Urban Transformation Law: Risky Buildings, Property Rights, Eviction, Demolition, and Litigation Processes

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What is urban transformation?

Urban transformation is a legal, technical, and administrative process aimed at renewing structures at risk of disaster, unhealthy urban areas, buildings that have reached the end of their economic lifespan, and the building stock that does not provide safe living conditions. In Turkey, the fundamental basis of urban transformation is Law No. 6306 on the Transformation of Areas Under Disaster Risk. The purpose of this law is to determine the procedures and principles of improvement, demolition, and renewal processes in areas under disaster risk and on plots and lands outside these areas where risky structures are located, in order to create healthy and safe living environments in accordance with engineering and architectural standards.

Urban transformation is not simply about demolishing old buildings and constructing new ones in their place. This process is directly linked to property rights, zoning law, administrative law, contract law, condominium law, rental law, inheritance law, and construction law. Therefore, the declaration of a building as a risky structure, the decision-making process among the owners, the signing of a contract with a contractor, the sale of shares of owners who do not participate in the decision, eviction, demolition, permits, rental assistance, title deed procedures, and potential lawsuits must all be considered together.

One of the most important aspects of urban transformation is striking a delicate balance between individual property rights and public safety. On the one hand, the state encourages and, when necessary, mandates the transformation of risky buildings to protect life and property. On the other hand, the property rights, freedom of contract, right to demand fair compensation, right to sue, and right to a fair hearing of property owners must be protected. For this reason, procedural irregularities in urban transformation processes can lead to serious loss of rights.

Legal Basis of Urban Transformation

The fundamental legislation in urban transformation projects is Law No. 6306 and its Implementing Regulation. The Implementing Regulation governs the procedures and principles for identifying risky buildings, risky areas, and reserve building areas; demolishing risky buildings; planning; property valuation; agreements with property owners; aid; and the construction of new buildings. The regulation defines a "risky building" as a structure, located within or outside a risky area, that has completed its economic lifespan or is determined, based on scientific and technical data, to be at risk of collapse or severe damage.

Three fundamental concepts stand out in urban transformation: risky building, risky area, and reserve building area. A risky building refers to the transformation process involving a single building or group of buildings. A risky area refers to an area designated by presidential decree that carries a risk of loss of life and property due to its ground structure or existing buildings. A reserve building area is an area designated by TOKİ (Housing Development Administration of Turkey) or the administration, either at their request or on its own initiative, for use in applications under Law No. 6306.

This distinction is extremely important in practice. Because while the risky building process often proceeds through a single plot or building, in risky area and reserve building area applications, larger-scale planning, zoning, evacuation, valuation, ownership rights, and resettlement processes may come into play. Therefore, the transformation status of a property directly affects the rights and obligations of the owners.

How are buildings at risk identified?

The most common starting point in the urban transformation process is the identification of risky buildings. Risk assessment is, as a rule, carried out at the request of the building owners or their legal representatives, at their own expense. According to the regulation, risk assessment is carried out through an electronic software system, and the assessments are performed according to specified technical principles. In cases where a condominium ownership or fractional ownership has not been established, but there is a title deed with a share of the land, the risk assessment of the existing building is carried out by the owner of the land share.

The assessment of risky buildings does not have to be carried out solely at the request of the property owners. The Presidency or the administration can also conduct such assessments on its own initiative or give the property owners a deadline to have the assessment done. If the assessment is not carried out within the given time, the assessment can be carried out or commissioned by the Presidency or the administration. In this case, the property owners may be held responsible for the assessment costs in proportion to their shares.

One of the most common problems encountered in practice is that some building owners oppose the risk assessment. However, unanimous consent of all owners is not required for a risk assessment. The process can begin with an application from just one owner. If the assessment is obstructed, doors are not opened, entry to independent units is not permitted, or the assessment team is physically prevented from carrying out the assessment, administrative authorities may need to take action with the support of law enforcement. This demonstrates that the urban transformation process is not only a private law relationship but also an administrative process with a public safety dimension.

The risk assessment report for buildings is prepared by the authorized institution or organization and sent electronically to the relevant directorate or, if authority has been delegated, to the relevant administration. The report is reviewed; if there are any deficiencies, it is returned for correction. If there are no deficiencies, the risk assessment is reported to the land registry office to be entered into the declarations section of the land registry. In addition, the assessment information is posted on the building, the owners are notified via e-Government, and it is announced at the local administrative office for fifteen days.

Appeal and Litigation Process Regarding Risky Building Assessment

Owners have the right to appeal before the determination of a building as risky is finalized. According to the regulation, building owners or their legal representatives may appeal against the determination of a building as risky by submitting a petition to the relevant directorate or, if authority has been delegated, to the administration in the area where the building is located, within fifteen days from the last day of the announcement made at the local administrative office. Appeals not made within the specified time or not made by authorized persons will not be processed.

Determining the status of a building as risky is an administrative act. Therefore, the determination process, including notification, announcement, objection, technical committee review, and filing a lawsuit, is subject to the rules of administrative law. According to Law No. 6306, a lawsuit may be filed against administrative acts within thirty days of the notification date, in accordance with the Administrative Procedure Law.

The most important aspect to consider here is the timeframe. In urban transformation projects, the deadlines are short and can be grounds for forfeiture of rights. If the property owner believes that the risky building assessment is unlawful, they must review the content of the technical report, the sampling method, the structural system analysis, whether the building was assessed in accordance with its projects, whether the address and building code information is correct, and the authority of the organization conducting the assessment within the specified timeframe.

When filing a lawsuit against a building assessment for risk, a mere abstract claim that "the building is not risky" may not suffice. The lawsuit petition must present both technical and legal objections. For example, concrete arguments should be made regarding issues such as the report being based on incomplete examination, failure to evaluate all load-bearing elements of the building, samples not representing the building, incorrect assessment of soil effects, failure to properly notify the owners, or the inadequacy of the technical committee's examination.

What happens if a building is confirmed to be at risk?

If no objection is raised against the risky building assessment, or if any objection is rejected, the assessment becomes final. After this stage, the directorate requests the administration to issue the necessary notifications and demolish the risky building. According to the regulation, the administration grants a period of no more than ninety days for the demolition of the risky building. If the building is not evacuated and demolished within this period, the administrative authorities will notify the building of its evacuation and demolition.

A special procedure is also stipulated for demolition permits. Upon application by one or more of the building owners or their representatives, and provided that documents are submitted or the administration confirms that the building has been vacated and the electricity, water, and natural gas services have been shut off, a demolition permit may be issued without requiring the consent of all owners.

This regulation aims to prevent the urban transformation process from becoming stalled. In practice, some property owners are seen to avoid signing documents during the eviction, demolition permit, or contractor contract stages in order to delay the process. However, once a building is definitively deemed risky, its continued existence is considered a public safety hazard, and the administration can proceed with the demolition process.

After demolition, the property becomes a vacant lot. With the amendment dated February 4, 2026, it was stipulated that after the demolition of a risky building, the annotation regarding the risky building in the declarations section of the land registry must be removed, and then a statement indicating that the property falls under the scope of Law No. 6306 must be added. This statement is important because it shows that any works and transactions carried out on the parcel will continue to be conducted under Law No. 6306.

Decision-making process among property owners

In urban transformation projects, after the identification and demolition of risky buildings, the most critical issue is obtaining a decision from the owners regarding how the new building will be constructed. Owners can agree on a construction contract in exchange for land shares, revenue sharing, construction for a fee, construction with their own resources, or another model. However, for this decision to be legally valid and enforceable, it must be made in accordance with the procedure stipulated in the regulations.

Current regulations emphasize that decisions regarding plots containing risky structures must be made by a simple majority of the owners in proportion to their shares. The regulation states that the meeting must be held with at least a simple majority of the shareholders in proportion to their shares, and the decision taken by at least a simple majority must be recorded in the minutes.

At this point, "majority in the number of people" should not be confused with "majority in land share." In urban transformation projects, the quorum for decision-making is usually calculated based on the ratio of shares rather than the number of owners. Therefore, the will of owners with a large share of the land can determine the process. However, even if a majority is achieved, the decision must not violate the principle of good faith, the principle of equal treatment, equity, and the essence of property rights.

The rights of owners who do not agree with the decision are not completely extinguished. Owners who do not agree with the decision must be notified of the decision and the offer, and given the opportunity to review and evaluate it. The regulation outlines the procedures for announcement and notification so that owners who do not agree with the decision can review the offer containing the terms of the agreement.

Sale of Shares of Owners Who Did Not Agree with the Decision

One of the most controversial issues in the urban transformation process is the sale of land shares belonging to owners who do not agree with the majority decision. This sale is not a free sale in the classical sense, but a special administrative sale process based on the provisions of Law No. 6306 and related regulations.

According to the regulations, only shareholders who have agreed by a simple majority in proportion to their shares may participate in the first sale. If the agreed shareholders do not wish to purchase the shares to be sold in the first sale, third parties meeting certain conditions may participate in subsequent sales. The sale will be awarded to the participant offering the highest price, provided it is not less than the market value.

At this stage, the most important legal protection for the owner whose share is being offered for sale is the accurate determination of the market value. If the valuation is not accurate, the co-owner's property rights may be disproportionately violated. Therefore, the pre-sale valuation report, comparable properties, zoning status, parcel location, existing building rights, the distribution of independent units in the new project, and the contract terms should be carefully examined.

A property owner who disagrees with a decision cannot be considered acting in bad faith simply because they do not agree with the majority decision. If the owner believes the proposed contract is unfair, the distribution of independent units is inequitable, the contractor lacks financial capacity, the guarantees are insufficient, or the project model infringes upon their property rights, they may pursue legal action. However, these objections must be raised within the prescribed time limit and supported by concrete evidence.

Contractor Agreements in Urban Transformation

In urban transformation projects, one of the most important issues property owners should pay attention to is the contract with the contractor. In practice, these contracts are usually structured as "construction contracts in exchange for land share" or "construction contracts in exchange for floor space". However, the same contract model is not suitable for every urban transformation project.

The contract must clearly specify the following: the nature of the building to be constructed, the division of independent units, square footage, delivery time, delay penalties, rent assistance or relocation costs, guarantees, technical specifications, licensing and occupancy permit obligations, the condition of common areas, parking, storage, annexes, title transfer, who will be responsible for taxes and fees, force majeure events, and termination of the contract.

One of the biggest risks in urban transformation contracts is the contractor's failure to start and complete the project. Therefore, the contractor's financial strength, previously completed projects, experience in building classification, bank guarantees, building completion insurance, or similar guarantees should be carefully evaluated. In projects covered by Law No. 6306, contractor guarantees and building completion assurances are important legal tools to prevent property owners from suffering losses. The regulation also stipulates that guarantees provided under building permits issued from January 1, 2024 onwards can be readjusted according to a changing six percent guarantee rate at the request of the building contractor.

When drafting a contract, one should not rely solely on the standard text provided by the contractor. The contract should also include provisions regarding the distribution of independent units for property owners, compensation for missing square meters, penalties for late delivery, the prohibition of acceptance of delivery without an occupancy permit, liability for defective workmanship, and security deposits. Otherwise, property owners' bargaining power may decrease after the building is demolished.

Eviction, Demolition and Rent Assistance

The evacuation and demolition phases in the process of identifying risky buildings are crucial for owners, tenants, and holders of limited real rights. The regulations stipulate that the administration must set a deadline for the demolition of risky buildings, that buildings not evacuated will be notified by administrative authorities, and that owners will be held responsible for demolition costs in proportion to their shares.

In urban transformation projects, rental assistance is subject to certain conditions. According to the regulation, owners of buildings in the project area that are evacuated by agreement may receive monthly rental assistance, as determined by the Presidency, starting from the date of evacuation or demolition. For risky buildings outside of risky areas, the rental assistance period is determined by the relevant institution and may not exceed eighteen months; for risky and reserve building areas, it may not exceed forty-eight months. Applications for rental assistance must be submitted within one year from the date of evacuation or the date the risky building is demolished.

One of the common mistakes in the application process regarding rental assistance is missing the application deadline. Landlords, tenants, or holders of limited real rights should be informed in advance whether they are eligible to apply, what documents are required, and to which institution the application should be submitted. Furthermore, whether rental assistance and interest subsidies can be used simultaneously should be evaluated according to the specific type of application.

Urban transformation also has serious consequences for tenants. When a building is definitively declared risky, the lease agreement cannot continue as usual; because the eviction and demolition of the building will be considered on grounds of public safety. However, the practical and legal interests of the tenant, such as relocating, finding a new place, and continuing their commercial activity if it is a business, must also be taken into account. Therefore, tenants should follow the notifications, investigate aid applications, and avoid losing their rights during the eviction process.

Taxes, Fees and Exemptions in Urban Transformation

One of the most important advantages of urban transformation projects is the exemption from certain taxes, fees, and charges. Law No. 6306 provides for exemptions from notary fees, land registry fees, municipal fees, stamp duty, and bank-insurance transaction taxes for specific sales, transfers, registrations, mortgages, contracts, and loan transactions. The law also stipulates that municipalities will not collect fees or charges for new construction areas up to one and a half times the existing construction area, in applications made by individuals and private legal entities.

These exemptions are important in terms of reducing conversion costs. However, not every transaction is automatically considered within the scope of the exemption. The transaction must be directly related to the conversion under Law No. 6306, the parties and the property must meet the scope conditions, and the correct documents must be submitted to the relevant institutions. Land registry offices, municipalities, notaries, and tax offices may request different documents in practice. Therefore, it is important to clearly state the basis for the exemption before the transaction is carried out.

What are Urban Transformation Lawsuits?

Many types of lawsuits can arise during the urban transformation process. The most common is a lawsuit challenging the designation of a building as a risky structure. This lawsuit is filed in administrative courts, and it is argued that the designation of a building as a risky structure is unlawful on technical or procedural grounds. In addition, lawsuits challenging decisions regarding risky areas or reserve building areas, lawsuits against demolition procedures, lawsuits against administrative fines, and disputes related to land registry transactions may also arise.

In the field of private law, lawsuits arising from construction contracts in exchange for land, contract termination, cancellation and registration of title deeds, compensation for delay, incomplete and defective workmanship, loss of rent, penalties, negative damages, positive damages, and contractor default lawsuits are frequently encountered. Claims among owners regarding land shares, division of independent units, inheritance, abuse of power of attorney, or collusion can also directly affect urban transformation projects.

In urban transformation cases, the most important point is determining the correct legal avenue. While administrative actions such as identifying risky buildings should be challenged in administrative courts, disputes arising from contracts with contractors are mostly heard in the civil courts. Choosing the wrong legal avenue can lead to wasted time and missed deadlines.

Practical Legal Advice for Property Owners

The first thing property owners involved in the urban transformation process should do is clarify the current stage of the process. They need to determine whether a risk assessment report has been prepared for the building, whether the report is final, whether a note has been added to the title deed, whether the objection period has expired, whether the demolition process has begun, whether a decision has been made by the owners, and whether a contract has been signed with the contractor.

Secondly, property owners should carefully examine the contract before signing. Contracts signed hastily in urban transformation projects can lead to serious problems later on. In particular, if provisions regarding land share transfer, division of independent units, delivery time, delay penalties, security deposits, permits, occupancy permits, technical specifications, and termination clauses are unclear, the contract may result in unfavorable outcomes for the property owner.

Thirdly, property owners who do not agree with the majority decision should not remain passive. Legal objections against the decision, objections to the valuation report, applications regarding sales transactions, and litigation rights must be exercised within the prescribed time limits. The idea that "I didn't sign, so the process doesn't bind me" is wrong. Decisions made by a certain majority in urban transformation can have serious consequences for property owners who did not agree with the decision.

Fourthly, inheritance and title deed issues should be resolved without delay. Properties registered in the name of the deceased, shares that have not been transferred, situations requiring a trustee, liens, mortgages, or family disputes can hinder the progress of the urban transformation process. Therefore, title deeds, encumbrances, and inheritance documents should be examined at the beginning of the process.

Things to Consider When Choosing a Contractor

In urban transformation projects, contractor selection should not be based solely on economic offers. The highest promised number of independent units or the highest rental assistance offer is not always the safest option. The contractor's financial strength, technical capacity, previously completed projects, legal history, whether they provide guarantees, and their ability to obtain permits should be carefully evaluated.

A contract stating only that "construction will be carried out" is insufficient. The technical specifications should detail the quality of materials to be used, the design of common areas, and aspects such as elevators, parking, fire systems, thermal insulation, sound insulation, exterior facade, ground reinforcement, landscaping, generators, and social areas. These technical specifications should be an integral part of the contract and should avoid general statements.

Furthermore, the transfer of title should be done in stages. Owners should not transfer their entire share of the land before construction begins or without sufficient security deposit. The stage and proportion of the land share to be transferred, how the transfer will be revoked if the contractor fails to fulfill their obligations, and how the security deposits will be converted into cash should be clearly stated.

The Role of an Urban Transformation Lawyer

The urban transformation process is a complex one, where technical, administrative, and legal procedures are intertwined. Therefore, an urban transformation lawyer is not just someone who files lawsuits; they are also a professional who analyzes risks from the beginning of the process, prepares contracts, ensures property owner meetings comply with the law, monitors majority decisions, makes administrative applications, and provides support to prevent loss of rights.

An urban transformation lawyer will consider several factors together: whether the risk assessment report for the building is properly prepared, the deadlines for appeals and lawsuits, the validity of the owner's decision, whether the contractor's contract includes guarantees in favor of the owner, whether the share sale process is conducted legally, applications for rental assistance and exemptions, title deed transactions, and potential lawsuits.

Especially in cities with a high risk of earthquakes and an old building stock, such as Istanbul, urban transformation is not only an economic investment but also a matter of life safety and property rights. Therefore, carrying out the process without planning, documentation, or solely based on contractor guidance creates serious risks.

Conclusion

Urban transformation law is a multifaceted and technical field of law that is gaining increasing importance in Türkiye. In processes carried out under Law No. 6306, risk assessment, objections, lawsuits, evictions, demolitions, property owner decisions, contractor agreements, rental assistance, title deed transactions, and tax and fee exemptions must be considered together.

To avoid any loss of rights, deadlines must be carefully monitored at every stage, notifications and announcements must not be overlooked, technical reports must be reviewed with expert assistance, and contracts to be signed must undergo legal scrutiny. The most appropriate approach in the urban transformation process is to determine the legal strategy not after the building has been demolished, but at the moment the risk assessment of a structure becomes relevant.

A properly managed urban transformation process can create a safe, modern, and valuable living space while protecting property rights. Conversely, a process conducted improperly, proceeding with incomplete contracts, or missing deadlines can lead to property loss, unfair share sales, lengthy lawsuits, unfinished constructions, and significant economic losses. Therefore, urban transformation is not merely a technical renovation, but a strategic process requiring professional legal oversight from start to finish.