The concepts of “floor easement” and “condominium ownership” encountered in the title deed when purchasing a home are often confused with one another. Although both concepts relate to property rights over real estate, they have different legal meanings. It is important—especially for those considering the purchase of a new apartment—to know whether the title deed specifies a floor easement or condominium ownership.
So, what is the difference between a condominium interest and condominium ownership? Can you buy a home with a condominium interest? How do you convert to condominium ownership? Let’s examine these two concepts—which are frequently encountered when purchasing real estate—in full detail.
What Is a Condominium Interest?
A condominium interest is a right of usufruct tied to a land share that can be established over the independent units of a building that has not yet been completed or is to be constructed in the future.
A condominium interest, as defined under the Condominium Law No. 634, ensures that independent units—such as apartments, offices, or stores—in a planned building are identified in the land registry records.
For example, let’s say a 12-unit apartment building is to be constructed on a plot of land. Even if construction has not yet been completed, a condominium ownership title can be established for each unit once the necessary conditions are met.
Thus, the individual units included in the project and their corresponding land shares are listed in the land registry records.
However, the establishment of a condominium does not mean that the building has been completed or that a certificate of occupancy has been obtained.
What Is Condominium Ownership?
Condominium ownership is a special property right established over the independent units of a completed building.
Units suitable for independent use, such as apartment units, offices, and stores, may be subject to condominium ownership.
In order for condominium ownership to be established, the building must be completed and the relevant legal requirements must be met.
For example, in an apartment building where construction has been completed and a certificate of occupancy has been obtained, the necessary procedures can be followed to establish condominium ownership.
A title deed under the condominium system indicates that the independent unit is the subject of ownership within a completed building.
However, the existence of condominium ownership does not, by itself, guarantee the building’s current earthquake resistance or all of its technical specifications.
What Are the Differences Between a Co-ownership Agreement and Condominium Ownership?
The fundamental difference between a co-ownership interest and condominium ownership lies in the building’s completion status and the legal nature of the right to the independent unit.
A co-ownership interest is established for independent units in a building that has not yet been completed or is still to be constructed. It constitutes a right tied to a share in the land.
Condominium ownership, on the other hand, is the property right established over the individual units in completed buildings.
Other important differences between the two concepts are as follows:
- Status of the building: While a condominium interest can be established before construction is completed, condominium ownership is established in buildings where construction has been completed.
- Occupancy certificate: A building occupancy permit is not required when establishing a condominium. However, an occupancy certificate is generally required when transitioning to condominium ownership.
- Legal nature: While a condominium easement is a right in rem tied to a share of the land, condominium ownership is the right of ownership over an independent unit.
- Land registry record: In both cases, information regarding the independent unit and the land share is included in the land registry records.
These differences become particularly important when purchasing newly built homes.
Should You Buy a House with Co-ownership Rights?
It is legally possible to purchase a home with a floor-area title. In Turkey, floor-area titles are commonly encountered, particularly in new residential projects.
However, the current status of the property must be investigated before proceeding with the purchase.
First, it must be verified whether the building has been completed and whether a building occupancy permit is in place.
In addition, it is important that the information regarding the independent units in the title deed records aligns with the approved architectural plans.
For example, if an apartment listed on the second floor in the title deed is actually located on a different floor, or if changes not included in the plans have been made, this could lead to problems in the future.
For this reason, before purchasing a condominium, the title deed, building permit, approved plans, and occupancy status should all be evaluated together.
How Do You Transition from Co-ownership to Condominium Ownership?
To transition from a condominium agreement to condominium ownership, the building must first be completed and an occupancy permit must be obtained.
In accordance with relevant legislation, for buildings for which an occupancy permit has been issued and a condominium agreement has been established, the transition to condominium ownership can be carried out by submitting the required documents to the Land Registry Office.
This process generally involves the following steps:
- Completion of the building in accordance with the building permit and approved plans.
- Obtaining the occupancy permit from the competent authority.
- Submitting the required documents to the relevant land registry office.
- Converting the land registry records to condominium ownership.
Under the relevant regulations, certain procedures may be carried out ex officio by the competent authority upon submission of the documents to the Land Registry Office.
Therefore, it may not always be necessary for each unit owner to file a separate application.
Is It Mandatory to Switch to Condominium Ownership?
In buildings where a condominium interest has been established and construction has been completed, the transition to condominium ownership must take place once the necessary conditions have been met.
Law No. 634 on Condominium Ownership contains provisions regarding the conversion of a condominium interest into condominium ownership.
In particular, completing the transition to condominium ownership in buildings that have obtained an occupancy permit ensures that the land registry records are brought into alignment with the building’s current status.
However, the fact that a building is completed does not automatically mean that the land registry record reflects condominium ownership in every case. It is important to verify the land registry records.
Can I Get a Mortgage for a House with Co-Ownership?
It is possible to obtain a mortgage for an apartment with co-ownership. However, approval of the loan application depends on the bank’s evaluation criteria and the property’s characteristics.
When reviewing loan applications, banks examine not only the title deed status but also the property’s appraised value, legal status, and eligibility for financing.
In particular, banks’ evaluation criteria may vary for properties that are still under construction or lack an occupancy permit.
Therefore, before purchasing a condominium, it is advisable to consult the bank from which you plan to obtain the loan to determine whether the property is eligible for financing.
How Can You Tell If a Property Is Subject to Condominium Ownership?
Whether a property is subject to a condominium agreement or condominium ownership can be determined from the land registry records.
The title deed contains information regarding the property’s ownership type. In addition, authorized individuals can review property records through the digital services provided by the General Directorate of Land Registry and Cadastre.
Before making a purchase, rather than simply checking the title deed type, you should also verify the independent unit number, land share, block, and parcel information.
The presence of condominium ownership in the land registry record is an important piece of information. However, the property’s current physical condition, its compliance with the project plans, and whether there are any legal restrictions on it should also be investigated.
When Buying a Home, Should You Choose a Co-ownership Agreement or Condominium Ownership?
When purchasing a completed residential property, a title deed under the condominium system offers a significant advantage in terms of assessing the building’s legal status.
However, one should not assume that every property with a condominium title is problematic. It is particularly common for residential projects currently under construction to have a condominium title.
What matters here is that the title information, construction status, and official documents for the property being purchased are consistent with one another.
When purchasing a home, understanding the differences between a floor easement and condominium ownership is important not only for comprehending the type of title deed but also for assessing potential risks during the purchase process.
For this reason, the property’s title records and relevant official documents should be carefully reviewed before making a purchase decision.
