Who Collects the Rent on Property Transferred Through a Fiduciary Transaction?

Real property registered in the name of a relative on the basis of a relationship of trust within the family can, over time, turn into serious legal disputes. Especially in title-deed annulment and registration lawsuits filed on the basis of a fiduciary transaction, a frequently asked question is who is entitled to the rental income generated by the property while the case is pending. When the claimant asks for the rent to be deposited with the court's cashier, will that request be granted?

In this article, we examine the concept of the fiduciary transaction, the legal fate of rental income during a title annulment lawsuit, and the settled approach of the courts on this issue, in light of decisions of the Yargıtay (Court of Cassation) and the Regional Courts of Appeal.

Summary of the Situation

A fiduciary transaction is one in which a person (the fiduciary transferor) transfers their real property to another person (the fiduciary transferee) for a specific purpose and on the understanding that it will be returned, while outwardly the transfer appears to be an ordinary transfer of ownership. When the transferor eventually realizes that the property has not been transferred back, they file a title-deed annulment and registration lawsuit against the transferee.

While the case is pending, the property may have been leased to third parties. At this point, the claimant (the fiduciary transferor) may request that the rental income generated by the property be deposited with the court's cashier or another designated depository until the case is concluded. In practice, however, such requests are overwhelmingly rejected.

The Legal Issue

The heart of the debate comes down to this question: Does the rental income belong to whoever holds the ownership right in the land registry, or should the income be held by a neutral authority until the case is concluded?

According to the case law, in a fiduciary transaction the ownership right passes to the fiduciary transferee (for example a sibling, relative or agent) upon registration. That ownership remains with the transferee until the title annulment lawsuit is concluded and the property is registered back in the transferor's name. Consequently, the transferee, as the registered owner, is entitled to use the property and to collect its rental income.

What Do the Yargıtay (Court of Cassation) and the Regional Courts of Appeal Say?

• Yargıtay (Court of Cassation), 3rd Civil Chamber (E. 2025/808, K. 2025/4744, 2025): Expressly accepted that "since the ownership right passed to the transferee upon registration, the transferee is entitled to use the property and indeed to collect rental income until ownership passes back to the transferor."
• Yargıtay (Court of Cassation), 3rd Civil Chamber (E. 2018/7125, K. 2019/805, 2019): Emphasized that the transferor retains no right in rem beyond a personal claim arising from the contract; for that reason, they cannot demand rent in the capacity of owner.
• Bursa Regional Court of Appeal, 1st Civil Chamber (E. 2022/140, K. 2022/122, 2022) and İzmir Regional Court of Appeal, 11th Civil Chamber (E. 2025/579, K. 2025/1027, 2025): Held that an interim injunction may only be granted over the property or rights that are the subject matter of the dispute; since the dispute concerns ownership of the property and the rental income is not the direct subject matter of the case, the request is contrary to Article 389 of the Code of Civil Procedure (HMK).
• Ankara Regional Court of Appeal, 21st Civil Chamber (E. 2025/1069, K. 2025/899, 2025): Stated that injunction requests were rejected on the ground that they could affect the legal position of tenants who are not parties to the case, and that an injunction may only be granted with respect to the subject matter and parties of the case.
• İstanbul Regional Court of Appeal, 15th Civil Chamber (E. 2023/15, K. 2023/20, 2023): Emphasized that if the claimant prevails in the ownership dispute, they may separately bring an action for compensation for wrongful occupation ("ecrimisil") or collection of the amounts in respect of the rental income they could not obtain, and that it is therefore not possible to place an injunction on the rental income in the pending case.

Points to Watch

Practical points to bear in mind in title annulment lawsuits based on a fiduciary-transaction claim:

• A request to have rental income deposited by way of injunction has a low chance of being granted. Since the subject matter of the case is ownership of the property (a right in rem), rental income is generally not regarded as the direct subject matter of the case.
• Concretization is essential. If such a request is to be made, the amount must be concretized and a clear request must be formulated as to whom the rent receivable should ultimately be paid.
• Prima facie proof is required. Under Articles 389 and 390 of the Code of Civil Procedure (HMK), "prima facie proof" must be presented to the court that obtaining the right will become substantially more difficult or that serious harm will arise.
• Existing lease agreements cannot be interfered with. Interfering with existing lease agreements or altering the tenant's payment obligation is not accepted by the courts, in line with the principle of protecting the rights of third parties.
• The right to a separate lawsuit is reserved. The party who wins the title annulment lawsuit may separately bring an action for compensation for wrongful occupation (ecrimisil) or collection in respect of the rental income they were deprived of during the proceedings.

Conclusion: What Should You Do?

In a title-deed annulment and registration lawsuit that you have filed or plan to file on the basis of a fiduciary transaction, it is important to follow a clear strategy regarding the fate of the rental income:

1. Despite the low likelihood of acceptance, raise the request to have the rental income deposited with the court's cashier in a concrete and reasoned manner.
2. Support your main case (title annulment and registration) with strong evidence (bank receipts, witness statements, correspondence); ownership will pass to you only once that case is won.
3. Plan to bring a separate ecrimisil or collection action after winning the case for the rental income you were deprived of during the proceedings.
4. Bear in mind that on matters concerning the tenant (rent payments, the lease agreement), the rights of the tenant, as a third party, will not be affected.

Fiduciary-transaction lawsuits are a technical and sensitive field in terms of the burden of proof and the evaluation of evidence. If you are facing such a dispute, planning your litigation strategy together with a lawyer will give you a significant advantage.