Property Owner Rights and Disputes in Urban Renewal in Izmir

Urban renewal is a comprehensive process aimed at renewing the housing stock that poses disaster risk and creating safe housing. In this process, owners have many rights and obligations, but the management of the renewal process often leads to legal disputes. In this article, we discuss in detail the risky building determination, owners' right to object, the two-thirds majority rule, rent assistance, construction-for-shares agreements and the prominent disputes in this process.

Risky Building Determination and Objection

The urban renewal process begins with the risky building determination. Licensed organizations assess the building's resistance to earthquakes or other disasters and make a risky building determination. Owners may object within the statutory deadline and procedure. The objection is referred to a technical committee, and as a result of the review, the determination may be confirmed or lifted. Making the objection to the risky building determination on time and in accordance with the procedure is important for protecting owner rights from the very beginning of the process.

Two-Thirds Majority Decision

Unanimity is not required for the demolition and reconstruction of a risky building; a two-thirds majority decision is sufficient. Owners who do not consent to this majority decision are deemed to have individually rejected the other owners, and their shares are put up for public auction to other owners first after a value assessment. If there are no buyers, transfer of the share to the Ministry may come into question. For this reason, it is important for the non-consenting owner to evaluate their legal options from the outset to prevent potential loss of rights. The proper conduct of decision-making processes and meetings is also decisive for the validity of the decision.

Rent Assistance and Support

Various forms of support may be provided to owners and tenants who are required to relocate during the urban renewal process. Rent assistance is a type of support that can be applied for during the period from demolition to completion of new construction. Additionally, owners may benefit from interest support on loans for residential or commercial construction. Which support to choose is often left to the owner's preference, but each option has specific conditions and limits. Tenants may also benefit from some forms of support such as moving assistance. Tracking the application procedures and deadlines for these supports from the start is important to prevent loss of rights.

Construction-for-Shares Agreement

Owners may enter into a construction-for-shares agreement with a contractor for the renewal of the building. In this agreement, clearly regulating from the outset such matters as the shares to be left to owners in return for the independent sections the contractor will build (the construction-for-shares ratios), the delivery timeline and the penalty clause applicable in case of delay, construction quality and standards, termination conditions and dispute resolution mechanisms is critically important for the healthy progress of the process and prevention of potential disputes. The contractor's failure to fulfill their obligations, defects in the renewed building or delays in delivery are among the common disputes arising from these agreements.

Process in Izmir

Izmir is among the leading cities where urban renewal is prominent due to earthquake risk. Disputes arising in this process proceed through different judicial channels depending on their nature: administrative disputes such as objections to risky building determinations are handled by Izmir Administrative Courts; private law disputes such as construction-for-shares contracts, unjust enrichment and partition actions are handled by the relevant civil courts. For more on partition actions, partition action in Izmir you can review our article. For real estate law processes, our Izmir real estate law services are available.

Frequently Asked Questions

For legal support on urban renewal, owner rights and real estate law processes, contact Yücesoy Law Office via our contact page.