Dissolution of Co-ownership (İzale-i Şuyu)

What the action does

If a property belongs to more than one person and the co-owners can agree neither on use nor on sale, an action for dissolution of co-ownership opens that lock. The action is brought by any co-owner against all the other co-owners. All co-owners must participate; where a party is missing, joinder and completion of party participation are addressed under the procedural rules. Pre-action mediation is required for partition and dissolution of co-ownership disputes within Article 18/B of Law No.6325.

The action reaches one of two outcomes:

Division in kind. If the property can physically be divided and division does not cause a significant loss of value, it is divided so that each co-owner receives a separate parcel. For land, this route depends on the minimum parcel size and subdivision conditions permitted by zoning legislation. If a difference in value arises, the difference is equalised in money.

Distribution by sale. If division in kind is not possible, the court orders a sale. After the court judgment becomes final, the sale is made by public auction through the court sales office or the enforcement office. The proceeds are distributed in proportion to the shares after costs are deducted.

What to know about the public auction

As a rule the auction is public; if all co-owners agree, it may be restricted to co-owners under TMK Article 699. In a public auction, co-owners may also take part, and usually do. A co-owner has no statutory "priority right" against third parties; the highest bidder takes the property. The possibility of the property being sold below market value is the most criticised aspect of this action. For that reason, before the action is filed:

• A negotiated sale or share transfer between the co-owners should be attempted.
• If there is a prospect of division in kind, the zoning and subdivision information supporting it should be put in the file from the start.
• If there is a building on the property, the option of distribution by establishing condominium ownership should be considered.

Rent and use disputes

If one co-owner uses the whole property and the others cannot, a claim for ecrimisil (compensation for unauthorised occupation) arises independently of the dissolution of co-ownership. The two actions can be conducted together; details: ecrimisil and removal of interference.

Joint ownership (community of heirs)

In property passing by inheritance, ownership is joint ownership (elbirliği mülkiyeti) unless otherwise agreed. In that case the co-owners' shares are not defined and no one can dispose alone. An action for dissolution of co-ownership can be brought here too; the court may first convert joint ownership into shared ownership or proceed directly to distribution. If the estate contains more than one property, assessing all of them in a single file is usually the sounder course.

Costs and duration

Litigation costs and sale expenses are as a rule borne by the co-owners in proportion to their shares. The co-owner who brings the action does not bear the whole cost merely for having brought it. Duration varies with the number of co-owners, completion of service, and the site inspection and court-appointed expert report. If there is a co-owner living abroad or whose address is unknown, the service stage becomes the longest part of the file.

This is a text for general information purposes; the process varies with the character of the property.