Turkish
1-HOW IS THE EXPERT BOARD TO BE FORMED TO DETERMINE THE VALUE OF PROPERTY IN EXPROPRIATION CASES?
In price determination cases filed pursuant to Article 10 of the Expropriation Law No. 2942, an Expert Panel must be formed by the local court in accordance with Article 15 of the same law. Article 15 of the Expropriation Law No. 2942 – (Amended: 3/11/2016-6754/39 art.) In accordance with this Law Experts appointed by the courts are selected from the lists prepared by the expert regional boards, and the relevant articles of the Expertise Law and the Code of Civil Procedure No. 6100 dated 12/1/2011 are applied to them. It is mandatory to form an expert committee of at least three people, depending on the type and nature of the place subject to expropriation.It is mandatory for one of the experts to be selected among experts who have a master’s degree or doctorate in real estate development or real estate appraisers authorized in accordance with the Capital Markets Law No. 6362 dated 6/12/2012. In terms of real estate appraisers, the conditions for receiving basic training and actually working for five years in order to be accepted as an expert are; For experts with a master’s degree or doctorate, there is no requirement to actually serve for five years, and these experts are assigned without being limited to the jurisdiction of the regional board of experts in which they are registered. Experts’ areas of expertise are determined by taking into account the nature of the immovable property to be expropriated. The expert committee determines and evaluates the value of the immovable property in accordance with the provisions of Articles 11 and 12 of the expropriation law and submits its reasoned report to the court within fifteen days. The value determination made by experts is based on the day the documents are submitted to the court by the administration.
2- DETERMINATION OF THE PROPERTY VALUE BY THE REAL ESTATE VALUATION EXPERT IN EXPROPRIATION (PRICE DETECTION) CASES
Before the amendment made in the provision of Article 15 of the Expropriation Law No. 2942, property experts were taken into the committee to determine the real estate market and valuation principles. However, with a conscious change, the legislator included Real Estate Appraisal Experts in the committee and determined the valuation by taking into account the Real Estate Appraisal Principles.
Based on all these, the delegation to be formed in line with Article 15 shall determine the “Type and Type of the Immovable Property, Its Surface Area, and all the qualities and elements that may affect its Value”, the separate value of each element, the tax declaration, if any, the valuations made by the official authorities on the date of expropriation, the valuations made by the official authorities on the date of expropriation, and , the net income of the immovable property or resource if it is used as it is and according to its location and conditions, the sales value of land according to similar sales that do not have a special purpose before the expropriation day, official unit prices, building cost calculations and depreciation share for buildings, provided that the effect of each measurement is explained. They determine the value of the immovable property based on a reasoned evaluation report in accordance with the valuation standards accepted by the Capital Markets Board, by stating the answers to all these elements separately in the report they will prepare, taking into account other objective measures that will be effective in determining the price, and taking into account the declaration of the relevant parties. will determine the price.
Article 3 of the Capital Markets Board Communiqué on Valuation Standards in the Capital Market (III-62.1), which came into force by being published in the Official Gazette dated 01.02.2017 and numbered 29966, states that “In the valuation activities carried out, the International Valuation Standards published by the Association of Turkish Appraisers and the Capital Markets Association of Turkey must be complied with.” It is mandatory”. In the post made by this Communiqué and in section 30.1 of the 2017 International Valuation Standards book, MARKET VALUE is defined as “an arm’s-length transaction between a willing seller and a willing buyer in which the parties act knowledgeably and prudently, without being under duress, as a result of appropriate marketing activities.” The real market value of the real estate must be taken into account in determining the price.
In practice, there is no clarity yet on what criteria Real Estate Appraisal Experts will use when making this evaluation. However, if the bare value determined by the income method is below the current value of the real estate, it will be possible to reach the final market value with the objective value increase percentage to be applied.
Written by: Av.Ş.İrem TANDOĞAR EKİNCİ