Constitutional Court Annuls Market Value Rule for Co-Owned Property Sales

The Constitutional Court of Turkey has annulled a legal regulation concerning the sale of shares in jointly owned real estate. The rule had allowed courts to determine market value rather than use the price stated in the sales contract during pre-emption lawsuits. The court found that the provision violated the right to property and the principle of free will between parties.

Thirteen civil courts of first instance and members of the Grand National Assembly had applied to the high court. They challenged clauses added to Article 734 of the Turkish Civil Code by Law No. 7571. The applicants argued that linking the pre-emption right to market value instead of the agreed sale price undermined legal certainty among co-owners.

“The regulation failed to establish a fair balance between the parties regarding property rights.”

The regulation was introduced through a legal amendment in December 2025. Under the system, judges determined the market value of the property share, and the co-owner exercising the pre-emption right had to pay that amount along with title deed fees. Failure to pay within the set deadline prevented registration of the share in the claimant's name.

The Constitutional Court warned that market value could differ from the actual sale price, disrupting the balance of interests among the seller, buyer, and the co-owner using the pre-emption right. It concluded that the arrangement failed to establish a fair balance between the parties regarding property rights.

The annulment will take effect nine months after publication in the Official Gazette. The ruling was published on 16 July 2026, meaning the regulation will remain in force until 6 August 2027. Parliament may draft a new legal arrangement before that date.

The court also annulled the transitional provision that applied the market value rule to past lawsuits. However, because of the deferred effective date, ongoing cases and finalized court decisions will not change automatically.