A lien right is a right that authorizes the creditor to receive what he will receive from the amount obtained by cashing in a move or other right, if the creditor who is the rightful owner cannot receive what he will receive. The owner has allocated the Savings Authority arising from the property right to the owner of the pledge right. Pledge rights are divided into immovable and movable pledge. First, there must be a valid credit right in the middle. The legal principles related to the right to pledge are contained in the Civil Law as listed below.

I. Types of immovable property

Article 850.- A real estate pledge can only be established in the form of a mortgage, mortgage debt bill or irat bill.

II. Secured receivables

1. Main money

Article 851.- Real estate pledge can be established for a certain receivable, the amount of which is indicated by Turkish money. If the amount of the receivables is not clear, the upper limit that the real estate will be secured to meet all the demands of the creditor is specified by the parties.

In order to secure loans issued in foreign currency or with a measure of foreign currency, real estate pledges may be established in foreign currency by credit institutions operating in or outside the country. In this case, the amount expressed by each degree is shown on the type of money that the pledge subject will receive. However, a pledge cannot be established using more than one type of currency to the same degree.

If the degree of pledge established on foreign currency is vacated, the pledge may be established on Turkish currency or foreign currency instead of its equivalent on the date of registration. If the degree of a pledge established with Turkish currency is vacated, the pledge may be set up in foreign currency instead of the equivalent on the date of registration.

Foreign or Turkish currency reserves are based on the exchange rate of the Central Bank of the Republic of Turkey on the day of the account. It is determined by the Council of Ministers on which foreign currencies the pledge rights can be established.

2. Interest

Article 852.- The parties may decide the interest rate as they wish, without prejudice to the limiting provisions.

III. Moved

1. Being a Rehne subject

Article 853.- The right to pledge can only be established on real estate registered in the deed.

2.Being specific

a. If the immovable is single

Article 854.- When installing a pledge, the property that is the subject must be specified.

Parcels of the divided real estate cannot be rehne subject unless they are registered separately in the land registry.

b. If the immovable is more than one

Article 855.- The Pledge of multiple real estate for the same debt depends on the fact that the real estate belongs to the same owner or to the owners who are mutually responsible for the debt.

In other cases where more than one property is pledged for the same receivable, it is indicated when installing the pledge that each property creates an assurance for the amount of the receivable.

Unless there is an agreement to the contrary, the land registry distributes the reassurance to each of the real estate at the rate of its value.

B. Establishment and termination of the pledge

I. Establishment of Rehnin

1. Registered

Article 856.- Real estate pledge is established by registration in the land registry. Discrete cases stipulated in the law are reserved.

The validity of the contract for the establishment of the immovable property depends on the fact that it has been made officially.

2. Real estate owned by multiple people

Article 857.- In shared ownership, the stakeholder can pledge their share.

After the pledge is established on the share, stakeholders cannot pledge the entire property.

Real estate subject to joint ownership, but it can be rehnolun as a whole and on behalf of all owners.

II. Termination of the pledge

Article 858.- The real estate pledge ends with the abandonment of the registration or the complete destruction of the real estate.

The provisions of the law on expropriation are reserved.

III. Consolidation of real estate

1. Moving the pledge to another real estate

Article 859.- Pledges on the combined parcel as a result of the process of combining and distributing the parcel performed by the Authorized Public Institution or organization are transferred to the real estate given in place of that parcel, maintaining their order.

If the real estate resulting from the merger replaces multiple parcels with pledges or some without pledges for different receivables; the pledge rights on this real estate cover the real estate as a whole and maintain their order to the extent possible.

2. Borrower rescues Real Estate From hostage

Article 860.- The debtor of the receivable, which is secured with one of the combined real estate, can recover the real estate from the pledge by paying it back during the merger, provided that it is notified three months ago.

3. Money paid as a price

Article 861.- The money paid as a price for a pledged real estate is divided among creditors according to their order, in proportion to the amount of their receivables if they are in the same order.

This price cannot be paid to the debtor without the creditor’s consent, if the amount of receivables bound by the pledge is more than one-twentieth, or if the new real estate does not constitute sufficient assurance for the receivables.

C. References

I. Scope of pledge

Article 862.- Pledge obliges the immovable along with its integrative parts and plug-ins.

During the establishment of the pledge, things such as machinery, hotel flooring, which are clearly shown as attachments and written in the declarations column in the land registry, are considered attachments unless it is proven that they cannot be of this nature according to the law.

Third parties ‘ rights to add-ons are reserved.