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New regulation from the AKP: All municipal actions to be subject to Presidential approval

With a new legislative proposal submitted by the AKP to the Turkish Grand National Assembly (TBMM), regulations concerning municipalities are back on the agenda. The proposal expands the central oversight mechanism by requiring Presidential permission for municipalities to acquire companies—either indirectly or free of charge—and to form partnerships with cooperatives.

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New regulation from the AKP: All municipal actions to be subject to Presidential approval

The AKP has submitted the "Draft Law on Amendments to the Land Registry Law and Certain Other Laws and Decree-Law No. 375," consisting of 31 articles, to the Speaker of the TBMM.

The proposal envisions comprehensive changes in many areas, ranging from fire safety inspections to the fight against illegal construction, from land registry and cadastre procedures to the evaluation of Treasury real estate, and from post-disaster reconstruction processes to environmental and climate policies.

Additionally, regulations regarding the personnel regime following Constitutional Court annulments are also included in the proposal. However, the most striking aspect of the regulation concerns the provisions for municipalities. It is assessed that the AKP, which lost metropolitan municipalities following the 2019 local elections, aims to make the President the sole authority in the company and cooperative activities of municipalities.

Some of the prominent regulations in the proposal are as follows:

STAMP DUTY EXEMPTION FOR TOKİ PROJECTS

A stamp duty exemption is planned to be applied until December 31, 2027, for social housing projects carried out by TOKİ and construction works tendered together with housing. The regulation aims to reduce housing production costs for middle- and low-income citizens.

AUTHORITY OVER SITE DUES LIES WITH PROPERTY OWNERS

It is planned that dues in the form of advances requested by site administrations from property owners will be subject to the approval of the board of property owners. Thus, it is aimed to prevent unilateral and unlimited dues increases by managers.

With another change made to the Condominium Law, while the authority of the board of property owners in determining dues and advance amounts is strengthened, it is aimed to protect owners more effectively against arbitrary practices.

CLARITY ON MEASUREMENT DIFFERENCES IN LAND REGISTRY AND CADASTRE

A definition of "margin of error (tecviz)" is being introduced for differences between areas determined by old measurement methods and areas calculated with current technologies in cadastre and land registry maps.

Differences outside this limit will be accepted as errors and corrected ex officio, while differences within the limit will be evaluated according to the specific case. Thus, it is aimed to establish a scientific and legal standard in land registry corrections and to eliminate uncertainties in responsibility and compensation calculations.

CENTRAL APPROVAL FOR MUNICIPAL COMPANY AND COOPERATIVE STEPS

Municipalities and their affiliated organizations acquiring companies indirectly or free of charge, establishing new companies, or becoming partners in cooperatives are being made subject to Presidential approval. The regulation stands out as a step that increases central oversight over the economic activities of local governments.

NEW USAGE AREAS FOR IDLE TREASURY LANDS

The removal of allocations, registration in the name of the Treasury, and free transfer of Treasury real estate whose allocation purpose has ended or which are in an idle state will be possible with a Ministry decision. 40 percent of the revenue to be generated from these properties will be transferred to the administration performing the transaction, and 60 percent to the relevant public institutions. The regulation aims to provide financing for urban transformation, social housing projects, and public investments.

ASSURANCE FOR RIGHT-HOLDERS IN THE EARTHQUAKE ZONE

It is being stipulated that grants and loans provided to right-holders following the February 6 Kahramanmaraş-centered earthquakes cannot be seized. Furthermore, the return of delivered houses to be taken back into public stock is being prevented. The differences between constructions carried out by AFAD and those supported by grants and loans are also clearly defined.


News Source: 12punto