An inherited farmland, a family-owned apartment, or a plot of land purchased jointly as an investment... In Türkiye, many real estate properties have more than one owner, meaning they are held in shared ownership. But what happens if one of the co-owners has debts? Can their ownership share be seized? The answer is yes, but the legal process differs significantly depending on the type of ownership.
PROPERTY ANALYSISWhat Type of Ownership Do You Have?
The ownership structure recorded in the title deed is the key factor determining how seizure and sale procedures will proceed:
- Shared Ownership (Paylı Mülkiyet): Each co-owner's ownership percentage is clearly specified in the title deed (e.g., 50%–50%).
- Joint Ownership (Elbirliği Mülkiyeti): Commonly seen in inherited properties. Co-owners do not have individually defined shares; instead, all owners collectively hold rights over the entire property.
How Is the Debtor’s Share Sold?
The procedure for a creditor to enforce the sale of a debtor’s ownership share depends on the type of ownership and generally follows one of the following paths:
If the Property Is Held Under Shared Ownership:
The process is relatively straightforward. The creditor may directly place a lien on the debtor’s registered share and request its sale through the enforcement office. The rights of the other co-owners to intervene are generally limited.
If the Property Is Held Under Joint Ownership:
The creditor cannot directly force the sale of the debtor’s share. Instead, the creditor must first obtain an authorization certificate from the Enforcement Court and then file a Lawsuit for Dissolution of Co-Ownership (Partition Action).
In such cases, the entire property is often sold, and the debtor’s portion of the sale proceeds is used to satisfy the creditor’s claim.
Important Information About the Auction Process
- Security Deposit: If the debtor owns 20% or more of the property, the creditor may participate in the auction without providing a security deposit.
- Agricultural Land: Under Law No. 5403, certain agricultural land regulations, such as land consolidation requirements, may necessitate the sale of the entire property rather than an individual share.
- Competent Court: For joint ownership cases, partition lawsuits fall under the jurisdiction of the Civil Court of Peace (Sulh Hukuk Mahkemesi).
Conclusion: The sale of jointly owned real estate is a highly technical legal matter. To avoid loss of rights and ensure the process is handled correctly, obtaining professional legal assistance is strongly recommended. Kanunify is your trusted partner in navigating these complex legal procedures.