Legal Insights — EN

Basic Principles of the Land Register

Reliance on the land register, publicity and registration establish the framework for property transactions. Each principle answers a different question; an entry's appearance does not mean that all legal risks have ended.
Open register containing parcel-shaped entry areas and a model house

Property Transactions and Legal Due Diligence

Real Estate and Property

Prepared by: Constantinople

Reliance on the land register, publicity and registration establish the framework for property transactions. Each principle answers a different question; an entry's appearance does not mean that all legal risks have ended.

Registration and Legal Basis

Registration matters in creating many rights in rem over immovable property. A valid legal basis and authority to dispose must nevertheless also be examined. An entry resulting from an invalid agreement or unauthorised transaction may require rectification. Cases in which the law provides for acquisition before registration are assessed separately.

Publicity and Reliance on the Register

The publicity of records allows inspection by a person demonstrating an interest. Protection of good-faith acquisition by a third party relying on the register is a different principle. Whether the person knew or ought to have known of the entry's unlawfulness is investigated through specific facts. Every transferee is not automatically protected merely because a transaction took place at the land registry.

Risk Review Before the Transaction

The owner, representative's authority, encumbrances and actual use are checked together. An annotation shown in the entry and a restriction arising by law do not have the same effect. For a buyer or owner, which principle supports which claim must be explained through the chain of transactions and documents.

Documents to Prepare for an Initial Review

Send each document in its entirety as held by you, rather than only its first page or a screenshot. We determine, according to the file, what authority is needed to obtain missing official records. The following records are helpful at the outset:

  • Current entry
  • Official deed
  • Representation documents
  • Annotations and declarations
  • Information showing actual use

Why Do the Particular Circumstances Matter?

For example, acting solely on the registered owner's name when it is openly known that someone else uses the property may later create a dispute over reliance on the register. The review considers the register together with specific facts known outside it.

Legal Basis

TMK 3,705,1015,1020–1025