What is a Feasibility Report and What is it Prepared for?

As of September 1, 2023, some real estate disputes require mandatory mediation before filing a lawsuit. In this context, the disputes requiring mediation are as follows.

• Rent disputes
• Disputes arising from the Condominium Law (CL)
• Disputes regarding the division of movable and immovable property and dissolution of partnership
• Disputes arising from neighboring rights

In the event of a dispute concerning real estate, the parties must first apply to the mediation bureaus located in the courthouses. The Bureau appoints one of the mediators registered in the mediation register to resolve the dispute. If the parties agree on a mediator registered in the register, they can inform the bureau to start the process with that mediator.

The mediation meetings are attended by the mediators and the parties themselves or their lawyers. The party who fails to attend the first meeting without an excuse is obliged to bear the costs of the proceedings when the mediation process is brought to court, even if he/she is found to be right as a result of the lawsuit. The issues agreed upon at the end of the mediation process are deemed to have been resolved in court; in other words, the result has the effect of a court judgment. The mediation process must be completed within three weeks from the date of the mediator's appointment. The mediator may extend the process by taking only one additional week. If no agreement is reached at the end of this period, the matter will be subject to litigation.

The four issues included in the scope of mandatory mediation under the new regulation are related to real estate. While the legal aspects of the dispute are evaluated during the mediation process, technical opinions on the subject are obtained from professionals. At this point, independent opinions of real estate appraisal companies may be required. Thus, disputes can be resolved in the healthiest way with an impartial, independent and fair approach.

Before the mediation process, having an appraisal company by the parties to determine the value of the real estate and movables that are the subject of dispute or to be allocated, enables them to start the mediation process prepared. Appraisal reports are important in terms of enabling the parties to present their demands together with their bases and helping to reach a settlement. While listening to the parties' demands, the mediator expects these demands to be supported by evidence, grounds and documents. It may be possible to prove the justification of the claims with these reports.

As the mediation process is limited to a certain period of time, it is important that it is concluded quickly. This ensures that the dispute is resolved without resorting to litigation and without the parties being subjected to financial and moral hardship. In order for the mediation process to result in an agreement, it is recommended to start the process by making all necessary preparations.