Dissolution of co-ownership proceedings, traditionally called izale-i şuyu, enable joint owners to end shared ownership through physical division or a sale followed by distribution of the proceeds. Pre-action mediation, identification of every owner and the feasibility of division are central issues.
1. What does dissolution of co-ownership mean?
Several people may own a movable asset or an immovable property together. If they cannot agree on ending that relationship, an eligible owner may seek judicial partition. Depending on the property and applicable rules, the outcome may be division into independently owned parts or a sale with distribution of the net proceeds.
The right to seek partition is not unlimited in every circumstance. Civil Code Article 698 recognises restrictions arising from a legal transaction or the permanent purpose for which the property is dedicated, and excludes requests made at an inappropriate time. A dispute between owners therefore requires examination of the existing ownership relationship and any valid agreement to continue it.
2. Co-ownership by shares and ownership in common
Defined shares
In co-ownership by shares (paylı mülkiyet), each owner has a specified fractional interest in the whole asset, rather than ownership of a particular room or physically separated part. A share can generally be transferred, subject to applicable statutory or contractual restrictions and any relevant pre-emption rights.
Ownership in common
In ownership in common (elbirliği mülkiyeti), the owners’ rights extend to the property as a whole within the legal relationship that joins them. An unpartitioned estate is a common example. An inheritance fraction does not mean that an heir can independently sell a physically identified portion of each estate asset.
Conversion to ownership by shares is a possible route in appropriate cases, but it is not a universal prerequisite to seeking dissolution. The estate, the identity of the heirs and any special rules must first be established.
3. Who may bring the action?
An eligible co-owner may request dissolution without obtaining the consent of every other owner. A small ownership share does not by itself remove that right. Special rules may apply where a creditor seeks authority to pursue an interest belonging to a debtor.
All owners must be parties to the judicial proceedings. If an owner has died, the successors must be identified through the appropriate inheritance records. Missing owners, conflicting registry information or an unresolved ownership dispute can prevent the court from deciding the partition issue until the defect is addressed.
Before commencing proceedings, the current registry record, ownership fractions and inheritance certificates should be compared. The claim is directed against the other owners, rather than an unrelated occupant merely because that person uses the property.
4. Physical division
Physical division (aynen taksim) allocates independently identifiable parts of the asset to the owners. Where division is requested, the court considers whether it is legally and technically feasible. Unequal values can, where appropriate, be balanced by a monetary payment.
- Planning restrictions: minimum parcel sizes, access requirements and other land-use rules may prevent subdivision.
- Nature of the building: the mere presence of a building is not the only question. Its legal and technical suitability, including any relevant condominium route, must be examined.
- Ownership fractions and values: the proposed allocation must respect the owners’ entitlements.
- Material loss of value: a division that substantially reduces the property’s value may be unsuitable.
Expert reports and a site inspection may be needed to assess valuation, boundaries and divisibility. A disagreement about who owns an improvement, building or other accession may require separate resolution and affect the distribution of value.
5. Sale and distribution of proceeds
If division is unsuitable, particularly where it cannot occur without a significant loss of value, a judicial sale may be ordered. Under Article 322 of the Code of Civil Procedure, the judge appoints an officer for the sale; the sale follows the applicable Enforcement and Bankruptcy Law rules. It should not be described as an ordinary voluntary estate-agent sale.
The sale stage involves valuation, notification and publication, bidding under the applicable electronic auction rules, payment and distribution. Owners may be able to bid, subject to the rules governing the particular auction. The valuation is not a promise of the final price, and the entire appraised amount is not invariably the universal minimum bid. The applicable statutory thresholds, secured claims and sale expenses must be examined.
Pre-emption is a separate issue
The statutory pre-emption right concerning a co-owner’s private sale of a share to a third party must be distinguished from participation in a judicial partition auction. It is not an automatic right to take the entire auctioned property at another bidder’s price. Its conditions, deadlines and the transitional rules governing the relevant sale must be checked separately.
An owner who disputes a valuation or another sale-stage act should examine the available remedy and notification date promptly. The net amount distributed can be affected by sale expenses, charges and rights attached to the property or particular shares.
6. Court and litigation process
The civil peace court (Sulh Hukuk Mahkemesi) hears ordinary partition and dissolution proceedings, irrespective of the property’s value. Territorial jurisdiction for immovable property is assessed under the exclusive property-location rule. Where several properties are situated in different places, Article 12 of the Code of Civil Procedure must be considered; there is no general rule requiring a single “higher common court”.
- Obtain the registry and inheritance records, identify every owner and check relevant encumbrances.
- Complete the applicable pre-action mediation process.
- File the claim with the competent court and provide the final mediation record and evidence.
- Resolve party-identification and procedural issues, then examine the possibility of physical division through the appropriate evidence.
- Obtain a judgment on the method of dissolution and address any available appeal within the applicable period.
- After the necessary finality requirements, complete the registry or judicial sale procedures and distribute the proceeds as ordered.
Service on numerous heirs, disputed ownership, expert work and sale-stage objections can extend the process. A fixed six-month or two-year completion date cannot be guaranteed.
7. Inherited property and agreement between heirs
Heirs generally acquire the estate by operation of law on death. A certificate of inheritance establishes their status, while registry records must be examined and brought into the required form for subsequent transactions. Prior registration of every heir’s name is not an absolute prerequisite for bringing every dissolution claim concerning land still registered to the deceased.
Heirs may agree to allocate property to one heir against balancing payments, sell it by agreement and share the proceeds, or continue joint ownership under an appropriate arrangement. A continuing rental arrangement can be an alternative to immediate partition if the owners agree on its terms.
A written inheritance partition agreement under Civil Code Article 676 should be distinguished from an ordinary transfer to an outsider. Its validity, participation by all relevant heirs and the documents required for registry implementation must be assessed. Notarisation should not be presented as a universal validity condition for every inheritance partition agreement.
8. Mandatory pre-action mediation
Under Article 18/B of Law No. 6325, disputes concerning partition of movable or immovable property and dissolution of co-ownership have been subject to pre-action mediation since 1 September 2023. The condition applies within the scope and transitional rules of that legislation.
An application is made to the competent mediation bureau, identifying all relevant owners and the dispute. The mediator informs and invites the parties. Attendance and agreement remain distinct matters: a party’s refusal to attend does not give that person a power to prevent the mediator from issuing a final record indefinitely.
The general statutory period is three weeks from the mediator’s appointment, with an extension of up to one week by the mediator where necessary. It is not a period that automatically starts at the first meeting, nor does it require unanimous agreement to every extension.
Agreement and enforceability
A settlement document records the agreed terms; a final non-settlement record establishes that mediation has ended without agreement. They serve different purposes. For agreements falling under Article 18/B, obtaining the required judicial enforceability endorsement is mandatory. Signing a document does not by itself mean that every proposed land transfer can immediately be registered or enforced without further review.
If no agreement is reached, the claimant must submit the required original final record or certified copy with the claim. Where mediation occurred but the record was omitted, the statute provides a short period to cure that documentary defect. Filing without having applied to mediation is a different defect and can lead to procedural dismissal.
9. Costs and legal fees
Expenses may include filing and decision fees, service on all parties, site inspections, experts and the costs of a later sale. The applicable fee treatment depends on whether dissolution occurs by division or sale and on the relevant tariff; it should not be reduced to a single generic percentage of the property’s value.
Contractual legal fees are governed by the engagement and applicable legislation, including the national minimum fee tariff. Local bar recommendations are a separate reference. The allocation of litigation and sale expenses among the owners must also be examined.
Sources
- Civil Code No. 4721: ownership, partition and inheritance provisions.
- Code of Civil Procedure No. 6100: Articles 4, 12 and 322.
- Mediation Law No. 6325: Articles 18/A and 18/B.
- Law No. 7589, official parliamentary text: the amendment to Enforcement and Bankruptcy Law Article 114 and its transitional rule.
General information: This English-language explanation concerns Turkish law. It does not replace advice based on the registry records and the particular dispute. The authoritative statutory texts are in Turkish.