Urban Transformation

Whereas the ever-increasing population, internal migration and the multitude of the buildings more than 40 years old at the end of their economic lives keep the new residence demand steady; earthquakes and their dangers necessitate the re-building of our cities based on those considerations.

For this reason, our state officially started the process known as "the Urban Transformation" with "the Transformation of Areas under the risk of Disasters" named, 6306 numbered law on 16.05.2012.

Well, what is the Urban Transformation that is much talked about but not enough is known about and why is it so important?
The Urban Transformation means the determination of problematic areas in the city, carrying out implementations to restructure and make them healthier places. In short the urban transformation is the elimination of the problems that impair the fabric of the city.

Through this information, the government plans to prevent the illegal constructions and minimize the damages of possible natural disasters by restructuring the insecure buildings more resistant to earthquakes.

What is the Risky Structure? Who determines it?
As per the paragraph "d" of the 2nd article of the Law numbered 6306, "the Risky Structure" refers to the structure or structures that are within or outside the risky area, that have reached the end of their economic lives and that have been detected to have the risk of collapse or heavy loss based on the scientific data.

These structures are detected by the Ministry, Administration and the public institutions and organizations licensed by the Ministry, universities, the companies the 40% of the capital of which belong to the public institutions and organizations, NGO that work on the protection from the earthquake, minimizing the effects of the earthquakes and contribution to the development of earthquake engineering, the building inspection bodies and laboratory organizations licensed by the Ministry in accordance with the Law as regards the Building Inspection numbered 708 and dated 29.06.2001 and the institutions and organizations providing architectural and engineering services and registered in accordance with the Union of Chambers of Turkish Engineers and Architects Law numbered 6235 and dated 27.01.1954.

How to know if the building is risky?
Whether a building is risky or not it is determined in accordance with the provisions of "the Regulations on Buildings in Seismic Zones" numbered 26454 and dated 06.03.2007 that was published in the Official Gazette. If the building has reached the end of its economic life and there is a potential risk of heavy damage or collapse, it shall be understood through a risk report to be taken from the risk detection institutions.

Is the majority of the residents' decisions a must in the determination of risky buildings?
No it isn't. As per the paragraph 1 of the 3rd article of the Law numbered 6306 and the 7th article of the Implementation Regulation, "the detection of the risky buildings is conducted by the institutions and organizations licensed by the Ministry at the costs of the owners of the buildings of their legal representatives within the scope of the terms and provisions specified in the regulations prepared by the Ministry and the results are notified to the Ministry or Administration." Any owner of a store, apartment or zone can solely apply for this procedure.

Upon the application, the licensed company that carries out the technical supervision prepares an earthquake risk report. If the building is considered risky according to the report, then the licensed company sends the report to the Ministry for confirmation. After the confirmation of the report, a written notification is sent to the residents of that building informing them that their building is risky and they need to make their decision without losing any time.

Can the residents object to the building risk report?
The residents can object to the building risk report. In the event of an objection, the relevant commission established within the ministry speedily convenes and makes decision on whether the earthquake risk report is true or not. If the content of the report is true, that means the building is under risk and then the building is registered as risky.

If the objection commission decides to turn down the objection, your building is definitely registered as risky by the ministry and all the owners are notified in official writing. After the receipt of the official notification within 60 days you need to prepare the "Building Co-Decision Protocol" in which you will specify how and to whom you will have the building reconstructed and notify the Ministry.

What is the building co-decision protocol?
After the building is announced to be risky, the building is deemed to be nonexistent on that land. Let's assume that a building with 10 apartments has been announced risky. The owners are now the owner of that land and they will make their decision regarding the land. They can sell the land or have a building constructed there. If they decide to have a building constructed, the information regarding with whom, under what conditions and under what distribution the building will be constructed must be specified in the building co-decision protocol. For instance that you reside in the apartment numbered 4 on the 2nd floor of the apartment before the demolition of the building. In order to reside at the same flat in the newly-built apartment, you must state this in the building co-decision protocol.

The building co-decision protocol is voted and accepted by the owners of the flats on a 2/3 majority based on their shares on the land. After this decision, it must definitely be ratified by the ministry because the ministry wants to know the decision regarding the building.

The building co-decision protocol must be submitted to the Ministry within the latest 60 days after the last notification to the building. Otherwise the Ministry can demolish the mentioned building with the help of law-enforcement officers and convert it to an empty land.

What can the 2/3 majority do for the building within the scope of the urban transformation?
"Building co-decision protocol" is prepared for the risky buildings within the scope of the urban transformation. As per this protocol, 2/3 majority decides the building's reconstruction conditions. 2/3 majority can sell the building as a land, reconstruct the building, choose the contractor and decide on the redistribution. This means, they can make all the decisions until the reconstruction of the building.

As the 2/3 majority can make these decisions, 1/3 majority can raise objection. If the 1/3 majority continue to raise objection although their rights are given, 2/3 majority can demand the apartments of the 1/3 majority for themselves.

Let's say that 1/3 majority has two apartments; the licensed company carries out the real-state evaluation of those two apartments. Then, the determined value is sold at a closed auction in which the 2/3 majority will participate. Let's assume that one of the people from the 2/3 majority purchases an apartment but the other apartment is not purchased by anybody. This time the state takes action and purchases that apartment over its value in the land register. So, the share ratio of that apartment is %100 percent completed. At the last stage, how the building will be renewed is decided.

What are the advantages of the urban transformation?
There are some advantages of the urban transformation provided by the state as it is realized upon the demand of the citizens.

As is known, the municipal fees for the new buildings are high. With the urban transformation, you can benefit from the exemption of all of these fees.

Besides contracts for the reconstruction are carried out at the notaries and there is an exemption for the expenses regarding the urban transformation and notary procedures. After the reconstruction, there is another exemption for the land register expenses at sales within the scope of the urban transformation.

One of the other advantages of the urban transformation also is that the VAT is 1% at the sale of the residential unit. The existing VAT varies between 8 and 18 depending on the m2 and properties of the residential unit. When a building that reaches the end of its economic life and enters the scope of the Urban Transformation by taking the Earthquake Risk Report, the VAT is 1% at the sale of the new residential unit and so there is a VAT advantage ranging from 7% and 17%.

In addition to the advantages provided by the state, the most important advantage is that you renew your insecure old building and know that you will not incur any life or property loss in any possible earthquakes and natural disasters.

You can contact us if you'd like to renew your building within the scope of the Urban Transformation and have detailed information about any issue!

I WOULD LIKE TO RENEW MY BUILDING