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The Legal 500 Hall of Fame highlights individuals who have received constant praise by their clients for continued excellence. The Hall of Fame highlights, to clients, the law firm partners who are at the pinnacle of the profession. In Europe, Middle East and Africa, the criteria for entry is to have been recognised by The Legal 500 as one of the elite leading lawyers for seven consecutive years. These partners are highlighted below and throughout the editorial.

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Editorial

Press releases and law firm thought leadership

This page is dedicated to keeping readers informed of the latest news and thought leadership articles from law firms across the globe.

If your firm wishes to publish press releases or articles, please contact Shehab Khurshid on +44 (0) 207 396 5689 or shehab.khurshid@legalease.co.uk

 

DEVELOPMENTS ON COASTAL INVESTMENTS: New Communiqué on National Estate No. 373

Introduction

On October 8th 2016, the General Communiqué on National Estate No. 373 (“Communiqué”) has been published on the Official Gazette. The Communiqué governs principles regarding easement right and/or right of usage to be granted to financers for them to construct marinas, landing stages, piers and berths on state-owned or treasury lands.

The Communiqué brings an in-depth roundup for coastal investments, extending from the principles as to the tender process for granting the easement right, to the liabilities of the financers. To that end, there is no doubt that the Communiqué will draw the attention of investors contemplating to invest in coastal structures.

Purchasing Property in Turkey

Real estate acquisition by foreign real persons in turkey

Real estate law has been regulated within the Civil Code according to the Turkish regulations. It is intended to provide a wide understanding on property purchasing and selling procedures in Turkey, either for real and legal persons within this article.

Real estate acquisition by foreign real and legal persons has been regulated in the article 35 of the Land Registry Law numbered 2644. In the year of 2012, new fundamental principles have been regulated with this new law for acquisition of real estate by foreign real persons and trade companies having a legal personality and established in foreign countries according to the laws of these countries in Turkey.

Foreign-controlled Turkish companies’ acquisition of immovable properties within SPAs

How to address the statutory restriction on foreign-controlled Turkish companies' acquisition of immovable property within share purchase agreements?

The Title Deed Law numbered 2644 ("Title Deed Law") allows foreign-controlled Turkish companies to acquire immovable properties with no limitations, apart from properties within or near military or security zones. Such a seemingly straightforward system gets rather complicated with the ‘clearance' mechanism set-forth by the secondary legislation regarding the exception on the military/security zones. The following is a brief outline regarding this limitation, the relevant clearance mechanisms and how to address the risk of "no clearance" in share purchase agreements ("SPA").

Law on Expropriation

The main legislation related to the expropriation is the Law on Expropriation numbered 2942 and dated 04.11.1983. ("LoE") In order to conduct the public services the administrations can expropriate the real estates, resources and easement rights provided that their values are paid in cash or installments.

Construction for Allotment Agreements: Distinction between Incomplete Work - Defective Work

I. Introduction to Construction for Allotment Agreements
A. Definition and Elements

In practice, especially in Turkey, there are numerous types of construction agreements relying on various terms and principles by virtue of the "freedom of contract" principle governing law of obligations. Construction for allotment agreement is the most common one among agreements that diverges from traditional construction agreements.[1] On that note, a traditional construction agreement can be specified as an agreement, pursuant to which the contractor undertakes to construct a specific structure whereas the client undertakes to pay a certain amount in consideration thereto.  

In the light of the foregoing definition by which parties' duties in a traditional construction agreement are elaborated, two basic elements are revealed, construction of a specific structure and making a payment for it. When the parties mutually agree on those basic elements, which constitutes the fundamental aspects of a construction agreement, the agreement is founded and inures effect.  

In a construction agreement, construction of a specific structure is the characteristic (main) performance and this is the contractor's responsibility, scope of which is elaborated through agreement. On the other hand, the client's responsibility is to make the agreed payment to the contractor, which is remuneration for the work undertaken by the contractor.

In a construction for allotment agreement, the client (land owner) promises to transfer a certain land share (allotment) to the contractor whereas the contractor undertakes to construct the agreed independent sections to the land owner.[2]



[1] For detailed information, see. Hasan Erman, Arsa Payı Karşılığı İnşaat Sözleşmesi (Construction for Allotment Agreement), 3. Edition, İstanbul, DER, 2010.

[2] Erman, İnşaat Sözleşmesi (Construction Agreement), p. 4; Cevdet Yavuz, Türk Borçlar Hukuku Özel Hükümler (Turkish Code of Obligations, Special Provisions), İstanbul, 2006, p. 352; Özgür Katip Kaya, Arsa Payı Karşılığı Kat Yapımı Sözleşmesi (Construction for Allotment Agreement), İstanbul, 1993, p. 5.

Construction for Allotment Agreements: Distinction between Incomplete Work - Defective Work

Introduction to Construction for Allotment Agreements

In practice, especially in Turkey, there are numerous types of construction agreements relying on various terms and principles by virtue of the "freedom of contract" principle governing law of obligations. Construction for allotment agreement is the most common one among agreements that diverges from traditional construction agreements.

 

 


 

Shopping Center Lease Agreements

In Turkey, especially in Istanbul shopping centers increase in number, as an important constituent of the business life. Some of those are extremely beneficial, even sometimes lessee candidates afford to pay key money to current lessee in order to hold a released store. Besides that there are some projects where the lessee does not make even just one sell until the closing. Before deciding to being a part of any project it is inevitable to make a thoroughly market investigation. Lease Agreement is one of the most important parts of this investigation.

 


 

Right to Construction

One of the main principles of Turkish Civil Law is that if a person owns a land, all the additions and integral parts of this land shall be automatically owned by this proprietor. It means that if a building constructed on a land, owner of the land shall be the owner of this building. However, Turkish Civil Law allows you to be the owner of a building on surface or underground of someone else's land; the right of construction, which is regulated under the Article 726 and Article 826 of Turkish Civil Code.

Communiqué on Spatial Planning Preparation

 I. INTRODUCTION

Communiqué on Spatial Planning Preparation    

Communiqué on Spatial Planning Preparation ("Communiqué ") which is prepared by Ministry of Environment and Urbanisation, is entered in force with the publication on Official Gazette dated 14.06.2014 and numbered 29030 and with this Communiqué , Communiqué on Principles About Making Plan and Communiqué on Environment Plan are abolished. A considerable number of definitions of special purpose plans are made and also spatial planning stages are composed with the Communiqué. Important points about regulation constitute the subject of this memorandum.

Foreign Real Estate Acquisitions in Turkey

Real estate and limited real rights acquisitions by foreign nationals, either natural person or legal entity, are regulated by Land Registry Law numbered 2644. In this regard the Land Registry Law article 35 and 36 has a great importance for foreign nationals who wish to purchase real estate within the borders of Turkey. The Turkish government was working on a draft law which amends the current articles concerning the foreign acquisitions.  Read More

Restrictions on Rental Increases at Lease Contracts Under Spanish, Dutch and Turkish Laws

It is customary to increase rents at lease contracts annually almost all around the world. Generally, the main source of such increase is inflation of monetary currencies and revaluation of the properties leased. However, there are legislative restrictions at many jurisdictions, limiting such application or predetermination based on contractual freedom on rental increases.

These restrictive regulations mostly aim to protect the tenants assumed to be less powerful than the landlords economically and contain a social agenda. Accordingly, landlords cannot increase the rents (leases) and/or tenants may resist on such increases.

  The below outline aims to summarize such restrictions applied comparatively in Turkey, in the Netherlands and in Spain. 

Real Estate Certificates - Newsletter

November 2012 - Real Estate & Property. Legal Developments by Güner Law Office .

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A Long-Forgotten Capital Markets Tool for Construction Sector: Real Estate Certificates

The New Turkish Code of Obligations: Important Changes for Leases of Residential & Business Premises

For decades, the primary Turkish laws governing leases of residential and business premises have been the Law on Leasing Real Property dated May 27, 1955 (the “Lease Law”) and the Turkish Code of Obligations No. 818 dated April 22, 1926 (the “Obligations Code”). Both of these laws, however, will be repealed and replaced with the new Turkish Code of Obligations No. 6098 dated January 11, 2011 (the “New Obligations Code”), which will enter into force on July 7, 2012.

Acquisition of Real Estate by Foreign Investment in Turkey

November 2010 - Real Estate & Property. Legal Developments by ADMD Law Office .

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Legislation regarding purchasing of real estate in Turkey by foreign investments have changed many times over the past years. Supreme Court decisions, international or political developments and economic necessities are some of the pushing factors of such amendments.

PURCHASE OF REAL ESTATE BY FOREIGNERS IN TURKEY

September 2010 - Real Estate & Property. Legal Developments by ADMD Law Office .

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In the past decade purchasing property in Turkey became very popular through holiday home owners and investors worldwide. The first time that it was permitted to foreign buyers to purchase real estate in Turkey was in the year of 1934 with the Property Act. At the present day the real estate market in Turkey is developing and becoming one of the prominent markets among the Mediterranean countries. The main purpose of this brief article is to explore the legal structure and the procedure of purchasing real estate in Turkey for foreigner. 

LEASE VS. RIGHT OF CONSTRUCTION: WHICH WINS OUT IN A NEW REAL ESTATE DEVELOPMENT?

The lease – the leading option for real property investors in Turkey – has a strong competitor these days: the right of construction. Factors such as the nature of the site, the purpose of the investment and the investment fund help investors to determine the appropriate transaction type. But apart from assessing these commercial and financial concerns, a comparison of the respective benefits of the lease agreement (right in personam) and right of construction agreement (right in rem) from a legal perspective can help in making the right investment, in the right place, with the right kind of real estate transaction.

Getting the Deal Through: Real Estate

May 2009 - Real Estate & Property. Legal Developments by Paksoy.

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The Turkish legal system is a civil code system. Parties may obtain an injunction from the courts upon depositing sufficient collateral, but the injunction can be lifted during the hearings upon a reasonable claim from a counterparty. Following the establishment of an injunction over real estate, such real estate cannot be transferred until the lawsuit is concluded or the injunction lifted. Parties are theoretically free to enter into oral contracts; however, evidence of such relationship may be difficult to establish before the courts since the rule of written evidence is applicable under Turkish Civil Procedure Code and therefore, oral contracts are not practical. Moreover, in certain situations, execution of a written contract is a legal requirement such as in real estate sales.

Regulatory Developments in the Turkish Real Estate Market

This article contains information on the latest regulatory developments in the Turkish real estate market, in such areas as public tenders and real estate investment trusts. In particular, we wish to bring you up to date on developments that have occurred between December 2008 and March 2009.

ACQUISITION OF A REAL PROPERTY IN TURKEY BY A TURKISH COMPANY WITH A FOREIGN SHAREHOLDING

January 2009 - Real Estate & Property. Legal Developments by Güner Law Office .

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The acquisition of a real property in Turkey by a Turkish company with a foreign shareholding (a Foreign-Owned Company) was thrown into confusion by a decision of the Turkish Constitutional Court on 11 March 2008. This decision repealed article 3(d) of the Foreign Direct Investments Law No. 4875, which allowed a Foreign-Owned Company to buy real property in Turkey on the same basis as Turkish companies with a Turkish shareholding. The decision became effective on 16 October 2008.

Chronological Legislation Amendments on Real Estate Acquisation in Turkey

December 2008 - Real Estate & Property. Legal Developments by Gür Law Firm .

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The real estate acquisition by foreign real and legal persons in Turkey has been regulated under the Land Registry Law dated 22.12.1934 numbered 2644. The Land Registry Law and the Law on Direct Foreign Investments which used to compose provisions with regards to the real estate acquisition by foreign real and legal persons in Turkey were undergoing significant restructuring due to the annulments by the Constitutional Court of certain provisions in the relevant pieces of the legislations. The annulments were due to the Constitutional Court's broad assessments about whether the limits of these rights provide a balance between the risks and benefits of allowing foreigners to purchase real estate property in Turkey. Consequently, the Law No.5782 concerning the Amendment of the Land Registry Law, was announced in the Official Gazette of 3/7/2008. Significantly, the Constitutional Court has also annulled paragraph (d) of Article 3 of Law on Direct Foreign Investments with no. 4875, which is in parallel with the annulled articles of the Land Registry Law and the reason for this annulment was publicly announced in the Official Gazette of 16.04.2008 and consequently it was resolved that the annulment would become effective 6 months after the date of announcement.

FOREIGNER’S ACQUISITION OF REAL ESTATE

LAW NUMBERED 5782 REGARDING THE AMENDMENT OF THE LAND REGISTRY LAW PASSED AS A RESULT OF THE ANNULMENT DECISION OF THE CONSTITUTIONAL COURT AND THE LEGAL STATUS REGARDING FOREIGNER’S ACQUISITION OF REAL ESTATE UNDER THIS LAW

LAW NUMBERED 5782 REGARDING THE AMENDMENT OF THE LAND REGISTRY LAW

PASSED AS A RESULT OF THE ANNULMENT DECISION OF THE CONSTITUTIONAL COURT AND THE LEGAL STATUS REGARDING FOREIGNER’S ACQUISITION OF REAL ESTATE UNDER THIS LAW

Turkey's New Condominium Law: New Concepts Address Old Problems

The Turkish real estate market has experienced explosive growth over the past few years. Construction of numerous shopping malls and multi-family residential developments and planned communities has made condominium ownership one of the most important practice areas of real estate law. Those familiar with the concept of condominiums, with general and limited common elements and with strata title regimes, will find both long-established, as well as unique, provisions in Turkey's new condominium law.

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