HOW TO DRAFT A PROMISE TO SELL REAL ESTATE AGREEMENT?

The real estate sector is one of the most frequently traded areas in Turkey. However, in some cases, parties prefer to proceed with a "promise to sell real estate agreement" instead of a direct sale of the property. This agreement guarantees the buyer a definitive future sale. In practice, such agreements are preferred, especially in construction projects in exchange for land shares, when waiting for title deed fees and zoning processes, or due to financing concerns. So, how is a promise to sell real estate agreement made , and what should be considered? This article will provide a legal and practical explanation within the framework of the Turkish Civil Code , the Code of Obligations , and the Land Registry Law

1. What is a Real Estate Sales Promise Agreement?

A real estate sales promise agreement is a preliminary contract in which one party undertakes to sell their property under certain conditions and at a specific price , while the other party undertakes to purchase it . With this agreement, before any transfer of title takes place, the parties declare their intentions regarding the future sale in a binding manner.

Legal Basis:

Article 29 of the Turkish Code of Obligationsstates that preliminary agreements give rise to the right to demand the conclusion of the main contract.
Article 26 of the Land Registry Law: A promise to sell real estate that is not made in an official form is invalid.
Notarial Law, Articles 60 and onwards: The authority to draw up official documents is granted to notaries.

2. Validity Requirements of a Real Estate Sales Promise Agreement

A contract for the promise to sell real estate is only valid if it is made formally in the presence of a notary public. Otherwise, contracts signed by hand or on plain paper are invalid and do not protect the buyer.

Conditions:

Identity information and signatures of the parties
A clear description of the property (block, parcel, title deed information)
The content of the sales agreement (price, date, payment terms)
It must be drawn up in the format of an official document, in the presence of a notary

Example Case: A citizen agrees with a landowner to construct a building on their land and draws up a sales promise contract. However, this contract is signed on plain paper and not notarized. In this case, even if a lawsuit is filed later, the court will consider the contract invalid.

3. How to Prepare a Promise to Sell Real Estate Agreement at a Notary Public?

For a real estate sales promise agreement to be valid, the following steps must be followed:

A. Application to the Notary Public

The parties go to the notary together.
The property deed, identification documents, and any power of attorney documents must be submitted.

B. Drafting Official Documents

The notary prepares the official contract in accordance with the parties' statements.
All details are written down, including the sale price, payment method, date of registration in the land registry, and any penalties.

C. Signing and Fees

Both parties sign the contract.
The notary collects fees and stamp duty.

4. Why is it important to have a note added to the title deed?

Even if a promise to sell real estate is made in the presence of a notary, unless it is registered in the land registry. This increases the buyer's risk. For example, if the owner of the property sells the same property to someone else, the original buyer will be disadvantaged.

Documents Required for Commentary:

Real estate sales promise agreement prepared at a notary public (original or certified copy)
Identities of the parties
Application form to be submitted to the Land Registry Office

Duration of Commentary:

a maximum of 5 years . The restriction loses its effect after this period expires.

5. Penalty Clause and Default Provisions

Contracts often include penalty clauses. For example, if one party fails to fulfill its obligation, it is liable to pay a certain amount of compensation

Typical Penal Clauses:

The deposit is forfeited if the buyer cancels.
If the seller cancels, double the deposit will be refunded.
The party who fails to register their title deed by the specified date will have to pay compensation.

6. What happens if the contract is not performed?

If one party fails to fulfill their obligation under a real estate sales promise agreement, the other party can file a lawsuit for performance.

APPLICATION:

Competent court: Civil Court of First Instance
Type of lawsuit: Performance lawsuit regarding the transfer of immovable property.
Reason: The legal binding nature of a contract drawn up by a notary public

The court can issue a decision to cancel and re-register the title deed if the contract is valid

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