The Situation of Condominium Owners Who Cannot Reach an Agreement with the Contractor Within the Scope of the Urban Transformation Law

Articles | ONLINE CONSULTATION | İstanbul Lawyer Office

The Situation of Condominium Owners Who Cannot Reach an Agreement with the Contractor Within the Scope of the Urban Transformation Law

As Uzunpınar & Tüfek International Law Firm, we provide comprehensive and professional legal consultancy to our clients regarding the situation of condominium owners who cannot reach an agreement with the contractor within the scope of the Urban Transformation Law, within the framework of urban transformation law, the risky building process, disputes among condominium owners, and contractor agreements. Especially during the transformation of old and earthquake-unsafe buildings, disputes arising between condominium owners and contractors may, in practice, lead to serious losses of rights.

Law No. 6306 on the Transformation of Areas Under Disaster Risk (“Urban Transformation Law”) aims at the demolition and reconstruction of risky buildings and attaches legal consequences to the majority will of condominium owners in this process. However, one of the issues frequently encountered in practice is that some condominium owners do not participate in the contract concluded with the contractor or do not accept the proposed terms. At this point, the rights, obligations, and potential legal consequences faced by condominium owners who cannot reach an agreement are of great importance.

In the urban transformation process, there are many technical matters such as majority voting, the status of minority co-owners, land share ratios, sale and public auction procedures, evacuation, and demolition. A process that is conducted incorrectly or incompletely may cause material and legal losses that are difficult to reverse. For this reason, it is of vital importance for condominium owners to act by obtaining legal support both at the stage of reaching an agreement with the contractor and thereafter.


FREQUENTLY ASKED QUESTIONS (FAQ)

1. Is it mandatory to reach an agreement with the contractor in urban transformation?
In the urban transformation process, it is not mandatory for all condominium owners to reach an agreement with the contractor. Pursuant to Law No. 6306, decisions taken by a majority of land shares (at least 50% + 1) after the determination of a risky building are binding. When this majority is achieved, it is possible, under certain conditions, to include owners who do not participate in the decision in the process.

2. What happens to condominium owners who cannot reach an agreement with the contractor?
If condominium owners who cannot reach an agreement with the contractor do not participate in the contract despite the majority decision, the procedure stipulated by the Law is applied. In this case, the land shares of minority owners are first offered to the other condominium owners; if not accepted, a sale by public auction comes into agenda. The sale price is paid to the rightful owner.

3. How is the absolute (50% + 1) majority calculated?
The absolute majority required in urban transformation is calculated based on land share ratios, not on the number of persons. Therefore, the votes of owners with higher land shares may directly affect the course of the process. Incorrect calculation may lead to the annulment of the decisions taken.

4. Can the house of a non-agreeing condominium owner be forcibly sold?
Yes. Provided that the statutory conditions are met and decisions are taken in accordance with due procedure, the land share of a non-agreeing condominium owner may be forcibly sold. However, this process is not arbitrary; written notification, granting of time, and public auction stages must be fully applied prior to the sale. Transactions contrary to procedure may be annulled through judicial remedies.

5. How does the public auction process operate?
The share of the non-agreeing condominium owner is put up for public auction under the supervision of the Ministry of Environment, Urbanization and Climate Change. The auction price is paid to the owner as their entitlement. In this process, it is of great importance that the price does not fall below the market value.

6. Can the selection of the contractor be challenged?
Yes. If actions contrary to the principle of transparency occur during the contractor selection process, if bids are not evaluated equally, or if condominium owners are misled, annulment actions may be filed against the decisions taken. In addition, onerous and imbalanced contractual terms also constitute legal grounds for objection.

7. Are non-agreeing condominium owners obliged to vacate the property?
If the determination of a risky building has become final and a demolition decision has been taken, non-agreeing condominium owners are also obliged to vacate the property. The evacuation process is carried out by administrative authorities. However, evacuation and demolition procedures must also be conducted in accordance with the law; otherwise, a request for stay of execution may be filed.

8. Do condominium owners have the right to file a lawsuit?
Yes. Condominium owners have the right to file lawsuits before administrative and judicial courts on many matters such as risky building determinations, majority decisions, sale transactions, contractor agreements, and land share calculations. Filing a lawsuit does not, in every case, suspend the process; however, it may ensure the rectification of procedural irregularities.

9. What are the most common mistakes made in the urban transformation process?
The most common mistakes include incorrect calculation of the majority, failure to examine contracts in detail, unfair distribution of land shares and independent units, insufficient contractor guarantees, and signing documents without obtaining legal consultancy. These mistakes may lead to long-lasting lawsuits and serious financial losses.

10. Why is legal assistance important in urban transformation?
Urban transformation law is a technical field at the intersection of administrative law, real estate law, and contract law. The legal compliance of contracts to be concluded with the contractor, majority decisions, and sale transactions can only be reviewed by an expert lawyer. As Uzunpınar & Tüfek International Law Firm, we effectively protect the rights of condominium owners who cannot reach an agreement during the urban transformation process and provide our clients with strategic and result-oriented legal support.