What is Expropriation? How is the Expropriation Compensation Calculated?

Expropriation is a significant legal process that enables the transfer of private property ownership to the state or public institutions in consideration of the public good. This procedure is applied when real estate needs to be used for public purposes. It involves making privately owned properties available for public service in exchange for a specific compensation. This process, known as "expropriation" or "eminent domain," is conducted with the aim of serving the public interest and is regulated within a legal framework.

What Does Expropriation Serve?

Expropriation allows the state or public legal entities to acquire certain properties for the benefit of society. It is based on specific criteria related to the public interest. When the level of public interest is high, immovable properties can be taken under government control. Commonly known as "eminent domain" among the public, this process may affect property ownership rights. However, it is mandatory to provide fair compensation to the property owners in such cases. The acquisition of property in line with public interest becomes a crucial legal process aimed at meeting societal needs. The state can only exercise this authority when a strong public interest is involved.

Can One Object to the Expropriation Process? What is an Expropriation Lawsuit?

Expropriation refers to the process in which private property is acquired by the state in line with the public interest. The Ministry of Public Works and Settlement offers a compensation proposal to the property owner based on an officially determined value. However, the property owner is not obligated to accept this offer. If the owner believes that the proposed compensation is below the real market value of the property, they have the right to reject it. In such a case, the owner can file an objection and initiate a court case.

The court appoints an expert who conducts an on-site evaluation of the property and prepares a detailed appraisal report. Based on the findings in this report, the true value of the property is determined and a fair compensation amount is proposed. This way, property owners are able to protect their rights throughout the process. An expropriation lawsuit is not only essential for protecting the rights of property owners but also for safeguarding the rights of the state.

Can I Reclaim My Property?

The expropriation process can be a significant concern for property owners. A property may be acquired under the expropriation process and the owner is compensated. However, property owners often wonder if they can reclaim the property afterward. If the institution that requested the expropriation fails to take any action on the property within five years of the expropriation decision, the original owner has the right to repurchase the property. When the property is returned, the original compensation amount along with accrued interest during that period is repaid.

How is Expropriation Carried Out?

Expropriation is the legal process through which the government acquires privately owned real estate for public interest. Article 1 of the Expropriation Law No. 2942 defines the types of properties subject to expropriation. According to this article, defined land surfaces within designated boundaries, their integral parts, and legally registered independent and continuous rights are included in the scope of expropriation.

The state uses its public authority to acquire property from individuals in exchange for compensation. Expropriation is typically carried out for purposes such as infrastructure development, provision of public services, or securing areas after natural disasters. During the process, compensation must be paid to the property owners.

How is Expropriation Compensation Calculated?

Expropriation compensation is the amount paid to the property owner when the state forcibly purchases real estate in line with public interest. Several factors are considered in determining this amount. Key considerations include the property's location, area, zoning status, whether it's classified as farmland or building land, and the value of any existing structures.

Under the Expropriation Law, an expert report is prepared to determine the property's value. This report evaluates financial data such as comparable sales, market value, and the property's income-generating potential. If the property includes structures or additional facilities, construction costs are taken into account. For agricultural land, factors such as productivity and the type of crops grown are considered.

Sample Expropriation Compensation Calculation Table

For example, if the state plans to expropriate a single-story house on a 600 m² plot:

• Land Value: 600 m² x 3,000 TL/m² = 1,800,000 TL

• House Value: 100 m² x 6,000 TL/m² (construction cost) = 600,000 TL

• Total: 1,800,000 + 600,000 = 2,400,000 TL

If an expert determines a 5% increase based on comparable sales, an additional 120,000 TL may be added. This brings the final expropriation compensation to approximately 2,520,000 TL.