AMENDMENT TO THE CONDOMINIUM OWNERSHIP LAW

The Law Amending the Enforcement and Bankruptcy Law and Certain Laws numbered 7327 (“Amendment Law”) was published in the Official Gazette on 19 June 2021. This Omnibus Law brought certain amendments to the Condominium Ownership Law dated 23 June 1965 and numbered 634.

What Changes Does This Amendment Law Bring?

As the real estate market grows in Turkey, the Condominium Ownership Law (in Turkish, “Kat Mülkiyeti Kanunu”) becomes more significant whereby important improvements are made in this field of law.

Pursuant to Amended Article 10 of the Condominium Ownership Law:

• Type change (in Turkish, “cins değişikliği”) transactions for all buildings for which occupancy permits(in Turkish, “yapı kullanma izin belgesi”) are issued will be converted ex officio (in Turkish, “re’sen”) under the provisions of the Condominium Ownership Law. A registration notification will be issued by the cadaster directorate following the building occupancy permit certificate is loaded on the Spatial Address Registration System (in Turkish, “Mekansal Adres Kayıt Sistemi”) by the administration which is authorized for its issuance and sent to the cadaster directorate in electronic form together with the building application project.

Upon the registration notification sent to the Land Title Registry Office registry, the type change process will be ex officio registered without requirement of any other documents. If the immovable which is registered for type change is a construction servitude, it will be converted into condominium ownership ex officio without requirement of any other document. These transactions will be exempt from the relevant administrative service fee (in Turkish, “döner sermaye harcı”).

• Provided that the independent sections corresponding to the right owners have been determined, upon the contractor’s (in Turkish, “müteahhit”) request, the relevant administration shall complete the construction servitude (in Turkish, “kat irtifakı”) and condominium establishment (in Turkish, “kat mülkiyeti”) process for the building subject to (i) the construction agreement in return for land share (in Turkish, “kat karşılığı inşaat sözleşmesi”) or (ii) the assignment agreement in return for the land share (in Turkish, “kat karşılığı temlik sözleşmesi”) or (iii) the notary public agreement regarding the division of the independent sections (in Turkish, “bağımsız bölümlerin taksimine ilişkin noterlik sözleşmesi”) between the land owners and the contractor. The architectural project (in Turkish, “onaylı mimari proje”) and building management plan (in Turkish, “yönetim planı”), which is prepared electronically and approved by the relevant administration, will be taken as a basis in the registration process. It will not be required to have the owners’ signature in the architectural project and management plan.

Our Law Firm remains at your disposal for any further clarifications or assistance you may need about the subject matter.