Property Rights and Important Legal Considerations During the Urban Transformation Process

The fact that Türkiye is an earthquake-prone country has transformed building safety from a purely technical issue into a comprehensive legal field directly linked to property rights, the right to housing, contractual relationships, and administrative procedures. In everyday usage, "urban transformation" is often understood as the demolition of an old building and the construction of a new one in its place. However, legally, this process consists of numerous successive stages, from identifying risky buildings and obtaining decisions from property owners, to selecting a contractor, evacuation and demolition, completion of the new building, and title deed procedures.

Since each stage involves different deadlines, notification methods, and application procedures, a small mistake made at the beginning of the process can lead to serious loss of rights later on. Therefore, urban transformation should be evaluated not only from its technical and economic aspects but also from its legal consequences.

Legal Basis of Urban Transformation

The fundamental legal basis for urban transformation is Law No. 6306 on the Transformation of Areas Under Disaster Risk. The aim of the law is to create healthy and safe living environments in areas under disaster risk and in properties outside these areas that contain risky structures.

Therefore, urban transformation practices are not limited only to risky areas declared by presidential decree. Even if a building is located outside a risky area, it may be subject to the risky building process if, according to scientific and technical data, it is determined that it has completed its economic lifespan or carries a risk of collapse or severe damage.

How are buildings at risk identified?

A risky building refers to a building that has reached the end of its economic lifespan or that poses a risk of collapse or severe damage due to not being constructed in accordance with engineering and architectural standards. This assessment is the first step in initiating the necessary legal processes for building renovation (evacuation, demolition, new construction contracts).

The assessment of risky buildings is, as a rule, carried out by institutions and organizations licensed by the Urban Transformation Presidency, at the request of the building owners or their legal representatives. It is not required for all owners to act together and reach a unanimous decision to initiate the assessment. In addition, the Urban Transformation Presidency or the relevant administration may conduct assessments on its own initiative in certain situations, or request that owners have assessments carried out.

If the prepared technical report is found to be in compliance with the legislation, the information regarding the risky building is reported to the land registry office to be entered in the declarations section of the title deed. However, the addition of a note to the title deed does not mean that the ownership of the property is terminated. While the owners' property rights continue, the property enters a special process to be carried out under Law No. 6306.

Notifications regarding the identification of risky buildings are not only made through traditional notifications sent to the owners' addresses. Posting the report containing the identification information on the building, making a notification via e-Government, and announcing it at the relevant local administrative office can also constitute official notification. Therefore, owners living outside the city, those who rent out their property, or those who do not regularly follow e-Government notifications may learn about the process later.

Time Limit for Appealing and Filing a Lawsuit Regarding the Determination of a Building at Risk

Owners or their legal representatives may appeal against the determination of a building as risky within fifteen days. Appeals are examined by a technical committee consisting of faculty members appointed from universities and experts from relevant public institutions.

When preparing an objection, it is not sufficient to simply argue that the building appears structurally sound from the outside. Core sample results, structural system characteristics, soil data, sampling methods, and the compliance of calculations with regulations must be technically evaluated. Therefore, collaboration between a lawyer and a civil engineer or a technical expert in the field is crucial during the objection process.

According to Law No. 6306, an appeal for annulment against administrative actions taken under this law can, as a rule, be filed with the Administrative Court within thirty days from the date of notification. However, the date on which the time limit begins should be evaluated separately depending on whether the notification was made by posting it on a building, an announcement in the local administrative office, an e-Government notification, or another method.

If it is believed that procedures related to the identification of risky buildings, evacuation, demolition, or sale of land shares are unlawful, the statute of limitations for filing a lawsuit must not be exceeded. Filing a lawsuit for the annulment of an administrative act does not automatically stop its implementation. If the necessary conditions are met, a separate request for a stay of execution may be considered.

By what majority do property owners make decisions?

The decision on how the new building will be constructed on the plot where the risky structure is located, who the contractor will be, and whether a construction model in exchange for land or another financing model will be applied, depends on the decisions of the property owners.

According to current regulations, these decisions are made by a simple majority of shareholders, based on their respective shares, not the number of owners. In other words, in a building with ten independent units, six owners voting in the same direction may not be sufficient on their own. What is decisive is whether the total land share of the owners voting in favor exceeds half.

The decision, taken by simple majority, must be prepared in a clear, implementable, and unambiguous manner. The contractor's offer, the allocation table, the technical specifications, the distribution of independent units, the delivery time, guarantees, and the penalties to be applied in case of delay should be considered integral parts of the decision and the contract.

A general decision such as "it has been decided to award the building to a specific firm" will not prevent future disputes regarding the allocation of individual units, financial obligations, or construction quality.

With the regulatory amendment dated February 4, 2026, the methods for summoning property owners to meetings, the documents to be included in the decision file, the notifications to be sent to property owners who do not participate in the decision, and the procedures to be completed before the building permit are issued have been made more detailed. Therefore, when preparing decisions and contracts, not only the Law but also the current Implementing Regulation should be taken into consideration.

Can the land shares of owners who do not agree with the decision be sold?

Owners who do not agree with the decision taken by a simple majority in proportion to their shares must be duly notified of the decision and the terms of the agreement. The notification should clearly state where the offer can be examined, the acceptance period, and that the land share may be put up for sale if the offer is not accepted.

If the offer is not accepted within the defined period, the land shares belonging to the dissenting owners may be put up for sale in accordance with the procedure stipulated by law. Determining the sale price, whether the valuation report reflects actual market conditions, who can participate in the auction, and whether notifications were made properly are among the most disputed issues.

At this point, the approach that "the majority decided, the minority owner has no rights left" is incorrect. While the majority owners have the authority to make decisions, this authority must be exercised in accordance with the principle of good faith. Imposing vague, uncertain, or one-sided conditions that are far from the true value, with the aim of harming the minority owner, can lead to legal disputes.

The minority property owner should also make a decision after examining the economic and legal consequences of the offer, rather than simply acting to halt the process. The sale transaction may be subject to judicial review if there is an irregular notification, erroneous valuation, unauthorized transaction, or violation of formal rules.

Why is a Contractor's Agreement Important?

In urban transformation projects, the most severe financial consequences often stem not from the identification of risky buildings, but from incomplete or one-sided contractor contracts. Before signing a contract, the contractor's financial capacity, past projects, licenses, ongoing projects, company structure, and the financing model they will use to complete the project should be investigated.

A construction contract in exchange for land shares should not only state the number of independent units to be given to the owners. The contract should also detail the floor, facade, net and gross area, annexes, parking rights, common areas, material quality, and delivery conditions of each independent unit.

Delivery dates should not be indefinitely tied to uncertain events such as obtaining permits, eviction, or demolition. Security mechanisms such as delay compensation, rent payments, remedy of defective workmanship, letters of guarantee, mortgages, and contract termination should be clearly regulated.

The scope of the power of attorney given to the contractor should not be unnecessarily broad. The limits regarding powers such as sale, transfer, obtaining credit, project modification, and establishing mortgages should be clearly defined. Otherwise, property owners may unknowingly grant powers that could have irreversible consequences for their properties.

Status of Tenants and Other Rights Holders

Urban transformation does not only affect property owners. Residential tenants, commercial tenants, and holders of limited property rights residing in the building are also directly affected by the eviction process.

If the conditions stipulated in the law are met, rental assistance, temporary housing or workplace allocation, and certain financial supports may be considered. However, since the scope of support, application periods, and required documents may change according to periodic regulations, it is necessary to check the current conditions before eviction takes place.

The tenant's right to acquire an independent unit in a new building constructed after urban transformation, or to return to the same property as a tenant, does not arise automatically. For such a right to exist, a separate contract must be concluded between the parties, or a specific legal basis must be in place.

Conclusion

Urban transformation, when managed correctly, is a significant opportunity that ensures safety and increases the value of property. However, reducing the process solely to contractor selection and price negotiation can lead to years of disputes among property owners.

The review of the risky building report, monitoring of notification and litigation deadlines, ensuring the owner's decision is properly obtained, the balanced preparation of the contract, and the control of title deed transactions should be considered as a whole.

Each property has a different land share structure, zoning status, owner profile, existing debts, and technical specifications. Therefore, instead of making decisions based on general information, the technical and legal documents of the specific case should be evaluated together. In the urban transformation process, timely legal support is crucial not only for filing lawsuits when disputes arise, but also for preventing disputes from occurring in the first place.

Elif Sukutli