While purchasing a property under construction offers attractive price advantages, it can also entail significant legal risks. In this guide, we detail the legal rights consumers have when buying off-plan properties, crucial clauses to look out for in contractor agreements, title deed and license processes, and avenues for recourse in cases of incomplete or defective delivery.
Purchasing an off-plan property offers the dream of owning a home, yet it also comes with certain legal risks. Consumer rights in the purchase of properties under construction provide strong protection in your relationship with the contractor. From defective delivery situations to title deed transfer processes, contract details to digital analysis tools – everything you need to know is covered in this guide. Practical information awaits you to effectively exercise your legal rights.
Purchasing Off-Plan Property: How is the Legal Framework Defined?
Consumer rights in the purchase of properties under construction are primarily regulated under the Law on Consumer Protection No. 6502. This law clearly defines the responsibilities of the contractor and the rights of the consumer in the sale of unfinished properties.
The provisions regarding liability for defects in the Turkish Code of Obligations also serve as an important reference point in real estate sales contracts. The principles stated here indicate the avenues consumers can pursue, especially in cases of defective goods. In contracts made with contractors, the rights and obligations of the parties are shaped within this legal framework.
For private sector projects, excluding those affiliated with the Housing Development Administration of Turkey (TOKİ), data obtained by consumers from digital platforms like Endeksa are also important in the decision-making process. These platforms, serving as real estate investment guides, support investors in making informed choices. Erta International Real Estate leverages such data to provide secure investment opportunities in Alanya real estate.
Consumer Legal Rights in Cases of Defective Property
If the delivered property differs from the specifications in the contract or is unsuitable for use, the consumer has strong legal rights. The Turkish Code of Obligations and the Law on Consumer Protection offer clear solutions for such situations. Understanding the concept of “defective goods” in the construction sector and the application processes is essential to effectively exercise your rights.
Definition of Defective Goods and Their Implications in the Construction Sector
A defective property is defined as real estate that does not possess the features promised in the contract or is unsuitable for normal use. This situation is frequently encountered in the construction sector; for example, apartments delivered without promised insulation, unbuilt or unusable social areas shown in the project, or faulty installations are considered under this scope. Such housing project grievances are common issues in the sector.
According to the Turkish Code of Obligations, consumers have three basic rights in response to the delivery of a defective property: to demand a price reduction, to withdraw from the contract, or to demand the rectification of the defect. The consumer rights law concerning the purchase of properties under construction becomes effective at this point, providing strong legal protection to the buyer.
Application Process in Case of Incomplete or Faulty Delivery
If the delivered property is found to differ from the contract specifications, the consumer must first apply to the contractor in writing. This application should detail the specific shortcomings or errors. The same procedure should be followed when encountering incompletely delivered apartments.
If the contractor fails to resolve the issue within a reasonable period, the consumer can apply to the Consumer Arbitration Committees. Applications to consumer arbitration committees are reviewed and decided within a maximum of six months from the application date. For disputes involving larger amounts, consumers can apply to consumer courts.
Title Deed, Condominium Ownership, and Licensing Processes in Purchasing Properties Under Construction
One of the most complex issues you will encounter during the off-plan property purchase process is title deed procedures and licensing. Understanding the difference between floor easement (kat irtifakı) and condominium ownership (kat mülkiyeti), following the occupancy permit process, and checking license statuses are critically important for your legal security and the future of your investment. Properly understanding these processes allows you to foresee potential problems early in the land-to-home buying journey. Erta International Real Estate in Alanya guides you through every step.
Difference Between Floor Easement (Kat İrtifakı) and Condominium Ownership (Kat Mülkiyeti)
Understanding the differences between floor easement and condominium ownership allows you to foresee situations you will encounter during the purchase process. The table below shows the basic features of both situations:
During the construction process, a floor easement is usually established, and the consumer completes the purchase at this stage. However, the conversion of floor easement to condominium ownership is only possible after the occupancy permit (Iskan Belgesi) has been obtained. Valuation data from platforms like Endeksa helps investors time their purchases correctly.
Importance of Obtaining Occupancy Permit (Iskan Belgesi) and Licenses
The occupancy permit (Iskan Belgesi) is an official document indicating that a building is suitable for habitation. Living in a building without an occupancy permit is illegal, making this document important for consumer rights.
Contractors sometimes try to deliver before obtaining the occupancy permit. In such cases, the consumer can still exercise their legal rights, even if the occupancy permit condition is not explicitly stated in the contract. License processes can also be tracked through platforms like Endeksa and similar tools.
Points to Consider When Signing a Contract with a Contractor
The contract you sign during the off-plan property purchase process is your strongest basis for resolving any potential issues. Contracts filled with vague terms, often referred to as construction company contracts, make it difficult to exercise your legal rights and create disadvantages in case of disputes. It is crucial to ensure all details are clearly specified before signing the contract.
Delivery Date, Penal Clauses, and Warranty Periods
A clear delivery date must be stated in the contract. Vague expressions like “upon completion of construction” lead to legal problems. Penal clauses to be applied in case of delay must also be clearly written.
- Clearly defined daily delay penalty rate
- Definition of maximum delay period
- Specification of structural warranty periods (minimum 2 years)
- Separate evaluation of installation warranties
Including Project Details and Materials to Be Used in the Contract
All details, from the site plan to window brands, must be included in the contract. For example, instead of “first-class material,” the brand and model should be specified.
- Brand and quality standards of floor coverings
- Window frame specifications and energy class
- Kitchen cabinet details and accessories to be used
- Bathroom ceramic and fixture specifications
- Technical specifications of the heating system
Role of Digital Data Sources in Preventing Consumer Grievances
With the opportunities offered by technology, real estate investors can make informed decisions. Big data analysis and automated valuation systems provide objective information compared to traditional methods. Digital tools allow for the early detection of regional risks. Future value expectations can be assessed more realistically.
Secure Investment with Automated Valuation and Regional Risk Analysis
Big data analysis is crucial in modern real estate investment. Automated valuation systems provided by platforms like Endeksa enable consumers to make decisions based on objective data. These systems analyze regional price trends and identify potential risks in advance.
Project location’s earthquake risk, history of floods, and zoning plan changes can be checked through digital platforms. Thus, consumer rights law in the purchase of properties under construction can be used more consciously. Erta International Real Estate guides you with these insights for your Alanya real estate investments.
Analysis of Regional Value Expectation at the Start of the Project
Pre-investment regional analysis allows you to foresee future value appreciation. Past data analyses provided by platforms like Endeksa enable investors to form realistic expectations.
Factors such as transportation projects, social amenity areas, and commercial development plans can be tracked with digital tools. Investments made in line with data become more legally and economically secure.
Frequently Asked Questions About Consumer Rights in Purchasing Properties Under Construction
What are my rights if the contractor goes bankrupt after I purchase a property under construction? In case of contractor bankruptcy, the building inspection agency and insurance company intervene as per the Building Inspection Law. Additionally, you have the right to withdraw from the contract under the Turkish Code of Obligations.
If the project is canceled, will my paid money be refunded? Yes, if the project is canceled, you have the right to receive a full refund of the money you paid, along with legal interest, as per the Law on Consumer Protection.
What can I do if the delivered property differs from the visuals in the project? This situation is considered a defective good. You can choose one of your rights: price reduction, rectification of the defect, or withdrawal from the contract.
Which court should I apply to if I have a dispute with the contractor? The court in the location of the real estate is authorized. However, applying to the Consumer Arbitration Committee first is economically more advantageous. You have 15 days to object to the committee’s decisions.
