Real Estate Law

Expropriation: Compensation, Challenges and Unlawful Taking

· 4 min read · Av. Saliha Senem Mercan
Expropriation: Compensation, Challenges and Unlawful Taking

This is the English version of a Turkish article. The original, with further detail and linked petition templates, is at Kamulaştırma: Bedel Tespiti, İtiraz ve El Atma Davaları.

In an expropriation the administration must first invite the owner to negotiate; if no agreement is reached it must bring an action to determine the compensation and register title (Articles 8 and 10 of Law no. 2942). The owner's most important rights are to challenge the compensation and to seek annulment of the expropriation decision. Where the administration has taken the land without following the procedure, that is taking without expropriation and is the subject of a separate action.

Expropriation is the acquisition by the State or a public body of privately owned property, against payment, where the public interest requires it. It is a constitutional institution governed in detail by the Expropriation Act (Law no. 2942).

It arises frequently for roads, dams, power transmission lines, schools and hospitals. For the owner, the critical question is whether the compensation reflects the true value.

How Does the Process Start?

It begins with the administration taking a public interest decision. Once approved, the property is identified and an expropriation annotation is entered on the land register.

The administration values the property through its own valuation commission. The owner is then notified in writing and invited to a negotiation meeting.

This first stage is the purchase procedure, and the Act requires that it be attempted first.

What Happens at the Negotiation?

The administration offers the figure its commission has fixed. If the owner accepts, minutes are drawn up, the sum is paid and title passes. The matter ends without going to court.

The point to watch is this: the figure offered may be below the property's true value. The valuation commission is a body within the administration itself, and its report is not an independent expert report.

If you consider the figure too low you are entitled not to agree. Where no agreement is reached the administration must bring an action to determine the compensation and register title, and the figure is then fixed by a panel of experts appointed by the court.

In practice the figure the court determines can be higher than the administration's offer. It is therefore important to take advice before signing the minutes: once signed, they cannot be challenged.

How Is the Compensation Determined?

Where no agreement is reached the administration brings the action in the civil court of first instance at the place where the property is situated. The action is brought by the administration, not the owner.

The court holds a site inspection and appoints a panel of experts, who value the property according to its nature:

  • Building land: valued by reference to comparable sales.
  • Agricultural land: valued by the net income method, on the return the land produces.
  • Buildings: construction cost less depreciation.

The Act requires these cases to be concluded within four months. In practice the site inspection and expert stages often take longer.

You have the right to object to the expert report, and the objection must be made within the period and on technical grounds. If the report's gaps and errors are not identified, the court decides on the basis of it.

The stages of an expropriation
StageWhat happensThe owner's right
Public interest decisionThe administration takes the decisionAction for annulment
Invitation to negotiateA figure is offeredAccept or refuse
Action to determine compensation and register titleThe administration suesChallenge the figure and the expert report
Urgent expropriationPossession taken before compensation is settledChallenge, and seek an increased figure
Taking without expropriationPossession taken without the procedureAction to restrain, or for the value
Use for another purpose, or no use at allThe right to repurchase (Article 23)

Where expropriated property is not used for its purpose within five years, the former owner may repurchase it by repaying the compensation.

What Is Urgent Expropriation?

In extraordinary situations and in the cases determined by presidential decision, the Act allows urgent expropriation. Here the administration may obtain from the court the power to take possession before the compensation is settled.

The court determines only a provisional figure, which is deposited, and the administration is permitted to take possession. The final figure is determined in a later action.

The procedure is meant to be exceptional; where its conditions are not met, the decision can be challenged.

Taking Without Expropriation

Where the administration interferes with property without expropriating it, two situations arise:

De facto taking. The administration has physically entered the land without any procedure and built a road or a facility on it. The owner may bring a claim for the value of the property in the civil courts, and may also seek an order restraining the interference.

Constructive taking through planning. The property has been designated in the development plan as a road, park or school site, but no expropriation has been carried out for years, so the owner cannot in practice use their property. Such disputes belong to the administrative courts.

Identifying the correct branch of jurisdiction matters: a case brought in the wrong one is dismissed for want of jurisdiction and time is lost.

When Does the Right to Repurchase Arise?

Where expropriated property is not used for the purpose of the expropriation, the former owner may acquire a right to repurchase it. The Act provides that where no act or installation consistent with the purpose has been carried out within five years of the compensation becoming final, the former owner may buy the property back.

Exercising the right is itself subject to time: action must be taken within a reasonable time of learning that the conditions are met.

Take advice before signing the minutes

Once you accept the administration's figure and sign the minutes, the matter closes and the compensation can no longer be challenged. Whether the figure offered matches comparable values should be examined before signing.

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