One of the most frequently encountered concepts when purchasing or investing in real estate is floor easement and condominium ownership. Especially in newly built projects, while a floor easement is established at the beginning, a transition to condominium ownership is required when the building is completed.
Since this process directly affects the legal status of the real estate, it contains important details that both buyers and current owners should pay attention to. So, how is the transition from floor easement to condominium ownership made, what documents are required and what awaits you in this process?
What are the documents required for the transition from floor easement to condominium ownership?
The most basic condition for the transition from floor easement to condominium ownership is that the building is completed and the occupancy certificate is obtained. In addition, we can list the documents required during the transition process as follows:
- Building occupancy permit (occupancy permit)
- Floor easement deed
- Approved architectural project
- management plan
- Independent section list and numbering sketch
- Identity information of the owners and application petition
All of the above documents prove that the real estate has been completed in accordance with the project and that the independent sections are officially usable. However, the occupancy certificate is the key point of this process; transition to condominium ownership cannot be made without obtaining a occupancy permit.
For example, even if all the flats are finished in a newly completed housing project, if no occupancy permit has been received from the municipality, the title deeds still remain as floor servitude. Likewise, changes made contrary to the project, such as closing balconies or violating common areas, may delay the occupancy process, which of course directly affects the transition to condominium ownership. Therefore, the process should be handled on an entire building or site basis rather than on an individual basis. It is not possible for a single flat to become a condominium on its own.
Who Pays the Transition Fee from Floor Easement to Flat Ownership?
Who will pay the transition fee from floor easement to condominium ownership generally depends on the contract between the contractor and the buyer. In new projects, most of the time the process is carried out by the contractor and the cost is included in the project price. However, in cases where the contractor does not complete the process or the responsibility passes to the owners, as in old buildings, Transition fee from floor easement to floor ownership It is covered by the flat owners.
The main costs incurred in this process are:
- Title deed fees and revolving fund fees
- Settlement fee paid to the municipality
- Project and technical drawing expenses
- Architect and engineer service fees
For example, if an apartment building with 12 flats is to be converted to condominium, the total cost is usually divided by the number of flats. At this point, all owners need to be involved; because the transaction is carried out collectively, not individually.
There is also another financially important detail: Flats with condominium ownership are considered safer by banks than those with floor easement. For this reason, condominium ownership provides a serious advantage in loan usage and sales processes.
Is it mandatory to transition from floor easement to condominium ownership?
Floor easement is a temporary title deed type for buildings that are under construction or have not yet received official use permission. Once the building is completed and occupancy is received, this status must be converted to condominium. Otherwise, the real estate remains in a legally incomplete status.
Failure to transition to condominium ownership may have the following consequences:
- The completion of the building does not appear officially in the title deed.
- Buyer confidence decreases during the sales process.
- It becomes difficult to use bank loans.
- The market value of the real estate may decrease.
There may be serious value differences, especially between apartments in the same building. A condominium flat sells faster and is generally priced higher than a condominium flat. It is often seen that this transformation has not been carried out for years in old buildings. However, when it comes to the sales stage, missing documents and legal uncertainties prolong the process. For this reason, although the transition to condominium ownership may seem technically delayed, it is a process that must be done in practice.
When the documents required for the transition to condominium ownership are completed completely, the legal status of your real estate becomes clear and its market value increases. While this process is a formal procedure, it is also one of the most important steps in securing your investment. The difference between floor easement and condominium ownership is decisive in many areas, from the saleability of the real estate to its suitability for credit. Therefore, completing the transition to condominium ownership process correctly and on time provides significant advantages in the long term.
