What Is the Difference Between Construction Easement and Condominium Ownership?

When buying an apartment, you will come across the phrase "construction easement" or "condominium ownership" on the title deed. Both grant rights over an independent unit, but their legal meanings and consequences differ. Knowing this distinction is important both in purchase and sale transactions and in apartment management. In this guide, we explain the difference between these two concepts, the transition process and points to watch out for, based on Condominium Ownership Law No. 634 (KMK).

What is construction easement?

Construction easement is a right established over the land share, in a building that has not yet been completed (still under construction or to be built in the future), as a basis for the condominium ownership to be established later. Under Article 1 of the Condominium Ownership Law, the landowner or the co-owners may establish this easement right as preparation for the condominium ownership to be transitioned to once the building is completed.

Put simply: while construction is ongoing or at the project stage, it is the arrangement that secures the right "I will have my independent unit here in the future" on the title deed. At this stage, there is not yet a building with an occupancy permit and ready for use.

What is condominium ownership?

Condominium ownership, on the other hand, is the independent ownership right established over the separately and self-sufficiently usable sections — such as apartments, offices, shops, stores and storage — of a completed building (KMK Art. 1). When the building is finished and the building occupancy permit is obtained, a separate page is opened in the land registry for each independent unit.

At this stage, the property's status on the title deed changes from "land" to "building" or "apartment unit". This process is called registration reclassification (change of nature). In other words, condominium ownership expresses the legally completed form of the property that has become the subject of full ownership.

Fundamental differences between construction easement and condominium ownership

The most defining differences between the two concepts are as follows:

• Status of the building: With construction easement the building is not yet completed; with condominium ownership the building is finished and has received the occupancy permit.
• Occupancy permit (building occupancy permit): An occupancy permit is required for transition to condominium ownership. In a property with construction easement, the occupancy permit is usually not yet available.
• Land registry record: In condominium ownership, a separate page is opened in the land registry for each independent unit; the property is shown as "building/apartment".
• Level of security: Condominium ownership is a legally completed and stronger right. Construction easement is an intermediate stage.

In both cases, there is a land share tied to the independent unit, and this share cannot be transferred separately from the ownership or the easement (KMK Art. 3, Art. 5).

Which is safer? Is buying an apartment with construction easement risky?

Buying an apartment with construction easement is not "risky" in itself; many new projects are sold at this stage. However, the point to watch is whether the building will be completed on time, obtain the occupancy permit and transition to condominium ownership.

Among the main reasons for not obtaining an occupancy permit are construction that deviates from the approved project, missing mandatory elements such as parking or fire safety, and outstanding debts to public institutions. As long as the occupancy permit is not obtained, the building is not officially considered open for residence, and some problems may arise:

• A higher "construction site tariff" may be applied to electricity, water and natural gas subscriptions.
• In housing loan applications, banks may be cautious about buildings without an occupancy permit.

For this reason, when buying a property with construction easement, it is important to research the occupancy permit status and compliance with the project.

How does transition from construction easement to condominium ownership take place?

After the building is completed and the building occupancy permit is obtained, the transition from construction easement to condominium ownership takes place (KMK Art. 14). For this transition, an application is generally submitted to the land registry office with the occupancy permit, the approved project and other documents specified in the law. As a result of the procedure, the registration on the title deed is converted to condominium ownership, and each independent unit is registered separately.

An important legal detail: if the building is not constructed within five years according to the plan submitted when the construction easement was established, upon the request of one of the owners the magistrate may decide on the termination of the construction easement or the extension of the period (KMK Art. 49). This shows that the easement right is not an indefinite guarantee.

Is there a difference in terms of management?

Apartment management rules can be applied at the construction easement stage just as they are in condominium ownership. The provisions of the Condominium Ownership Law relating to management also apply to holders of construction easement. That is to say, even if the building has not yet transitioned to condominium ownership, matters such as common expenses, election of a manager and the management plan may come up.

Summary

Construction easement is a right established over the land share in a building that has not been completed, as preparation for the condominium ownership to be set up later. Condominium ownership, on the other hand, is the independent ownership right in which a separate title deed page is opened for each independent unit in a completed building with an occupancy permit. Once the building is finished and the occupancy permit is obtained, the transition from construction easement to condominium ownership takes place. When buying a property with construction easement, it is important to research the occupancy permit status.

Whatever stage you are in, keeping a regular track of dues, expenses and joint decision processes makes management easier. Apt Yönet brings apartment and residential complex management together on a single panel regardless of whether it is construction easement or condominium ownership — dues, debt, expenses and reporting run automatically.

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Frequently Asked Questions

Can an apartment with construction easement be bought?

It can be; many new projects are sold at the construction easement stage. However, the building's status regarding obtaining an occupancy permit and transitioning to condominium ownership should be investigated.

When does construction easement turn into condominium ownership?

After the building is completed and the building occupancy permit is obtained, it is converted by applying to the land registry office with the required documents (KMK Art. 14).

Can one live in a property with a construction easement title deed?

One can in fact live there, but until the occupancy permit is obtained the building is not officially considered open for residence and problems such as the construction site tariff for subscriptions may arise.

What is the most fundamental difference between the two title deeds?

The most fundamental difference is the status of the building: with construction easement the building is not completed; with condominium ownership it is completed and the occupancy permit has been obtained.

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This content is intended for general information purposes and does not constitute legal advice. For your specific situation, consulting a legal expert is recommended.