Quick summary: If co-owners of a jointly held property (an inherited home, a plot of land, a field) cannot reach an agreement, any co-owner can end the co-ownership by filing a lawsuit for the dissolution of co-ownership. The case is filed at the civil court of peace where the property is located, and all co-owners must be included in the case. The court first examines whether the property can be divided in kind; if it cannot, it orders sale by public auction, and the proceeds are distributed according to each co-owner's share.
What Is a Lawsuit for the Dissolution of Co-Ownership?
A lawsuit for the dissolution of co-ownership (formerly known as izale-i şuyu) is a case that ends the co-ownership among the co-owners of an asset held in shared ownership or joint ownership, either by physically dividing the asset or by selling it and distributing the proceeds. It is regulated under Articles 698-699 of the Turkish Civil Code. In practice, it is most commonly filed for homes, plots and fields that heirs cannot divide among themselves, as well as for real estate purchased jointly where a dispute arose later. It can also be filed for movable assets (vehicles, company shares, etc.).
Who Can File the Lawsuit?
In shared ownership, every co-owner — and in joint ownership (inheritance co-ownership), every heir — can request the dissolution of the co-ownership. The size of the share does not matter; even a co-owner with a 1% share can file the case. All co-owners must be named as parties to the case; if a co-owner is left out, the court cannot examine the case on its merits. If one of the co-owners has passed away, their heirs must be identified and included in the case.
Situations in which a lawsuit cannot be filed: A lawsuit cannot be filed, or may be postponed, if the co-owners have agreed to maintain the co-ownership for up to ten years; if ending the co-ownership would be inappropriate because the jointly owned asset is dedicated to a permanent purpose; for common areas in condominium ownership; or at an inappropriate time (for example, a field during harvest season). In addition, for a property with a family residence annotation, the spouse's consent is required.
Competent and Authorized Court
The competent court is the civil court of peace, regardless of the value of the claim. The authorized court is the court at the location of the property; if there are several properties in different places, the case can be filed where any one of them is located. This jurisdiction rule is mandatory and cannot be changed by contract.
The Lawsuit Process Step by Step
- Obtain the title deed record and the certificate of inheritance. In joint ownership (inheritance with no transfer yet completed), a certificate of inheritance is obtained first; the court may also have the transfer carried out during the proceedings.
- Petition and court fees. A lawsuit for the dissolution of co-ownership is subject to a fixed fee; no proportional fee is charged based on the value of the property. Notification costs increase with the number of co-owners.
- Notification and formation of the parties. All co-owners are notified. For co-owners whose addresses are unknown, notification by public announcement is required; this stage is the factor that most often prolongs the process.
- Site inspection and expert examination. The court conducts an on-site inspection of the property; the expert reports on whether it can be divided in kind and on its value. If there is a fixture on the property, such as a building or trees built or planted by a co-owner, its ownership and value are also determined.
- Decision. If division in kind is possible, the court orders division; if not, it orders the dissolution of the co-ownership by sale.
- Sale stage. After the decision becomes final, the file is sent to the sales office; a valuation is carried out and the auction notice is issued.
Division in Kind or Sale?
| Division in Kind | Division by Sale | |
|---|---|---|
| When is it applied? | If the property can be divided into shares without loss of value (a large plot, multiple independent units) | If division is not possible or would cause a significant loss of value (a single apartment, a small parcel) |
| Who requests it? | The request of a single co-owner is sufficient; the court examines this option first | If division in kind is not possible, the court decides ex officio |
| Result | Each co-owner receives their own independent parcel/unit on the title deed; differences in shares are balanced by compensation | Sale by public auction; proceeds are distributed according to share ratios |
| Zoning obstacle | Requires compliance with the Zoning Law and municipal approval; a minimum parcel size is required | None |
How Is the Sale Carried Out? The Auction Process
The sale is carried out by the civil court of peace's sales office through a public auction in accordance with the Enforcement and Bankruptcy Law. As a rule, the auction is open to everyone; co-owners can also participate in the auction and acquire the property. If all co-owners agree unanimously, the sale can be limited to the co-owners only; this is an important option for those who want to keep the property within the family.
If no bid above 50% of the appraised value is received in the first auction, the process moves on to a second auction. After sale costs, VAT, stamp duty and title deed fees are deducted from the auction price, the remaining amount is distributed to the co-owners according to their shares. The owner of a fixture receives an additional share in proportion to the ratio of the fixture's value to the auction price.
Legal Costs and Attorney Fees
A lawsuit for the dissolution of co-ownership is a "two-sided" case; there is no winner or loser. For this reason, court costs and attorney fees are borne by all co-owners in proportion to their shares, regardless of who filed the case. The main items are: the fixed application and decision fees, notification costs, site inspection and expert fees, announcement and brokerage costs during the sale stage, and the title deed fee. Because costs are deducted from the auction price, co-owners generally do not need to make additional out-of-pocket payments.
Alternatives Before Filing a Lawsuit
- Consensual division: All co-owners can agree before a notary or at the land registry to divide the property; this is the fastest and cheapest route.
- Sale of a share: A co-owner can sell their own share to a third party; keep in mind that the other co-owners have a right of pre-emption (shufa).
- Buyout among co-owners: One co-owner can purchase the others' shares at the expert-appraised value.
- Mediation: Although not mandatory, inheritance and division disputes are well suited to mediation; a settlement agreement carries the force of a court decision.
Frequently Asked Questions
How long does a lawsuit for the dissolution of co-ownership take?
Depending on the number of co-owners and notification issues, first-instance proceedings generally take 1-2 years, followed by a sale process lasting several months. In cases where the parties agree, the timeline is much shorter.
One sibling does not want to sell the inherited home. What can I do?
The consent of the other siblings is not required. You can file a lawsuit for the dissolution of co-ownership on your own to secure the sale of the home and the division of the proceeds.
Can rent be requested from a co-owner living in the home?
Yes. Compensation for unlawful occupation (ecrimisil) can be claimed from a co-owner who uses the property alone, for the period after the other co-owners have sent a formal notice. This is the subject of a separate lawsuit.
Unable to reach an agreement with your co-owners on a shared property? Let's evaluate the possibility of consensual division and the litigation strategy together before filing. Request a consultation at our Bakırköy office or explore our Real Estate Law services.
Related articles: How Is an Inheritance Divided? · Inheritance Law
Kasım Ergün — Founder of Avrasya Law Office. Practices law in Istanbul Bakırköy in the fields of family, labor, criminal, real estate and enforcement law. Our Team
This article is for general informational purposes only and does not constitute legal advice. Legislation and case law may change; please consult an attorney for your specific situation.
