Inheritance community in Turkey: New right of first refusal for heirs at auction

Inheritance community in Turkey: New right of first refusal for heirs at auction

With the 12th Justice Reform Package (Law No. 7589), inheriting co-owners have been granted a special privilege since July 31, 2026: The first auction of an inherited property takes place exclusively among them. (Status: August 18, 2026).

Law No. 7589 Article 114 İİK Since July 31, 2026 Inheritance law Türkiye

· · • Approx. 15 min. reading time

0 Amended legal article Article 114 of the Turkish Enforcement and Insolvency Law (İİK) has been revised.
0 Minimum bid in round 1 Instead of the usual 50 %, the full appraised value generally applies to the first auction, which is reserved for heirs only.
0 One-time heir auction round Only one round is legally reserved exclusively for the inheriting co-owners.
0 Law No. 7589 12th Justice Reform Package (12th Yargı Paketi), adopted on 16 July 2026 by the TBMM

Sources: TC Resmi Gazete, TBMM, Adalet Bakanlığı — Decker Real Estate compilation, as of August 18, 2026

New right of first refusal: What the 12th judicial reform package changes for communities of heirs

With the 12th Judicial Reform Package (Turkish: "12. Yargı Paketi"), the Turkish legislature introduced an important new regulation for communities of heirs. If an inherited property is auctioned off as part of an inheritance settlement, the co-owners who inherit it now have a special right of first refusal. The first auction takes place exclusively among them—external third parties are not permitted to participate in this round.

Especially for heirs who live in Germany and inherit a property together with relatives. Estate community in Türkiye For those who have inherited property, this regulation, which has been in effect since July 31, 2026, can have considerable practical significance. Anyone wishing to keep a property within the family previously had to fear losing it to the highest bidder from outside the family.

💡
In short: If a Turkish court orders the dissolution of co-ownership of a property acquired solely through inheritance by way of sale, the first auction will take place only among the inheriting co-owners. Only if no valid bid is received at this auction will the process open to external bidders.
⚠️ Note on classification: This article compiles publicly available legal facts on Turkish enforcement law. However, it does not replace individual legal advice. Particularly in ongoing or pending inheritance disputes, the specific case should be reviewed beforehand by a lawyer admitted to practice in Turkey.

Typical case: Several heirs — but no agreement on the property

In German-Turkish inheritance cases, it is common for several people to jointly own a property in Turkey. Parents or grandparents often leave behind a house, apartment, or plot of land. The children or grandchildren then live partly in Germany and partly in Turkey.

One heir wants to keep the property, another wants to realize the economic benefits of their share. A further heir may be completely unwilling to reach an agreement. Consequently, if an amicable settlement of the inheritance cannot be reached, Turkish law generally allows for a lawsuit to dissolve the co-ownership ("ortaklığın giderilmesi davası", also "izale-i şuyu").

🚫 Legal situation until 30.07.2026

If physical division of the property was not possible, the joint ownership was dissolved through a sale. At the public auction, outside third parties could also bid and acquire the family property.

✅ Legal situation since July 31, 2026

The first round of auctions will now take place exclusively among the inheriting co-owners. An heir who wishes to keep the property will therefore no longer have to bid against external investors immediately.

Until now, an heir who wanted to keep the property within the family faced a considerable risk. This is precisely where the 12th judicial reform package comes in—and noticeably changes the initial situation in favor of the community of heirs.

What has changed as a result of the 12th Justice Reform Package?

Law No. 7589 amended Article 114 of the Turkish Enforcement and Insolvency Law (İcra ve İflâs Kanunu — İİK). The new regulation applies exclusively to real estate that meets certain conditions simultaneously.

Three prerequisites for the right of inheritance

1

Acquisition exclusively through inheritance — all owners must have acquired the property through inheritance.

2

No external third parties are owned by them. — no ownership rights to the property may exist for persons outside the community of heirs.

3

Court-ordered sale — the dissolution of the community must have been ordered by sale, for example because a physical division is not possible.

If these three conditions are met simultaneously, the first auction will be conducted exclusively among the inheriting co-owners. Consequently, outside third parties cannot participate in this first round of auctions. The law explicitly stipulates that this auction, conducted exclusively among the heirs, can only occur once.

What does this mean for an heir who wants to keep the property?

The new regulation significantly improves the position of an heir who wishes to keep the house, apartment, or land within the family. In the first round of auctions, they no longer have to bid against outside buyers or investors. Instead, the heirs themselves are given the initial opportunity to acquire the property.

This effectively creates a right of first refusal for heirs in auction proceedings. However, it is important to note that the new regulation does not mean that an heir can automatically acquire the property or at a particularly low price. Rather, the highest bid within the community of heirs still determines the winning bid.

Advantages for the heir willing to take over

  • No bidding against outside investors in Round 1
  • Planning is difficult, as only co-heirs are eligible to participate.
  • Realistic chance of keeping the property in the family

What the regulation does not achieve

  • No automatic or discounted purchase
  • A full bid equal to the appraised value is required.
  • If there are several heirs willing to take over the business, the bidding process continues among them.

Special feature: In the first auction, the full appraised value generally applies.

For the first auction, which takes place exclusively among the heirs, special requirements apply to the minimum bid. While in the regular auction, 50 % of the determined appraised value ("muhammen kıymet") generally represents a relevant threshold, in the first auction, conducted exclusively among the heirs, 100 % of the appraised value generally applies.

Regular auction (external bidders): Minimum bid ≈ 50 % Estimated value
First auction (only inheriting co-owners): Minimum bid generally 100 % Estimated value The bid must also exceed the legally relevant minimum threshold, including priority claims and the costs of realization and distribution.

Procedure of the new auction rule for inherited properties

1. AUCTION Only heirs co-owner Minimum bid 100 % Estimated value one-off round no effective Surcharge 2. AUCTION Even outsiders Third parties allowed Minimum bid 50 % Estimated value regular procedure Basis: Article 114 of the İİK as amended on 31.07.2026 (Law No. 7589)
Decker Real Estate's own representation according to Art. 114 İİK. If no valid bid is accepted in the first round, which is reserved for the heirs, a second auction with a reduced minimum bid and participation of external bidders will automatically follow.

If no valid bid is accepted in the first auction round, which is reserved for the heirs, a second auction follows. In this second auction, external third parties can also participate, and the 50-% threshold generally applies again with regard to the appraised value.

Case studies from practice

The concrete effects of the new regulations are best illustrated by typical scenarios. The following three case studies are based on recurring questions from the consulting practice of German-Turkish inheritance cases.

Case Study 1

Three siblings, one house in Antalya, no agreement

A father leaves his three children a property in Antalya. After the probate proceedings are completed, the three children are registered as co-owners. Two children live in Germany, and one lives in Turkey. The property is valued at 9 million Turkish Lira.

One of the children wants to keep the house, while the two siblings want to realize the financial benefits of their share. An out-of-court settlement regarding the transfer of shares fails, so ultimately, a lawsuit to dissolve the co-ownership order the sale of the property.

Under the new legal framework, the first auction will be held exclusively among the three inheriting co-owners. The heir who wishes to keep the house thus has the initial opportunity to bid on the property without having to compete against external buyers in this first round—however, they must bear in mind that the full appraised value of 9 million TL is generally applicable.

Case Study 2

Inheritance share already sold to an investor

Two sisters and their brother jointly inherit an apartment in Alanya. One of the sisters is experiencing financial difficulties and sells her share of the inheritance to an outside investor before the legal dispute arises. Subsequently, a lawsuit is filed to dissolve the joint ownership because the remaining parties cannot reach an agreement.

However, because an external third party now holds ownership rights to the property, a key requirement of the new regulation no longer applies. The first auction is therefore no longer reserved exclusively for the inheriting co-owners—the process proceeds from the outset according to the regular rules, with the participation of external bidders.

This example illustrates why the timing of a transfer of shares within a divided community of heirs can be strategically crucial.

Case Study 3

An heir living in Germany wants to take over the holiday home.

An heiress living in Munich wants to keep the holiday home in Kemer, inherited from her parents, permanently, while her brother, who lives in Turkey, insists on its sale. After an out-of-court settlement failed, the court ordered the dissolution of their joint ownership through the sale of the property, which is valued at approximately €210,000.

Because all the conditions of the new regulation are met, the first auction will take place exclusively between the two siblings. However, the heir living in Germany must clarify beforehand whether she can finance the full appraised value—and not just half—in the short term, for example, through equity or bridge financing. Otherwise, despite the new preferential right, she risks losing the property in the second auction round, which will then be open to third parties.

Why the change is particularly important for Turkish heirs living in Germany

Many heirs of Turkish real estate live permanently in Germany and are unfamiliar with the legal options for inheritance disputes in Turkey. This is particularly problematic in cases of joint inheritances where the parties involved cannot agree on the use or sale of a property for years.

The new regulation opens up an interesting strategic opportunity: Those who wish to retain ownership of an inherited property in Turkey no longer need to view a partition auction solely as a risk. Under certain conditions, the procedure can instead offer a way to definitively resolve ownership issues and take full possession of the property.

Whether this approach makes economic sense depends primarily on the assessed property value, one's own inheritance share, any existing encumbrances on the property, and the financing of the purchase. Therefore, a sober cost-benefit analysis is advisable before making any decision.

Exercise caution regarding inheritance shares already transferred to third parties

The new regulation does not apply to every property with multiple owners. Crucially, all owners must have acquired their ownership rights through inheritance and no third parties may hold ownership rights to the property. This can be of considerable importance in practice.

For example, if an inherited share of co-ownership has already been transferred to an investor or other third party, the conditions for the first auction, which is reserved exclusively for the heirs, may no longer apply. Especially in cases of disputes among heirs, the timing of initiating legal proceedings can therefore be strategically crucial.

🚩 Often overlooked: Even a single transfer of shares to an outside party can eliminate the heir's preferential right to the entire property. Therefore, before any out-of-court sale of an inherited share, it should be examined what consequences this would have for a subsequent auction proceeding.

What applies to ongoing inheritance disputes?

Even in pending proceedings, it should be examined whether the new regulation applies. The decisive factor is not solely when the action to dissolve the community was filed. Rather, the law contains a transitional provision for ongoing proceedings.

Therefore, it is particularly important to examine the stage of the sales process and whether the auction had already been announced before the new regulations came into force. An individual review of the respective procedural status is therefore strongly recommended.

⚠️
For auctions that have already been scheduled or announced, it should be checked immediately whether the new heirs' priority rule still applies or whether the proceedings will be concluded under the old law.

Since when has the new regulation been in effect?

The 12th Judicial Reform Package (12. Yargı Paketi) was adopted as Law No. 7589 by the Grand National Assembly of Turkey (TBMM) on July 16, 2026. The amendment relevant to communities of heirs concerns Article 114 of the Turkish Enforcement and Insolvency Law (İİK).

EventDate
Adoption by the TBMM (Law No. 7589)July 16, 2026
Entry into force of the new regulation (Art. 114 İİK)July 31, 2026

The new regulation has therefore been in effect since July 31, 2026, and applies to auctions that meet these requirements from that date onwards.

Checklist: What should be checked before filing a lawsuit to dissolve the community

Before initiating a lawsuit to dissolve the Community, the following should be examined in particular:

1

Who is currently registered as the owner in the Turkish land register (Tapu)

2

On what basis the respective ownership shares were acquired

3

Whether shares have already been transferred to external third parties

4

What is the current value of the property?

5

Whether an out-of-court transfer of the inheritance shares is more economically advantageous

6

Whether the financing for participation in the internal heirs' auction can be secured

Sources and further reading

ThemeOfficial body
Publication of laws, including Law No. 7589TC Resmi Gazete
Legislative procedure, 12th judicial reform packageTurkish Grand National Assembly (TBMM)
Enforcement and Insolvency Law (IIK)TC Adalet Bakanlığı (Ministry of Justice)
Overview of legal texts (Mevzuat)TC Mevzuat Bilgi Sistemi
⚠️
All information was compiled on August 18, 2026. Legal regulations, transitional provisions, and administrative interpretations are subject to change. Therefore, the current legal status should be reviewed before filing a lawsuit to dissolve the association.

Your next step

They are part of a Estate community in Türkiye Are you considering whether a lawsuit to dissolve the co-ownership is an option for you? Decker Real Estate will put you in touch with experienced lawyers admitted to practice in both Germany and Turkey and will also assist you with the valuation and marketing of the property.

Decker Real Estate · Yetki Belgesi No 3506573 · İzmir / Alanya · info@decker-realestate.com

Frequently asked questions about inheritance auctions

What does the 12th judicial reform package regulate for communities of heirs in Turkey?+

The 12th Judicial Reform Package (Law No. 7589) amends Article 114 of the Turkish Enforcement and Insolvency Law. Since then, for real estate acquired solely through inheritance, the first auction in an inheritance settlement takes place only among the heirs who are co-owners.

What does „ortaklığın giderilmesi davası“ (izale-i şuyu) mean?+

This refers to the Turkish legal action for dissolution of co-ownership. It is considered when co-owners—for example, heirs—cannot reach an out-of-court agreement. If physical division of the property is not possible, the court typically orders its sale.

Who is allowed to participate in the first round of the auction?+

Provided the legal requirements are met, only the inheriting co-owners of the property may participate in the first round of the auction. Outside parties are excluded from participation in this one round.

Can outside investors still bid on the first auction date?+

No, provided the legal requirements are met. The first round of the auction is legally reserved exclusively for the inheriting co-owners. Only if no valid bid is accepted in this round does the process open to external bidders.

What must the minimum bid be in the first auction?+

In the first auction, conducted exclusively among heirs, a minimum bid of 100 % of the assessed value generally applies. The bid must also exceed the legally applicable minimum limit, including any prior claims and realization costs.

What happens if no bid is awarded in the first round?+

If no valid bid is accepted in the first internal auction among the heirs, a second auction follows. External third parties can then also participate in this second auction, and the lower 50-% threshold applies again with regard to the appraised value.

Does this rule also apply if an inheritance share has already been sold?+

Generally not. A key requirement is that no third parties hold ownership rights to the property. If an inheritance share has already been transferred to an outside party, the heir's priority right for the first auction round may therefore be forfeited.

Since when has the new regulation been in effect?+

The 12th Justice Reform Package was adopted by the TBMM on July 16, 2026, as Law No. 7589. The amendment to Article 114 of the Inheritance Law, which applies to communities of heirs, has been in force since July 31, 2026.

Does the new regulation also apply to ongoing proceedings?+

This depends on the specific stage of the proceedings. A key factor is whether the auction was announced before the new regulations came into effect. Therefore, an individual review of the specific procedural status is recommended.

Conclusion: A new opportunity to keep inherited properties within the family.

The 12th judicial reform package strengthens the position of heirs who wish to take possession of an inherited property in Turkey themselves or keep it within the family. If the dissolution of co-ownership of a property acquired solely through inheritance is ordered by way of sale, and no external third-party ownership rights exist, the inheriting co-owners are initially given the opportunity to bid on the property among themselves. Only if this first round of auctions is unsuccessful does the process open to external bidders.

1. Heirs first: The first round of auctions is reserved exclusively for heirs.
2. Not a bargain: In round 1, the estimated value is generally 100 %.
3. One-time only: The inheritance process only takes place once by law.
4. Harming third parties' property: Shares already sold do not grant the preferential right.
5. Observe the transitional arrangement: Have the status of ongoing proceedings checked.
6. Clarify financing early: Without secured capital, the prerogative is of little use.

A notice: This information is for general guidance only and is current as of August 18, 2026, and does not replace individual legal advice. Legal regulations, transitional provisions, and administrative interpretations are subject to change. Before initiating or continuing legal action to dissolve a community of heirs, the specific situation should be reviewed by a lawyer admitted to practice in both Germany and Turkey. Decker Real Estate provides personal and transparent support to communities of heirs and, if needed, facilitates contact with specialized legal counsel.

© Decker Real Estate · TiM ONLiNE TiCARET LiMiTED · Yetki Belgesi No 3506573 ·

Julia — Real Estate Agent Türkiye, Decker Real Estate
About the author Julia Managing Director & Real Estate Agent · Decker Real Estate

I have lived and worked in Turkey for over eight years—in Izmir and along the Turkish Mediterranean coast. As a licensed German-speaking real estate agent, I guide buyers from Germany, Austria, and Switzerland (DACH region) from the initial consultation to the handover of the keys. Everything I write is based on real-life experiences on the ground.

🏛 Yetki Belgesi No 3506573 TTB → 📍 On location in Turkey 🇩🇪 German-speaking

Discover more from Decker Realestate Türkei, Alanya, Antalya, Fethiye, Izmir

Subscribe to get the latest posts sent to your email.

Join the Discussion

Leave a Reply