How to End Co-Ownership of a Property in Türkiye

How to End Co-Ownership of a Property in Türkiye: The 'İzale-i Şuyu' Lawsuit Explained

Owning property in Türkiye with family, friends, or business partners can be a wonderful investment. But what happens when the co-owners can no longer agree on the property's use, management, or sale? When one party wants to sell and the others do not, the situation can feel like a legal deadlock.

Fortunately, Turkish law provides a definitive solution: the "Ortaklığın Giderilmesi" or "İzale-i Şuyu" lawsuit. This legal action allows any single co-owner to force the termination of the joint ownership, ensuring that no one is trapped in an unwanted property investment.

This guide explains what the lawsuit entails, the mandatory steps you must take, and what you can expect from the court process.

Part 1: What is an "İzale-i Şuyu" Lawsuit?

In simple terms, an "İzale-i Şuyu" (Termination of Co-ownership) lawsuit is a legal procedure filed by one or more co-owners to end shared ownership of a movable or immovable property. The right to demand the termination of co-ownership is a fundamental right of every shareholder under the Turkish Civil Code. Unless there is a binding legal agreement to maintain the co-ownership for a specific period, no one can be forced to remain a co-owner against their will.

The goal of the lawsuit is to divide the property fairly among the owners. The court has two primary methods to achieve this:

1. Partition in Kind (Aynen Taksim): This is the court's first preference. It involves physically dividing the property into separate, independent sections for each owner, according to their share percentage. This is only possible if the property is suitable for division (e.g., a large plot of land that can be subdivided into smaller parcels). For most properties, like a single apartment or villa, this is not feasible.

2. Dissolution Through Sale (Satış Yoluyla Giderme): If partition in kind is not possible without significantly diminishing the property's value, the court will order the property to be sold. This is the most common outcome for residential properties. The sale is conducted via a public auction, and the proceeds are then distributed to the co-owners according to their shares.

Part 2: The Legal Process: A Step-by-Step Guide

The path to terminating co-ownership is a structured legal process. It is crucial to follow every step correctly.

Step 1: Mandatory Mediation (Zorunlu Arabuluculuk)

This is a critical and relatively new requirement. As of September 1, 2023, it is mandatory to apply for mediation before you can file an "İzale-i Şuyu" lawsuit. The goal is to see if the co-owners can reach a mutual agreement with the help of a neutral mediator, avoiding a lengthy court case.

• You must officially apply to a mediation center.

• If the other co-owners agree to mediate, a solution might be found (e.g., one owner agrees to buy out the others).

• If the other parties do not attend mediation, or if you cannot reach an agreement, the mediator will issue a final report of "disagreement."

• A lawsuit filed without this final mediation report will be immediately dismissed by the court on procedural grounds.

Step 2: Filing the Lawsuit

Once mediation has failed, your lawyer can file the lawsuit at the Civil Court of Peace (Sulh Hukuk Mahkemesi) in the city or district where the property is located.

• Who files? Any one co-owner can start the lawsuit.

• Who is sued? The lawsuit must be filed against all other co-owners listed on the title deed (tapu). If a co-owner has passed away, the lawsuit must be filed against all of their legal heirs. Failing to include every single shareholder will cause the case to fail.

Step 3: The Court's Investigation and Valuation

The judge's role is not to decide if the co-ownership should end (that is your right), but how it should end.

• Expert Valuation: The court will appoint a real estate expert to conduct an official valuation of the property to determine its current market value.

• On-site Inspection: The expert and the court will conduct an on-site visit (keşif) to inspect the property.

• Determining the Method: The judge will review the expert's report and the nature of the property to decide whether to proceed with partition in kind or a sale. For most foreign-owned properties like apartments, the decision will be to sell.

A Note on Improvements (Muhdesat): What if one co-owner built a house or planted valuable trees on the jointly owned land? If there is a dispute about who owns these additions, a separate lawsuit (Muhdisatın Aidiyetinin Tespiti) may be needed to determine their ownership and value before the main case can conclude. This ensures the person who made the investment is properly compensated from the sale proceeds.

Step 4: The Court-Ordered Auction

If the court orders a sale, the case file is sent to a court-appointed Sales Office (Satış Memurluğu) to manage a public auction.

• Setting the Auction Date: The Sales Office will set a date and advertise the sale publicly.

• Bidding Process: The auction starts at 50% of the court-appraised value. Bids are made publicly.

• Who Can Bid? The auction is open to the public, but importantly, the co-owners themselves can also participate and bid on the property. This is often how one co-owner buys out the others.

• Winning Bid: The property is sold to the highest bidder.

• Distribution of Proceeds: After deducting legal fees and costs, the Sales Office distributes the remaining money to each co-owner according to the percentage share they held in the property.

Yılmaz Attorneys: Forcing the Sale, Protecting Your Investment

Being stuck in a joint property ownership dispute can be incredibly frustrating, especially when you are managing it from abroad. The "İzale-i Şuyu" lawsuit is a powerful tool that provides a guaranteed exit strategy. However, its success depends on meticulous adherence to legal procedure, from mandatory mediation to correctly identifying every party in the lawsuit.

At Yılmaz Attorneys, we are a law firm that exclusively serves the international community in Türkiye. Our founder, Attorney Mert Veysel Yılmaz, and our expert legal team, including partner Attorney Büşra Nişancı, have extensive experience in Turkish property law and have successfully guided numerous foreign clients through the process of terminating co-ownership.

We are referenced by many embassies for our focused expertise. With a presence in Antalya, Ankara, and other major cities, and with our upcoming expansion to the Netherlands, we are perfectly positioned to handle your property disputes in Türkiye.

If you are unable to reach an agreement with your co-owners and wish to sell your share of a property, contact Yılmaz Attorneys today for a consultation on how to initiate the "İzale-i Şuyu" process