Since the 2023 amendment to Law No. 6306, transformation decisions can be taken by a simple majority of land shares. Owners should therefore not miss the 15-day objection and notice periods, and should review the contractor agreement before signing.
Urban transformation aims to replace buildings that are not earthquake-resilient. For owners, however, it raises property, tenancy and construction contract issues at the same time.
1. Risky building designation and objection. A risky building designation is annotated on the land register and notified to the owners. Notification may also be made by posting a report on the building, through e-Devlet, and by announcement at the local headman's office. Owners may object within 15 days; this is a strict time limit. The deadline to file an annulment action against administrative acts under Law No. 6306 is, as a rule, 30 days.
2. Decisions by simple majority. Following the 2023 amendment to Article 6 of Law No. 6306 by Law No. 7471, transformation decisions no longer require a two-thirds majority. A simple majority of owners, calculated by land share, is sufficient, meaning more than half of the total land shares.
3. Owners who do not join the decision. The decision and the offer containing the agreement terms are notified to non-consenting owners through a notary or by a 15-day announcement at the local headman's office. If an owner does not join within this period, their share may be sold under the statutory procedure. Owners receiving such notice should assess the offer and, where necessary, take legal action within the time limit.
4. The contractor agreement. A land-share-for-construction agreement should clearly cover:
• Location, gross and net area of the units allocated to the owner
• Delivery date, delay penalties and rent compensation
• Transfer of title to the contractor in stages, in line with construction progress
• Bank guarantees, building inspection and insurance obligations
• Termination and assignment terms if the contractor abandons the project
5. Rent assistance and financial rights. Owners and tenants who meet the statutory conditions may benefit from rent assistance or interest support. Certain transactions within transformation projects also benefit from fee and tax exemptions for limited periods. Application deadlines and conditions should be confirmed with the relevant authority.
6. Tenants. Once the risky building designation becomes final, leases are terminated by operation of law. Eligible tenants may receive rent assistance. Deposits and outstanding rent between landlord and tenant must be settled separately.
Conclusion. The most common causes of lost rights in urban transformation are missed short deadlines and contractor agreements signed without review. The process should be managed deliberately from the day the designation is notified.
This article is for general information only and does not constitute legal advice. Please consult a lawyer about your specific situation.
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