Construction in Return for Land Share
A construction-for-land-share contract carries both a works element and an undertaking to transfer title. That hybrid character makes it unclear which rules apply when a dispute arises, so the care taken when the contract is signed determines everything that follows.
A construction contract in return for a share of the land contains an undertaking to transfer registered title, so it must be executed in official form before a notary as a deed of arrangement; a contract in ordinary written form is as a rule invalid. If the developer is in default on delivery, the landowner may claim delay compensation; for defective performance, repair or a reduction in price; and in serious cases termination. Where construction is substantially complete, the courts prefer termination with prospective effect over termination with retrospective effect.
Contracts between landowner and developer: delay, defective performance and termination.
The detailed treatment of this subject, with the statutory references and the time limits, is published in Turkish. We have not machine-translated it: in a legal text an inaccurate translation creates real risk. If you would like this subject explained in English, say so when you book and we will go through it with you.
This page is general information only and does not constitute legal advice. Prepared in line with the Union of Turkish Bar Associations’ advertising restrictions. This English text is a courtesy translation; in case of any discrepancy the Turkish text prevails.