A New Era for Inherited Real Estate: Auction and Sale Rules Among Heirs

As of 2026, as the number of inherited properties keeps rising in major cities, Istanbul foremost among them, disputes between heirs over shared ownership are reaching our law firm more and more often. When one heir wants to sell a property while another prefers to keep it, the matter can drag on all the way to a partition action filed with the Civil Court of Peace (Sulh Hukuk Mahkemesi). In this article we walk through, step by step, how an inherited property is put up for auction among heirs and what to watch for during the sale process. Knowing in advance how this works saves a great deal of time, especially for families whose heirs live in different cities or different countries.

What Does “Co-ownership” Mean for Inherited Real Estate?

When a person passes away, any real estate registered in their name automatically passes to their heirs as joint property. This means no single heir can claim exclusive ownership over a specific part of the property, and decisions must be made together. Take, for example, an apartment in Cihangir jointly inherited by three siblings: if one wants to sell while the other two prefer to keep renting it out, the title deed (TAPU) transfer cannot go through without all three signatures.

This co-ownership continues as undivided joint ownership until the estate is formally divided. Heirs may, if they wish, convert it into shared ownership through an inheritance partition agreement executed before a notary, or proceed directly with a physical division of the property. If even one heir refuses either route, the matter inevitably ends up in court.

It is worth knowing the basic steps of a title deed transfer at this stage; the points covered in our article on what to watch for in title deed transactions largely apply to inherited properties as well.

If No Agreement Is Reached: The Partition Action and How It Works

If the heirs cannot agree on selling or dividing the property, any one of them may file a partition action with the Civil Court of Peace. This action is aimed at ending the co-ownership and clarifying each heir’s share. For instance, even if three of four siblings agree to sell, if the fourth objects, litigation usually becomes unavoidable.

Depending on the courts’ caseload and the parties’ objections, this process can take one to two years on average. Taking the right steps early on therefore reduces delays further down the line.

Heirs’ Rights During the Auction (Public Bidding) Process

The auction begins at the estimated value set out in the valuation report prepared by the enforcement office. The sale is publicly announced; if the first auction fails to draw bids above a set percentage of the estimated value, a second auction date is set. For example, if an heir in Kadikoy wants to buy out a sibling’s share, they must bid alongside other participants at the auction; being an heir gives no automatic priority, and everyone competes on equal terms. Anyone wishing to take part must deposit a security deposit equal to a set percentage of the estimated value; a bid from a participant who has not paid the deposit is not considered valid.

Accurately establishing the property’s value is critical at this stage; the points covered in our article on valuation report procedures are useful guidance here as well.

Special Considerations for Heirs Living Abroad or Foreign Heirs

If one of the heirs lives abroad, the process requires a few extra steps. Rather than attending hearings in person, they can grant a power of attorney to a lawyer in Turkey; a power of attorney issued abroad must carry an apostille or be certified by the relevant Turkish consulate. For example, when the auction process begins for an Istanbul apartment jointly owned by an heir living in Germany and siblings in Turkey, making sure notices are served to the correct address and in the proper form becomes decisive in keeping the process from dragging on. If the heir residing abroad is not a Turkish citizen, the principle of reciprocity may also come into play; foreign heirs are therefore well advised to contact a lawyer early on to avoid procedural surprises later.

Ways to Head Off a Dispute From the Start

Since litigation tends to be long and draining, it is generally advantageous, in both time and cost, for heirs to reach a mutual sale agreement before going to court. For example, if two of three heirs agree and offer to buy out the third sibling’s share at market value, the matter can be settled within a few weeks with no need for litigation. Securing such agreements among heirs through a notarized promise-to-sell agreement gives extra protection in case one party later changes their mind.