Real Estate Valuation Report in the Process of Urban Transformation

This article is issued in order to guide you in explaining the term of special assessment of which we have heard too much with the “Law of Transformation of Areas Under the Disaster Risks” numbered 6306 known as the Urban Transformation Act.

The special assessment means the price difference occurred because of the differences of the features of the buildings in which more than one apartment is available in the same type, regarding their landscapes, facades, construction servitude, daylight and square-meters.

The valuation services offered during the urban transformation process are as follows;

•             Valuation of the current situation of the real estate

•             Analysis and calculating of special assessments

•             Project proposals for the new construction to be constructed according to the current development and structuring conditions.

•             Distribution of the independent divisions in the new project to be constructed to the beneficiaries with special assessment.

 Valuation reports including such distributions and determinations are valid on the legal ground; however, they aren’t strictly mandatory. They have guiding value for the beneficiaries.

During the urban transformation process; some disputes about sharing for the flat received for landownership may be arisen between the beneficiaries and/or contractor. In order to prevent the conflicts occurred or that will be occurred, it is suggested that urban transformation real estate valuation report should be prepared. Such reports required to be issued by CMB-licensed companies are accepted as valid according to the urban transformation act and have the feature of expert report in the courts.

You can have the real estate valuation report prepared at any stage of the process of urban transformation. However, those reports prepared before the stage of building demolition and the agreement with the contractor will guide you to make your agreements more properly. Our company having CMB and BRSA license can prepare the said report; also you can monitor all other valuation companies on the web site of CMB. We recommend you while to prefer a company with an office and an employee in your territory while selecting the company.

The Urban Transformation Process

1.           Providing the static – architectural project of the current building, if any, from the Municipality and/or Directorate of Land Registry.

2.            The application can be made to TR Ministry of Environment and Urban Planning, Certified Engineering Office with the current projects of the building, if any, for Building Earthquake Risk Report be prepared, your title deed (Deed of apartment, if you don’t have property ownership, joint-owned land deed), copy of the identity card, document from Directorate of Land Registry indicating the single space list.

3.            An Earthquake Risk Report is prepared for your building as a result of technical survey, determination and studies that Certified Institution of Ministry will make in your building.

4.            The prepared Earthquake Risk Report is submitted to the Ministry of Environment and Urban Planning in your province by Certified Institution of Ministry with a cover letter in seven days at the latest.

5.            Ministry examines the Earthquake Risk Report within 10 days and approves, if it is complete. Your building is risky as a result of the report; the Ministry puts an annotation of Risky Construction onto the land register of the building with a writing to the Land Registry of Ministry (it is an informing annotation – Buying and selling can be made.)

6.            An official letter of Ministry is delivered to all flat owners by the relevant Land Registry. (You have the right of objection to the relevant Provincial Directorate of Ministry for the report within 15 days upon the notice of the official letter to you.)  After the notification of the official letter is noticed to you, Joint Resolution Protocol of Building is signed, if your building is risky, within 60 days by the majority of 2/3 of the flat owners (deed share). (You make the decision on how, when, in what ways, to whom and in which distribution you will have the building made.)

7.           Joint Resolution Protocol of Building is submitted to the Directorate of Urban Transformation of the Ministry of Environment and Urban Planning in your province, with a petition for information purposes. (If Joint Resolution Protocol of Building isn’t signed within 2 months by a majority of 2/3, your building will be demolished by the Ministry.)

8.            A contracting company is found for the reconstruction or strengthening of the building. All projects of municipal are prepared and the certificate is received from the  relevant municipal.

9.            It is applied to the Banks which have come to an agreement with Ministry for the reconstruction of your building (Only one of rent or construction loans given within urban transformation can be used. Two loans for which government reduces the interest rate cannot be used at the same time.)

10.          Provincial Directorate of Ministry is appealed for Urban Transformation Rent Allowance. (Limited to 18 month / Monthly 600TL.)

11.        For the reconstruction of the building, an agreement is made with a contractor/construction company that flat owners will select with joint resolution, and the construction of your new building is started.

12.          Your title deed with ISKAN (permission) for your completed construction is taken from your local municipality (that means the building is earthquake-resistant, constructed in accordance with its project and complete).


Mahmut Ay
Real Estate Appraiser​