celtic

Member
An Ipotek
Another one for Celtic when he has a minute to answer.

Would it be possible for you to explain for us what an Ipotek is (and correct the spelling if necessary :D ), who you need to consult in order to create the ipotek, give a general idea of costs involved and give an idea of what protection having one offers a potential buyer?

This has been mentioned in the past but I'm not sure there has ever been clear information given about the use and process of creating an ipotek.

Thank you.

Hi CrashTester,

First, please accept my excuse for this delayed reply, I'm hardly able to find free time to spend on this forum lately.

Ipotek is an unfamiliar instrument for a British person since it's a continental-European term originating from Roman law.

It's a form of the contract of pledge which is established on immovable estates' registration records. It's used for taking a loan under security as the debtor lets creditor to establish an ipotek clause on the record of his estate in return of the loan he raised. The creditor has the right of selling the estate out for paying himself the proceeds if the debtor defaults to pay his money back.

In the light of this explanation, ipotek can be considered the matching term of mortgage in common law.
 
An Ipotek
On property:- it is a legal charge placed upon a property by the purchaser (with the agreement of the seller) to secure future rights. eg a property may be for sale but the Tapu transfer be witheld for an unknown period by, say, local authority action. The 'sale' can still proceed with an hypotech in place as the vendor cannot raise any other sale or mortgage the property....and the buyer secures the right of Tapu transfer when that becomes permissable.
The hypotech will be legally raised by the purchasers solicitor at a charge of around 1.1% of the property purchase value + fees.
 

didimlover

New Member
An Ipotek
Hi

I am considering an Ipotek as I bought an apartment a few months ago, we had a contract drawn up by a solicitor but it was not notarised. I paid the full purchase price in return for a £10,000 GBP discount. I want to ensure that the deeds definitely get transferred to me. I have a few questions about whether an Ipotek would suit me.

1. does the seller have to agree to place an Ipotek on the property?
2. does the percentage charge go on the price that was paid for the property or what the property is deemed to be 'worth'?
3. what is the first step to put an ipotek in place? / who is the first person to consult?

Thanks in advance
 

Mushtaq

Founding Member
An Ipotek
Hi, see answers to your questions below;

1. does the seller have to agree to place an Ipotek on the property?
YES
2. does the percentage charge go on the price that was paid for the property or what the property is deemed to be 'worth'?
The percentage is based on what charge you want to place on the property.

3. what is the first step to put an ipotek in place? / who is the first person to consult?
We (CrescentHomes) can arrange it for you
 

celtic

Member
An Ipotek
Hi

I am considering an Ipotek as I bought an apartment a few months ago, we had a contract drawn up by a solicitor but it was not notarised. I paid the full purchase price in return for a £10,000 GBP discount. I want to ensure that the deeds definitely get transferred to me. I have a few questions about whether an Ipotek would suit me.

1. does the seller have to agree to place an Ipotek on the property?
2. does the percentage charge go on the price that was paid for the property or what the property is deemed to be 'worth'?
3. what is the first step to put an ipotek in place? / who is the first person to consult?

Thanks in advance

Hi Didimlover,

I'm on holiday right now in Alanya and do have a really limited time for answering the questions on these boards. However, I'll try to give some basic information regarding your questions below;

1. A contract for placing an ipotek has to be drawn up formally by notary or at tapu office. A simple one which was done by hand is not a strong evidence but you can still file a case for demanding the judge to order your seller to accept your request. I'd have said that your chance to win this case was 100% if the contract was done formally by notary, but under this circumstance, I can't give a percentage.

He doesn't have to accept your offer to place an ipotek on the record of the property unless you can win the case that you'll file upon the relevant hand-done contract right now. You should have tried to persuade him to place it during the negatiations and this might have perhaps worked out.

2. The price has to be shown as equal to the amount that you payed him. However, it's accepted by the tax office to show lower prices if it's approved by the municipality as well. It's definitely recommended to show the actual price you payed him by myself, though.

3. I recommend you take a professional support while doing this unless you want to face surprise some day.

Regards.
 

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