Property law · Legal information

What Is an Action for Compensation for Unlawful Occupation?

Author · Av. Ayşenur Konar, Avukat

Published ·

In short

Compensation for unlawful occupation is the price of occupation without a right; it is not a copy of a determination of rent.

It is the price of occupation without a right. It is not a copy of a determination of rent.

The grounds of eviction are in a separate article.

The start date of the occupation is the face of the calculation.

Related articles: eviction.

What does the action express?

An action for compensation for unlawful occupation is an action for compensation for occupation without a right, brought because an immovable was used without the consent of its owner, or of the holder of the right. In a simple account, if a person is in fact benefiting from an immovable that does not belong to them, and does not show a legal basis for this use, the holder of the right can ask for this compensation. This action does not consist only of saying "there is occupation"; the scope of the use, its period, the nature of the immovable, and the legal relationship between the parties are examined together.

In disputes about immovable property, this compensation often advances intertwined with debates about ownership and the right of use. In immovables that remain from an inheritance in particular, the actual use among the co-owners becoming unbalanced brings this action onto the agenda. In the practice seen in Ankara and the surrounding area, the basic measures are the same too: the use without consent must be made concrete, and the period that is claimed must be shown openly.

In which situations does the claim come onto the agenda?

There is not a single type of event for the claim. Some examples often met in practice are these:

  • An immovable being used by a third person without the owner's permission
  • In ownership in undivided shares, one co-owner benefiting alone by excluding the other co-owners
  • An immovable remaining from an inheritance being run by only one heir, without a division being made
  • Use in fact continuing after eviction
  • Income being obtained from the immovable while a dispute about ownership continues

The point to watch under these headings is that not every use gives rise to the compensation automatically. For example, if there is a claim that there was a temporary permission to use, a consent, or an implied consent between the parties, the court first assesses this relationship. For that reason, at the start of the action, it is necessary to show openly from which date the immovable was used without consent.

The basic difference from a claim for rent

A claim for rent and compensation for unlawful occupation are often mixed with each other. In a claim for rent the legal basis is a lease, or at least an agreement that builds a tenancy. In the compensation, what comes forward is not use based on a contract, but a claim of use without a right. This separation is not only a difference of name; it directly affects the head of the claim, the approach of the defence, and the technique of the calculation.

In a rent action the parties often discuss the rent, the rate of increase, or default in payment. In the action for compensation, what comes forward is whether the use was without a right, the period of use, and the comparable value of the benefit of the immovable in that period. If which legal route will be chosen is not built correctly at the start of the action, the file can lengthen because of procedural objections and debates about characterisation.

How is the calculation made?

The calculation is generally made through an expert's report; the data the report rests on, however, determine the result of the file. The court asks for a price by periods to be determined, taking into account the nature of the immovable and the conditions of use. In practice these elements matter:

  • The area where the immovable stands, and the purpose of use
  • Comparable rents, or values of benefit
  • The start and end dates of the use without a right
  • The physical condition of the immovable, and its potential for income
  • The evidence in reply that the parties put forward

Applying the same method of calculation mechanically does not give a correct result, particularly in files about a plot, agricultural land, a workplace, and a dwelling. For that reason, when an objection is made to the report, a concrete comparison directed at the choice of comparable and at the calculation of the period should be made, rather than a general expression such as "it was found high".

Why is the approach to evidence decisive?

The more clearly the period of use that is alleged is documented, the more the strength of proof increases. Land registry records, municipal or site documents that show to whom the use belongs, crop and sowing particulars if there is agricultural use, minutes of an inspection, and witness accounts are assessed together. Relying on a single piece of evidence creates a risk in most files.

In the practice in Ankara too, the courts do not content themselves with an abstract statement of "they used the immovable", and look for the actual and periodic appearance of the use. For that reason it matters that the evidence is prepared as a chronological file before the action is brought. Otherwise uncertainty arises at the stages of the expert and the inspection, and part of the period that is claimed may not be able to be proved.

Points of special care in ownership in shares and in joint ownership

In disputes arising from an inheritance and from ownership in undivided shares, the claims run on a more technical ground. Because each co-owner has a right of use to a certain extent, a finding of "there is use" is not seen as enough on its own. In most events, facts such as exclusion, an obstacle to use, an open objection, or a share of the income not being given are looked for.

For example, if an inherited immovable is run for years by a single heir, and income is not passed to the other heirs, a debate about the compensation can arise. For this claim to be able to be strong, however, the co-owners' objection, the scope of the actual use, and the potential income by periods must be shown together. In disputes about ownership connected with the subject, the headings of inheritance law and of cancellation and registration of the land registry can affect the file too.

How does the action proceed?

The action generally runs through the following stages:

  • Preparation of the documents of ownership and of the share relating to the immovable
  • Determining the period of use without a right, and, if possible, the process of a formal notice
  • Bringing the action in the court with subject-matter jurisdiction and with venue
  • The parties putting forward evidence, an inspection, and an expert examination
  • Objections to the report, and assessment of a further report
  • The court's decision, and the appeal process if it is needed

It is not right to give a fixed calendar as to the period. The scope of the file, the need for an inspection, the number of expert reports, and the density of the parties' evidence affect the process. This writing is for general information; every dispute must be assessed according to the concrete event.

Mistakes made in practice

At the head of the mistakes often seen is the period of the claim being built uncertainly. An abstract account of the form "they have been using it for a long time" makes it harder for the court to clarify the period of the calculation. The second common mistake is, in files where there is a debate about ownership, focusing only on the compensation and neglecting the evidence that supports the claim of ownership.

Another problem is the research into comparable values not being done. When the claimant asks only for a high price, and the defendant puts forward only an objection of "too much", the file stays technically weak. The parties putting forward realistic comparisons of comparables helps the court make a sounder assessment. For the overall frame of disputes about immovable property, the immovable-property law page can be taken as a reference.

Planning the period in the claim

In practice, one of the areas that determine the strength of the file is the period that is claimed being divided into the right segments. In many actions, because the use without a right spreads over long years, writing a single total amount is not enough. In which year, or in which range of months, what kind of use was made, the nature of the immovable in that period, and the comparable value must be shown separately. Particularly in files where part of the immovable stayed empty and part was actively used, not making a separation into sub-periods can give rise to a serious error of calculation.

In planning the period, the following approach is apt:

  • Determining the first fact that shows the start of the use
  • Dividing the period if the form of use changed
  • Making the comparison of comparables separately for each period
  • Supporting the chronology, if possible, with earlier court files and official records

This system also gives an advantage at the stage of objecting to the expert's report. Because the party can show openly in which period which error was made, rather than only saying "I do not join the report". The court's assessment thus becomes concrete.

The possibility of settlement in immovables that come from an inheritance

An important part of these actions arises from the community of an inheritance. Because the parties are inside the same family, the dispute carries an emotional burden, not only an economic one. This position can take the action out of the technical frame and personalise it. Whereas, in most events, when the division of ownership, the calendar of use, and a model of equalisation for past use are built together, a more manageable solution can be obtained instead of a long trial.

In a search for settlement, these headings can be put on the table:

  • The method of calculation relating to use in the past period
  • The distribution of future use among the co-owners
  • A plan fit for sale of the immovable, or for an actual division
  • The sharing of income if it is let to third persons

Of course settlement is not possible in every file. If one of the parties entirely rejects the claim of ownership, or there is a serious problem of trust, the action can be unavoidable. Even if the action has been brought, however, a concrete and documented proposal of settlement can reduce both the period of the trial and the wear inside the family.

What to watch in valuing the immovable

In the calculation, the choice of comparable often forms the most disputed part of the action. The expert appointed by the court gathers comparable data according to the area where the immovable stands and its nature; the quality of this data, however, directly affects the result of the report. The parties can put forward a different comparable value for the same period; in this case the court can appoint a further examination, or a second expert.

From the claimant's side, a strong comparable can be real leases, the values declared for the land-registry fee, and workplace-rent data. The defendant tries to bring forward the unproductiveness of the area that was used, the shortcomings of the immovable, and the periods when the market was low. In this mutual technical debate, financial analysis plays a decisive part beside the legal argument.

A final assessment

The action is an important legal tool against use of an immovable without consent; for a successful claim, however, the date of the use without a right, its scope, and its economic counterpart need to be made concrete. The separation between a claim for rent and this compensation must be built correctly, and the evidence must be prepared by periods and consistently.

This text carries the purpose of general information. The features of every file are different; the current legislation, judicial practice, and the concrete structure of the evidence must be assessed together.

Where the price is read from

The land registry record, the form of use, and the debate about the comparable are read from the file. A new rate is not written into this record. A claim for rent is not counted in place of the compensation for unlawful occupation. The Çankaya office does not change the authority with venue.

Conclusion

This writing is for general information. The document, the period, and the procedure of the concrete event must be read separately; there is no promise of a result from memory.

Frequently asked questions

Is an action for compensation for unlawful occupation the same as an action for rent?

It is not the same. In an action for rent, a valid lease, or a debt relationship based on a tenancy, is looked for between the parties. In an action for compensation for unlawful occupation, what is in question is, for the most part, use without the consent of the owner of the immovable, and the claim has the character of compensation for unlawful occupation. For that reason the method of calculation, the legal basis, and the heads of proof differ. Building the claim without clarifying whether there is a lease, or unlawful use, in the dispute can cause the action to lengthen unnecessarily.

In ownership in undivided shares, can one co-owner ask another for this compensation?

It can be asked for on certain conditions. Although each co-owner has a right of use in ownership in undivided shares, a claim can come onto the agenda where one co-owner benefits from the immovable alone in a way that entirely excludes the others, and there are open objections about it. In the court's assessment, the notice, the form of use, the actual exclusion, and the shares are examined together. An automatic decision does not issue in every file of ownership in undivided shares; the concrete actual position, and the evidence, need to be set out carefully.

By which measures is the compensation calculated?

The calculation is, for the most part, made by taking into account the nature of the immovable, comparable rent values in the area where it stands, the period of use, and the form of use. The immovable being a plot, a dwelling, a workplace, or agricultural land can affect the method of assessment. An expert examination plays an important part in practice; the report does not, however, form an absolute result on its own, and the parties have a right of objection. Determining the period of the calculation correctly is a critical heading too. A missing period, or a wrong choice of comparable, can make it harder for the ruling to be built soundly.

Is a formal notice obligatory in the claim?

In the statutory system there is not a single rule of obligation for every file; in practice, however, a formal notice serves an important function as to the evidence and the dispute about the start date. By the notice it is clearly told that the use is without consent, and vacation of the immovable and the claim for compensation are made concrete. The later clarification of the parties' statements in the action that will be brought is thus made easier. The notice having been sent does not, on its own, mean that the action will be won either. Success of the action depends on the actual use, and the loss, being supported by concrete evidence.

Which evidence matters in the action?

Land registry records, documents showing the shares, witness statements that reveal by whom the use was made, municipal or site records, photographs, and the findings of an inspection are among the evidence often used. If the dispute concerns agricultural land, records showing the sowing of a crop, the harvest, and the period of actual use can gain importance too. What is decisive is not only the number of pieces of evidence, but their connection with the event. For example, a finding that shows the immovable was empty can weaken the period of use that was alleged. For that reason the plan of evidence should be prepared systematically before the action is brought.

In which court are these actions heard in Ankara?

The court with subject-matter jurisdiction is determined according to the nature of the dispute; in most files the assessment is made within the jurisdiction of the civil court of first instance. As to venue, the court of the place where the immovable stands matters. In actions concerning an immovable within the boundaries of the province of Ankara, the court with venue is identified according to the district where the immovable stands. A wrong choice of subject-matter jurisdiction, or of venue, can lengthen the process because of objections. For that reason, while the claim is prepared, the block and parcel particulars of the immovable, and the judicial district, should be checked carefully.

Can this action and an action for cancellation and registration of the land registry be brought together?

According to the structure of the file, they can be brought together or separately. An action for cancellation and registration of the land registry focuses on to whom the ownership belongs, while the claim for compensation for unlawful occupation concerns compensation for the period of unlawful use. In some events it can be difficult to calculate the compensation before the dispute about ownership ends. For that reason the court can assess whether the requests stand in a relationship of a preliminary issue. For the approach to be built correctly, the bases of the claim of ownership, the date of use, and the calculation of the loss must be planned together. A single mould cannot be applied to every dispute.

How is limitation assessed in the action?

Limitation is a heading that directly affects the scope of the period that is claimed. When the unlawful use began, how long it continued, and for which period compensation is asked must be built clearly in the claim. A limitation objection put forward in practice can lead to some periods staying outside the claim. For that reason, clarifying the calendar of use matters for the claimant, and making the objections by period in time matters for the defendant. A definite calculation of the period must be assessed according to the concrete event and the current legislation.

Related reading

This article sits under one practice area. The neighbouring guides carry the detail that does not belong in this text.

Practice areas · Property law

AK

Author

Av. Ayşenur Konar

Lawyer on the Ankara Bar Association roll, founder of Konar Hukuk. This text is general information; a specific file is reviewed separately. Author profile · Editorial policy

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