A move to accelerate urban transformation is coming: Changes in title deed records

An important step has been taken in urban transformation efforts, with a new regulation introduced for title deed transactions. According to information provided by Prof. Dr. Harun Tanrıvermiş, Head of the Department of Real Estate Development and Management at Ankara University's Faculty of Applied Sciences, various legal changes have been put into effect to accelerate the transformation of structures at risk of disaster and to facilitate their financing.

According to the regulation change, annotations can now be placed on the title deed records of properties within the scope of transformation. This will ensure the protection of the rights of stakeholders and the transparent execution of transactions during the urban transformation process. All transactions will continue under the Law on the Transformation of Areas Under Disaster Risk.

The new regulations also include significant changes in the decision-making processes for urban transformation projects. Prof. Dr. Tanrıvermiş stated that it is now mandatory to invite all owners and shareholders to meetings, and that decisions made at these meetings will be valid with a simple majority. According to his statement, "With the new regulation, a requirement has been introduced to invite owners and shareholders to meetings and to hold meetings in transformation projects, and the possibility has been provided for all owners to be invited to a meeting upon the request of at least one of the owners."

While decisions are recorded in minutes following the meetings, flexibility has also been provided in the collateral ratios for contractors in projects. The collateral ratio, which was previously 10 percent, can be reduced to 6 percent with the new regulation. This aims to encourage the participation of contractors and the private sector in urban transformation projects. Along with the changes made, exemptions regarding both taxes and fees have also been reorganized.

On the other hand, with the clarification of the transfer of development rights, it will be possible for property owners in areas unsuitable for construction to transfer their rights in nearby regions, and fee exemptions will continue under certain conditions.

THE ROLE OF FINANCIAL SUPPORT AND INVESTMENT FUNDS

Prof. Dr. Tanrıvermiş emphasized the importance of innovative financial instruments in financing large-scale projects. Calling for the widespread use of practices such as real estate investment funds (GYF), real estate investment trusts (GYO), and real estate certificates, Tanrıvermiş said, "These tools need to be explained well to the public. Actors in the market need to learn about real estate certificates. Financial instruments such as project-based real estate investment funds and real estate certificates need to be directed more towards urban transformation. Furthermore, Turkey must effectively use funds coming from international organizations or international investors here with project-based real estate investment fund institutions. Most importantly, it must mobilize the power of its own private sector."

In addition, the necessity for the private sector and the public to take a more active role in projects, which are generally carried out on a voluntary basis, is also being voiced.

CRITICAL SITUATION IN TURKEY'S RISKY BUILDING STOCK

Noting that there are between 6.7 and 7 million risky buildings across the country, Tanrıvermiş emphasized that 1.2 million buildings that urgently need transformation are concentrated especially in provinces and districts on the North Anatolian Fault Line. There is a need for transformation in many regions from Istanbul to Sakarya and Düzce, and from Eastern Anatolia to the Mediterranean and Aegean coasts.

Pointing to the necessity of a comprehensive urban transformation mobilization, Tanrıvermiş said, "Turkey's transformation mobilization needs to start not tomorrow, but today, now, at this very hour. For this, it is wrong to expect only the Ministry, TOKİ, or relevant institutions to be the actors. This process needs to be total; all municipalities, corporate construction, and real estate investment businesses need to actively participate in the process. There is a need to handle the urban transformation and disaster risk reduction process with a spirit of national struggle or a mobilization approach. Every individual, every firm, and every institution in the country needs to take responsibility for the transformation," he stated.

With the entry into force of the regulations, it is anticipated that urban transformation efforts will be carried out more effectively in the coming period, both in terms of financing and implementation.