April 2008 The Constitutional Court has rescinded the Paragraph (d) of the 3rd Article of the Law on Direct Foreign Investments no. 4875 The Turkish Constitutional Court has rescinded Paragraph (d) of the 3rd Article of the Law on Direct Foreign Investments no. 4875 and decided the decree to enter into force 6 months after the decree’s publishing in the Official Gazette. Moreover, the Constitutional Court has dismissed the claim for the rescinding of the Paragraph (e) and the second sentence of the Paragraph (f) of the 3rd Article as well as the motion of stay. The Paragraph (d) of the 3rd Article of the Law on Direct Foreign Investments No. 4875, which has been rescinded by the Constitutional Court, provides the terms and conditions for acquisition of the real estate ownership or limited real rights by the corporate entities established in Turkey by the foreign investors or the corporate entities in which foreign investors participate as the shareholders, at the locations which are open for the acquisitions of the Turkish citizens. Since the decree’s publishing in the Official Gazette takes a certain period of time and the validity of the rescinded Paragraph (d) is subject to continue for 6 months after the publishing, the foreign investors would continue to enjoy the provisions of the rescinded paragraph during the period of the new legislation’s enactment. In case the legislator fails to enact the new legislation after the rescinding decision, the Paragraph 3(d) shall be out of effect after the predetermined period and the corporate entities established by the foreign investors in Turkey or the corporate entities in which the foreign investors participate as the shareholders could not acquire any ownership or limited real rights over the immovable property and they would only be able to enjoy long term lease contracts establishing relative rights over the real estates. Besides, they would not have any opportunity to exploit new limited real rights such as right of construction or right of usufruct; likewise they would not acquire any new ownership rights.