What is Shared Deed?

Shared Deed

What is Shared Deed?

In case there is more than one shareholder on an immovable property registered in the title deed, the title deeds showing the information of all the shareholders and their shareholding rates are named as share title.

Shared title deeds, which we often encounter in terms of title deeds, are divided into two types: joint ownership ownership and shared ownership. So what does this share title mean? Shared title deeds are title deeds showing the information and entitlement rates of all shareholders, in case there is more than one shareholder on an immovable. It is divided into two types as joint ownership and shared ownership.

How many rights the persons have in the ownership in which region are not detailed. This situation causes disputes between individuals during sales transactions. In the case of shared ownership, the percentage of shareholders who are entitled to the immovable property is stated by the official documents with the ratios. Shareholder title holders can sign a rizai taksim agreement among themselves, indicating which section belongs to them.

What is the Rizai Taksim Agreement?

Consent taksim is a type of agreement established with an official contract, based on the written declarations of the owners among themselves on the title deeds with shared ownership about which owner will use which region. Although the Rızai Taksim agreement is a de facto sharing, it does not have any effect on the shareholding title unless it is registered in the land registry. Although there is no obligation in this contract for each shareholder to receive an equal share, if the owners agree, a contract can be established by paying the equalization fee to the shareholder who received less shares.

What Are Shared Deed Disputes?

Since the shared title is generally shared ownership, there is a common use and a common ownership. In this case, it raises many types of disputes for shared title deeds.

 

  • Uncertainty: Although the title deed states how much share the owners have, the owners have the same share rights in every part of the immovable property. For this reason, problems may arise regarding who will use which part of the immovable and any disputes that may arise cause loss of time and money.

 

  • Right of Prevention: Even though the owners of the shares in the title deeds can sell their shares to other persons, other shareholders can get their shares by paying the sales price. For this reason, the sale of shares owned on the real estate becomes difficult and can be sold for a lower value than it is.

 

  • Problem of Trust: Due to the disagreement of every stakeholder, there is a problem of trust in third parties to be contracted. For this reason, various problems may be encountered especially when establishing a mortgage on the share owned and withdrawing loans from the bank. Due to this difficulty, the stakeholder has difficulties when selling its shares to third parties, as the value of the real estate decreases.

 

  • Izale-i Şüyu Case: As it is known, any shareholder can file a lawsuit to eliminate the partnership on the immovable. In such cases, the judge will physically distribute the immovable to the shareholders as he can divide it. In cases where it is not divided, it can be decided to distribute the income obtained by selling the real estate to the stakeholders. In this process, the real estate will likely be sold at a price below its value, which will put the parties in loss.

 

  • Not Sustainable: If one of the shareholders dies, the number of stakeholders increases significantly and this situation makes the management of the real estate even more difficult.

 

  • Stakeholder being at Risk: A stakeholder has the possibility of losing its property right by being removed from the stakeholder at the request of other stakeholders.

How to Convert Shared Title Deed to Detached Deed?

Those who have shared title deeds can convert their deeds to individual title deeds. So, how can a share title deed be converted into a separate title deed? There are some situations for the transition from shared title deed to separate title deed.

If the 18th article of the Zoning Law No. 3194 is applied at the location of the parcel that will switch from the joint title deed to the separate title deed, share settlement is out of question. During the implementation, the zoning parcel to be allocated for the remaining amount after the partnership share is deducted from the parcel at the determined rate, is also given as shares. Later, the stakeholders buy and share each other’s shares and reach an agreement.

If the application; If more than one parcel can be given in return for the shareholder’s parcel after the partnership share ratio is cut and made in conjunction with Article 18 of Law No. 3194 and Annex 1 of Law No. 2981/3290, then it is possible to give individual zoning parcels to the shareholders in line with their shares.