The Urban Transformation Process: From Risky-Building Assessment to Delivery

The legal framework for urban transformation is set out in Law No. 6306 on the Transformation of Areas under Disaster Risk. The process begins with a finding that a building is risky and ends with the delivery of the deeds for the new building. Below is how transformation typically works at the scale of a single building.

1. Risky-building assessment

Even a single owner can apply to a firm licensed by the Ministry to have the building assessed for risk. If the report is positive, the building is registered as a risky building and this is entered on the title deed record. Owners are notified, and an objection can be filed within the period set by law.

2. Owners reach a decision

Once a building is registered as risky, the owners meet to agree on its demolition and rebuilding. The law allows a decision to be made by a qualified majority based on land shares; the procedure set out in the law applies to the shares of owners who do not join the decision. Because the required majority has been amended by legislation, the current rules should be checked.

3. Choosing a contractor and signing the agreement

The owners agree with a contractor through a flat-for-land construction agreement. The sharing ratio, delivery period, guarantees and penalty clauses are set out in this agreement. Having the agreement drawn up at a notary increases its protection.

4. Evacuation and demolition

A period is given for evacuating and demolishing the building. At this stage, eligible right holders may be offered rent assistance or an interest-subsidized loan; applications and periods are set by the authority.

5. The new building and title deeds

The new project is permitted, construction is completed, an occupancy permit is obtained, and condominium ownership is established with the independent units transferred to the right holders. Land shares are redetermined at this stage.

Key points for owners

• Write down the sharing ratio not just as a percentage but as which unit, how many square meters, and on which floor you will receive.
• Make sure the delivery period and the penalty for delay are clear.
• Make sure the contractor's guarantee (a mortgage or a bank letter of guarantee) is included in the agreement.
• Make responsibility for obtaining the occupancy permit the contractor's.
• Specify who bears the taxes and expenses.