Joint title deed is a system in which more than one person has ownership rights in certain proportions on the same real estate. This structure, which is formed especially through joint purchasing and inheritance, not only offers opportunities for investors, but also brings some difficulties in management and decision-making processes.
It may not always be possible to act alone in real estate investments. Increasing housing prices, sharing inheritances or the need to establish a partnership may lead to more than one person having rights on the same real estate. At this point, the joint title deed we encounter constitutes an important but often poorly understood dimension of the real estate market.
Joint Title Deed Concept and Its Legal Infrastructure
There are different ways of using the property right in the Turkish legal system. The concept of joint title deed, evaluated in this context, means that more than one person has rights on the same real estate in certain proportions. This type of ownership, whose legal framework is clearly defined in the Turkish Civil Code, is based on the principle of shared ownership.
Joint title deed,It is the reflection of the type of ownership called "shared ownership" in the land registry in the Turkish Civil Code. According to Article 688 of the Turkish Civil Code, in shared ownership, each of the stakeholders has rights in certain proportions on an undivided whole. In this system, the shares of the shareholders are precisely determined and recorded in the land registry.
Unlike joint ownership, in joint title deed, each shareholder has independent disposition authority over his/her own share. In joint ownership (for example, before the inheritance is shared among the heirs), the shares are uncertain and the stakeholders can only act together. This co-ownership difference is of great importance for title shareholder transactions and requires different approaches to the management of real estate.
Shared ownership, which forms the legal basis of joint title deed, is a system in which more than one person owns mathematically determined shares on the same real estate. The share rates are clearly stated in the title deed and each stakeholder is considered the owner of the real estate in proportion to his share. For example, numerator ratios are shown with fractional expressions such as 1/2, 1/4, or 5/8.
How to Create Joint Title Ownership?
Joint title deed, which forms the legal basis for situations where more than one person has rights on real estate, can arise in different ways. This type of ownership is usually established as a result of joint purchase, inheritance sharing or court decisions. Below we will examine in detail how these processes work.
Via Purchase
Joint title ownership may arise when more than one person purchases a real estate together. In this case, the parties determine the share ratios in the sales contract and these ratios are recorded in the land registry. “How to get a joint title deed?” The answer to the question is actually a process similar to standard title deed transactions. For example, when two friends buy a flat for investment purposes, they can distribute shares as 60%-40% depending on their financial contributions.
The point that should be taken into consideration when creating a joint title deed through purchase is that the parties must be physically present or have a power of attorney issued by a notary during the title deed transfer process. In the transaction to be carried out at the Land Registry Directorate, the identity information and share rates of each shareholder are officially recorded.
Formation of Shared Ownership through Inheritance
Most of the joint title deeds are formed by inheritance. This situation leads to the sharing of real estate assets, especially in large families.
In this case, the heirs must first obtain a deed of inheritance and then apply to the land registry office to complete the transfer process. For example, in the process of transferring valuable properties in the Antalya Lara region through inheritance, it is especially important that the inheritance is shared in a professional manner. Most of the joint title deeds are formed by inheritance. This situation leads to the sharing of real estate assets, especially in large families.
Rights and Responsibilities in Joint Title Deed
In a joint title deed system where more than one person has a share on the same real estate, both the use of rights and the fulfillment of responsibilities gain special importance. The relations of the shareholders with each other and the decisions to be taken regarding the real estate are shaped within the framework determined by the law. Due to the nature of shared ownership, each stakeholder has certain rights as well as obligations that must be fulfilled.
Saving Powers of Shareholders
In a joint title deed, each stakeholder can freely dispose of the share he owns. Within the scope of this property right, shareholders have rights and powers within the framework of the rates specified in the land registry record. Saving authority includes:
- The right to sell, donate or pledge one's share
- Possibility to establish usufruct right on its share
- Ability to inherit one's share
- Ability to take legal action on one's own share without the approval of other stakeholders
However, when decisions concern the entire property, unanimity of the shareholders is required. For example, important decisions such as demolition, reconstruction or sale of the building require the approval of all stakeholders.
Expense Sharing and Management Decisions
Expense Type
Sharing Principle
Decision Method
Property Tax
In share ratio
Mandatory payment
Maintenance-Repair
In share ratio
majority decision
improvement
In share ratio
unanimity
Operating Expenses
In share ratio
majority decision
The decision-making mechanism in the management of jointly titled real estate varies depending on the nature of the transaction. According to Article 691 of the Turkish Civil Code, majority of shares and numbers are sufficient for ordinary administrative affairs. For example, the decision to paint the exterior of the building requires the approval of stakeholders representing more than half of the total shares.
In important administrative matters (such as making significant changes to the building, opening the land for construction, etc.), unanimity is required. This can make decision-making processes difficult, especially in real estate where there are many shareholders.
Joint Title Deed Transfer and Sale
In joint title deed transactions, which are frequently encountered in the real estate market, it is possible for shareholders to transfer their shares or sell the entire real estate. These processes include some differences and additional procedures compared to a normal title deed transfer. The change of hands of a real estate subject to shared ownership is subject to special procedures that both shareholders and buyers should be aware of.
Transfer of Own Share
In joint title deed, shareholders can freely transfer their shares. Steps to follow for share transfer:
- Application to the Land Registry Directorate
- Preparation of necessary documents for transfer
- Payment of title deed fee
- Carrying out the transfer transaction
During the share transfer, other stakeholders have the right of pre-emption. The right of pre-emption indicates that if a shareholder sells his share to a third party, other shareholders have the priority to purchase this share under the same conditions. Due to the rapid increases observed in Antalya house prices, the effective use of the pre-emption right can provide a significant financial advantage for shareholders. The period of use of the pre-emption right is 3 months from the date of learning of the sale, and in any case 2 years from the date of the sale.
Whole Real Estate Sale Process
In order to sell the entire property with joint title, the approval of all shareholders is required. Joint title sale is a more complex process than a normal real estate sale. Steps to be followed in the sales process for disposition transactions on shared real estate:
- Providing identity information and title deed records of all shareholders
- Agreeing on the sales price
- All shareholders must be present for the sale transaction or provide a power of attorney.
- Carrying out the transfer process at the Land Registry Office
The biggest difficulty in selling jointly titled real estate is bringing all shareholders together and making joint decisions. This process can become even more difficult if shareholders live in different cities or countries.
Frequently Encountered Incompatibilities Between Shareholders
In cases where more than one person has rights to the same real estate, it may be inevitable for various disputes to arise between the parties. Especially in a system where shareholders with different expectations and needs come together, these disagreements may prevent the effective use of the real estate. These difficulties arising from the nature of shared ownership can be overcome with appropriate management strategies or legal solutions.
Joint Use and Investment Decisions
The most common disputes between shareholders in jointly titled real estate are as follows:
- The type of use of the real estate (residence, workplace, etc.)
- Sharing of rental income
- Covering maintenance and repair costs
- Investment decisions for the future of real estate
- Disputes during title deed sharing and transfer transactions
It is recommended that shareholders prepare a written management plan to resolve such disputes. In the management plan, the use of the real estate, sharing of expenses and decision-making mechanisms should be determined in detail.
Sale Obligation Situation in Share Real Estate
In cases where an agreement cannot be reached between the shareholders, the solution is to dissolve the partnership (dissolution of partnership). In such cases of shareholder disputes, the court is requested to share the real estate as is or to sell it and distribute the price according to the share ratios.
According to the jurisprudence of the Supreme Court of Appeals, in cases where it is not possible to share exactly the same (for example, when an apartment cannot be physically divided), the sale of the real estate is decided. The sale is carried out through auction and the proceeds are distributed to the shareholders in proportion to their shares.
The lawsuit to dissolve the partnership is a frequently used method in resolving disputes in shared ownership. These cases may require long processes depending on the workload of the courts.
Investment Value of Joint Title Deed
The joint title deed system, which can be considered as an alternative option in real estate investments, offers some advantages and disadvantages. This type of ownership, which allows investors who want to enter the real estate market with a limited budget to create a portfolio by purchasing shares, should also be evaluated with the difficulties it brings. Possible difficulties in the management of the real estate and relations between shareholders are among the factors affecting the return on investment.
Thanks to the strong legal framework, the fact that the shares are specific and that each stakeholder has the authority to dispose of their own shares can make joint title deeds attractive for investors. The dynamism seen especially in the Antalya Muratpaşa rental house market in recent years makes joint title investments even more interesting. However, before the investment decision, the profile of other shareholders and the potential of the real estate should be examined in detail.
Legal Obligations and Changing Regulations
The joint title deed system, which is considered within the scope of property law and regulates more than one person having a share on the same real estate, is directly affected by changes in legal legislation. This form of ownership, regulated by the relevant articles of the Turkish Civil Code, finds new application areas with technological developments and digitalization of bureaucratic processes. Current legal regulations aim to manage shared ownership more effectively and transparently.
According to the new regulations, it is aimed to manage title deed records in the digital environment more effectively in real estate subject to shared ownership. In this context, applications for shared title deed transactions can be made electronically through the web title deed system, but physical approval and signatures at the Land Registry Directorate are still required to complete the transaction.
These regulations, which protect the rights of shareholders and facilitate the resolution of disputes, aim to modernize the management of jointly titled real estate. The fact that many real estate properties in Türkiye have joint title makes the impact of these regulations on the real estate ownership structure important.
Recent developments in the real estate market increase the interest in joint title investments. Particularly in regions with high value increase potential, such as Antalya, shared ownership alternatives are becoming more attractive due to rising housing prices and rental housing demand. In locations such as Antalya Muratpaşa and Lara, the acquisition of shared real estate can offer an economic entry point for investors who do not have enough budget for full ownership. According to Makro Life's regional analysis, since rental income is high in these regions, the return on investment of shared real estate acquired at affordable prices can be competitive. However, since these data are not directly separated by ownership type, it is recommended to make an individual evaluation before investment.
Frequently Asked Questions About Joint Title Deed
What happens if one of the shareholders in a joint title deed dies?
The share of the deceased shareholder passes to his or her heirs. The heirs complete the transfer process by applying to the land registry office with a deed of inheritance. Thus, they are recorded in the land registry as new shareholders.
Can other shareholders sell a jointly titled real estate without my consent?
Other shareholders can sell their shares without your approval. However, they cannot make any savings on your share. The shareholder who sells his share must first make you a sales offer (right of pre-emption).
Can I do construction alone on a property with joint title?
No, changes that affect the entire property, such as construction, require the approval of all shareholders. You cannot build alone.
How are expenses shared in joint ownership?
Expenses such as maintenance, repair and taxes of the real estate are shared among the shareholders according to their share ratios. For example, the person who owns 1/3 of the share must cover 1/3 of the expenses.
