What Steps Must Be Followed in the Urban Regeneration Process for High-Risk Buildings?

• The assessment is initiated by the property owners or their officially appointed legal representatives.

• For properties held under a shared freehold, the specific shareholder who owns the physical structure must submit the request.

• Any party holding a registered interest or caveat on the title deed is also entitled to apply for an evaluation.

• In certain circumstances, the Ministry or local authorities reserve the right to carry out this assessment ex officio.

• The process formally begins by applying to the Ministry, local councils, provincial administrations, metropolitan municipalities, or institutions licensed directly by the Ministry.

• Official reports must be procured strictly from organisations licensed by the Ministry of Environment, Urbanisation and Climate Change.

• All submitted reports are thoroughly reviewed by the Urban Regeneration Directorate.

• If the report is complete and accurate, the Land Registry Office will register a ‘high-risk structure’ caveat on the property’s title deed.

• Property owners or their representatives have 15 days to appeal this designation by submitting a formal petition to the Directorate.

• Appeals are evaluated by a Technical Committee. If the high-risk status is upheld, the report becomes final, and the demolition process is triggered.

• Should the building be found structurally sound, the caveat is immediately removed from the title registry.

• Once the risk assessment is finalised, the Directorate notifies the relevant local authority to oversee the immediate evacuation and demolition of the building.

• Owners are granted a strict, non-extendable period of up to 90 days to safely demolish the structure.

• Owners may choose to retrofit the building instead, provided they can prove structural reinforcement is technically feasible within the 90-day window.

• Proceeding with a retrofit requires the written consent of four-fifths of all property owners or a formal court order, followed by the preparation of an approved project and the acquisition of relevant permits.

• If retrofitting is successfully completed within the designated timeframe, owners can apply to the Land Registry to remove the high-risk caveat.

• If retrofitting is not viable, demolition must proceed. A demolition permit is issued once at least one owner proves the building is fully evacuated and all utilities (electricity, water, and gas) are disconnected. The consent of the remaining owners is not required at this stage.

• Should owners fail to demolish the structure within the allotted time, the local governor is notified, and demolition is carried out with law enforcement support.

• Property owners are responsible for notifying tenants and parties with limited real rights about the demolition order; failing this, the local administration will issue the notices directly.

• Post-demolition, the high-risk caveat is removed from the title deed upon request by the owners, supported by official demolition documents.

• Eligible owner-occupiers may apply for up to 18 months of rent assistance under Law No. 6306. Applications must be submitted within one year of the evacuation date, and strictly within three months following the building’s demolition.

• Once the high-risk structure is cleared, landowners must jointly decide whether to redevelop the vacant plot or leave it undeveloped.

• A redevelopment decision requires a minimum majority of 51%. This majority is calculated based on the proportion of land shares held, rather than a simple headcount of the owners.

• If a resolution is passed by this 51% majority, the land shares of any dissenting owners will be put up for sale.

• A Valuation Committee and a Sales Committee are established to determine the fair market value of these shares and oversee the transaction. In Istanbul, this authority is delegated to local district councils.

• An internal auction is held first, restricted exclusively to the existing shareholders.

• If the shares remain unsold, a public auction is convened and continues until a third-party buyer is found. The final sale price cannot fall below the determined fair market value.

• The purchaser of these shares is legally deemed to have accepted the redevelopment project agreed upon by the 51% majority.

Following this comprehensive process, a new phase commences based on the mutual agreement of the landowners regarding the plot’s future. While the shareholders may occasionally choose to leave the site as undeveloped land, they typically proceed with a new construction project.

In Turkey, urban regeneration projects are most commonly executed through a property exchange agreement. Landowners entrust the plot to a developer in exchange for a proportion of the newly built units, securing this arrangement with a turnkey contract signed formally before a Notary Public. Naturally, the specific terms of these contracts will vary depending on the unique characteristics of the plot and the specific requirements of the property owners.

Once the developer secures the necessary planning permissions, they carry out the construction in strict accordance with the approved architectural plans. Upon completion, the developer obtains the habitation certificate and officially hands over the secure, newly built property to the landowners. The urban regeneration process officially concludes once these new units are formally registered at the Land Registry.