Exception to the Condominium Rule for Tourism Facilities Before 2019

A new exception concerning the rules on condominium and property rights in tourism facilities has come into effect, affecting certain existing businesses.

With the Presidential Decree No. 11706 published in the Official Gazette No. 33356 dated August 31, 2026, a new clause was added to the temporary Article 1 of the Regulation on the Qualifications of Tourism Facilities.

The new provision covers certain facilities that have a partial tourism business or tourism business document located in areas designated solely for commercial use in the zoning plan before June 1, 2019. If there are accommodation units belonging to the same owner in these facilities, the eighth paragraph of Article 13 of the Regulation will not be applied.

The regulation came into effect on the day it was published.

What did the existing rule say?

To understand the significance of the change, it is necessary to look at the eighth paragraph of Article 13 of the Regulation.

According to the existing regulation, tourism facilities providing accommodation services are evaluated as a single independent unit. Generally, the establishment of rights that can be registered on the title deed, such as property rights, condominium rights, and timeshare, is not permitted on accommodation units.

Additionally, the registration of certain agreements regarding use, management, and enjoyment on the title deed is also prohibited. Facilities found to be in violation of this rule are subject to the cancellation of their tourism documents.

The fundamental approach is to limit the fragmentation of the accommodation asset certified as a tourism facility into different ownership models on a room or independent unit basis.

The change on August 31 does not eliminate this fundamental system.

It introduces a narrowly defined exception for certain historical facilities.

Four conditions are crucial to benefit from the exception

It would be incorrect to interpret the new regulation as "condominium rights have been freed in all hotels built before 2019."

Several conditions are sought simultaneously in the text.

First, the facility must be in the relevant situation before June 1, 2019.

Second, the parcel must be located in an area designated solely for commercial use in the zoning plan.

Third, the facility must have a partial tourism business document or tourism business document.

Fourth, the accommodation units with condominium or property rights must belong to the same owner.

If any of these conditions are not met, it cannot be said that the new exception will automatically apply.

Therefore, it will not be sufficient for businesses to only look at the construction date of the facility; the zoning plan, existing tourism document, and title deed structure will need to be examined together.

Why is June 1, 2019, used as a date?

June 1, 2019, is the date when the Regulation on the Qualifications of Tourism Facilities currently in force was published.

The Regulation, enacted by Presidential Decree No. 1134, reorganized the main framework regarding the minimum qualifications, certification, and operation of tourism facilities.

The fact that the new exception takes this date as a limit indicates that the regulation primarily targets certain ownership structures that existed before the new system.

In other words, there is no mention of a regulation that generally opens the way for condominium ownership in new tourism investments.

Why is it important in terms of the risk of document cancellation?

The existing provision in the eighth paragraph of Article 13 is quite strong.

If a property or registration structure in violation of the rule is detected, the cancellation of the tourism document may come into question.

The change on August 31, 2026, prevents the existing condominium or property rights in older facilities that meet the necessary conditions from constituting a violation of this provision on their own.

Therefore, the economic implications of the regulation are not limited to title deed techniques.

The continuity of the tourism business document;

operation,

brand agreements,

financing,

real estate value

and potential sales transactions

may be directly important.

However, which facility is truly within the scope of the exception should be determined based on concrete title and zoning records.

No freedom has been granted for new hotel investments

One of the most important limitations of the regulation is here.

The new provision has been added to the temporary article and clearly describes certain facilities before June 1, 2019.

The eighth paragraph of Article 13 of the main Regulation remains in effect.

Therefore, for an investor who wants to develop a new tourism investment today and convert hotel rooms into separate independent units under the classic condominium system, the existing general prohibition has not been lifted.

This distinction is particularly important in investor communication.

A broad statement such as "the prohibition on condominium ownership in tourism facilities has been lifted" would be legally misleading.

A more accurate expression would be:

An exception has been introduced for the application of the existing prohibition for certain documented facilities before 2019.

Why is the same owner condition critical?

The use of the phrase "accommodation units belonging to the same owner" in the regulation change is particularly noteworthy.

This phrase makes it difficult to say that the exception automatically covers hotel rooms sold to many different individuals.

The regulation seems more aimed at protecting historical facilities that have condominium or property rights established on accommodation units within the same ownership structure.

The precise boundaries of this in practice will be shaped by Ministry procedures and concrete title records.

Therefore, a facility with a fragmented ownership structure should not be assumed to be within the scope of the exception solely based on being established before 2019.

What documents should hotel owners check?

For businesses that may be affected by the regulation, four records are critical at the initial stage.

Zoning plan and usage decision.

Tourism business or partial tourism business document.

Date and scope of the establishment of condominium or property rights.

Owner information of accommodation units on the title deed.

In addition, past Ministry correspondence, document renewal processes, and any title deed registrations may also need to be examined.

Especially before real estate sales, refinancing, or brand agreements, clarifying this legal structure is important for investors.

Operating licenses should not be confused with tourism documents

The new change directly relates to the tourism document regime of the Regulation on the Qualifications of Tourism Facilities.

Therefore, it should not be assumed that the exception eliminates all permits and obligations in other legislation.

Business opening and operating licenses.

Zoning legislation.

Fire safety.

Building usage permits.

Conditions required by municipalities or other authorities.

Each of these may be based on separate legal grounds.

The new provision only regulates the non-application of the eighth paragraph of Article 13 of the Regulation for facilities that meet the conditions.

Therefore, it cannot be concluded that "I am within the scope of the exception, all my other license issues are resolved."

Stafflink’s opinion

In our view, the most important aspect of the new regulation for businesses is that it creates a legal transition mechanism to prevent certain tourism facilities established in the past from facing document risks due to today's ownership rules.

However, the scope is quite specific.

Before June 1, 2019.

Only in areas designated for commercial use.

Existing tourism business or partial tourism business document.

Same owner.

These four elements need to be evaluated together.

Therefore, the correct approach for businesses is not to say "the exception has come out, the problem is solved"; rather, it is to recheck the facility's title, zoning, and tourism document files.

Especially in hotel sales, changes in investors, and financing transactions, the compliance of the ownership structure with tourism legislation is becoming increasingly important.

The new regulation provides significant relief for some older facilities; however, it is not a comprehensive liberalization that changes the general system regarding condominium ownership in tourism facilities.