Urban Renewal Rights — Entitlements Under Law No. 6306

Urban renewal (kentsel dönüşüm) is a process regulated by Law No. 6306 on the Transformation of Areas Under Disaster Risk (Afet Riski Altındaki Alanların Dönüştürülmesi Hakkında Kanun) that aims to demolish risky structures and build new earthquake-resistant buildings in their place. As Turkey lies on an earthquake belt, urban renewal is of great importance for both personal safety and urban development. This article covers all stages of the urban renewal process, including risk assessment of structures, entitlements, the two-thirds majority decision, rent assistance, avenues for objection, and the process of transformation.

What Is the Purpose and Scope of Law No. 6306 (Urban Renewal Act)?

Law No. 6306 aims to create healthy and safe living environments compliant with technical and scientific standards in areas at risk from natural disasters as well as in land and plots outside such areas containing risky structures. The Act operates through three core concepts: risky structure (riskli yapı), risky area (riskli alan), and reserve construction area (rezerv yapı alanı).

The Act covers risky structures, risky areas, and reserve construction areas. A risky structure is a building that has completed its economic life or bears the risk of collapsing or sustaining severe damage. A risky area is an area that poses a risk of loss of life and property due to its ground conditions or the nature of construction upon it, and which is declared by Presidential decree. A reserve construction area is an area set aside for use in urban renewal applications.

Law No. 6306 aims to protect the safety of citizens from earthquake risk, rooted in the right to life under Art. 17 of the Constitution and the right to a healthy environment under Art. 56. The Act entered into force in 2012 and has been updated through various amendments. The most recent amendments have reduced the two-thirds majority requirement to a simple majority [TO BE VERIFIED].

How Is a Risk Assessment of a Structure Carried Out?

Risk assessment of a structure is carried out under Art. 3 of Law No. 6306 through organisations licensed by the Ministry of Environment, Urbanisation and Climate Change (Çevre, Şehircilik ve İklim Değişikliği Bakanlığı). Any single condominium owner or legal representative may, independently, apply for a risk assessment; the consent of other owners is not required.

For a risk assessment, licensed organisations take core samples from the load-bearing structural elements of the building to carry out concrete strength tests, perform reinforcement inspections, and examine the general condition of the building. The data obtained are evaluated in accordance with the current earthquake regulation and a determination is made as to whether the building is risky. The assessment report is submitted to the Ministry or the relevant authority.

The cost of a risk assessment varies depending on the size of the building and the number of independent units. On average, the cost may be between TRY 1,000 and TRY 5,000 per independent unit [TO BE VERIFIED]. This cost is borne by the condominium owner who applied for the assessment; however, if the building is found to be risky, it may be shared as a common expense.

How Is an Objection to a Risk Assessment Filed?

An objection to a risk assessment may be filed within 15 days of service with the technical committee (teknik heyet) within the provincial directorate of environment, urbanisation and climate change (çevre, şehircilik ve iklim değişikliği il müdürlüğü) in the province where the property is located. The objection must be based on concrete grounds that the technical data in the assessment report are incorrect and the demolition process is suspended during the objection period.

The technical committee examines the objection and, where it sees fit, may carry out an on-site inspection and take new samples. If the objection is rejected, the risk assessment becomes final. If the objection is accepted, the building is removed from the list of risky structures. An annulment action may be brought before the administrative court against the technical committee's decision.

In the annulment action brought before the administrative court, an expert examination is commissioned to assess independently whether the building is genuinely risky. The court reviews whether the technical committee's decision was lawful. A stay of execution (yürütmenin durdurulması) may be requested; if this request is granted, the demolition process is suspended until the action is concluded.

How Is the Two-Thirds Majority Decision for Urban Renewal Adopted?

Under Art. 6 of Law No. 6306, the decision to rebuild on the land that has become a plot following the demolition of a risky structure is adopted by a majority of two-thirds in terms of land share. If this majority cannot be achieved, compulsory expropriation (acele kamulaştırma) may be resorted to. The shares of owners who do not participate in the decision may be sold to the consenting owners or third parties.

The two-thirds majority calculation is based on land share. It is not the number of condominium owners but the total of the land shares they hold that is determinative. For example, in a building with 10 independent units, even if 7 owners consent, if their total land share does not reach two-thirds, the majority is not achieved. If it is claimed that the land shares have been incorrectly determined, an action for rectification of land shares may first need to be brought.

Owners who do not participate in the decision are served notice through a notary by the consenting owners. A period of 15 days from service is given for them to join the decision. The land shares of owners who do not join the decision within this period are first offered to the consenting owners at the market value. If the consenting owners do not wish to purchase, the shares are sold to third parties at the market value determined by the Ministry.

Who Is Entitled to Rights in Urban Renewal?

In urban renewal, entitlement belongs to persons who are owners of independent units in the risky structure. Persons who appear as owners in the title deed records are right-holders. Tenants are not right-holders but may benefit from supports such as rent assistance and moving expense support.

In co-ownership (hisseli mülkiyet), all co-owners are right-holders and each co-owner has the right to receive an independent unit from the new building in proportion to their share. Condominium owners who hold more than one independent unit have separate entitlements for each unit. In inherited properties where succession has not been completed, the heirs are right-holders and it is necessary first to complete the succession registration (intikal).

Persons present in the building as tenants or as holders of limited real rights are also protected under the Act. Under the Implementing Regulation (Uygulama Yönetmeliği) of Law No. 6306, rent assistance is provided to tenants and holders of limited real rights. The period and amount of rent assistance for tenants is determined annually by the Ministry [TO BE VERIFIED].

How Much Is Rent Assistance and Moving Expenses in Urban Renewal?

Under Art. 5 of Law No. 6306, rent assistance is provided to right-holders and tenants who are evacuated from risky structures. While right-holders receive monthly rent assistance during the transformation process, tenants are generally given a one-off moving allowance. Rent assistance amounts are updated annually by the Ministry [TO BE VERIFIED].

The duration of rent assistance varies depending on the reconstruction period but is generally applied for up to 18 months [TO BE VERIFIED]. Right-holders may instead benefit from housing or workplaces provided by the Ministry. They may also be granted the right to apply for housing produced by TOKİ (Housing Development Administration of Turkey — Toplu Konut İdaresi) within the scope of the transformation project.

Applications for rent assistance and moving expenses are made to the municipality where the property is located or to the Provincial Directorate of Environment, Urbanisation and Climate Change. Title deed, identity document, rental agreement (for tenants), and bank account details are required for the application. It may take several months for the application to be assessed and the payment to be made [TO BE VERIFIED].

How Does the Risky Area Declaration Process Work?

A risky area declaration is made under Art. 2 of Law No. 6306 by means of a Presidential decree declaring that areas posing a risk of loss of life and property due to their ground conditions or the nature of construction upon them are at risk. A risky area declaration is not on a building-by-building basis but an area-based application and may cover large zones.

For a risky area to be declared, the Housing Development Administration (TOKİ) or the relevant municipality applies to the Ministry. The application includes the ground survey of the area, building inventories, population information, and other technical data. If the Ministry deems the application suitable, it submits it to the Presidency requesting that the risky area be declared.

Against a risky area declaration, interested parties may bring an annulment action before the Council of State (Danıştay) after the declaration decision is published in the Official Gazette (Resmi Gazete). Since a risky area declaration is a Presidential decree, the Council of State has jurisdiction as the court of first instance. A stay of execution (yürütmenin durdurulması) may be requested and the court grants this taking into account the unlawfulness of the decision and the existence of loss that is difficult to remedy.

What Avenues for Objection and Legal Challenge Are Available in the Urban Renewal Process?

Right-holders have avenues for objection and legal challenge at every stage of the urban renewal process. An objection to a risk assessment is made to the technical committee; an objection to a risky area declaration is made to the Council of State; and an objection to the sale price of a land share is made to the relevant court. Correctly following the legal process at every stage is of great importance for preventing the loss of rights.

The most important point to bear in mind in objecting to a risk assessment is that the 15-day objection period is right-extinguishing in nature. If no objection is filed within this period, the assessment becomes final. If the objection is rejected, the period for bringing an action before the administrative court is 60 days from service of the rejection decision.

Right-holders may apply to the court if it is claimed that the sale price of the land share has been set too low. Under Art. 6 of Law No. 6306, the market value is taken as the basis in the sale of the land shares of non-consenting owners. It is possible to obtain a report from a CMB-licensed (Capital Markets Board — Sermaye Piyasası Kurulu) valuation company or to have an expert examination commissioned by the court to determine the market value.

In disputes arising from the agreement concluded with the contractor, the terms of the land-for-apartment agreement (kat karşılığı inşaat sözleşmesi) must be carefully examined. In cases such as failure to complete the construction on time, failure to build in accordance with the specifications set out in the agreement, or defects in the independent units delivered, right-holders may bring an action for compensation. The consumer court (tüketici mahkemesi) has jurisdiction in land share for construction agreements.

What Steps Should Be Taken in the Urban Renewal Process?

The urban renewal process is a multi-stage process that begins with the risk assessment and continues until the new building is delivered. At every stage, right-holders must be informed, their rights protected, and the process conducted transparently. The process is completed on average in between 3 and 5 years [TO BE VERIFIED].

As a first step, a risk assessment is commissioned from a licensed organisation. If the result is risky, the report is submitted to the Ministry or the relevant authority and a risky structure annotation is entered on the title deed record. In the second step, right-holders are notified and given a period of no less than 60 days for vacation of the building.

In the third step, after the building is vacated, demolition takes place. Demolition costs are borne by the right-holders or the authority carries out the demolition and recovers the costs from the right-holders. In the fourth step, a two-thirds majority decision of the owners by land share for reconstruction is adopted on the land that has become a plot.

In the fifth step, the selection of the contractor firm and the signing of the land-for-apartment agreement take place. The agreement must regulate in detail the characteristics of the independent units to be given to the right-holders, the delivery date, the delay penalty, and other conditions. In the sixth step, construction begins and, upon completion, the independent units are delivered to the right-holders.

Obtaining legal assistance at every stage of the urban renewal process is of great importance for preventing the loss of rights. In particular, obtaining professional legal advice at critical stages such as the contractor agreement, land share calculation, and the two-thirds majority decision is strongly recommended.

This content is for general informational purposes only and does not constitute legal advice. Professional legal advice from a qualified attorney is strongly recommended for specific disputes.