ALL STAGES OF THE URBAN TRANSFORMATION PROCESS

STRUCTURES AT RISK:

- Determination of Risky Structures and Authorized Institutions:

The determination of risky structures shall be carried out by institutions and organizations licensed by the Presidency, in accordance with the procedures and principles set forth in the regulation prepared by the Presidency. The cost of this determination is to be borne by the property owners or their legal representatives, and the results are reported to the Presidency or the relevant Administration.

- Persons Authorized to Request Risky Structure Determination:

"Even individuals with a minor share in an apartment or in a building on a plot with common ownership can request the determination of a risky structure."

- Documents Required for Application:

• Title Deed

• Copy of Identity Card

• If the application is to be made by a proxy, the power of attorney must include an authorization under Law No. 6306.

1. Is it necessary for the risky building to have a permit?

• No, buildings classified as slums or those constructed without a building permit can be subject to transformation under this law.

2. Can derelict and dilapidated buildings benefit from the urban transformation law?

• No, only habitable buildings can benefit from this law.

3. What are the incentives for urban transformation?

• Regarding construction: Exemptions include notary contract fees, title deed fees, construction permit fees, occupancy permit fees, stamp tax, inheritance and transfer fees, essentially all fees collected by municipalities.

4. Is demolition mandatory if the building is classified as a risky structure according to the risk assessment report? How many days are allowed for demolition?

• A maximum period of 60 + 30 days is provided before mandatory demolition. If the building is not demolished, it will be demolished by the administration (municipalities, relevant ministry) ex officio. There are precedent decisions indicating that demolition costs cannot be imposed on the parties.

5. If we demolish our building, can we get more square meters?

• After the demolition, communication with the neighboring parcel owner(s) should be established, and all possibilities should be evaluated.

6. Is it possible to sell or transfer the share recorded as risky on the title registry?

• Yes, this annotation does not prevent any disposal transactions.

7. Can the decision of a risky structure be appealed? Where are appeals submitted?

• Appeals can be made to the Provincial Directorate of Environment and Urbanization or municipalities with urban transformation units within 15 days of receiving the assessment report.

8. If my appeal against the assessment report is unsuccessful, can I file a lawsuit?

• Yes, the risk assessment report is an administrative action. The period for filing a lawsuit against administrative actions is 60 days, but for urban transformation law applications, the objection period is 30 days from the notification of the report to the relevant parties.

9. Does filing a lawsuit halt the process?

• No, a request for a stay of execution must also be made.

10. What are the legal ways to stop the demolition process?

• The risky building must be suitable for reinforcement. - A technical assessment should be made. - A 4/5 majority decision according to Article 19 of the Condominium Law. - A reinforcement permit must be obtained after the decision.

11. What are the rights of tenants in buildings identified as risky structures?

• If there is no risk assessment report application before signing the lease agreement, an equitable reduction in the remaining rent balance should be made in favor of the tenant and paid to the tenant. Although it is not an explicit legal provision, there are example court decisions.

12. What are the legal procedures for holding meetings and making agreements with a contractor before the demolition of a risky structure?

• A decision must be made by a majority of 50% + 1. The majority is based on the majority of land shares. The decision meeting is not subject to any formalities. Notice is given through a notary to rights holders who do not attend the meeting or do not participate in the decision.

13. What is the fate of the shares of co-owners who do not attend the meeting or participate in the joint decision?

• They have a preemption right by the 50% + 1 majority. If there is no buyer from this majority, it can be sold to third parties.

14. What are the legal recourse options against the 50% + 1 majority decision?

• According to the Supreme Court decision numbered 2015/8497, 2015/10830, the competent court for the annulment of the construction contract for flat share and compensation for possible material damages will be the Civil Court of First Instance. However, there are other Supreme Court decisions that still grant jurisdiction to the Civil Courts of Peace for decisions taken before the demolition.

• They can request a precautionary injunction to prevent the sale of their shares and to prevent possible loss of rights.

15. Until when can owners who do not participate in the absolute majority decision change their minds?

• Minority rights holders can change their minds until their shares are put up for auction.

16. How does the process of selling the shares of minority rights holders through auction proceed?

• According to Implementation Regulation 15/A, they apply to the Provincial Directorate of Environment and Urbanization (having the value of the property determined by licensed valuation organizations registered with the CMB).

• The Provincial Directorate of Environment and Urbanization will sell by auction.

• Only shareholders who made the majority decision can participate in the tender.

• The tender price cannot be below the market value determined by the Ministry.

17. What are the conditions for participating in the auction?

• Owners who want to buy the minority shares must deposit a guarantee of 1/10 of the immovable property.

18. Who can benefit from rent assistance?

• To benefit from rent assistance, the building must be evacuated through an agreement.

• The 50% + 1 majority can benefit from this assistance.

• Rent assistance is provided by the state.

• The Ministry can also provide temporary housing or workplace allocation, but those benefiting from advantageous urban transformation loans cannot also benefit from rent assistance.

• Those with more than one apartment can benefit from rent assistance for the number of apartments they have.

• The rent assistance period cannot exceed 18 months.

• SLUM OWNERS ARE GIVEN RENTAL ASSISTANCE DOUBLE THE AMOUNT DETERMINED FOR RISKY BUILDINGS.

CONDITIONS THAT CONTRACTORS MUST MEET

• Attention should be paid to the classification of the contractor: A-B-C-D-R-E-F-G-H

• The classification of building contractors is regulated by the relevant legislation article 13, and the authorization certificate for demolition works article 14 and following.

• The preliminary project prepared before signing the contract must be approved by the municipality.

• The provisions of the Law of Obligations 470 on work contracts will be applicable.

• According to Article 706 of the Turkish Civil Code and Article 60 of the Notary Law, construction contracts for flat share must be made at the notary. All protocols under Law No. 6306 are exempt from notary fees.

• A penalty clause can be set for each missing square meter to provide assurance to property owners.

• A comprehensive letter of guarantee can be prepared.

• An offer for construction completion insurance can be made.

• CONSTRUCTION CONTRACTS FOR FLAT SHARE CAN BE TERMINATED BY THE ADMINISTRATION WITHOUT GOING TO COURT.

FOR THIS:

• A majority decision of 50% + 1 can be taken.

• Construction work must not have started within 1 year despite an agreement with all owners.

• Construction work must have started but must not have been continued for at least 6 months at a level that requires the completion of the project due to reasons attributable to the contractor.

• Construction work must not be continued due to reasons attributable to the contractor.