Construction Law: Construction Contracts for Property Turkey

Examination of the Form of the Contract

According to Article 237 of the Turkish Code of Obligations No. 6098 dated 11.01.2011, “For the sale of immovable property to be valid, the contract must be in official form. A promise of sale, repurchase agreements, and purchase contracts are not valid unless drawn up in official form. The validity of pre-emption agreements depends on being made in writing.” Additionally, in line with Article 60 of the Notary Law No. 1512 dated 18/1/1972, under “Notaries' general duties,” it is stated that notaries are authorized to “...3.(Amended: 23/6/2022 - 7413/11 md.) To draw up contracts promising the sale of immovable properties, and if one party requests it and pays the fees, to register such contracts in the land registry through the land registry information system; to draw up contracts for the sale of immovable properties.” Therefore, the validity of a contract between the parties is dependent on it being made in official form. This ensures that the contractual obligations of both parties, who are required to fulfill their mutual commitments, are legally binding.

In all cases, contracts that meet the formal requirements and other conditions may be registered in the land registry. This is essential for those acquiring units from the contractor in an unfinished stage of construction. For example, the situation of someone buying from a contractor before completion is subject to Articles 183 and 184 of the Turkish Code of Obligations No. 6098, which states that the transfer of a claim must be in writing to be valid.

Turkey Property Obligations in Construction Contracts

In a construction contract, the obligations are the mutual commitments made by the parties. For the landowner, this obligation is the transfer of a certain portion of the land, while for the contractor, the obligation is to complete the construction in compliance with the contract and public law regulations. If disputes arise under such contracts, the relevant provisions of the Turkish Code of Obligations will generally apply. In construction contracts for land shares, where obligations are not fulfilled, both parties have the right to seek recourse, and this can have a significant impact on turkey property deals.

Delivering the Contractor’s Obligations

The contractor is generally responsible for delivering the building in compliance with the contract, and a certificate of occupancy must be obtained. According to the Turkish Zoning Law No. 3194, Article 31, “The completion date of the construction is the date when the occupancy permit is issued. Buildings without an occupancy permit cannot benefit from electricity, water, or sewage services until the permit is obtained.” This certificate is crucial in ensuring the legality of the turkey property being constructed. However, if the landowner has been using or occupying the property for a long period, they may be forced to accept it due to their actual use of the property.

For buyers of units under construction, the situation is different. The obligations of the contractor towards the buyer must be fulfilled for the buyer to claim their rights. The turkey property market often sees disputes in such cases, as both the transfer of rights and the assumption of obligations must be clearly outlined in the contract.

Transfer of Obligations and Construction Contracts

According to Article 195 of the Turkish Code of Obligations, the person who takes over the obligation to perform the contractor’s duties must also assume the corresponding liabilities. If the contract does not prohibit the transfer of obligations, the contractor can transfer their obligations to a third party, provided that the landowner gives their implicit approval.

In cases where the contractor defaults on their obligations, the landowner may have the right to terminate the contract and seek compensation for damages. The turkey property sector often encounters such disputes, where the assumption of obligations plays a crucial role.

The Sequence of Obligations in Turkey Property Deals

The principle of contractual freedom allows parties to determine the sequence of performance. However, if this is not stipulated in the contract, the mutual performance rule applies. The turkey property sector sees frequent disputes over this issue, where contractors and landowners must ensure that their obligations are fulfilled sequentially.

In particular, Article 97 of the Turkish Code of Obligations states, “The party requesting the performance of a contract imposing mutual obligations must have fulfilled their own obligations first, unless they are entitled to perform later according to the contract’s conditions.”

Property Turkey: Your Path to Real Estate Investment and Residency

When it comes to real estate investment, Property Turkey is a top choice for international buyers. Offering a diverse range of properties, from affordable apartments to luxurious villas, Turkey presents an attractive opportunity for both investment and long-term residence. By purchasing property in Turkey, you can not only invest in a growing market but also secure a residence permit, making property turkey an ideal option for those looking to live and invest in the country.

One of the most straightforward ways for foreigners to obtain a residence permit in Turkey is by purchasing property. However, specific requirements must be met regarding both the property and the application process. In this guide, we will walk you through the necessary steps for obtaining a Short-Term Residence Permit based on property turkey.

What is a Real Estate Residence Permit in Property Turkey?

Foreign nationals and their family members who purchase property in Turkey can obtain a short-term residence permit for up to 2 years under the provisions of Turkish law. As of October 2023, the property must be valued at a minimum of $200,000, applicable to all provinces in Turkey. This new regulation aims to ensure that foreigners investing in property turkey meet the required thresholds for both metropolitan and non-metropolitan areas.

Key points to consider when applying for a real estate residence permit based on property turkey include:

• The property must serve as a residence, not a commercial unit.

• Properties purchased after October 16, 2023, the title deed must reflect a value of at least $200,000; however, properties purchased between April 26, 2022, and October 17, 2023, the required values are $75,000 in metropolitan cities and $50,000 in non-metropolitan cities.

• A Property Valuation Report will be submitted as part of the application, automatically by the system.

• The foreign buyer must reside at the purchased property, as renting it out is prohibited.

The Stages of Property Development in Property Turkey

When it comes to buying property in Turkey, the construction and registration process is divided into three key stages:

1. Land Stage: At this stage, there is no construction yet, but building permits have been secured, allowing the construction of independent units like apartments or shops on the property. Construction can begin once all the permits are in place.

2. Floor Easement (Kat İrtifakı): This stage begins when construction starts, and the units (apartments or shops) are recorded individually in the land registry and address system. At this point, a numerataj document is issued, which assigns specific numbers to each unit for identification.

3. Floor Ownership (Kat Mülkiyeti): Once the building is completed, floor ownership is established, signifying that the structure complies with public law regulations and is ready for occupancy until it is legally demolished.

For those looking to obtain a residence permit through property turkey, it’s important to know that you can apply even if the building is not fully completed. As long as the floor easement is established and the numerataj document is in place, the property can be used to secure a residence permit.

Citizenship through Property Turkey

In addition to residence permits, buying property turkey can also pave the way to Turkish citizenship, provided that certain conditions are met. Properties that qualify for citizenship can include land, plots, apartments with floor easement, shops, or buildings. However, even if the required price conditions are met, it’s essential to verify whether the property is covered by state insurance or not, as this can vary based on several factors.

Conclusion: Why Work with Atty. Gökhan VURAL for Your Turkey Property Needs

Purchasing property in Turkey, especially through complex construction contracts for land shares, can be an overwhelming process. It’s not just about signing a contract; there are numerous intricate legal checks involved that must be meticulously handled to protect your investment. From verifying the title deed registry, reviewing council decisions and zoning plans, to evaluating the construction firm's capabilities and cashflow – each step demands legal expertise and attention to detail.

At Atty. Gökhan VURAL’s law office, we specialize in navigating the complex landscape of Turkey property law. With a deep understanding of both the legal and financial aspects of property transactions, we ensure that every detail is checked, from the legal status of the land to the financial stability of the developer. Our expertise in real estate law ensures that your rights are fully protected, and we handle all the legal legwork so you can have peace of mind.

Don't leave your property investment to chance. Work with Atty. Gökhan VURAL, a seasoned expert in turkey property law, and let us guide you through the complexities of purchasing property in Turkey. Reach out to us today, and safeguard your investment with professional legal support that understands every nuance of the process.