Amendment To The Regulation On The Secure Payment System In Real Estate Sales

Secure Payment System in Real Estate Sales

With the envisaged amendment to the Regulation on Real Estate Trade (the "Regulation"), it is planned to introduce a secure payment system aimed at ensuring that payment and title deed transfer in real estate transactions are carried out simultaneously and securely. The said regulation aims to prevent disputes and grievances encountered in practice and, pursuant to the transitional provisions, shall in principle be applied on a mandatory basis as of 1 May 2026. However, for sales to be carried out until 1 May 2026, the use of the system shall not be mandatory; the Ministry shall be authorized to extend this date by up to three months.

Under the new system, instead of transferring the sale price paid by the buyer directly to the seller's account, it is envisaged that the payment shall be held in an electronically created secure account with escrow-like blockage characteristics, designed to ensure the "simultaneous transfer" of the ownership of the immovable property and the sale price. Although the technical structure of the secure account/ blockage is not further defined in the draft text, the main purpose of the system is to secure the simultaneous completion of the payment of the sale price and the transfer of ownership.

Under this structure, the sale price shall remain locked until the title transfer is completed; once the ownership transfer is finalized at the Land Registry Office, the system shall automatically release the funds to the seller's account. In the event that the title transfer does not take place for any reason, the amount shall be refunded to the buyer. In this way, the simultaneous completion of payment and transfer of ownership shall be secured.

Considering the functioning of the process, the parties shall first agree on the sale price and initiate the transaction through the secure payment system within the scope of Additional Article 1 to be added to the Regulation. Where the buyer pays the sale price in cash, by remittance, electronic funds transfer, or other payment methods to be determined by the Ministry, the payment shall be made through the electronic system; by virtue of the purpose of the system, the payment and the transfer of ownership shall be ensured to take place simultaneously.

As emphasized in the public statements made by sector representatives, the system is expected to operate through accounts to be opened at designated banks, and to proceed in coordination with land registry transactions through e-Government integration and reference numbers. Operational details such as through which banks/institutions the system will operate, e-Government integration, reference numbers, and similar matters are not explicitly regulated in the draft text, and it is expected that the implementation principles will be clarified separately.

Scope of the Regulation

With the amendment to the Regulation, the scope provision of the Regulation has also been expanded; in addition to the principles and rules regarding real estate trade, the "establishment and operation of the payment system and the procedures and principles regarding the use of the payment system in real estate sales by real and legal persons" have been explicitly included within its scope. In this respect, the secure payment system is made one of the core elements of the scope of the Regulation, rather than remaining an ancillary matter.

Principles Regarding the Payment System

The principles regarding the payment system are regulated under Additional Article 1. Accordingly, where the real estate sale price is paid in cash, by remittance, electronic funds transfer, or other payment methods to be determined by the Ministry, it becomes mandatory for the payment transaction to be carried out through the electronic system established so as to ensure the simultaneous transfer of the ownership of the immovable property and the sale price.

In cases where part or all of the sale price is financed by credit institutions defined under Banking Law No. 5411 or financing and savings financing companies defined under Law No. 6361, the use of the electronic system is also envisaged with respect to the payments other than the loan amount.

As regards the service fee to be charged within the scope of the system, it is accepted that the service fee shall be deducted from the real estate sale price transferred to the seller.

Establishment of a Board

For the purposes of monitoring all transactions and operations related to the payment system, identifying technical issues, and developing solution proposals, it is envisaged to establish a board composed of representatives of the relevant units of the Ministry of Trade (the "Ministry") and the Ministry of Environment, Urbanization and Climate Change.

In addition, it is planned that the procedures and principles regarding the establishment and operation of the payment system, real estate sales that will not be included in the system, the service fee to be charged in return for the services provided and the sharing of such fee, as well as the duties and working principles of the board, shall be determined by a protocol to be signed between the Ministry and the Ministry of Environment, Urbanization and Climate Change. This indicates that many details regarding the implementation will be clarified through secondary regulations and administrative practices.

Transitional Provisions

Within the framework of the transitional provisions, it is stipulated that the use of the secure payment system set forth in Additional Article 1 shall not be mandatory for real estate sales to be carried out until 1 May 2026. However, the Ministry has been granted the authority to extend this period by up to three months. Accordingly, it is of importance for real and legal persons engaged in real estate transactions as of the said date to complete their operational and technical preparations for the mandatory use of the system.

Conclusion

In conclusion, this regulation regarding the secure payment system aims to provide a structural solution to the payment security issues that have long been a subject of debate in real estate sales and to ensure the simultaneous completion of payment and transfer of ownership. In addition to reducing risks such as fraud, counterfeit money, and similar issues, the system also aims to prevent unregistered transactions and tax losses arising from under-declaration of sale prices.

Since the scope and exceptions of the implementation, the sharing of the service fee, and the technical functioning of the system will be clarified through protocols to be executed between the Ministries, it is necessary to closely follow secondary regulations and implementation guidelines.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.