Is there a guarantee exemption in urban transformation if the plot owner builds their own building? What does the condition “building one’s own structure” mean, and who benefits from it?

One of the most frequently wondered exceptions to the guarantee obligation in urban transformation is the situation where the property owner builds their own structure on their own plot. Many property owners ask, “I’m not giving it to a contractor; I’m building my own house myself. Will I still need to provide a guarantee?” In this article, we examine the condition “the plot owner builds their own structure” at the heart of the exemption and its practical meaning.

What is the Condition of “Building One’s Own Structure”?

One of the cornerstones of the guarantee exemption stipulated by the legislation is that the structure must be built by the plot owner themselves. According to the regulation, in structures with a maximum of two stories (excluding a basement) on a single plot and a total construction area not exceeding 500 square meters, if the plot owner builds their own structure, a guarantee is not required under certain additional conditions (Implementation Regulation Art. 13/9-c). The key phrase here is “the plot owner builds their own structure.” This means the structure should not be a project built by a contractor for sale and profit, but rather a structure built by the owner for their own use.

The meaning of this condition is as follows: The exemption is primarily designed for small-scale structures that are non-commercial in nature and intended for personal use. The owner building the structure themselves indicates that there is no risk to a third party (apartment buyer) that needs to be protected; therefore, the guarantee requirement has been waived.

Is the Exemption Valid If I Have It Built by a Contractor?

No. If the property owner has the building constructed by a contractor in exchange for a land share or through another model, and the contractor will sell the independent sections falling to their share to third parties, the condition of “constructing one’s own building” is not met, and the collateral exemption does not apply (Implementation Regulation Article 13/9-c). In this case, the standard 6% collateral rule applies. For a comparison of models worked with contractors, the article on which model is more advantageous in urban transformation can be reviewed.

Other Conditions Must Also Be Met Concurrently

The condition of “constructing one’s own building” alone is not sufficient; other conditions must also be met concurrently for the exemption. It is mandatory that the building on a single parcel has a maximum of two stories excluding a basement, the total construction area does not exceed 500 m², and no sales are made to third parties before the construction is completed, with this matter secured by annotation in the title deed record (Implementation Regulation Article 13/9-c). Therefore, the fact that it is “my own house” does not alone grant an exemption unless other conditions are met.

What is the Situation in a Shared Parcel?

The term “parcel owner” refers to an owner who constructs the building for their own use. In co-owned parcels with multiple owners, it must be carefully assessed on a case-by-case basis whether the building was constructed for the owners’ own use without a commercial sales purpose, and whether other conditions are met. In such cases, the applicability of the exemption requires a technical legal review. For all stages of the process, the general framework of the urban transformation process can be reviewed. Relevant legislation can be accessed via the Legislation Information System.

Frequently Asked Questions (FAQ)

Is there a guarantee exemption if I build my own building? Yes, if other conditions are also met; if the parcel owner constructs their own building and the building does not exceed two stories/500 m², no guarantee is required, provided that a sales restriction is registered in the title deed (Implementation Regulation Art. 13/9-c).

Am I exempt if I have a contractor build it? No. It is a condition that the building must be constructed by the owner for their own use; the exemption does not apply to contractor projects intended for sale (Implementation Regulation Art. 13/9-c).

Is it enough if it’s just my own building? No. The conditions regarding the floor/area limit and the registration of the sales restriction in the title deed must also be met simultaneously (Implementation Regulation Art. 13/9-c).

If I’m exempt, can I sell before construction is complete? No. Not selling to third parties before the construction is complete is a condition of the exemption (Implementation Regulation Art. 13/9-c).

Why is Expert Lawyer Support Necessary?

Correctly evaluating whether the “building its own structure” condition is actually met in a specific case both prevents unnecessary collateral payments and pre-empts problems that could arise from an erroneous exemption claim. Especially in co-owned parcels or projects with a sales plan, this evaluation requires a technical review. Urban transformation is a multi-layered process where administrative law, real estate law, and contract law intersect, and even a single procedural error can lead to significant loss of rights. Therefore, having an exemption assessment performed by a lawyer specialized in the field is of great importance.

As 2M Law Office, we provide services across Turkey, especially in Istanbul, where urban transformation is most intense; in Istanbul’s priority transformation districts of Tuzla, Pendik, Kartal, Maltepe, Ümraniye, Ataşehir, Kadıköy, Sancaktepe, and Küçükçekmece, as well as in Kocaeli’s Gebze and Darıca regions. As an Istanbul urban transformation lawyer and Tuzla urban transformation lawyer, we offer legal support to rights holders and contractors in collateral exemption processes.