Legal Measures Against Loss of Rights in Urban Transformation: A Guide for Owners

In urban transformation, loss of rights usually stems not from the building being found risky but from the contract that is signed, from missed objection and lawsuit deadlines, and from land shares handed over without security. The way to protect your rights is to scrutinise the risky building determination and the owners' decision within the deadlines, to review the flat-for-land construction contract clause by clause before signing, and to tie the transfer of title to the progress of construction.

In this guide we explain, in order, how Law No. 6306 works, where rights are lost in practice, what to look for in the contract, and the route to the administrative courts. For a general overview of the process and the contract structure, see also our article on legal procedures in urban transformation.

What Is Loss of Rights in Urban Transformation and Why Does It Happen?

Loss of rights in urban transformation means that an owner does not receive compensation equivalent to the value of the property before the transformation, or receives it late, incompletely or not at all. The loss does not happen in a single moment. Most often it is the result of small, interlinked decisions.

The main types of loss we see in practice are:

• Loss of value: The new flat is smaller, less well located or of lower quality than the old one.
• Loss of time: Handover is delayed for years and you have to pay rent in the meantime.
• Loss of ownership: The land share is transferred to the contractor too early, and it passes to third parties as a result of the contractor's debts or bankruptcy.
• Procedural loss: The deadline to challenge the risky building determination, the owners' decision or administrative acts is missed.
• Forced sale: The share of an owner who does not join the decision is sold at public auction.

Most of these losses can be prevented. But the precautions must be taken before construction starts.

Legal Framework: Law No. 6306 and the Risky Building Determination

The core legislation on urban transformation is Law No. 6306 on the Transformation of Areas under Disaster Risk (Afet Riski Altındaki Alanların Dönüştürülmesi Hakkında Kanun) and its implementing regulation. The Law lays down special rules, departing from the general law, on how risky buildings are identified, demolished and rebuilt, and on how owners take decisions during this process.

How is a risky building determination made?

A risky building determination (riskli yapı tespiti) is a technical inspection carried out by institutions and organisations licensed by the Urban Transformation Presidency (Kentsel Dönüşüm Başkanlığı) of the Ministry of Environment, Urbanisation and Climate Change. As a rule, the application can be made by one of the owners or their legal representative; the Presidency and the competent authorities can also have a determination carried out. The result is notified to the land registry office (tapu müdürlüğü), and a risky building annotation is entered in the land register. The determination report is posted on the building, notified to the owners through e-Devlet (the Turkish government's online portal) and announced at the neighbourhood headman's office (muhtarlık) for 15 days; the determination is deemed served on the owners on the last day of this announcement.

Objecting to the risky building determination

Owners have the right to object to the risky building determination, and this objection is subject to a short deadline. The objection is made by petition within 15 days from the last day of the announcement at the headman's office, to the Provincial Directorate of Environment, Urbanisation and Climate Change where the building is located or, if authority has been delegated, to the relevant authority, and it is examined by technical committees. The deadline starts to run without waiting for any further document to reach you, so find out the announcement date at once and check the current text of the legislation. Waiting while you think it over is the most expensive mistake at this stage.

An objection often requires an independent engineering assessment. Simply saying "the building looks sound" is not enough; the core sample results, the reinforcement survey and the analysis method must be questioned on technical grounds.

Demolition and eviction stage

Once the determination becomes final, the owners are given a period to demolish the building. If demolition is not carried out within this period, the authority may request that electricity, water and natural gas services be cut off and may have the building demolished itself. Since the 2023 amendment, the Law sets an upper limit of ninety days for this period; the actual period is stated in the notification, and that date should be taken as the basis. Once the building has been demolished, it becomes practically impossible to challenge its technical condition, so the decision to object and to sue must be made before demolition.

The Owners' Decision and the Position of an Owner Who Does Not Agree

In a building found to be risky, the decision to rebuild does not require unanimity; the Law allows the decision to be taken by an absolute majority of the owners, calculated by their shares. This rule was introduced to prevent a single owner from blocking the project indefinitely, but it has serious consequences for an owner in the minority.

For a long time, this majority was applied as a two-thirds (2/3) majority by shares. The 2023 amendment made by Law No. 7471 reduced the threshold to an absolute majority by shares. Because the threshold, the procedure for calling the meeting and the method of notification directly affect the validity of the decision, always check the current text of the Law and the regulation before taking any step against a decision.

What happens if you do not join the decision?

The share of an owner who does not join the decision is, as a rule, sold by public auction at not less than its market value (rayiç değer), first to the other owners who joined the decision. The market value is determined by valuation firms licensed by the Capital Markets Board (Sermaye Piyasası Kurulu). If the other owners do not buy the share, the Law allows the authority to purchase it or acquire it by other means. The procedure and order of the sale may also have been affected by the post-2023 rules, so the current text should be checked in each specific case.

A common mistake here is simply not signing, without challenging the decision. Not joining the decision is not a way of protecting your rights. You need to take legal action in time against the decision itself, the valuation report or the sale.

Where Is Loss of Rights in Urban Transformation Suffered in Practice?

In urban transformation, rights are most often lost in the flat-for-land construction contract (kat karşılığı inşaat sözleşmesi), because the owners' entire relationship with the contractor rests on this document. The contract combines the provisions on contracts for work (eser sözleşmesi) in the Turkish Code of Obligations No. 6098 with a promise to sell real property. Because it includes a promise to transfer land shares, it must be executed before a notary in official form (düzenleme şeklinde); an ordinary written document or a "protocol" does not meet this formal requirement. You can find the general rules on this subject on our contracts and law of obligations page.

Land share and sharing ratio

The transfer of land shares (arsa payı) to the contractor and the proportion of independent units (bağımsız bölüm) left to the owners are the heart of the contract. It is not enough for the contract to say only "a 50 per cent split". Which flat goes to whom must be listed clearly, with its floor, frontage, net square metres and land share under the construction servitude (kat irtifakı). If flats are to be allocated by drawing lots, the lottery procedure must also be written in.

Delivery period and delay

If the delivery period is left vague, delay becomes hard to prove. The start of the period (for example, the issue of the building permit or the demolition date) and its end, the events that count as force majeure and their effect on the period must each be written out. Wording such as "the contractor will deliver in the shortest possible time" leaves the owner unprotected.

Penalty clause

A penalty clause (ceza koşulu) fixes in advance the amount the contractor will pay for each month of delay and eases the owner's burden of proving their loss separately. Setting the amount at a level that at least covers comparable rents in the area, together with a revaluation clause, reduces the loss of value on long projects. Take care to reserve your right to the penalty at the time of handover.

Security

Transferring the entire land share to the contractor upon signing the contract is the greatest risk for the owner. Instead, mechanisms can be used such as linking the transfer of title to the stage of construction (staged transfer), obtaining a bank letter of guarantee (teminat mektubu), or establishing a mortgage in favour of the owners over the units that will go to the contractor.

Rent assistance

Under Law No. 6306, temporary housing or rent assistance may be provided to owners and, under certain conditions, to tenants; the amounts and durations are updated periodically by the Ministry. State assistance and rent paid by the contractor are different things. The contract must state clearly whether the contractor will also pay rent, the amount, how it increases and what happens if payment is late.

Contractor bankruptcy or abandonment of the work

If the contractor goes bankrupt or abandons the work halfway, land shares transferred to it early may become subject to attachment (haciz) and bankruptcy proceedings by its creditors. In this scenario the owners face both a half-finished building and outside creditors on the title register. If the right to withdraw from the contract, the return of the transferred shares and the conditions for continuing with a new contractor are not agreed in advance, the problem can drag on for years. For the construction side of the dispute, see our article on construction law and construction disputes.

Flat-for-Land Construction Contract Checklist

Before signing, check whether the contract contains the following clauses:

1. The contract is executed before a notary in official form and signed by all owners or their duly authorised attorneys.
2. The independent unit that will go to each owner is listed with its floor, frontage, and net and gross square metres.
3. A reference to the approved project and to the materials and technical specifications, with the specifications annexed to the contract.
4. A firm delivery period with start and end dates, and a definition of force majeure.
5. A monthly penalty clause for delay and a revaluation clause.
6. Staged transfer of the land share, with a completion criterion for each stage.
7. A letter of guarantee, a mortgage or another form of security.
8. The rent assistance the contractor will pay, its amount and the payment date.
9. A ban on the contractor assigning the contract or the shares to others, or making any assignment subject to the owners' consent.
10. A termination and share-return clause for the case of the contractor's bankruptcy, abandonment of the work or cancellation of the permit.
11. The obligation to obtain the occupancy permit (iskan, yapı kullanma izin belgesi) and who bears the costs.
12. How taxes, fees and utility connection costs are shared.

Each item on this list carries different weight depending on the building's location, the number of owners and the contractor's financial strength. Which of them should be negotiated in your case must be assessed by reading the draft contract and the land register records together; a lawyer can review this with you in a short meeting.

Step-by-Step Roadmap to Prevent Loss of Rights in Urban Transformation

1. Get the title record: Check the current land register record, annotations (şerh), mortgages and attachments at the land registry office or through e-Devlet.
2. Follow the notifications: Watch your e-Devlet notifications, the report posted on the building and the announcement at the headman's office; calculate the objection deadline from the last day of the announcement at the headman's office.
3. Get a technical opinion: If you have doubts about the determination, ask an independent civil engineer for a report.
4. Attend the meeting: Attend the owners' meeting in person or through an attorney, and have your dissenting opinion (muhalefet şerhi) entered in the minutes.
5. Research the contractor: Look at the projects it has completed, its trade registry record and any history of enforcement proceedings and lawsuits.
6. Have the draft reviewed: Have the draft contract reviewed against the checklist above before going to the notary.
7. Stage the transfer: Transfer title as construction progresses, and confirm at each stage that the security is in place.
8. Keep the documents: Keep notifications, meeting minutes, payment receipts and correspondence in a single file.

How long does the process usually take?

The time an urban transformation project takes from the determination to the handover of the keys varies greatly depending on the building, the number of owners and the contractor; the ranges below give only a general idea.

• Risky building determination: Usually a few weeks from the application until the report is entered in the land register.
• Objection process: If an objection is filed, the technical committee's review often takes from a few weeks to a few months.
• Decision and contract: Agreement among the owners and the notarial contract can take from a few months to a year, depending on how far the owners agree.
• Permit and demolition: Project approval and the building permit usually take a few months.
• Construction: The duration depends on the delivery date in the contract and the size of the project; for a medium-sized apartment building it often exceeds a year in practice.
• Occupancy permit and title: After construction ends, the occupancy permit and the switch to condominium ownership (kat mülkiyeti) may take a few more months.

If a dispute arises, this timetable gets longer. An administrative lawsuit can often take more than a year at first instance; a claim against the contractor for money or for cancellation of title (tapu iptal davası) can also last several years. That is why the rent and penalty clauses in the contract should be written to cover a possible delay.

The Administrative Court Route and Time Limits for Filing a Lawsuit

The risky building determination, the rejection of an objection to the determination, demolition and eviction measures and other administrative acts under Law No. 6306 can be challenged by an action for annulment (iptal davası) before the administrative courts (idare mahkemesi). Under Article 7 of the Administrative Procedure Law No. 2577 (İYUK), the general time limit for filing a lawsuit before the administrative courts, where special laws do not provide a different period, is 60 days from the date of written notification.

Law No. 6306, however, provides a special, shorter time limit for lawsuits against administrative acts relating to its application: 30 days from the date of notification. As it may be disputed which act is subject to which time limit, the safest course is to work to the shorter limit and act quickly from the date of notification. A request for a stay of execution (yürütmeyi durdurma) can also be made in the statement of claim; once demolition has taken place, such a request largely loses its practical value.

Disputes between owners and disputes with the contractor are, as a rule, heard by the ordinary courts, that is, the civil courts of first instance (asliye hukuk mahkemesi) or the civil courts of peace (sulh hukuk mahkemesi). In disputes arising from the Condominium Law (Kat Mülkiyeti Kanunu), applying to mediation (arabuluculuk) before filing a lawsuit is a mandatory precondition (dava şartı) under Article 18/B of the Law on Mediation in Civil Disputes No. 6325. Telling which dispute belongs to which branch of the judiciary is important so as not to lose time in the wrong court. For general information on real estate disputes, see our real estate law page.

The Position of Tenants and Holders of Limited Real Rights

Tenants and holders of limited real rights (sınırlı ayni hak) such as a mortgage, usufruct or right of residence are also directly affected by urban transformation, but their position differs from that of an owner. With the eviction and demolition of a risky building, the lease relationship as a rule comes to an end. Under certain conditions, a tenant can receive rent assistance from the Ministry. Since the amount and duration of the assistance are set periodically, you need to obtain current information from the Provincial Directorate of Environment, Urbanisation and Climate Change.

In practice, limited real rights such as mortgages, and annotations on the title register, are carried over to the newly created independent units. On which unit and in what proportion this is done depends on agreement among the owners, the contractor and the right holder. If there is a bank mortgage on your old flat, talking to the bank at the start of the process prevents loan and allocation problems.

Common Mistakes

In the files we review in Istanbul at Karanfiloglu Law Firm, the most common problem we encounter is that owners sign the contract on the basis of the draft prepared by the contractor, without asking for any changes. Other typical mistakes are:

• Noticing the notification too late: Objection and lawsuit deadlines run from notification; for the risky building determination and for eviction and demolition notices, notification is deemed made on the last day of the announcement at the headman's office. Follow your e-Devlet notifications and, if you have moved, update your address in the land register and in MERNİS (the central population register).
• Settling for a protocol: A contract not executed before a notary in official form creates serious validity problems as regards the transfer of land shares.
• Transferring the whole title at the outset: A transfer without security leaves your share unprotected if the contractor runs into debt.
• Not attending the meeting: An owner who does not attend loses the chance to put their dissent on record and to influence the wording of the decision.
• Relying on verbal promises: If an extra room, a parking space or a rent increase is not written into the contract, it is hard to claim later.

In short, loss of rights in urban transformation can largely be prevented by keeping track of deadlines, making the contract written and detailed, and tying the transfer of title to security. Because the legislation changed in 2023, the current text must be taken as the basis at every step.

Speak with a Lawyer in Istanbul

If you would like an opinion on your own situation, Karanfiloglu Law Firm is a registered law firm in Istanbul serving Turkish and foreign clients throughout Turkey. You can reach us by phone or WhatsApp on +90 532 659 35 11, by email at karanfiloglu.lawyer@gmail.com, or visit our office at Merkez Mah. Hasat Sk. No:12, 34384 Şişli / Istanbul. Contact us to discuss your situation.

Frequently Asked Questions

What should I do first to avoid losing rights in urban transformation?

The first step is to find out the date on which the risky building determination was announced at the headman's office and to calculate the objection deadline from the last day of the announcement. Then you should check your title record and have the draft contract reviewed before signing any document with the contractor.

What is the deadline to object to a risky building determination?

The objection period is 15 days and runs from the last day of the 15-day announcement of the determination at the headman's office, that is, from the date on which it is deemed served. The objection is made by petition to the provincial directorate or, if authority has been delegated, to the relevant authority; you need to confirm the current text in your specific case.

Will my flat be taken from me if I do not consent to urban transformation?

The share of an owner who does not join the decision may, as a rule, be sold by public auction, first to the other owners, at not less than its market value. This is not confiscation without payment, but if you do not take legal action in time against the valuation and the sale, it becomes harder to change the outcome.

How many owners must approve an urban transformation decision?

The decision is taken by an absolute majority of shares. For a long time this threshold was applied as two thirds; in 2023 Law No. 7471 reduced it to an absolute majority. Since the procedure for calling the meeting and for notification also affects the validity of the decision, you should check the text of the Law as it stood on the date of the decision.

Does a flat-for-land construction contract have to be made before a notary?

Yes, a flat-for-land construction contract that includes a promise to transfer land shares must be executed before a notary in official form. Ordinary written protocols can create validity problems as regards the transfer of land shares.

What happens if the contractor goes bankrupt?

If the contractor goes bankrupt, land shares already transferred to it may become subject to its creditors' claims. If the contract contains clauses on staged transfer, security and the return of shares on termination, the owner's protection is much stronger.

What rights do I have as a tenant in urban transformation?

Even though the lease ends with the eviction of the risky building, a tenant can, under certain conditions, receive rent assistance from the Ministry. The amount and duration of the assistance are updated periodically; you should consult the Provincial Directorate about the application.

What is the time limit for filing a lawsuit against an urban transformation measure?

In administrative proceedings the general time limit is 60 days under Article 7 of İYUK, but Law No. 6306 provides a shorter, special time limit for its own acts. Under the Law, this period is 30 days from the date of notification; you should act on the basis of this shorter period.

About the Author

Av. Kaan Karanfiloğlu is the founder of Karanfiloglu Law Firm, a registered law firm based in Istanbul serving Turkish and foreign clients throughout Turkey. He is a lawyer registered with the Istanbul Bar Association (Registration No. 58270) and the Union of Turkish Bar Associations (No. 133074), and a registered mediator under registration number 41909. He has practised law in Turkey since 2017. He graduated from Galatasaray University Faculty of Law in 2016 and advises clients in Turkish, English and French; the firm also serves Russian- and Chinese-speaking clients through native-speaking advisors at the office.

Disclaimer: This article provides general information about Turkish law and does not constitute legal advice. Laws, regulations, official fees and procedures change over time, and every situation is different. Please consult a lawyer for advice on your own situation. No liability is accepted for any loss arising from reliance on the information in this article.