Inherited, Co-Owned and Mortgaged Flats in Urban Transformation: How Does It Work? (2026)

In older Istanbul apartment buildings, what slows urban transformation (kentsel dönüşüm) most is often legal rather than technical: an owner on the title deed who died years ago, an undivided inheritance, heirs who cannot reach each other, or mortgages and attachments on flats. The good news is that the law contains provisions that stop these situations from blocking the process entirely. Based on Law No. 6306 and its Implementing Regulation, here is how ÇET Yapı sees these common cases play out.

The basic rule: decisions by simple majority of shares

Under Article 6 of Law No. 6306, decisions on a plot with a risky building — rebuilding, flat-for-land, sale of shares — are taken by a simple majority of co-owners in proportion to their shares. Not everyone has to agree, but it must be clear who casts each share's vote. That is exactly where inheritance and co-ownership matter. We explain the decision itself in our majority decision guide.

A registered owner who has died

If a deceased person is still registered as owner:

1. Certificate of inheritance: issued by the civil court of peace or a notary.
2. Registration of the transfer: with the certificate, the share is registered in the heirs' names at the land registry.
3. Acting together or through a proxy: the heirs act together at the owners' meeting or give one of them a power of attorney.

Even if the heirs take no action, the process does not stop entirely: Article 6 of Law No. 6306 empowers the Ministry, TOKİ and the authority to obtain a certificate of inheritance, have a trustee appointed, or act on the basis of the last registered owner. Still, timely registration is the healthiest path so that heirs can protect their rights and avoid delay.

Heirs can also object to the risky-building assessment: under Article 7 of the Implementing Regulation, an objection may be filed by the owner or legal representative — or by the heirs if the owner has died — within 15 days of the last day of the notice at the neighbourhood office. See our risky-building assessment guide.

When heirs disagree

If the estate is undivided, the heirs own the share jointly. Under the Turkish Civil Code, joint owners decide unanimously as a rule, so one heir's refusal can leave that share's vote unusable. Solutions:

Under Article 15 of the Implementing Regulation, a pending action to end co-ownership does not prevent a decision by simple majority of shares or acting on it.

Co-owned title deeds: several owners of one flat

A flat owned by several people (co-ownership) is not a problem for transformation: each co-owner votes in proportion to their share. Points to watch:

• Establish the share ratios on the title deed and up-to-date contact details at the start
• For the shares of co-owners who do not join the decision, the auction procedure in Article 15/A of the Regulation applies; only consenting co-owners may bid in the first sale
• Settle in the contract which new unit goes to whom, together with the split between co-owners

Mortgaged, attached or usufruct-encumbered flats

Flats with a bank mortgage, an attachment or a usufruct can also enter transformation. Article 6 of Law No. 6306 and Article 15 of the Regulation set out clearly what happens:

• The rights continue: after demolition, real and personal rights and annotations restricting disposal continue on the shares.
• They do not block the process: these entries do not prevent plot merger, subdivision, allocation, cession, registration, condominium servitude or condominium ownership, and no consent is required.
• They move only to the right unit: in the new building they continue, without consent, only on the units allocated to the owner who bears them. Your neighbour's mortgage does not move to your new flat.
• On a share sale: if a non-consenting owner's share is sold, a mortgage, attachment or usufruct does not block the sale; the rights continue on the sale proceeds, which are frozen at the bank, and the entries are then removed from the register (Regulation Art. 15/A).

In practice, an owner with a mortgaged flat should talk to the bank before the decision and agree how the mortgage will move to the new flat.

A checklist for the start of the process

1. Obtain current title records for every unit: owners, share ratios, mortgages, attachments, usufruct and other annotations.
2. Start certificate of inheritance and registration for deceased owners.
3. Agree a power of attorney or representative for scattered heirs and co-owners.
4. Owners with mortgages should speak to their banks.
5. Hold the owners' meeting in line with the Regulation's notice and service rules and document the decision.

Fee and tax exemptions for transformation transactions are summarised in our tax exemptions guide.

Working with ÇET Yapı

ÇET Yapı has delivered housing, education and urban transformation projects in Istanbul since 1993; we completed the Yeşilköy Ateş Residence transformation in 20 months. To review your building's ownership structure and title records and map out the right path, fill in our pre-application form.

This article is general information and not legal advice. Any case involving inheritance, co-ownership, mortgages or attachments should be reviewed by a lawyer on the basis of the title records.