When buying an apartment, people generally consider the size of the unit, the floor it is on, its location, and the building’s features. However, another factor that is just as important as these when purchasing real estate is the land share. The land share plays a particularly significant role in apartment units, urban renewal processes, and condominium transactions.
So, what is a land share, how is it calculated, and why is it important? In this article, we cover all the details you’ve been wondering about regarding land shares.
What Is a Land Share?
A land share is the ownership interest that the independent units in a building hold in the land on which the building is situated. In other words, it refers to the co-ownership right of each apartment or commercial space in the building over the land.
According to the Condominium Law No. 634, the land share is determined in proportion to the values of the individual units, which are calculated based on their location and size.
For example, in a 10-unit apartment building, the land shares for each unit do not have to be the same. The sizes of the units, the floors they are located on, their facades, and other characteristics may result in differences in their land shares.
A land share is not merely a number. It is a key factor that directly affects property rights over real estate.
How Is a Land Share Calculated?
The primary criterion in calculating the land share is the value of the independent unit relative to the other independent units in the building.
For this reason, the land share is not determined based solely on the apartment’s square meters. The floor on which the apartment is located, its facade, its location, and other characteristics that affect its value are also taken into account.
The basic logic behind the calculation of land shares is as follows:
Land Share Ratio = Value of the Independent Unit / Total Value of All Independent Units in the Building
By applying this ratio to the total land share specified in the land registry, the share of the relevant independent unit can be determined.
Sample Land Share Calculation
Let’s use an example to make the topic clearer.
Let’s imagine a building consisting of 5 separate units on a lot totaling 1,000 square meters.
Let’s say the total value of all the individual units in the building is 20 million TL, and the value of the apartment for which the land share is to be calculated is 4 million TL.
In this case, the calculation is done as follows:
4.000.000 / 20.000.000 = 0,20
In other words, the apartment’s land share ratio is 20%.
Given that the total area of the lot is 1,000 square meters:
1.000 × 0,20 = 200 square meters
The land share corresponding to this apartment is 200 square meters.
However, there is an important detail to note here. A land share does not mean that a specific portion of the land belongs exclusively to that apartment owner. Ownership of the land continues to be shared with the other owners of independent units.
In addition, this calculation is for illustrative purposes only. Actual land shares are determined based on the values used as the basis for establishing condominium ownership or condominium easements for the individual units.
How Is a Land Share Determined?
When determining the land share, various characteristics that affect the value of the individual unit are taken into account.
First and foremost is the size of the apartment. However, two apartments with the same square meterage do not necessarily have to have equal land shares.
For example, of two apartments in the same building that are the same size, one may have a more desirable facade or location. This can affect the values of the individual units and, consequently, their land shares.
The main factors that may influence the determination of a land share are as follows:
- Gross and net usable area of the unit
- Floor level and location within the building
- Facade characteristics and view
- Level of natural light
- Intended use of the unit
- Other physical and locational characteristics that affect its value
By evaluating these factors, the proportion of each independent unit within the total value is determined.
Are “Land Share” and “Square Meters of an Apartment” the Same Thing?
Land share and apartment square meters are often confused with one another. However, these two concepts have different meanings.
While apartment square meters refer to the usable area of an independent unit, land share indicates the unit’s ownership stake in the land.
For example, the land share of a 120-square-meter apartment is not necessarily higher than that of another 100-square-meter apartment in the same building.
This is because, when calculating the land share, the value of the independent unit is taken into account in addition to its square footage.
For this reason, when purchasing real estate, it is important to examine not only the size of the apartment but also the land share specified in the title deed.
Where Is the Land Share Listed on the Title Deed?
Information regarding a property’s land share is included in the land registry records.
For properties subject to condominium ownership or a condominium easement, the land share is generally expressed as a fractional value.
For example, if the land share is listed as 20/200 in the land registry, this indicates that the relevant independent unit holds a 20/200 ownership share of the total land.
Land share information can be verified through land registry records and relevant digital land registry services accessible to authorized individuals.
Examining the land share listed on the title deed—particularly when purchasing a resale home—is helpful in preventing potential property disputes in the future.
Why Is Land Share Important in Urban Renewal?
One of the areas where land shares have gained significance is urban renewal.
In the process of renovating high-risk buildings, land shares can be a determining factor in terms of owners’ property rights and certain decision-making processes.
Land shares are particularly important in applications under Law No. 6306, during the decision-making process and the assessment of owners’ rights.
However, in urban renewal, the allocation of apartments in the new building is not determined solely based on existing land shares. Agreements among property owners, project specifications, and relevant legislation also influence the process.
For this reason, it is important that land shares are accurately determined for a building undergoing urban renewal.
Can a Land Share Be Changed Later?
If land shares have been incorrectly determined, they can be corrected.
Under the Condominium Law, if the land shares allocated to individual units are not proportional to their values, unit owners may petition the court to request a reassessment of the land shares.
However, a change in land shares cannot be made solely because of an increase or decrease in the current market value of the apartment.
In the assessment, the values of the independent units as of the date the land shares were originally determined are taken as the basis.
For this reason, it would be beneficial for property owners who believe their land shares are incorrect to have the matter evaluated with the assistance of an expert.
Why Is Land Share Important?
A land share pertains not only to the current use of a property but also to future ownership rights.
A land share becomes particularly important when a building is to be rebuilt, undergoes an urban renewal process, or when legal transactions related to co-ownership are carried out.
For this reason, individuals considering the purchase of a home should take the land share into account when reviewing title deed information.
Accurately determining the land share is important for protecting property owners’ rights and preventing potential future disputes. It is beneficial for anyone seeking to make an informed real estate investment to understand what the land share means and how it is calculated.
