Unrecorded (Non-Title) Immovable Sale: Legal Consequences

An unrecorded sale contract is invalid from the outset due to defect of form (TMK art.706/1). Because the contract is invalid, the buyer cannot acquire ownership and the seller cannot be compelled to transfer at the Land Registry.

The main exception, recognised in some Court of Cassation decisions, applies where the parties have substantially performed their obligations and invoking the formal defect afterwards would offend the rules of good faith. This exception is, however, construed narrowly.

A payment under an invalid contract may be recoverable under TBK m.77 et seq. Preserving its purchasing power through equalising restitution may be relevant, but the valuation date and method depend on the claim, when restitution became due and default. The property's value at the filing date is not automatically payable in every case.

The Court of Cassation applies adaptation through expert reports to compensate for monetary depreciation. As a result, disputes over unrecorded sales often become long and technical proceedings.

Before any deposit or down payment is paid for an immovable, the purpose of the payment, the conditions for refund and the parties' obligations should be set out in writing. A promise to sell an immovable is valid only if drawn up before a notary in regulatory form; a valid promise of sale, if its conditions are met, allows the buyer to claim registration (TBK art.29 and Article 89 of the Notary Public Act).

Real-estate disputes should be reviewed first on the basis of the land registry, encumbrance records, municipal and zoning status, actual use, and the payment records between the parties. In particular, in matters concerning deed cancellation, eviction, partition and condominium ownership a single document is rarely sufficient; official records must be assessed together with the factual situation.

Before commencing an action or transaction it is essential to identify time limits and the competent authority correctly. The court of the place where the immovable is located, the form requirements before notaries, land-registry procedures, dates of notices and service records can directly affect the course of the dispute.

When preparing evidence, the deed, official deed, lease, bank receipts, formal notices, building permits, management plans and other technical documents that may be subject to expert review should be filed separately. Such preparation enables a clearer legal framework both when filing an action and in settlement discussions.