New Rate (Absolute Majority 50% + 1) and Process in the Urban Transformation Process

Decisions regarding transactions related to risky buildings must be made by at least a two-thirds (2/3) majority of the owners, in proportion to their shares. The two-thirds majority referred to in the law was not a two-thirds majority of the total number of owners, but rather a two-thirds majority of the owners in proportion to their shares. (In the case of a floor easement/condominium title deed, land shares are taken into account.)

However, pursuant to Article 10 of Law No. 7471 on the Transformation of Areas at Disaster Risk and the Amendment of Certain Laws and Legislative Decree No. 375, published in the Official Gazette dated November 9, 2023, the phrase "at least two-thirds" has been replaced with "simple." Accordingly, a simple majority (50% + 1) of the stakeholders, in proportion to their shares, will be sufficient for all decisions regarding real estate. With this amendment, the urban transformation process can be initiated with a simple majority in projects where the 2/3 ratio cannot be achieved. Article 10 refers to the amendments to Article 6 of Law No. 6306. The fifteenth paragraph added to Article 6 of Law No. 6306 by Article 10 states:

The simple majority rule in urban transformation was introduced by Law No. 6306. Owners of independent units in a condominium building or co-owners of a property, if their building is deemed risky and needs to be demolished, can dispose of the entire property if the new building or land is left vacant or given to a contractor, provided that two-thirds of the stakeholders or co-owners of the independent units approve.

Whether or not the stakeholders in the property agree to the demolition of a building identified as a risky building or located in a risky area is irrelevant. In other words, even if stakeholders unanimously vote to demolish buildings located in risky areas, or those deemed safe but not in risky areas, they have no say in the decision to demolish them. Demolition of these buildings is mandatory.

Urban renewal requires a simple majority vote to determine the replacement after the building is demolished, or to make the necessary decisions after demolition. After determining the status of the property, which has become a plot of land after the demolition, the property owners gather to decide how they wish to use the land.

The property owners can choose to build the land themselves, lease it to a contractor in exchange for a flat, leave it as a whole, or sell it.

If all the property owners reach a unanimous decision, no problems arise, and the unanimous decision is applied to the land. The simple majority rule comes into play when stakeholders cannot agree. If a decision cannot be reached on the land, the decision made by the simple majority is legally obligatory for the other stakeholder group to implement it.