Inclusion of Jointly Owned Properties in Urban Transformation Projects

1. What is a jointly owned property, and why does it create problems in urban transformation projects?

1.1. The basic logic of co-ownership

If a property is registered in the land registry with multiple owners holding shares such as "1/2, 1/4, 1/8," then that property of shared ownership (co-ownership) . The important point here is this:

Each co- owner has rights to the entire property in proportion to their share
"This apartment is mine, this garden is yours" – these de facto divisions of property often do not appear in the land registry.

This structure can continue to function without causing problems in daily life for many years. However, when urban transformation comes into play:

Who will acquire which independent unit,
Who will meet with the contractor?
Who will sign the contract,
How to force those who disagree with the decision

Numerous conflicts begin, such as these.

1.2. The difference between joint ownership (inheritance partnership) and co-ownership

Upon the death of the testator, the immovable property passes directly to the heirs. However, if the heirs have not yet individually registered their shares, the title deed usually includes an expression such as "heirs"; this is called joint ownership.

In jointly owned property, each heir's share has not been determined, and the partnership has not yet been dissolved.
In decisions regarding savings and major projects like urban transformation, all heirs need to act together .

Therefore, when urban transformation is being considered, one of the first things that often needs to be done is:

Obtain the certificate of inheritance,
To complete the inheritance transfer at the land registry office
joint ownership into co-ownership.

This clarifies the exact percentage of ownership each person receives in the title deed; thus, some potential future disputes are prevented from the outset.

2. How Does the Urban Transformation Process Begin in a Co-Owned Property?

2.1. Identifying risky buildings is the first step

The urban transformation of a building often begins with an assessment of its risky structure . The process remains the same for jointly owned properties. In practice:

One of the property owners or shareholders,
to an organization licensed by the ministry
to determine whether the building is at risk.

The important point is this:

It is not necessary for all shareholders to apply simultaneously for a risk assessment of a building.
One owner can also initiate the process.

Of course, the right of property owners to appeal the report after it's released is a separate matter. But at least for now, the idea that "not everyone is signing, so we can't appeal" is incorrect.

2.2. Essential documents required

When initiating the process for a jointly owned property, the following documents are usually required:

Land registry record sample (record showing share percentages),
List of owners,
Identity and inheritance documents (for properties acquired through inheritance),
Zoning and permit information can be obtained from the municipality
Existing project or documents relating to the technical specifications of the building.

Since many documents can now be obtained through e-Government, it is beneficial for shareholders to avoid wasting time collecting physical files, but still have the documents reviewed under the supervision of a lawyer.

3. Decision-Making Among Shareholders: Simple Majority, Unanimity, Minority Status

3.1. The old 2/3 debate and the current logic of majority rule

For a long time, urban transformation projects were implemented based on the concepts of "land share majority" and "2/3 majority." Over time, changes were made to the legislation the required ratios for decision-making more accessible, aiming to prevent the process from becoming stalled.

As of today, the following logic prevails in practice:

In jointly owned real estate, after the risky building assessment is finalized,
Decisions regarding the transformation model (reconstruction, sale, provision of housing on another plot, etc.),
with the consent of the owners who hold the majority of the shares .

This majority is calculated not simply based on the "number of people," but the percentage of shares recorded in the property deed . For example:

Ali: 1/2,
Ayşe: 1/4,
Mehmet: If he owns a 1/4 share,

Ali alone holds a critical majority position as he owns 50% of the shares. Ayşe and Mehmet can counterbalance him; otherwise, the solutions Ali accepts may be decisive.

3.2. Decision-making meetings and minutes keeping procedures

In urban transformation projects, it is beneficial to take the following steps in meetings where stakeholders come together to make decisions:

Agenda setting:
- The fate of the risky structure (strengthening / demolition and reconstruction),
- Choosing a contractor,
- Independent unit sharing list,
- Eviction schedule, rent assistance, temporary housing process.
Preparing meeting minutes:
- Who participated,
- Share percentages,
- The process and details of how decisions were made should be clearly documented.
Signing:
- The signatures of the shareholders who agree with the decision must be obtained
- The names of those who disagreed with the decision, their dissenting opinions, and any reservations should be recorded in the minutes.

Often, parties assume they've "made a decision" simply by discussing it in a WhatsApp group. However, in transactions with significant consequences, such as urban transformation, written documentation is vital. If a dispute arises tomorrow, these records are the only way to prove who approved what and when.

3.3. Minority shareholders who did not agree with the decision

In the current system, a decision made by a majority of shares has serious consequences for the minority who did not agree with the decision. A shareholder who does not comply with the decision:

Putting the shares up for sale according to a specific procedure ,
Giving them time to vacate the property,
Evacuation through administrative authorities when the time is up

Such consequences may arise.

It is not accurate to say that the minority shareholder is entirely in the "wrong" here. However, the system the will of the majority . The minority owner should follow the process from the beginning to protect their rights, pay attention to the valuation reports, and, if necessary, pursue legal action in a timely manner.

4. Sale of Shares of Shareholders Who Disagree with the Decision

4.1. The logic behind share sales

In urban transformation, the process reaches this point:

The building has been declared at risk.
The majority approved the new project and contractor.
However, one or more of the minority property owners are refusing to sign, rejecting the eviction, and thus blocking the process.

This is where of selling comes into play. In short, this mechanism answers the following question:

“The majority wants transformation, the minority is blocking it. How will the process for safe buildings proceed?”

The answer to this question is not the complete exclusion of the minority shareholder from the property, but rather the compulsory transfer of their share and the payment of compensation to the owner. In other words, the owner loses their real right to the property but receives monetary value in return.

4.2. Valuation and potential loss of rights

The most critical point in the share sale process is valuation. The following questions are important:

Is it the "pre-transformation" value of the property?
Is it the "expected value after transformation"?
Comparative sales in the area,
Is it based on individual units or land share?

will be taken as the basis?

In theory, valuation reports should be based on objective criteria; however, in practice:

Incomplete investigation,
Failure to take into account the actual market conditions in the region,
The methods used in the report were not sufficiently explained

Such problems may be encountered. If a minority shareholder believes that the value of their share has been determined to be too low, they should not remain silent at this stage, but should use legal means against the report and the sale transaction.

5. Land Registry Records, Annotations, Liens, and the Impact of Urban Transformation

5.1. Risky building designation

Once a building is definitively identified as risky, this is usually noted on the relevant page of the land registry. Thus:

The fact that the property is at risk is also announced to third parties
Buyers and banks will then evaluate future transactions such as sales, pledges, and mortgages accordingly.

In jointly owned real estate, this annotation affects all shares. Therefore, it is not possible to say "my share is small, it doesn't bind me"; the risk relates to the entire property.

5.2. The role of seizure and precautionary measures

Regarding the shares of some shareholders:

Attachment,
Interim injunction,
mortgages
may be found. This is relevant when urban transformation is involved;
The interest of the lienholder,
How the new right that the owner will acquire from the transformation will take shape,
If shares are sold, to whom and how will the proceeds be paid?

Questions like these arise. The legal mechanisms developed for the conversion process include specific provisions to prevent such annotations from completely blocking the process. However, since the situation is different in every case, it is not advisable to suggest a "general" solution without thoroughly examining the land registry records.

6. Inherited Jointly Owned Houses and Land: Special Risks in Urban Transformation

6.1. Dozens of heirs, a single plot: The classic scenario

The following is a common situation in Türkiye:

An old shanty house or apartment building inherited from grandfather,
Over the years, it has been passed down to dozens of people through inheritance
No one has made a "formal division"; everyone has taken ownership of the apartment they actually use
Some have rented it out, some have kept it empty, and some have used it as a warehouse.

When it comes to urban transformation:

Some heirs say, "I don't live there anyway, I'll sell my share,"
Some say, "I definitely won't let it be demolished, it has sentimental value."
Some even come forward claiming, "My apartment is bigger, give me more square meters.".

In this chaos, making sound decisions becomes almost impossible. The solution is:

First, inheritance and share ratios must be formally clarified
If possible, the heirs should agree in writing on who will receive which independent section
This agreement should also be reflected in future contracts with the contractor.

6.2. The effect of actual partition on transformation

Long-standing usage may not be preserved exactly as it is in the new project after urban transformation. For example:

Everyone owns 1/4 of the property according to the title deed
But in practice, one heir uses the ground floor apartment, while the other uses the upstairs apartment.

In the new project:

The independent units have different square meter sizes
On different fronts,
They may have different market values.

In this situation, those with higher shares in a joint venture may acquire more valuable apartments, while the person actually living in that apartment may have to settle for a less valuable unit. Therefore:

Before initiating urban transformation, formalizing the de facto partition as much as possible significantly reduces the risk of future disputes.

7. Why are Contractor Selection, Contracts, and Guarantees More Critical in Jointly Owned Properties?

7.1. Multilateral contract chaos

In contracts with contractors for jointly owned real estate, the following scenario generally emerges:

On one side, numerous property owners,
On the other hand, a single contractor,
Everyone has different expectations
Everyone has different legal knowledge.

Contracts prepared in this environment frequently contain the following mistakes:

The independent section sharing list is not clearly written
Crucial clauses such as delivery time, delay penalties, and security deposits are left vague
Some property owners sign, while others stay out of the process saying, "We'll see later.".

However, in jointly owned real estate:

Protecting the interests of all owners together,
Clearly showing who will get which apartment,
Regulating which safeguards will be in effect at each stage of construction

Starting urban transformation without a detailed contract will create problems that will be difficult to reverse in the future.

7.2. Security, mortgage and insurance protection

To protect themselves against the risks of a contractor's bankruptcy, construction being left unfinished, or the project taking many years to complete:

Bank guarantee letter,
Gradual land share transfer according to specific stages of construction,
The insurance products that have been developed,
Instead of mortgages placed by the contractor, collateral that can be established in favor of the owner.

This should be brought up.

Simply put, property owners need clear answers not only to the question of "how many square meters will my apartment be?", but also to the equally important question of "what will happen if the contractor can't finish the job?"

8. Tenants, Eviction, and Rent Assistance: How Does the Relationship Work in Jointly Owned Properties?

Tenants may be occupying some parts of a jointly owned property. In this case:

Following a risk assessment decision, the building is ordered to be evacuated
Both landlords and tenants are directly affected by this process.

In practice:

If the tenant has a formal lease agreement,
If they vacate the building within the timeframes given for evacuation,
If it meets the conditions stipulated in the legislation

Tenants also rent or relocation assistance . However, in jointly owned properties, sometimes even "who the tenant is" and "to whom the rent is paid" becomes a matter of dispute. Therefore:

The situation of the tenants,
Their contracts,
Evacuation schedule

Putting everything in writing whenever possible will both prevent tenants from being disadvantaged and reduce disputes between landlords.

9. Legal Remedies in Jointly Owned Real Estate Cases: What Can Be Done at Which Stage?

During the urban transformation process, there are legal avenues that can be pursued at different stages for co-owners or minority owners of properties:

Objection to the risky building report:
- The structure is not actually risky,
- It can be kept standing with reinforcement,
- If there are claims that the report is technically flawed,
  the possibility of filing an appeal and, if necessary, a lawsuit within the specified timeframe should be considered.
Objection to valuation and share sale:
- When the sale of shares came up,
- The price set was low,
- believes that the valuation criteria have been used incorrectly,
  they should not remain silent but should use all available administrative and judicial remedies in a timely manner.
Lawsuits arising from contracts with contractors:
- Exceeding the delivery deadline,
- Defective or faulty manufacturing,
- In cases where the promised social areas are not constructed,
  property owners may have claims against the contractor based on delay compensation, penalty clauses, and defect claims.
Partition lawsuits:
- If the urban transformation process is stalled,
- If the parties cannot agree on any issue,
  they may request the termination of the joint ownership through the sale of the entire property and the division of the proceeds.
  While this is not always the most profitable option, it can become the only way out in "completely stalled" cases.

10. Roadmap for Co-owners of Real Estate: Step-by-Step Summary

If a jointly owned property is slated for urban transformation, it would be helpful to check the following practical list:

Obtain the land registry record:
- Share percentages,
- Annotations (attachment, mortgage, precautionary measure, etc.),
- Complete list of heirs.
Complete the inheritance and transfer procedures:
- Certificate of inheritance,
- Succession,
- If possible, convert joint ownership to co-ownership.
Communicate with shareholders:
- Who truly wants change?
- Who just wants to "have information"?
- Who isn't interested at all? Make that clear.
Follow the risk assessment process for buildings:
- Which organization to apply to,
- The content of the report,
- Appeal periods.
Conduct the decision-making process in writing:
- Meeting minutes,
- Calculation of the majority of shares,
- Notification to those who disagree with the decision.
Don't rush into choosing a contractor and signing the contract:
- Don't just look for the one offering the most apartments; go for the one with strong financial backing, references, and previous projects
- The list of independent units, delivery time, penalties, and guarantees should be clear.
Protect the rights of minority shareholders:
- Ignoring a small share of the blame could lead to serious lawsuits later on
- Fairness in evaluation and distribution facilitates the smooth completion of the process.
Don't forget the tenants:
- Evacuation periods,
- Assistance and temporary housing options,
- Organize the written notifications.
Gather documents at each stage:
- Signature sheets, minutes of meetings, message correspondence, and meeting notes
  will have evidentiary value in any future lawsuits.

Conclusion: Urban transformation in jointly owned properties is an opportunity when managed correctly; it leads to serious loss of rights when managed incorrectly

For jointly owned properties to be included in urban transformation projects, it's not simply a matter of demolishing an old building and constructing a new one. It also means:

Inheritance relations,
Family dynamics,
The manner in which property rights are exercised,
The future value of the property

It is a process of reshaping.

When acting consciously:

Earthquake risk is reduced
The value of the property increases
Shareholders gain access to safer and more comfortable homes.

However, if the process is carried out without documentation and a plan, based on the mentality of "someone else will handle it anyway":

Lawsuits in which minority shareholders claim to have been wronged,
Delays caused by the contractor,
Incorrect or incomplete contracts,
Unending feuds among shareholders

It becomes inevitable.

Therefore, if you own a jointly owned property and urban transformation is on the agenda, we can summarize the three basic steps you need to take as follows:

Clarify your property deeds and inheritance records.
Conduct a written and transparent decision-making process with shareholders.
Seek legal assistance at critical points such as contractor selection, contracts, and share sales.

Law No. 3194 on zoning, jointly owned property, zoning law, Zoning Law, urban transformation, risky building

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