Urban Transformation and Legal Procedures: Risky Building Assessment, Rights, and Disputes

Given Türkiye’s location on active earthquake fault lines, urban transformation projects have become essential for both urban planning and the protection of life and property.
Law No. 6306 on the Transformation of Areas Under Disaster Risk regulates the entire process, from the identification of risky buildings to the delivery of new housing to rights holders.
This article examines the legal procedures in urban transformation, the rights of property owners, and methods for resolving potential disputes.

1. Legal Basis

• Law No. 6306: The primary legislation governing urban transformation.
• Implementation Regulation: Covers risky building assessments, notifications, demolition procedures, and new construction principles.
• Turkish Code of Obligations (TCO): Governs construction contracts such as revenue-sharing and land-for-flat agreements.
• Condominium Law: Regulates common areas and voting rules among co-owners.

2. Step-by-Step Urban Transformation Process

a) Risky Building Assessment

• Conducted by licensed institutions or municipalities upon application by at least one property owner.
• Under Article 3 of Law No. 6306, the risky building report is submitted to the Ministry of Environment, Urbanization and Climate Change.

b) Notification and Objection

• The risky building record is annotated in the title deed and notified to the owners.
• Owners may file an objection within 15 days with the district/provincial administrative boards.

c) Demolition Decision

• If the objection is rejected, a demolition decision is issued.
• Owners are given at least 60 days to vacate.

d) Reconstruction Process

• Co-owners decide on the new construction project by a two-thirds majority.
• Shares of dissenting owners can be sold via auction to other owners or third parties.

3. Rights of Property Owners

• Rent Assistance: Provided by the Ministry or municipalities.
• Credit and Interest Support: Available for reconstruction or strengthening works.
• Temporary Housing/Workplace Allocation: Offered in certain projects.

4. Disputes and Legal Remedies

• Share Sale and Valuation: Owners can challenge undervaluation of shares.
• Contractual Disputes: Issues with contractors in land-for-flat or revenue-sharing agreements.
• Expropriation and Compensation Cases: Administrative litigation for undervalued expropriation compensation.

5. Court of Cassation Precedents

• The Court of Cassation has ruled that non-compliance with procedural rules in risky building assessments invalidates the process.
• Sales of dissenting owners’ shares based on a two-thirds majority decision can be annulled if not conducted in accordance with the law.

6. Limitation Periods

• Objection to risky building assessment: 15 days
• Contractual disputes: 5 years (TCO Art. 147)
• Expropriation compensation increase lawsuit: 30 days from notification

7. Tips to Avoid Loss of Rights

• Have the risky building report reviewed by a technical expert.
• Ensure that decisions made by two-thirds majority are notarized.
• Have any contract with a contractor reviewed by a specialized lawyer.
• Apply for rent assistance and loans within the prescribed deadlines.

Urban transformation, when planned correctly, improves safety and resilience against earthquakes while revitalizing urban spaces.
For a smooth process, rights holders must be aware of their entitlements under Law No. 6306 and related regulations, and must seek legal remedies in the event of disputes.