In the economic conditions of today it is near mandatory for individuals or business enterprises to seek financial support to sustain their operations. Loans and funds are commonly borrowed from banks and other financial institutions to secure real estate. A borrower who offers real estate as security may borrow higher sums from lenders who secure the loan repayment this way.
Mortgaging real estate is an involved process that requires legal expertise, experience and diligence for both the borrower and the bank or financial institution. While it is not strictly obligatory to use a lawyer to create a mortgage, considering the importance of the process, banks and financial institutions do deploy lawyers to navigate the process. Below, we will look briefly at the reasons why.
The presence of a lawyer during the operation ensures an additional level of auditing and correction through all stages of the operation. Another advantage is that the lawyer’s expertise saves time and labour for the business owner.
There may be legal encumbrances of varying kinds over a real estate, such as annotations, declarations, and court orders. Knowledge of which encumbrance sets a barrier against the transfer of the real estate, or which one causes depreciation in the real estate’s value requires a good command of legislation. In such cases, a lawyer’s legal knowledge and experience is hugely beneficial. In addition, if one proceeds with the mortgage operation in spite of an encumbrance over the real estate which does not affect the real estate’s market value, this will surely save time. The presence of a lawyer during the operation means a second level of auditing and correction through all stages of the operation. Another advantage is that the lawyer’s expertise saves time and labour for the business owner. If mortgage operations are carried out by a bank’s or financial company’s own personnel, this brings an extra burden on them.
Pursuant to the applicable law, lawyers perform a public duty. The fact that lawyers handle mortgage creation before they arrive at the land registry offices is also an advantage. The officers employed within the land registries are also in contact with lawyers representing clients of public or private institutions, so the use of lawyers on all sides creates a sense of trust. The practical experience of lawyers ensures that in problematic transactions, lawyers are able to come up with solutions. It is also a fact that lawyers have the additional advantage over other personnel in their ability to represent and reflect the work shown by the business owner to the outside. The lawyer’s expertise and diligence represents high levels of professionalism.
Av. Aydın DAVRAN