Today, individuals or companies may choose to transfer their assets for various reasons. Reasons such as estate planning, changes in commercial structure, protection from debts, or investment strategies may bring asset transfer to the agenda.
However, asset transfer is a transaction that must be carefully planned and carried out within the legal framework, as it gives rise to both legal and financial consequences.
So, what is asset transfer, how is it carried out, in which cases is it valid, and what should be considered legally?
What Is Asset Transfer?
Asset transfer is the transaction by which a person transfers part or all of their assets, rights, or economic values to another person, company, or institution. This transfer may include movable or immovable property, company shares, intellectual property rights, bank accounts, receivables, or contractual obligations.
In the Turkish legal system, asset transfer is regulated within the framework of the Turkish Code of Obligations, the Turkish Civil Code, and the Turkish Commercial Code. The transfer of assets may take the form of a sale, donation, inheritance, company merger, or capital transfer. In other words, asset transfer is not a single transaction but a broad concept that appears in different forms depending on the legal relationship between the parties.
Why Is Asset Transfer Carried Out?
The reasons underlying asset transfer vary from person to person. However, it is generally carried out for the following purposes:
Estate Planning: Individuals may simplify the inheritance process by transferring their assets to their children or relatives during their lifetime.
Commercial Restructuring: In cases of company merger, division, or liquidation, assets are transferred to another legal entity.
Protection from Debts: In some cases, individuals may attempt to transfer their assets to others in order to avoid debt pressure. However, such attempts to “evade assets” are considered legally invalid if they involve an intention to harm creditors.
Investment or Capital Transfer: The transfer of assets to another company or partnership may be carried out as part of an economic strategy.
Donation or Charitable Purpose: A person may donate their assets to another person or institution without consideration.
How Is Asset Transfer Carried Out?
Asset transfer is carried out through different methods depending on the nature of the transferred asset:
Transfer of Immovable Property (Real Estate):
It is carried out by executing an official deed at the land registry office. Transactions carried out without official registration are considered invalid. For example, the transfer of a house or land must be completed through an official title deed transaction.
Transfer of Movable Property:
It is completed by transferring possession (actual delivery) of the property to the other party. It is recommended to execute a sales contract.
Transfer of Company Shares:
In limited liability companies, share transfers are carried out with notarization, whereas in joint stock companies, registration in the share ledger is sufficient.
Assignment of Receivables or Rights:
According to the Code of Obligations, a receivable may be transferred to another person in written form. This transaction is referred to as an “assignment of receivables.”
5. Bulk Transfer of a Commercial Enterprise or Assets:
The transfer of all assets of an enterprise or company to another person is carried out in accordance with the provisions governing the transfer of a commercial enterprise. In such transfers, registration with the trade registry is mandatory.
Each of these transactions is subject to different formal requirements.
For example, while registration at the land registry is required for the transfer of immovable property, official notification to the bank is required for the transfer of a bank account.
How Is an Asset Transfer Agreement Prepared?
Asset transfer must be carried out through a written agreement. This agreement should include the subject of the transfer, the identity details of the parties, the transfer price (if any), and its legal consequences.
The main elements that must be included in an asset transfer agreement are as follows:
Identity information of the parties (name, surname, Turkish ID number, address)
Detailed description of the transferred assets or rights
Transfer price or donation nature
Date and method of delivery
Statements and approvals of the parties
Signatures of the parties and notarization (where required)
Ambiguous wording should be avoided in the agreement, and the scope of the transfer should be clearly defined. Especially for high-value assets such as immovable property and company shares, it is recommended that the agreement be prepared with the support of a lawyer.
Points to Consider When Making an Asset Transfer
Asset transfer may have serious consequences; therefore, the following issues should be taken into consideration:
The subject and scope of the transfer must be clear.
Tax liabilities (fees, title deed charges, VAT, etc.) should be examined.
Potential inheritance disputes arising from transfers between family members should be anticipated.
The transfer should be carried out before authorized authorities such as a notary public or land registry.
The parties should evaluate the risks prior to the transaction by obtaining legal counsel.
These are the key points to consider when carrying out an asset transfer. If these precautions are not taken, the transfer may be deemed invalid or may become subject to inheritance, tax, or creditor lawsuits in the future.
Conclusion
Asset transfer is not merely a transaction involving the transfer of ownership; it is also a complex process that gives rise to significant legal and financial responsibilities for the parties.
Therefore, every stage of the transfer process should be meticulously planned and carried out in compliance with the law. The asset transfer process includes technical matters such as contract preparation, notarization procedures, title deed transfer, tax liabilities, and the legal validity of the parties’ declarations. For this reason, it is of great importance that the process be managed by a lawyer specialized in contract law, real estate law, or commercial law. An incorrectly or incompletely executed asset transfer may lead to serious financial losses and legal disputes in the future.
Therefore, every asset transfer should be carried out within the framework of;
a written agreement,
statutory formal requirements,
and professional legal counsel.
An asset transfer carried out in compliance with the law strengthens trust between the parties, minimizes risks, and prevents potential future disputes.
In short, a professionally managed transfer process carried out under the guidance of a lawyer is the strongest legal safeguard for your assets.
