Can Land and Buildings Be Bought and Sold Separately?

Land and Buildings are assets that are closely connected in legal terms. As a general rule, the law deems buildings affixed to land to be part of the land, unless there is a legal exception or a specific special right is provided. Understanding this basic definition is an important starting point before considering issues relating to the sale and purchase of land and buildings

Meaning of “Land”

In legal terms, land means the ground, which may include things attached to the ground by nature or as prescribed by law. Land is a type of immovable property and is an asset that can be bought and sold, transferred, or have rights registered at the Land Office.

Meaning of “Buildings/Structures”

Buildings/structures mean buildings, houses, dwellings, or any other construction permanently built and affixed to the land. In general, the law considers buildings/structures to be component parts of the land and likewise immovable property.

General Principle: Are Land and Buildings Considered the Same Property?

Determining whether land and buildings can be bought and sold separately requires a basic understanding of legal principles on ownership, in particular the provisions of the Civil and Commercial Code, which is the principal law governing the sale and purchase of land and immovable property.

General principles under the Civil and Commercial Code

Under the general principles of the Civil and Commercial Code, the key concepts are as follows:

• Buildings are component parts of the land. The law regards buildings permanently affixed to the land as component parts of the land; that is, they are not separated from the land in terms of ownership, unless a legal exception applies.

• As a general rule, the landowner is the owner of the buildings. When a person owns the land, that person is automatically the owner of the buildings situated on the land, whether or not they were the one who constructed them. This principle is a key reason why, in general, the sale and purchase of land typically includes the buildings on that land.

Exceptions recognized by law

Despite the general rule above, the law allows certain exceptions that enable land and buildings to have different owners.

• Buildings owned by another person. In some cases, a building may not belong to the landowner—for example, where there is an agreement or a supporting legal right, resulting in the building being owned by a person other than the landowner.

• Where there is a right of superficies (Superficies). A right of superficies is a right recognized by law that allows a person to own buildings on another person’s land. This right must be registered with the Land Office, and it is a legal mechanism that lawfully enables the separation of ownership between the land and the buildings.

• Leasing land to build a house. A land lessee may construct a house or building on the leased land. However, as a general rule, if no special right is established—such as a right of superficies—the building may become the landowner’s property when the lease ends. This issue therefore requires careful review of the lease terms and conditions.

The sale and purchase of land and buildings can be separated only in certain cases, depending on whether the building has a legal status that allows its ownership to be separated from the land. If there is no legal right or agreement to support it, the sale and purchase generally must be transferred together.

What legal elements are required?

A sale and purchase of land and buildings as separate transactions can be done properly only when there are clear legal elements, such as:

• A superficies right has been created and registered, making the building the property of a person other than the landowner.

• There is clear evidence of ownership of the building, and such right can be legally transferred.

• There is a contract and terms that clearly specify the separation of rights between the land and the building, and that do not conflict with legal provisions.

If these elements are lacking, a transaction that separates the land from the building may not be registrable for transfer, and may carry a risk of disputes later on.

The difference between “separate sale” and “separate ownership”

A point that often causes confusion is the difference between a separate sale and separate ownership.

• Separate sale means entering into a sale and purchase agreement for only the land or only the building, which can be done only if that right can be legally transferred.

• Separate ownership means that the land and the building are legally owned by different persons—for example, where a superficies right exists—which is a fundamental condition that makes a separate sale possible in practice.

Therefore, before deciding to buy or sell land or a building separately, you should verify the legal status clearly to ensure the transaction is lawful and secure in the long term.

In transactions involving land purchase and sale, it is common to encounter situations where the land and the building/structures do not have the same owner. This makes the transaction more detailed and involves risks that require special consideration. Understanding common examples will help both buyers and sellers make more informed decisions.

Case where the landowner and the house owner are different persons

This typically arises when land is leased for building a house, or when a superficies right is established, resulting in different owners for the land and the house.

• Sale of land only The buyer will acquire ownership of the land, but will not automatically own the building/structures on that land. Rights to use or manage the house will depend on the lease agreement or any existing legal rights attached to it.

• Sale of building/structures only The buyer will acquire ownership of only the house or structures, but not the land. The buyer must therefore carefully review the land lease terms or the superficies right in detail to ensure the property can be occupied or used for the period permitted by law.

• Impact on the buyer Transactions of this type may involve limitations on usage rights, lease renewal, or future transfers. Buyers should assess value for money and risks before making a decision.

Case of buying/selling a house on leased land

Another common case is the purchase and sale of a house built on land leased from another party, which differs from a typical land purchase and sale.

• Buyer’s rights The buyer will obtain rights in the building/structures and the land lease rights under the existing agreement, but not ownership of the land. Use of the property must therefore comply with the lease terms.

• Term and limitations The remaining lease term directly affects the value and overall attractiveness of the transaction. If the lease is close to expiry, it may affect the ability to live in the property or resell it in the future.

• Key risks to be aware of Key risks include inability to renew the lease, changes to terms by the landowner, or restrictions on assignment/transfer of rights. Buyers should therefore thoroughly review the contract and legal status before proceeding with the transaction.

The sale and purchase of land and buildings when handled separately must be carried out more carefully than a typical transaction, as it involves multiple rights and ownership interests. If the review and process are incomplete, it may result in an inability to transfer the rights in practice or lead to disputes later.

Document and Title Verification

The first and most important step is to verify the documents to confirm who owns each part of the property and whether they are legally entitled to sell it.

• Land Title Deed Check the landowner’s name and any encumbrances such as mortgages, attachments, or third-party rights to ensure the land can be legally sold and the title can be transferred.

• Evidence of Rights in the Building/Structure If only the building/structure is being sold, there must be clear evidence that it is owned by the seller, such as documents showing acquisition of the right or proper registration of a superficies right.

• Lease Agreement or Superficies Right If the house is on leased land or a superficies right has been established, review the term, conditions, and transferability to determine whether the right can be transferred to the new buyer.

Registration and Transfer of Ownership

Once the documents are complete, the next step is to register and transfer the rights at the Land Office.

• What Must Be Transferred at the Land Office The sale and purchase of land must be registered as a transfer of land ownership. As for the sale and purchase of a building/structure, registration is possible only where the law recognizes a right separate from the land, such as where a superficies right exists.

• What Can Be Transferred / What Cannot Be Transferred Land ownership can be transferred as usual. However, a building/structure can be transferred only if it has a supporting legal status. If it is a fixture forming part of the land with no applicable exception, it cannot be transferred separately.

• Legal Precautions Entering into a sale and purchase agreement alone is not sufficient. If the right cannot actually be registered, the buyer may not be protected under the law. Therefore, you should ensure that the sale and purchase of land and buildings conducted separately can be completed in full, both contractually and through registration.

The sale and purchase of land and buildings—whether transferred together or separately—carry different related taxes and fees. Understanding the tax structure from the outset helps both buyers and sellers accurately estimate costs and reduce tax risks later on.

Taxes on the sale and purchase of land

In the case of a land sale and purchase (whether or not buildings are included), the main taxes and fees are as follows:

• Transfer fee charged as a percentage of the appraised value of the land or the purchase price, as applicable. This is a key cost payable at the Land Office on the ownership transfer date.

• Withholding income tax / Specific Business Tax / Stamp duty The seller may be subject to withholding income tax and, in some cases, Specific Business Tax. If the transaction does not meet the criteria for Specific Business Tax, stamp duty applies instead. These tax liabilities depend on the nature of ownership, holding period, and the seller’s status.

Taxes in the case of selling only the building

Where only the building is sold without transferring the land, the tax burden differs from a land sale and purchase

Calculation criteria 

Tax is calculated based on the value of the building being sold, considering the appraised value or the contract price, and it may be treated as the seller’s income, which is subject to income tax in accordance with legal requirements.

Differences from a land transfer 

Selling only the building typically does not involve a land transfer fee, but instead focuses on tax liabilities in the nature of income from the sale of property. In this regard, registration of the transfer can be done only where the building has a legal status that supports separating ownership from the land.

Although land and building transactions can be carried out separately in certain cases, there are risks and precautions that both buyers and sellers must consider carefully. If the legal conditions are not thoroughly understood, this may affect property rights and long-term use.

Risks relating to rights and use

Buying and selling land separately from a building may result in incomplete rights of use—for example, the buyer purchases the building but does not clearly hold rights to the land, or has limited use rights under a lease agreement or a superficies right. These terms and durations directly affect the value and investment viability.

Contract and enforceability risks

Contracts that are not properly drafted or that set out unclear terms may cause problems in enforcing rights—for example, being unable to renew a lease, restrictions on transferring rights to another person, or disputes when one party fails to comply with the contract. Therefore, land and building transactions conducted separately require particular attention to ensuring the contracts are legally compliant.

Common practical issues

In practice, common issues include being unable to register the transfer of rights, incomplete documentation, or misunderstandings regarding each party’s rights. These issues may delay the transaction or leave the buyer without the legal protection expected.

The sale and purchase of land and buildings can be separated only in certain cases. A key condition is that there must be a legal status that allows the building to be lawfully owned separately from the land, such as where there is a superficies right or a clearly registered legal agreement. If these conditions are not met, the law still treats the land and the building as a single property

Buying and selling land separately from a building is suitable for those who understand the rights structure well, such as investors purchasing a house on leased land, those who wish to use the property for a limited period, or cases where the landowner and the building owner are different parties. However, this type of transaction inevitably comes with limitations and risks that differ from a typical land sale and purchase transaction

Therefore, before deciding to buy or sell land or a building separately, reviewing documents, ownership, rights of use, and legal encumbrances should not be overlooked. Receiving advice from a real estate professional will help reduce risk and ensure a well-informed decision. If you are looking for opportunities to buy or sell land or real estate, you can learn more or request a consultation at 9asset.com so that every investment is made with confidence and in compliance with the law