Title Deed and Ownership
The Difference Between Construction Servitude and Condominium Ownership
What are construction servitude and condominium ownership, what's the difference between them, and how does a construction servitude convert into condominium ownership? Explained with the practical consequences for buyers.
2 min read
The two terms most often seen on apartment title deeds are construction servitude (kat irtifakı) and condominium ownership (kat mülkiyeti). Both show that a unit (an independent section) belongs to a specific person; the difference between them has to do with what stage the building is at. This area is governed by Condominium Ownership Law No. 634 (Kat Mülkiyeti Kanunu).
What is a construction servitude?
A construction servitude is a right established, tied to a land share, over the independent units of a building that is still under construction or yet to be built. It can be established once the building project has been approved. Units bought off-plan are usually deeded with a construction servitude.
What is condominium ownership?
Condominium ownership is full and independent ownership established over each independent unit in a completed building. Moving to condominium ownership requires the building to be finished and to have obtained an occupancy permit (iskan) from the municipality.
Comparison
| Construction servitude | Condominium ownership | |
|---|---|---|
| Status of the building | To be built, or under construction | Completed |
| Occupancy permit | Not required | Required |
| Subject of the right | A servitude tied to the land share | Full ownership over the independent unit |
| Sale and transfer | Possible | Possible |
| Mortgage financing | Varies by bank; most lend on a project basis | Generally straightforward |
| Nature on the deed | Independent unit together with the land / building | Independent unit such as residence, shop, etc. |
How does a construction servitude convert into condominium ownership?
- The building is completed in line with its project.
- An occupancy permit is obtained from the municipality.
- The land registry directorate processes the conversion to condominium ownership using the occupancy permit information; this usually starts through an electronic notification between the municipality and the land registry, or through an application by one of the owners.
- The independent units are updated to condominium ownership in the title deed records.
Practical consequences for buyers
- If a building finished years ago is still under a construction servitude, the occupancy permit may never have been obtained. This can be due to deviation from the project, an unauthorized floor, or missing paperwork; look into the reason.
- You still own a unit held under a construction servitude and can sell it; but some banks require condominium ownership or an occupancy permit to lend against it.
- In urban transformation and common-area decisions, both construction-servitude and condominium-ownership holders have a say in proportion to their land share.
This content is for general information only and is not a substitute for legal, financial or tax advice. Rates, amounts and legislation can change over time. Confirm current information with the relevant authority or a professional before proceeding with a transaction.