Auction Sale Of The Unsafe Buildings: What Are The New Regulations? 23 August 2023

The amendments were published in the Official Gazette dated August 24, 2023 and entered into force on the date of publication.

With this amendment, the procedure for the auction sale of the shares of dissenting owners who prevent the 2/3 majority to be obtained for the re-evaluation of the unsafe building within the scope of the Urban Transformation Law has been changed.

Accordingly, with the amendment made to paragraph 8 of Article 15/A of the Regulation, it is determined that the additions we have marked in bold have been made.

"At the end of the auction sale process, it is decided to sell to the participant who offers the highest price, not less than the fair value determined, and this participant is asked to deposit the sales price to the time deposit account to be opened at the bank within seven days and to sign the contract and other documents made in line with the decision taken with the two-thirds majority for the new share purchased within the same period and to submit it to the Directorate without conditions and annotation. If the sales price is not deposited and the contract is not signed within this period, the other participants are notified in turn and the sale is made to the participant who deposits the sales price and signs the contract."

With the amendment made to Article 15/A, Paragraph 14 of the Regulation, the part we have marked in bold has been repealed.

"The cash collateral to be given by third parties participating in the sale must be deposited to the relevant accounting unit. As a result of the sale to be made, the collaterals of those who do not remain in the sale tender shall be returned immediately. The collateral of the third party who is awarded the sale tender shall be returned after the payment of the sale price and registration in the name of the new owner in the title deed, after this person signs and submits to the Directorate the contract made in line with the decision taken with a two-thirds majority within seven days and other documents required by the application to be made, unconditionally and without annotation, like the other owners who have agreed."

As a result, it is understood that the new regulations that have entered into force aim to ensure that the 2/3 limit, which paves the way for progress on the re-evaluation of unsafe buildings, is met.

Respectfully submitted for your information.