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Right to Construction

October 2014 - Real Estate & Property. Legal Developments by Baspinar & Partners Law Firm.

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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.

Right to construction can be established for the benefit of any real/legal person or for the benefit of another immovable.

If a person owns a land but has insufficient capital to construct a building, he/she may establish right to construction for the benefit of any other person. Since this right is established for limited period of time and when the period is over, owner of the land became owner of the building as well.

On the other hand, if an investor plans to construct a building but has not got enough funds to buy the land, right of construction let this investor to construct building on a land, which is owned by another person. By this method, the investor will be the owner of the building until the end of the duration of the right.

Right to construction can only be established on the lands. Single sections or flats of buildings cannot be the subjects of this right.

According to the Turkish Civil Code, right of construction can only be established for limited period of time; 100 years. (Article 836) However, parties of this right may extend this duration for maximum of another 100 years for once.

There are two kinds of right to construction; right to construction as a servitude and right to construction as an independent and peremptory right.

Beneficiary shall pay 2 %* of the value of the right to construction as the registration fee and 187,5-TL* as the general transaction fee to the land registry before the registration.

(*These ratios and fees are for 2014)