Revenue-Sharing Model: A Comprehensive Guide for Landowners

What Is the Revenue-Sharing (Kat Karşılığı) Model?

Revenue-sharing (kat karşılığı) is a real estate development model based on the landowner transferring their property to a contractor in exchange for construction, with the contractor giving a portion of the independent units to be built to the landowner. The landowner acquires a new building without spending cash, while the contractor lightens its financial burden by deferring land costs.

How Does the Process Work?

1. The value of the land and the cost of the construction to be carried out are determined.
2. The share ratio is negotiated: Typically the landowner receives 35–45% and the contractor 55–65%.
3. A notarised revenue-sharing construction agreement is drawn up.
4. The contractor obtains a permit and starts construction.
5. When the building is complete, a condominium title deed is prepared and the units are distributed.

Advantages for the Landowner

• Acquisition of new independent units without any cash outlay
• Opportunity to multiply the value of the land
• Building quality and delivery date are secured by contract

Risks to Be Aware Of

• Contractor insolvency risk: Security mechanisms must be added to the agreement (letter of guarantee, mortgage).
• Risks of construction quality and delivery delays
• Tax dimension: Title deed fee and capital gains tax on land transfer must be calculated.
• Whether the share ratio reflects market reality should be confirmed by independent appraisal.

Conclusion

The revenue-sharing model can become a powerful value-creation tool for landowners with the right contractor selection and a solid agreement. At Kupon Araziler, we present relevant offers in our portfolio to landowners suited to this model.