The Social Sciences
ISSN: Online 1993-6125ISSN: Print 1818-5800
Abstract
A mortgage serves as a form of security for a debt obligation. As a financial term, a mortgage is established over movable or immovable property to provide security for the mortgagee. Meanwhile, it restricts the mortgagor’s disposition unless it is released. In defining a mortgage, it is considered a limited real right that allows an immovable property to be pledged as security for an existing or potential future debt. If the debt is not fulfilled, the creditor is granted the right to sell the immovable property through foreclosure pursuant to the provisions of the Enforcement and Bankruptcy Law and collect their claim from the proceeds or acquire the immovable property itself in satisfaction of the debt. This debt may belong to the owner of the immovable property, or it may serve as security for a third party’s obligation. In such cases, if the immovable property owner provides the mortgage as security for another person’s credit or debt, it constitutes a mortgage securing another’s obligation. The property owner will be jointly and severally liable up to the value of the pledged immovable property or the secured debt amount. According to the Turkish Civil Code: Article 881: A currently existing debt or a debt that has not yet arisen but is certain or likely to arise may be secured by a mortgage. The immovable property subject to the mortgage does not necessarily have to be owned by the debtor. In Turkey, there are two types of mortgages: Principal amount mortgage and limit mortgage. A principal amount mortgage is established solely for existing debts. In contrast, a limit mortgage serves as security for debts that may arise in the future. The primary focus of this study, the reserved amount mortgage (hidden rank mortgage), refers to a system where the immovable property owner determines a specific amount in Turkish Lira or foreign currency, reserves this amount and records it in the land registry for future use. The property owner has the right to establish a reserved rank mortgage. After setting aside the reserved rank, the owner may establish subsequent mortgage ranks at their discretion. The reserved amount essentially represents a portion of the mortgage limit that the property owner retains for future use. This is established through an application to the land registry office, where a registration request document is prepared and an annotation is recorded in the land registry's comments column as if a mortgage already exists. The reserved amount mortgage may be released at any time upon the property owner’s request. If the owner is deceased, the heirs must first register the property in their names, after which they are not required to provide additional documentation to request the release. There is no need to discharge the inheritance and transfer tax liability since the reserved amount mortgage merely serves as a record to preserve an empty rank for future use. This study will provide a detailed analysis of different types of mortgages, their effects and specifically the reserved amount mortgage, concluding with findings and recommendations. Mortgages are guarantees that represent the security of a debt. As a financial term, mortgage secures the mortgage creditor by establishing securities or real estate. Mortgage is subject to savings restrictions unless the security of a debt is abandoned. Renting the real estate, which is the guarantee of the rightful owner, where the debts have not been fulfilled, by putting it up for sale by converting the mortgage into cash in accordance with the provisions of the enforcement and bankruptcy law and collecting the amount obtained from the sale, or purchasing the real estate and obtaining the receivables, as a limited real right. This debt is given to the real estate owner. or there may be certainty against the debt of a third party. In the contract, the real estate owner accepts this mortgage against the loan or collateral to be taken by another party. If the real estate is subject to a mortgage, it is a mortgage that is presented as collateral for the debt of the owner of the real estate. The owner of the real estate will be jointly and severally liable for the value of the real estate he has pledged as collateral or the amount of the amount. Any receivable that still exists or has not yet arisen and is certain or probable to arise together has been secured by mortgage. The real estate subject to mortgage does not have to be owned by the debtor. There are two types of mortgages in Turkey: principal mortgage and limit mortgage. Principal mortgage is the mortgage established only for debts that have arisen. Limit mortgage is the mortgage that guarantees the receivables that have arisen or will arise in the future. Our main subject, the reserved mortgage, is the real estate owner's determination of an amount in TL or foreign currency, keeping this amount reserved and recording it in the land registry for future use. The real estate owner has the right to establish a reserved degree mortgage. After the reserved degree, the next degrees he wishes are recorded. The reserved amount here is actually the mortgage amount that the real estate owner reserves for himself to benefit from in the future. While establishing this by applying to the land registry office, a registration request document is prepared and registered in the thoughts column of the registry as if there is a mortgage. The reserved amount mortgage can be canceled at any time upon the request of the owner. If the owner is dead, the heirs do not need to submit additional documents because they first transferred the immovable property and then became owners. There is no need to sever the inheritance and transfer tax relationship for cancellation, because the reserved amount mortgage is just a record that serves to keep the vacant degree in the future. In this study, the types of mortgages, their effects and our subject, the reserved amount mortgage, will be detailed and will be concluded with the conclusion and recommendations section.
How to cite this article:
Haluk Saruhan. Reserved Amount Mortgage (Hidden Rank Mortgage or Protected Amount Mortgage).
DOI: https://doi.org/10.36478/10.36478/maktss.2024.2.1.6
URL: https://www.makhillpublications.co/view-article/1818-5800/10.36478/maktss.2024.2.1.6