Joint ownership is the name given to immovables that cannot be shared. The ownership of the same property by more than one person is called joint ownership. In this case, a partnership occurs. The partnership in question is not based on a share in the property, but on the right to own property, to be explained in a more succinct way about making use of the property. A partnership represents a right, not a material share.
The concept of joint ownership may occur due to reasons such as law or legal transactions. Among these reasons, it can be counted that an immovable in question is tied to more than one person, there is a testament or partnership due to inheritance. In these cases, if the share ratios that individuals will have are not specified in a formal contract, the shares of individuals are considered equal to each other.
Among the rights that the stakeholders have on the goods, the sale, donation, pledge, or sale promise of their share can be counted. In case the said share is sold to a third party, there is a preemptive right.
In the case of leasing the joint property, the signature of all the stakeholders in the position of the lessor must be on the lease contract to be signed. In case two stakeholders have rights on the property, one party can lease its share to the other stakeholder.
Termination of joint ownership occurs when the property is divided between the parties or when the sale takes place.
What Are Ownership Rights?
In cases where joint ownership is in question, each of the stakeholders has rights and obligations on their share. In this respect, the parties can transfer or pledge their rights on the shares they own, and they can also be seized by the creditors.
In joint ownership, since each of the stakeholders has authority over their shares, they have the right to transfer their shares without the approval of the other stakeholders. The parties also have the right to pledge their rights to their creditors in return for their debts or to have their shares foreclosed. However, if one or more of the shareholders holding rights on the immovable property put their rights up for sale, the other stakeholders have priority rights protected by law for the said share.
In joint ownership, the shareholders must ensure that the common property is used together. However, it is also possible for the shareholders to change the management style of the property with a formal contract they will make among themselves, and in this way, give the control of the common property to one or more of them.
As stated in the official rescript, “Stakeholders may unanimously make a regulation different from the provisions of the law on matters related to use and management. However, the following rights and powers of stakeholders cannot be removed or limited by such a contract are listed below:
- To carry out the necessary management work for the protection of the usability and value of the goods subject to common ownership and to ask the court to take the measures when necessary,
- To take the necessary measures to protect the goods from any damage or the risk of increased damage, on behalf of all stakeholders, immediately.
Upon the application of one of the stakeholders, an annotation may be placed on the land registry, provided that the signatures of the contracts regarding the immovable are approved by the notary public.
Interventions that each of the shareholders in the joint ownership can make to the joint property alone are expressed as minor repairs and agricultural works within the scope of the law. However, although the provisions of the law regarding the execution of compulsory works are reserved, it is possible to introduce different regulations for the transactions to be carried out with the joint decision of the stakeholders.
The scope of the decisions to be taken by the votes of the shareholders who own more than 50% of the common property or the majority in number is specified in the Law as “important management works such as changing the operating mode”. or type of agriculture, ordinary lease or lease of produce or termination of contracts, improvement of land”.
How Joint Tenancy Works?
It is necessary to reach a consensus on the possibility of a majority of the stakeholders concluding a lease on the common property. If the joint property is rented without the approval of the majority of the stakeholders, the stakeholders who are not a party to the lease agreement must approve the agreement. Otherwise, the lease agreement will not be valid.
According to the statement within the scope of the Code of Obligations, if the property is rented before the required stakeholder majority is achieved in joint ownership, the lease agreements become invalid. In such a case, a fault occurs against other stakeholders because the shareholder who leases the property cannot fulfill its responsibilities under the contract. In this context, the shareholder who leases the property becomes obligated to pay the rents it receives to other stakeholders in proportion to their share, within the scope of the provisions of operating without a power of attorney.
What are the Advantages of Joint Ownership?
The advantages of joint ownership to the stakeholders can be listed as follows:
- Since the shares and ratios of the stakeholders in the joint property are certain, there are not many problems in the process of separating the shares.
- Shares are considered equal unless the stakeholders take another decision as a result of a joint decision.
- As a result of the termination of the shared ownership, the amount of goods or money that each stakeholder will obtain is determined according to the ratio they have on the property.
What Are the Disadvantages of Joint Ownership?
The disadvantages that can be considered within the scope of joint property can be listed as follows:
- Each partner’s share of the property is clearly stated. For this reason, the rights to be held on the property are limited to the shares of the person.
- The property cannot be rented unless there is a majority among the people who own the property. This situation causes limitations in evaluating the property for investment purposes.
What Are Examples of Joint Ownership?
Joint ownership, in other words, shared ownership, is within the scope of the Turkish Civil Code; It is called the state of having all or a certain share in something that is not financially divided by more than one person. The most well-known example of joint ownership in Turkey is the ownership situation that occurs as a result of the sale of the land owned by a single plot, which is known as a land title among the people, in other words, the parcel owned by the land to many different people.
Another example that can be given about joint ownership is in the case of residences. At this point, an example can be given to couples who are in the process of getting married, preferring joint ownership when buying a house before marriage. As in this example, stakeholders have equal claims on the property, allowing them to share the benefits as well.