What is the Condominium Ownership Law? Basic Concepts and the Nature of Ownership

As the cornerstone of real estate law in Türkiye, the Condominium Ownership Law No. 634 (CML) regulates multiple ownership relationships established on a single property and constitutes a highly technical and detailed piece of legislation. An apartment unit, an office, or an independent shop within a shopping center each contains a separate ownership right while simultaneously maintaining an organic connection with the building as a whole. The CML governs the balance between individual ownership rights and the management of common living areas.

Independent Section: The Focal Point of Ownership

The most fundamental concept in condominium law is the “independent section” (independent unit). Defined under Article 2 of the CML, an independent section refers to parts of a building such as apartments, shops, stores, warehouses, or cellars that are suitable for independent use and upon which ownership rights can be established.

When a foreign investor or domestic purchaser sees the term “independent section” on a title deed, they understand that they possess full authority to dispose of that property. However, this ownership right is not an abstract entitlement; it must always be linked to a land share.

Land Share and the Ownership Relationship

The most significant element distinguishing condominium ownership from traditional ownership is the “land share.” This represents the proportion of the total value of the land on which the building is situated that corresponds to a particular independent section.

Why is it important? Because the owner’s voting rights in the condominium owners’ assembly, their obligation to contribute to common expenses (maintenance fees), and their share of compensation in the event of the building’s demolition (for example, during urban transformation projects) are all determined according to the land share recorded in the title deed.

A property with an incorrectly allocated land share may become a legal “time bomb,” leading to serious disputes among owners in the future.

Common Areas and Rights of Use

Condominium ownership is not limited solely to the apartment or unit identified by your door number. The building’s roof, exterior façade, corridors, garden, elevators, water tanks, and parking areas are classified as “common areas.”

Article 4 of the CML defines the nature of these areas. As a general rule, common areas are jointly owned by the independent section owners in proportion to their respective shares.

No owner may claim, for example, “This balcony is only in front of my unit, so I will enclose it and convert it into a room.” Unauthorized alterations to common areas are among the most frequent sources of condominium disputes and often result in lawsuits seeking restoration to the original condition.

Legal Protection of Ownership

In Türkiye, condominium ownership is acquired through registration in the land registry. Protected under the Turkish Civil Code, this system operates based on the principle of publicity of the land registry.

In other words, information recorded in the title registry is presumed accurate and binding upon everyone. For a foreign investor, this means that ownership rights are protected by state authority. However, this protection extends only to registered records. The management plan forms an integral part of the land registry system and contains the rules that owners must follow when exercising their ownership rights.

Without understanding these fundamental concepts, it is impossible to effectively own or manage real estate in Türkiye. The next stage involves understanding how foreigners may acquire such ownership rights and the administrative procedures that must be followed.

Real Estate Acquisition Process and Requirements for Foreigners in Türkiye

With its strategic location and growing market, Türkiye continues to be an attractive destination for foreign investors. However, the acquisition of real estate by foreign nationals is subject to more extensive legal scrutiny than transactions involving Turkish citizens.

The process involves much more than simply visiting a land registry office and signing documents. It includes a strict legal procedure governed by Article 35 of the Land Registry Law and related regulations.

Reciprocity Principle and Legal Limitations

The fundamental principle governing real estate acquisition by foreign individuals is the principle of reciprocity between countries. However, legislative amendments introduced in 2012 significantly relaxed this requirement and expanded the opportunities for foreign nationals to acquire property in Türkiye.

Nevertheless, several restrictions remain:

District-Based Limitation

A foreign individual may acquire real estate corresponding to no more than 10% of the total surface area of a district. This rule is intended to prevent excessive foreign concentration in specific regions.

30-Hectare Limitation

A foreign individual may acquire a maximum of 30 hectares of real estate throughout Türkiye. Although the Council of Ministers has authority to increase this limit, 30 hectares remains the general rule.

Military and Security Zone Restrictions

One of the most critical issues for foreign purchasers is the location of the property. If a property is situated within a military prohibited zone or security zone, foreign nationals are legally prohibited from purchasing it.

Before completing a transfer, land registry offices require confirmation from the relevant military authorities or government agencies that the property is not located within a restricted area. Although this process may extend transaction times, it remains an essential safeguard.

Valuation Report and Foreign Exchange Purchase Certificate (DAB)

Recent regulatory changes have made a Capital Markets Board (CMB)-licensed valuation report mandatory for foreign property purchases.

This report establishes the property’s actual market value and aims to prevent concealed capital transfers, inflated sales prices, and tax evasion.

Additionally, foreign purchasers must transfer the purchase funds to Türkiye through an approved banking institution and provide evidence of this transfer through a Foreign Exchange Purchase Certificate (Döviz Alım Belgesi – DAB).

This certificate is among the most critical documents required during the title transfer process.

Legal Management of the Process

Although the process may appear complex, professional legal assistance significantly simplifies it.

If a transaction is conducted through a power of attorney, documents issued abroad must be notarized and bear an apostille certification. Specialized law firms can assist investors by calculating title deed fees, verifying assessed values, and managing appointments with land registry offices, thereby protecting ownership rights from the outset.

For foreign investors, purchasing property is not merely about acquiring a home; it is also about properly entering the Turkish legal system. Once all procedures have been completed, ownership rights are formally registered without ambiguity.

Land Registry System and Protection of Ownership Rights

One of the strongest aspects of Turkish real estate law is the Land Registry System, protected under the Turkish Civil Code.

The land registry constitutes the sole official source for determining ownership, restrictions, and the legal status of real property. Pursuant to the principle of publicity of the land registry, these records serve as conclusive evidence regarding ownership rights.

For foreign investors, correctly interpreting registry records is one of the most critical stages of the acquisition process.

Principle of Reliance on the Land Registry

Turkish law recognizes the principle of reliance on the land registry.

Accordingly, a person who acquires ownership based on an entry in the land registry is protected, provided that they acted in good faith.

Thus, if you purchase property from a person who appears as the registered owner, your ownership rights remain protected even if it is later discovered that the seller was not the actual owner, provided that you acted in good faith.

This principle constitutes one of the strongest legal protections available to foreign investors in Türkiye.

Annotations and Declarations in the Land Registry

Due diligence involves much more than simply identifying the registered owner. The annotations and declarations sections of the title record reveal potential legal risks, including:

• Mortgage: Indicates that the property has been pledged as security for a debt.
• Attachment (Lien): A legal seizure imposed by creditors.
• Family Residence Annotation: Indicates that the property constitutes a family residence and cannot be transferred without the spouse’s consent.
• Easement Rights: Indicates third-party rights such as rights of way or usufruct rights.

Foreign investors should always have these sections reviewed by a qualified legal professional before signing a purchase agreement.

Management Plan and Its Relationship with the Title Deed

In condominium properties, the management plan forms an inseparable part of the title registration system and functions as the building’s “constitution.”

The management plan may include restrictions on use (e.g., residential use only), pet ownership rules, and special provisions governing common areas.

Foreign investors should carefully review the management plan before purchasing a property to ensure that it aligns with their intended use.

Transition from Construction Easement to Condominium Ownership

Foreign and domestic investors purchasing units in newly developed projects frequently encounter the concepts of “Construction Easement” (Kat İrtifakı) and “Condominium Ownership” (Kat Mülkiyeti).

Understanding the legal distinction between these concepts is essential for protecting both the value and security of an investment.

When a title deed indicates “Construction Easement,” it generally means that the building has not yet been completed or has not yet obtained an occupancy permit.

Difference Between Construction Easement and Condominium Ownership

Construction easement refers to the pre-registration of rights relating to future independent sections on land where a building is planned to be constructed.

Condominium ownership, by contrast, represents full ownership status after the building has been completed in accordance with approved plans, an occupancy permit has been obtained, and compliance with technical standards has been officially confirmed.

For foreign investors, condominium ownership enhances market value, financing opportunities, and insurability.

Occupancy Permit Process and Risks for Foreign Investors

Developers may occasionally delay obtaining occupancy permits despite completing construction.

A building must fully comply with approved plans before condominium ownership can be established.

Unauthorized additions, enclosed balconies, or violations involving common areas may prevent the transition to condominium ownership.

Foreign purchasers acquiring units under construction easement status may therefore face risks associated with incomplete construction or delays in obtaining occupancy permits.

Advantages of Condominium Ownership

Transitioning to condominium ownership provides numerous advantages:

• Bank Financing: Banks generally prefer properties with condominium ownership status.
• Insurance: Legal compliance facilitates obtaining earthquake and residential insurance coverage.
• Management: Condominium ownership strengthens the legal framework governing building management and owners’ assemblies.

Legal Review and Protection

Foreign investors purchasing property under construction easement status should execute a notarized Preliminary Sale Promise Agreement specifying deadlines for obtaining condominium ownership and allocating related costs.

Where developers fail to fulfill their obligations, professional legal representation becomes crucial in protecting investor rights.

The transition from construction easement to condominium ownership may be likened to the birth of the building’s legal identity. Any deficiencies in this process may reduce market value and complicate future sales.

Legal Obstacles Foreigners May Encounter When Acquiring Property and Their Solutions

Although owning real estate in Türkiye can be a profitable long-term investment strategy for foreign nationals, the process contains several legal risks that require careful attention.

Complex regulations, bureaucratic challenges, and misinformation may jeopardize ownership rights.

This section addresses the most common legal obstacles and practical solutions.

Common Legal Issues and Risks

Errors in Valuation Reports

Incorrect valuation reports may lead to miscalculated title deed fees, tax disputes, and difficulties in future compensation claims.

Invalid Powers of Attorney

Powers of attorney issued abroad must comply with Turkish legal requirements.

They must expressly authorize property acquisition and land registry transactions and must bear either an apostille certification or consular authentication.

Contractual Deficiencies

Pre-sale agreements should be executed as Notarized Sale Promise Agreements.

Ordinary written agreements may provide inadequate protection if a developer fails to deliver the property or becomes insolvent.

Solutions and Strategic Approaches

Professional Legal Due Diligence

Before purchasing property, investors should conduct comprehensive legal reviews of title records, municipal permits, occupancy status, and encumbrances.

Such reviews help prevent hidden legal liabilities.

Secure Payment Channels

Obtaining the Foreign Exchange Purchase Certificate (DAB) is not only a legal requirement but also a critical element in proving the legitimacy of the transaction.

Transparent banking transactions provide additional protection against allegations of money laundering or other financial misconduct.

Translation and Communication Support

Certified translators and legal advisors ensure that foreign buyers fully understand the transaction and all related documents, enhancing transparency and reducing misunderstandings.

The Role of Professional Legal Counsel

A law firm serves not only as a problem solver but also as a preventive safeguard.

Foreign investors are not expected to understand every aspect of Turkish condominium and real estate law. However, experienced legal professionals can manage the entire process on the investor’s behalf, ensuring compliance and protecting ownership rights from beginning to end.