Understanding Co-Ownership in Turkish Law: Rights, Risks and Solutions for Shared Property Ownership
Introduction
In Turkey, co-ownership of property—especially among family members, heirs, or business partners—is a common legal reality. Whether arising through inheritance or investment, shared ownership (referred to as paylı mülkiyet under Turkish law) can give rise to numerous legal questions and disputes. Understanding your rights and obligations under Turkish law is crucial for effectively managing or terminating co-ownership arrangements.
What Is Co-Ownership (Paylı Mülkiyet)?
Paylı mülkiyet is a form of co-ownership in which each co-owner (paydaş) owns a specific share of an undivided whole. Unlike joint ownership by family or spouses (elbirliği mülkiyeti), each co-owner under paylı mülkiyet has a defined and transferable share.
Key Features of Paylı Mülkiyet under the Turkish Civil Code
- Legal Basis: Articles 688–698 of the Turkish Civil Code regulate co-ownership.
- Share Proportionality: Each co-owner's rights and obligations are proportionate to their share unless otherwise agreed.
- Use and Management: Common use requires a majority decision by share. No co-owner can unilaterally change the nature or use of the property.
- Disposition of Shares: Co-owners are free to sell or transfer their shares independently.
- Debt and Enforcement: A creditor can pursue enforcement on a co-owner's share without affecting the others.
Advantages of Co-Ownership
- Enables shared investment in real estate.
- Allows for flexible transfer or inheritance of shares.
- Grants equal legal standing to co-owners under Turkish law.
Challenges and Disputes Among Co-Owners
- Disagreements on Use or Development: Projects or changes to the property may be delayed or blocked.
- Enforcement by Creditors: A co-owner's financial problems may lead to forced auction of their share.
- Deadlocks in Decision-Making: No action may be taken without majority agreement, which can delay essential maintenance or leasing decisions.
Termination of Co-Ownership: Legal Options
Under Turkish law, co-ownership is not perpetual. Each co-owner has an absolute right to terminate the relationship.
- Voluntary Partition (Rızaen Taksim) Co-owners may mutually agree to divide the property physically or convert it into monetary shares.
-
Court-Ordered Partition (Izale-i Şuyu /
Ortaklığın Giderilmesi Davası) If
consensus is not possible, any co-owner can file a claim at the
civil court to dissolve the co-ownership. The court may:
- Order physical division (aynen taksim) if possible without loss in value.
- Rule for sale by auction (satış suretiyle taksim) if physical partition is impractical.
Recent High Court Decisions on Co-Ownership
Turkey's Court of Cassation (Yargıtay) consistently upholds the following principles:
- Right to Terminate is Absolute: Co-owners cannot be forced to remain in shared ownership.
- Auction Preferred: Where partition is not feasible, the courts lean toward public auction, especially in the absence of cooperation.
- No Time Limit: A co-owner may apply for partition at any time, and previous inaction does not invalidate their right.
Best Practices for Co-Owners
- Draft a Co-Ownership Protocol: Outline rights, responsibilities, and dispute resolution methods in advance.
- Monitor Legal Risks: Stay informed of other co-owners' debts or enforcement actions.
- Seek Early Legal Advice: Prevent conflicts through proactive legal planning and documentation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
