borrower was 6 months in arrears; the bank applied to enforcement; the property was sold for TRY 3 million; the bank collected its TRY 2.2 million with priority; the remaining TRY 800,000 was returned to the owner.

Frequently Asked Questions

What's the difference between principal and maximum-limit mortgage?expand_more
**Principal mortgage** is created for a definite fixed amount (e.g. TRY 500,000 fixed debt) — default interest and enforcement costs are additionally secured by operation of law (TMK art. 875). **Maximum-limit mortgage** is created for yet-to-arise or indeterminate claims (e.g. current-account credit) — a ceiling is set upfront; the total security (including interest and costs) never exceeds that ceiling. Banks typically prefer maximum-limit.
Can I sell a mortgaged property?expand_more
Yes. The mortgage does not prevent ownership transfer — you can sell, but the mortgage remains with the new owner, who acquires knowing of it. In practice the buyer typically requires the mortgage to be released at sale; the sale price pays off the debt, a release letter is obtained, and the mortgage is cancelled in the same sale registration session at the land registry.
What is a statutory mortgage?expand_more
A mortgage arising from law — without a contract between the parties, by operation of statute. The most important is the **builder's mortgage** (TMK art. 893) — contractors, sub-contractors and artisans who contributed labour or materials can register a mortgage within 3 months of completion. The period is a forfeiture period. Other statutory mortgages: sale mortgage (TMK art. 892), seller's mortgage, heirs' mortgage.
When does a mortgage end?expand_more
Three ways: (1) **Payment + release** — the creditor issues a release letter, the owner cancels at the registry. (2) **Destruction of the property** — total demolition, earthquake etc. (3) **Contractual cancellation** — the creditor may fully or partially release. If the debt is gone but the record remains, it has no legal effect but may block new transactions — the owner can file a **mortgage cancellation action** (Court of Cassation 7th Civil Chamber 2023/4487).

Related Terms

Title RegistrationOwnershipAttachment (Haciz)Credit Appraisal

Sources

  • • Turkish Civil Code (Law 4721) arts. 850-881 (real-estate pledge)
  • • TMK art. 893 (statutory builder's mortgage)
  • • Enforcement and Bankruptcy Code arts. 149 ff. (mortgage realisation)
  • • Title Registry Regulation

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Last updated: 2026-04-24