Shared Title Deed, Power of Attorney and Risks

The risks of a shared title deed are the usage, sale and legal uncertainties that arise from the nature of co-ownership. In short: with a shared (co-ownership) title deed you own a specific share rather than the entire parcel, which leads to consequences such as an unclear actual usage boundary, the other co-owners' right of pre-emption upon a sale, and difficulties in subdividing (parcelling) the plot. Managed with the right knowledge it can be an opportunity, but an uninformed purchase can cause serious grievance.

What is a shared (co-ownership) title deed?

With a shared title deed, a property belongs to more than one person and each owner holds a share at a specific ratio. On the deed it appears, for example, as '1/4 share'. This share is an abstract ratio; most of the time it is not actually determined which square metres of the parcel it corresponds to.

How does it differ from an independent title deed?

With an independent title deed the entire parcel belongs to a single owner; the boundaries are clear and the sale and usage decisions belong to one person. With a shared title deed, however, a significant portion of the decisions is taken together with the other co-owners. This fundamental difference makes managing a shared investment more complex. We also covered the practical effects of the independent versus shared distinction in our title deed checks when buying land article.

What risks does a shared plot carry?

Co-ownership brings along several typical risks:

• Usage and partition problem: Because it is unclear which area you will use, disputes can arise among the co-owners.
• Right of pre-emption (şufa): When a co-owner sells their share to a third party, the other co-owners have the right to purchase that share on a priority basis under the same terms within the legal period.
• Subdivision difficulty: Officially dividing the parcel among the shares is not always possible; zoning and size requirements may pose an obstacle.
• 'Share sale' traps: Some sellers split a large piece of land into countless small shares and market it with the promise that 'you will have your own title deed'; yet what you acquire is merely an abstract share, and no parcel that belongs to you comes into being.

Before buying a shared plot, you must be able to give a clear answer to the question 'what exactly am I acquiring ownership of?'. An abstract share and a parcel you can actually use are not the same thing.

When does a shared title deed make sense?

A shared purchase is not always negative. It can make sense among family members, in situations where the co-owners know one another and have agreed in writing on the partition; or in a planned development project where the subdivision conditions are clear for the future. What matters is to act knowing and documenting the risks.

How is buying and selling carried out safely with a power of attorney?

Buying and selling real estate can also be done through a proxy acting on behalf of the owner. This is a great convenience, especially for investors who are in another city or abroad. However, the safe use of a power of attorney depends on a few rules:

• Formal requirement: For a real estate sale, the power of attorney is prepared at a notary, in the form of a deed and with a photograph.
• Consular power of attorney: An investor abroad can carry out the process remotely by having a power of attorney drawn up at the Turkish consulate to which they are affiliated.
• Clarity of scope: It must be clearly stated for which property and for which transactions (sale, transfer, collection of the price) the power of attorney grants authority. Avoid granting broader authority than necessary.
• Revocation (withdrawal): A power of attorney granted can always be cancelled through a notary; carry out the revocation as soon as the need ends.

Protection from fraud

In transactions by power of attorney, the greatest risk is a forged or cancelled power of attorney. Be sure to verify the other party's power of attorney, do not make payment before the transfer takes place, and conduct the entire process with a trusted advisor. For official title deed and cadastre information you can use TKGM's official website, and for your own property records the e-Devlet portal.

The cost and fee dimension

Whether shared or independent, title deed fees and revolving fund expenses apply at transfer. To calculate these items in advance you can look at our title deed fees and expenses article. This content is for general information purposes; we recommend obtaining legal support in concrete transactions.

How does the right of pre-emption (şufa) work?

The right of pre-emption is one of the most misunderstood topics of co-ownership. When a co-owner sells their share to an outside buyer, the other co-owners have the right to purchase that share on a priority basis at the same price and under the same terms within the legal period. This right is exercised through a lawsuit and is subject to a time limit.

For the investor this means the following: when you acquire a shared portion, there is a possibility that the other co-owners object to this sale and take over the share from you. For this reason, in shared purchases it is important to assess the pre-emption risk from the outset and, if possible, to ensure that all co-owners are aware of and consent to the sale.

Value and liquidity in a shared plot

Shared portions are most of the time priced lower than independent parcels, because the usage and sale restrictions narrow the pool of buyers. Although this sometimes looks like an opportunity, you will face the same liquidity problem when selling later on. Thinking about the exit strategy of the investment from the start is especially critical in shared purchases.

A low price is not an opportunity on its own; you must also think today about to whom and under what terms you can sell that share later.

Subdivision and partition: moving from a shared portion to independent ownership

If the co-owners on a shared parcel agree, it may be possible to officially divide the parcel (subdivision) or to give legal form to the actual sharing among the portions. However, subdivision depends on the zoning plan, the minimum parcel size and municipal approval; it cannot be applied to every parcel. For this reason, buying a share with the expectation that 'we will divide it later' is risky; the possibility of subdivision must be confirmed from the outset. You can find out how to read the zoning plan in our zoning status guide.

If subdivision is possible and all co-owners have agreed, the shared portion can over time turn into an independent parcel and gain value. This scenario is one of the most positive exit routes of a shared purchase; however, the guarantee that it will happen must be secured from the start.

Limiting the scope of authority in the power of attorney

When granting a power of attorney, defining authority specific only to the relevant property and the necessary transactions, instead of unlimited expressions such as 'is authorised to carry out any kind of transaction', increases your security. Limits such as whether the proxy will collect the price and below which price they cannot make a sale can be written into the document. Keeping the scope narrow and clear reduces the possibility of misuse.

Forged power of attorney and signs of fraud

Be cautious of sellers who rush you excessively, demand a large cash payment in hand and avoid showing documents. Do not make payment without verifying the validity of the power of attorney presented by the proxy and whether it has been revoked. In a suspicious situation, stopping the transaction and obtaining confirmation through an official channel is far more valuable than the time lost.

Fraud protection checklist

Follow the steps below to proceed safely:

• Verify that the power of attorney was drawn up at a notary, with a photograph and with authority specific to the real estate sale.
• Confirm that the power of attorney has not been revoked (cancelled).
• Check the owner, the share ratio and the annotations against a current title deed record copy.
• Make payment only at the moment the title deed transfer takes place; draw up a written contract for the deposit.
• Prefer traceable payment channels instead of large cash in hand.
• Stop the transaction with parties who rush you and avoid showing documents.
• Conduct the entire process with a trusted advisor.

Frequently Asked Questions

What is the difference between a shared title deed and an independent title deed?

With an independent title deed the entire parcel belongs to a single owner; the boundaries are clear and the decisions belong to one person. With a shared title deed, however, you own a specific share, and this share is most of the time an abstract ratio whose corresponding square metres are uncertain. Sale and usage decisions are taken together with the other co-owners.

How does the right of pre-emption (şufa) affect my investment?

When a co-owner sells their share to the outside, the other co-owners can purchase that share on a priority basis under the same terms and at the same price within the legal period. In other words, a share you have acquired can pass to another co-owner through a lawsuit. To reduce the risk, it is important that all co-owners are aware of the sale and, if possible, that consent is obtained.

Can I buy land while abroad?

Yes. By having a photographed power of attorney specific to the real estate sale drawn up at the Turkish consulate to which you are affiliated, you can carry out the process remotely and safely. Keep the scope of authority specific only to the relevant property, revoke the power of attorney once your business is done, and proceed with a trusted advisor.

Should I rely on the promise 'we will divide it later, everyone gets their own plot'?

Relying on this word alone is risky. Subdivision depends on the zoning plan, the minimum parcel size and municipal approval, and is not possible on every parcel. Before buying a share, officially confirm that the possibility of subdivision genuinely exists and seek a written partition agreement from all co-owners.

Sevindikli Yatırım for a safe remote process

As Sevindikli Yatırım, we manage a safe remote title deed and sale process by power of attorney for investors who are in another city or abroad, and we carefully carry out share and annotation checks before purchase. Our aim is for the investor to be able to proceed at least as safely as in an independent purchase, even without being on site. You can read our land investment guide that explains the entire investment process, and reach us at +90 532 295 17 61 for your questions. May you have a place of your own, and may it come with a clean and safe title deed.