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Real Estate Law

Partition of Co-owned Property in Turkey and the 2026 First-Auction Priority for Heirs

Av. Bilal KATAR · · 6 min read

Updated:

Where co-owners or heirs cannot agree on a jointly owned property, any of them may seek partition. Mediation is mandatory before filing suit. Since 31 July 2026, the first auction for inherited property is open only to the heirs who own it.

Co-owners of property acquired by inheritance or bought together often cannot agree on its use, letting or sale. The law does not force any co-owner to remain in co-ownership. An action for partition (ortaklığın giderilmesi, also known as izale-i şuyu) brings it to an end.

1. Who may apply? In co-ownership by shares, each co-owner may request partition unless bound by a legal obligation to remain a co-owner (Turkish Civil Code (TMK) Art. 698). In a community of heirs, each heir may, as a rule, request division of the estate at any time (TMK Art. 642). The fact that the property is still registered in the deceased's name does not prevent the action; it may be filed with a certificate of inheritance.

2. Mediation first. Under Article 18/B of Law No. 6325, since 1 September 2023 applying to a mediator is a precondition before filing a partition action concerning real property. If all co-owners agree in mediation, the property can be divided without litigation.

3. Competent court. The action is filed with the civil court of peace where the property is located (Code of Civil Procedure (HMK) Arts. 4 and 12). All co-owners must be parties; if a co-owner has died, their heirs are joined instead.

4. Division in kind first, sale otherwise. The court first examines whether the property can be divided in kind according to the shares. If division is impossible or would considerably reduce the property's value, partition by sale is ordered (TMK Art. 699). Sale is usual for flats, single houses and plots that cannot be subdivided under zoning rules.

5. How is the sale conducted? The sale is made by public auction through the enforcement office, and the proceeds, after costs, are distributed among co-owners according to their shares. Co-owners' pre-emption rights cannot be exercised in a compulsory auction (TMK Art. 733).

6. The 2026 change: first-auction priority for heirs. Law No. 7589, in force since 31 July 2026, made an important amendment to Article 114 of the Enforcement and Bankruptcy Law:

• If all owners acquired the property by inheritance and no third party holds ownership rights, the first auction is held only among the heirs who own it. This applies once only.

• In this first auction among heirs, a bid must exceed the full appraised value.

• If the first auction is unsuccessful, the second auction is open to everyone under the general rules.

• If the successful bidder fails to pay in time, the security is forfeited and an administrative fine of five percent of the bid is imposed.

These rules do not apply to auctions announced before 31 July 2026.

7. Costs. Court costs and attorney's fees are generally borne by co-owners in proportion to their shares. The sale process also involves enforcement and advertising costs.

Conclusion. A partition action resolves the dispute definitively but, where a sale is ordered, carries the risk of the property selling below market value. Because the new rule allows inherited property to stay within the family, it has become more important for heirs to plan their bidding strategy together before the sale stage.

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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