What is a Partition Lawsuit (Izale-i Şuyu)?

When a property or other asset is owned by more than one person, disagreements may occasionally arise between the co-owners. One co-owner may want the property sold, while the others may want the co-ownership to continue.

One of the legal avenues that arises when parties wish to terminate their joint ownership relationship is a lawsuit for the dissolution of joint ownership. In practice, this lawsuit is also known as the "izale-i şuyu" lawsuit (a lawsuit for the termination of joint ownership in the past) .

What is a dissolution of partnership lawsuit?

A partition lawsuit is a lawsuit aimed at ending co-ownership of a property.

For example, let's say a house is inherited by three siblings. One sibling might want to receive their share and withdraw from the joint ownership, while the other siblings might not want the house to be sold.

If the parties cannot reach an agreement among themselves, one of the partners may request the dissolution of the partnership.

The primary purpose of this lawsuit is to enable one of the parties to terminate the ongoing joint ownership relationship with the other partners regarding the property.

Can each partner request the dissolution of the partnership?

As a rule, each stakeholder has the right to request the termination of the partnership.

Article 698 of the Turkish Civil Code stipulates that, unless the continuation of the partnership is made mandatory by a legal transaction, each co-owner may request a division of the property.

However, there are some exceptions to the exercise of this right. For example, different assessments may be made if the request to share is made at an inappropriate time or if there is a special situation arising from the law.

Therefore, if one partner says, "I don't want it to be sold," that alone doesn't mean the partnership will last forever.

What are the possible ways to dissolve a partnership?

There are two main methods for terminating a partnership:

1. Exactly like Taksim

The process of dividing the property, if possible, physically and distributing it among the partners.

For example, if zoning and other legal conditions permit, a divisible property could be divided among the co-owners according to their respective shares.

However, it is not possible to physically divide every property.

Dividing a single dwelling or a small independent unit may often not be practically possible.

2. Dissolution of partnership through sale

In cases where it is not possible to divide the property in kind, or if division would result in a significant loss of value, a sale may be resorted to.

The proceeds from the sale are distributed among the partners in proportion to their shares.

For example, if a property owned equally by four people is sold for 4 million TL, the remaining amount after necessary expenses and deductions is, as a rule, distributed according to the share ratios.

However, the share ratios and the legal status of the property should be examined separately in this specific case.

Does the court directly order the sale of the property?

Not always.

The court first whether the property can be divided in kind and whether the division would result in a significant loss of value for the co-owners.

If it is concluded that dividing the property is not possible or appropriate, a decision may be made to dissolve the co-ownership through sale.

Therefore, it is not accurate to make a general statement such as "If a lawsuit for the dissolution of the partnership is filed, the house will definitely be sold.".

What happens if one of the co-owners is using the property?

If one co-owner uses the entire property or a significant portion of it in a way that excludes the other co-owners from its use, this may also have legal consequences.

For example, if only one sibling lives in an inherited house, the inability of the other co-owners to benefit from the property may be evaluated separately depending on the specific circumstances of the case.

In this situation, claims such as compensation for unlawful occupation (ecrimisil) may also arise, independent of the lawsuit for the dissolution of the partnership

However, the conditions for claiming compensation for unlawful use of property differ from the conditions for a lawsuit to dissolve a partnership.

What happens if one of the partners opposes the sale?

This is one of the most common problems encountered in practice.

Even if one of the co-owners does not want to sell the property, the other co-owners may have the right, by law, to request the dissolution of the partnership.

Therefore:

"I don't want it to be sold."

This type of objection alone may not prevent the other stakeholder from requesting the termination of the partnership.

However, the method by which the partnership will be dissolved will be determined by considering the nature of the property and other specific characteristics of the case.

Is mediation mandatory before filing a lawsuit to dissolve a partnership?

This issue is particularly important in terms of current practice.

In disputes regarding the dissolution of partnerships, it has been made mandatory to resort to mediation before filing a lawsuit. Therefore, it is necessary to check whether the mandatory mediation process has been completed before filing a lawsuit.

If the parties reach an agreement through mediation, a solution regarding the division or sale of the property can be established without going to court.

If an agreement cannot be reached, and provided other necessary conditions are met, legal action can be taken.

What documents are required in a partnership dissolution lawsuit?

While it varies depending on the specific case, the following documents are generally important:

• Land registry records,
• Property block and parcel information,
• If inheritance is involved, a certificate of inheritance is required
• The parties' identity and address information,
• If any, previous sharing or sales agreements exist,
• Zoning and municipal records related to the property,
• Correspondence between the parties and other relevant documents.

The court may order an on-site inspection and expert examination to determine the nature of the property if it deems it necessary .

How long does a partnership dissolution lawsuit take?

It is not possible to give a precise timeframe for how long these cases will last.

The duration;

• The nature of the property,
• Number of partners,
• The status of land registry records,
• Number of heirs,
• Exactly whether partition is possible or not,
• Expert examinations,
• Exploration operations,
• The parties' objections,
• How the sales process progresses

Many factors can have an impact, such as these.

Therefore, giving a definite timeframe such as "a dissolution of partnership case will be concluded in this many months" can be misleading.

How will the money from the sale be shared?

If a decision is made to sell the property, the amount remaining after deducting relevant expenses and costs from the sale price is, as a rule, among the co-owners in proportion to their shares .

For example, in a real estate property;

• A's share: 50%
• B's share: 25%
• C's share: 25%

The remaining proceeds from the sale are then distributed according to these percentages.

However, circumstances such as mortgages, liens, or other real rights on the property may affect the distribution of the sale proceeds.

Is a lawyer necessary in a partnership dissolution case?

Hiring a lawyer isn't always mandatory to file a lawsuit. However, the legal process can become more complex if the property is of high value, there are numerous heirs, there's a possibility of partition in kind, claims for compensation for unauthorized use of property, or title disputes.

particularly to examine the legal and factual status of the property before filing a lawsuit, to evaluate which partition method can be applied, and to properly conduct the mandatory mediation process.

Conclusion

A partition lawsuit is an important legal avenue for ending a partnership relationship over real estate or other property.

Termination of the partnership;

• Exactly like partition, that is, dividing the property and distributing it among the partners,
• or sale, that is, selling the goods and distributing the proceeds to the partners in proportion to their shares.

This can be done in this way.

This lawsuit can be an important solution, especially in cases of inherited real estate, when co-owners cannot reach an agreement. However, whether the property can be divided, whether a sale is necessary, the shares of the co-owners, and other rights over the property on a case-by-case basis .

Related article: Rent determination lawsuit.