Legal Basis: Law No. 6306 Article 6/14 | Implementation Regulation Article 13/11

You had your house demolished, signed a contract with the contractor, and moved into a rental with rental assistance — but months are passing, and nothing is happening at the construction site. The contractor isn’t starting work, and when you ask, they either say “we’re waiting for permits” or “materials aren’t arriving.” So what can you do in this situation? Can you unilaterally terminate the contract? Can you get your title deed back? And will rental assistance payments be demanded back? Article 6/14 of Law No. 6306 and Article 13/11 of the Implementation Regulation answer all these questions. This article addresses the conditions under which the right to termination arises, how the process works, what will happen to your title deed after termination, and the steps you need to take to protect your rights, along with current 2026 legal provisions and court decisions. (Law Art. 6/14 — Reg. Art. 13/11)

Legal Basis of the Right to Termination

Article 6/14 of Law No. 6306 grants rights holders the right to terminate the contract if, due to reasons originating from the contractor, construction does not commence within one year or the construction activity ceases for at least six months. The Law has framed this right not as a unilateral termination, but as an administrative termination mechanism operated through the Presidency or the Administration. In other words, property owners cannot directly terminate the contract; they initiate the administrative termination process by applying to the administration with a majority decision. (Art. 6/14 of the Law)

The rationale behind this regulation is clear: It is unacceptable for a property owner who has demolished their house, transferred their deed, and moved out to rent to be left in legal helplessness due to the contractor’s inaction. At this point, the state intervenes, terminates the contract ex officio, and ensures the restoration of property rights.

Two Different Grounds for Termination

Article 13/11 of the Regulation has stipulated two separate grounds on which a termination request can be based.

First ground: Construction not commencing within one year. After an agreement is reached with all property owners or a decision is made by the simple majority of shareholders proportionate to their shares, the construction work for the new building must not have started within one year due to reasons originating from the contractor. (Art. 13/11-a-1 of the Regulation)

To be able to demand termination on this ground, three additional conditions must also be met concurrently: the performance of obligations by the rights holders that were required to be fulfilled before the commencement of the construction work according to the contract provisions; the absence of any judicial decision, administrative decision, administrative practice, or similar valid reason preventing the commencement of the construction work; and the non-commencement of the construction work due to reasons attributable to the contractor. (Art. 13/11-a-1)

The importance of these three additional conditions stems from the following: If the owner’s failure to fulfill their own obligations delays the construction — for example, if the title deed transfer has not been made, a zoning application has not been filed, or the necessary permit from the neighboring parcel has not been obtained — no right of termination arises against the contractor. For the right of termination to arise, it is essential that the source of the delay is indeed the contractor.

Second ground: Stoppage of construction for six months. Although the construction work has commenced, it must not have been continued for at least six months with the level of personnel and equipment required to complete the project, due to reasons attributable to the contractor. (Art. 13/11-a-2)

In the application of this ground, the interpretation of the criterion “personnel and equipment at a level required to complete the project” becomes important. Council of State decisions have clarified this matter: The administration is not obliged to precisely determine at what stage the construction stopped or to which party the stoppage is attributable; the finding that construction activity has stopped and that there is insufficient personnel and equipment on site is deemed sufficient for termination. (Council of State GDDK, E. 2022/1167)

How Many Owners’ Decisions Are Required for the Application?

The request for termination is not made individually, but upon a decision taken by the owners with a simple majority. This threshold, which was reduced from two-thirds to a simple majority with the amendment to the law dated February 4, 2026, also applies to termination applications. In other words, an application can be made to the Urban Transformation Directorate or the authorized Administration by a joint decision of owners holding more than fifty percent share based on land share. (Art. 6/14 — Reg. Art. 13/11-b)

Where and How to Make a Termination Application?

The application is made to the relevant Urban Transformation Directorate or the Administration to which the Ministry has delegated authority —in Istanbul, to the relevant district municipality—. The application must include the following documents: (Reg. Art. 13/11-b)

Minutes of the termination request decision taken by simple majority; documents showing the reason for termination — documents proving the agreement date and the construction start date, photographed determination report stating that construction has not started or has stopped; correspondence with the contractor; rental assistance payment breakdown; current land registry record showing the title deed status; copy of the contract. The more documents support the application, the faster the administrative review process proceeds.

How Does the Administrative Process Work Step by Step?

After a termination application is made, the Directorate or Administration must follow a specific procedure. (Reg. Art. 13/11-c, d, e)

If the application is found to be appropriate in terms of form and content, and according to the grounds for termination, the contractor is given fifteen days in writing, and information and documents regarding the reasons for not commencing or stopping the construction work are requested from the contractor. This stage grants the contractor the right to defense; if the contractor can present a valid reason — for example, the municipality’s incomplete signing of the license, a court injunction due to an objection from a neighboring parcel, force majeure— if this reason can be submitted with supporting documents, the termination process may be halted.

At the end of the fifteen-day period, the Directorate or Administration conducts a comprehensive investigation: on-site inspections are carried out, correspondence is made with the municipality, SSI, and relevant institutions and organizations, and all types of examinations are completed.

As a result of the investigation, two different scenarios may emerge. If it is understood that the termination conditions have not been met, this information is communicated to the applicant owners, and the process ends. If it is determined that the termination conditions have been met, the contractor is given thirty days to start construction or to continue the work with a level of team and equipment required to complete the project. This notice serves as a final warning and provides the contractor with an opportunity to actually commence work.

At the end of the thirty-day period, if it is determined that the contractor has not started or continued the work, the contracts shall be deemed terminated ex officio as of the date the thirty-day period ends, without the consent of the parties concerned being sought. The termination is also communicated in writing to the owners and the contractor. (Article 13/11-e of the Regulation)

Meaning of Ex Officio Termination: No Consent Required

The phrase “It shall be deemed terminated ex officio without seeking consent” is extremely critical. This means it does not require the approval of either the contractor or the owners. The administration unilaterally makes this determination, and the contract legally ends. Even if the contractor does not accept the termination, this situation does not prevent the administrative termination. (Law Art. 6/14 — Reg. Art. 13/11-e)

Decisions of the Council of State also confirm the breadth of this authority: The administration may merely determine that construction activity has ceased and that there is a lack of equipment; it is not obliged to deeply investigate why the construction stopped or who is at fault. (Council of State 6th Chamber and IDDK, 2022)

What Happens to the Title Deed After Termination?

Following the termination, upon the request of the Directorate or the Administration, preliminary real estate sale contracts and construction contracts in exchange for land shares, which have been annotated in the land registry records of the immovables, shall be cancelled by the relevant land registry office. (Law Art. 6/14 — Reg. Art. 13/11-f)

If the immovables have been transferred to the contractor in the title deed based on contracts deemed terminated, the new immovables resulting from the implementation —if a new building has not yet been constructed, i.e., land or parcels— shall be registered ex officio in the name of the former owners who transferred them to the contractor, taking into account the ownership determination studies. This means the title deed is taken from the contractor and returned to its former owners; no separate court decision is required for this process. (Law Art. 6/14)

This regulation is a strong financial guarantee that eliminates the risk of the contractor seizing the title deed and failing to proceed with the work.

Financial Consequences of Termination: Who Gets What, Who Pays What?

General legal provisions apply to works completed up to the termination date, transferred shares, and payments made. This means that both parties can claim their mutual receivables and debts within the framework of general contract and obligations law. (Law Art. 6/14 — Reg. Art. 13/11-g)

Specifically, the following scenarios may arise: If the contractor has carried out some construction activities up to that day, they can claim the cost of these works; while the owners can request the value of the shares they transferred to the contractor or the payments made to the contractor back. If the contractor has sold the independent sections falling to their share to third parties, additional litigation processes may be required to reclaim these sales.

Can Rental Support Be Reclaimed?

No. Rental support payments made by the contractor to the beneficiaries up to the termination date cannot be reclaimed from the beneficiaries. This provision is explicitly guaranteed in both Article 6/14 of the Law and Article 13/11 of the Regulation. (Law Art. 6/14 — Reg. Art. 13/11-g)

This guarantee is also valid in the event of the contractor’s liquidation or bankruptcy; rental support payments cannot be subject to a refund claim.

Security: The Contractor’s Recourse-able Portion After Termination

With the amendment of February 4, 2026, the contractor’s security deposit rate has been re-regulated as ten percent of the approximate construction cost. It is mandatory to submit this security to the Administration before obtaining the construction permit. (Reg. Art. 13/11 — Reg. Art. 15/b)

When the termination occurs, this security can be evaluated against the owners’ damages. If the amount of security does not cover the actual damage, the owners retain the right to file a compensation lawsuit against the contractor within the framework of general provisions.

If the contractor has taken out building completion insurance before obtaining the construction permit, the security requirement is not sought. In the presence of this insurance, claims after termination can be covered by the insurance. (Article 13-g)

Contractor’s Debts to Third Parties and Seizure

Law No. 6306 has provided strong protection for the owners in this regard as well: Immovable properties transferred to the contractor cannot be restricted by foreclosure and injunctions due to the contractor’s debts to third parties, except in cases where a condominium servitude is not established within six months from the commencement of the construction work. (Article 6/12)

Thanks to this regulation, your immovable property is prevented from being foreclosed due to the contractor’s debts arising from other projects or tax debts.

How to Proceed After Termination?

After the termination is finalized, the owners have the right to initiate a new transformation process. A contract can be signed with a different contractor by re-deciding with a simple majority. The new contractor is also obliged to comply with the same obligations —security, building completion insurance, permit—.

The practices to be carried out after termination are decided by a simple majority of the shareholders in proportion to their shares. The shares of those who do not participate in the decision taken by a simple majority of the shareholders in proportion to their shares can be put up for sale again through an open auction procedure. (Article 13/11-g)

Real-Life Court Decisions

In the Council of State’s Administrative Litigation Chambers Board’s decision no. 2022/1167, contracts signed for a risky structure demolished in İzmir Karşıyaka in 2016 were never commenced. Upon the owners’ application, a thirty-day warning was issued in 2019, and finding that work had not started by the end of the period, the contracts were terminated. The judiciary confirmed that this implementation was in accordance with the purpose of the Law and public interest.

In the decision no. 2023/777 of the Istanbul 10th Civil Court of Commerce, it was determined that construction activities did not continue despite obtaining a building permit in 2017; consequently, the contracts were unilaterally terminated by the Ministry due to non-compliance with the warnings issued. The Court accepted that with this termination, the ordinary partnership between the contractors also ended.

Practical Advice

Document the period of non-construction. Record whether the contractor goes to the construction site, and if there are teams and equipment on site, at regular intervals, with dated photo records. These documents will both strengthen the application and form the basis of evidence in potential legal proceedings.

Clearly determine the start date of the one-year period. This date is the date when an agreement was reached with all owners or when a simple majority decision was made. Before accepting the contractor’s excuses such as “we are waiting for the permit” or “demolition is not yet complete”, review what the contract states; request a contract assessment from a lawyer.

Issue a written warning to the contractor. Before applying to the administration, a written warning issued to the contractor through a notary public will clearly document the period and constitute evidence of bad faith in future compensation lawsuits.

Monitor the land registry status. If the land share has been transferred to the contractor, regularly check the land registry after termination to confirm whether the title deed registration has actually been made and if any fraudulent or third-party transactions have occurred.

Ensure coordination among owners before making the application with a simple majority. An individual application by a single owner does not initiate a legal process; a simple majority decision is mandatory. If there are dissenting owners, efforts should be made to convince them, or the existing majority must document the situation.

Why is Expert Lawyer Support Necessary?

The contractor termination process is an extremely technical field where administrative law, law of obligations, land registry law, and real estate law are intertwined. As 2M Law Office, within the scope of our urban transformation consultancy services carried out across Istanbul, especially in Tuzla, we observe the following:

Owners often prepare application petitions with incomplete documents, which prolongs the process or leads to the application being rejected. An urban transformation lawyer expedites the process from the initial stage by preparing the application with complete documents and legal justifications. (Art. 13/11-b)

The legal evaluation of the contractor’s potential grounds for objection within the fifteen-day period is also critically important. The contractor may cite reasons such as force majeure or owner’s fault; if these grounds are not contested at the administrative stage, the termination request may be denied. With the support of an Istanbul urban transformation lawyer, it is possible to prepare a legal response against these grounds.

After termination, compensation lawsuits and title deed registration processes also require independent legal follow-up. Collection of the contractor’s collateral, reclaiming the value of transferred shares, and annulment of sales made to third parties, if any, are among the main aspects of these processes. 2M Hukuk Avukatl\u0131k Ofisi, serving as a Tuzla lawyer within the scope of urban transformation consultancy in these lawsuits, stands by you throughout all these stages.

Conclusion

According to Article 6\/14 of Law No. 6306 and Article 13\/11 of the Implementation Regulation, if construction is not started within one year after the agreement due to reasons originating from the contractor, or if the construction work is halted for at least six months, owners who decide by simple majority can initiate the termination process by applying to the administration. The process consists of a fifteen-day period for the contractor to request information, an on-site inspection, a thirty-day final warning, and ex officio termination if the conditions persist. After termination, the title deeds are returned to the owners, rent assistance cannot be reclaimed, and the process can be restarted with a new contractor. (L. Art. 6\/14 \u2014 R. Art. 13\/11)

This article has been prepared based on Law No. 6306 (Art. 6\/14) and the Implementation Regulation (Art. 13\/11), as well as current legal resources and court decisions available as of April 2026. Since each specific situation may vary, it is recommended to seek support from an expert urban transformation lawyer for legal processes.