What Is Condominium Ownership? What Are the Differences Between Condominium Ownership and Easement? 2025 Updated Guide

In the real estate sector, condominium ownership and easement are frequently encountered terms, especially during property buying and selling processes. So, what is condominium ownership? How does it differ from an easement? We have prepared a 2025 updated guide for property owners and investors. Here are the details:

1. What Is Condominium Ownership?

Condominium ownership is a legal ownership right that allows individuals to own independent units in a completed building. Regulated under the Condominium Law, this right is officially registered in the land registry as a condominium deed.

📌 Types of properties eligible for condominium ownership:

✅ Apartment units

✅ Commercial offices

✅ Shops

✅ Workspaces

✅ Storage units

A condominium ownership deed grants the owner full property rights and legal protection over the independent unit.

2. What Is Easement?

Easement is a temporary ownership right established in an unfinished building that is intended to be converted into condominium ownership in the future. It is created to protect the rights of unit owners in an ongoing construction project.

📌 When is an easement issued?

✅ For properties in unfinished buildings

✅ For properties in the project stage

✅ To provide title deed security to buyers before project completion

Important Note: An easement deed indicates that the property is not yet fully owned. However, since it is registered in the land registry, it can be inherited, sold, or mortgaged.

3. Differences Between Condominium Ownership and Easement

Here is a table outlining the key differences:

Feature	Condominium Ownership	Easement
Definition	Ownership of an independent unit	Preliminary ownership of an unfinished building
Deed Status	Condominium ownership deed	Easement deed
Building Status	Completed and ready for use	Under construction or in project phase
Usage Rights	Grants full ownership rights	Does not grant full ownership, converted to condominium ownership upon completion
Mortgage & Sale	Easily sold and mortgaged	Can be sold, but full ownership is not established
Official Procedures	Requires an occupancy permit from the municipality	Indicates the building is still under construction

📌 Tip: When buying a property with an easement deed, it is crucial to check whether the developer has obtained an occupancy permit (iskan). Otherwise, legal ownership issues may arise in the future.

4. How to Convert Easement to Condominium Ownership

For a property to be converted from easement to condominium ownership, certain official procedures must be completed.

📌 Step-by-Step Process to Convert Easement to Condominium Ownership:

✅ 1. Completion of construction: The property must be fully completed and ready for use.

✅ 2. Obtaining an Occupancy Permit: A building usage permit must be issued by the municipality.

✅ 3. Application to the Land Registry Office: Approval from all unit owners is required to apply for conversion.

✅ 4. Registration in the Land Registry: The conversion to condominium ownership deed is finalized.

📌 Important Note: A property with an easement deed cannot be officially converted into condominium ownership without an occupancy permit. Investors should always check the permit status before purchasing.

5. Advantages and Disadvantages of Condominium Ownership and Easement

Both ownership types have their unique benefits and risks:

✔ Advantages of Condominium Ownership:

• Grants full ownership rights.

• Easier to sell and mortgage.

• Facilitates official property transactions.

❌ Disadvantages of Condominium Ownership:

• Higher tax liabilities compared to easement.

• Occupancy permit (iskan) acquisition can be costly.

✔ Advantages of Easement:

• Lower purchase price in construction-stage projects.

• Can be converted to condominium ownership in the future.

• Registered title deed security.

❌ Disadvantages of Easement:

• Higher investment risk since the building is incomplete.

• Without an occupancy permit, ownership rights may be restricted.

• Difficulty in securing bank loans for easement properties.

Conclusion: Which Type of Deed Is More Advantageous?

When investing in real estate, it is essential to understand the differences between condominium ownership and easement. If you are looking to live in or invest in a fully completed property, obtaining a condominium ownership deed is the safest option. However, if you are considering investing in a project under construction, carefully researching properties with easement deeds is crucial.

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