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FAQs on
Land-for-Build Agreements in Turkey

1. What is a Land-for-Build Agreement in Turkey?

A Land-for-Build Agreement, also known as a Property-for-Share Construction Agreement or Build-and-Share Agreement, is a bilateral contract under Turkish law. The landowner transfers a portion of the land’s ownership to a contractor, who, in return, agrees to build independent units and allocate a specified number of those units to the landowner.

 

2. What are the key obligations under a Land-for-Build Agreement?

Key obligations include:

Landowner’s Obligation: Transfer a specified share of the land to the contractor.

Contractor’s Obligation: Construct the agreed units in compliance with architectural, technical, and zoning standards, ensuring they are habitable and meet Turkish Regulation on Construction Zoning and Planning.

 

3. What is the legal nature of a Land-for-Build Agreement?

A Land-for-Build Agreement is a hybrid contract under Turkish law (TCO Article 470 et seq.). It imposes mutual obligations on both parties, combining elements of property transfer and construction. The contract must be notarised to be legally valid.

 

4. Can a Land-for-Build Agreement be registered in the land registry?

Yes, such agreements should be annotated in the land registry under the Turkish Civil Code (Article 706). Proper annotation protects the rights of both parties and ensures enforceability against third parties.

 

5. What are the main types of Land-for-Build Agreements in Turkey?

There are three main types:

Full or Partial Transfer Against Mortgage: Land is transferred to the contractor with a mortgage guarantee, released progressively as construction advances.

Staged Land Transfer: Land shares are transferred in stages as construction milestones are met.

Combined Agreement: Includes elements of a Land-for-Build Agreement and a pre-sale agreement for independent units.

 

6. What are the formal requirements of a Land-for-Build Agreement?

The agreement must be:

Notarised: As required by the Notaries Law (Article 60).

Compliant with Formalities: If the formal requirements are not met, the agreement is invalid, and any performance under it may be reclaimed through unjust enrichment provisions.

 

7. What are the contractor’s obligations under this agreement?

The contractor must:

Complete and deliver the units as per the agreed architectural and technical standards.

Use approved materials and adhere to Turkish safety and quality regulations.
Failure to meet these obligations may result in legal penalties under the Turkish Code of Obligations (TCO Articles 112 et seq.).

 

8. What remedies are available for defects or non-performance?

The landowner has several options under Turkish law:

Rectification: Request repairs for defective work (TCO Article 475).

Damages: Claim compensation if rectification is not possible.

Rescission: Terminate the contract in severe cases of non-performance.

 

9. What is the role of notaries and courts in Land-for-Build Agreements?

Notaries: Agreements and any amendments must be notarised to be valid.

Courts: Handle disputes and may appoint expert panels to evaluate the contractor’s performance based on quality and compliance with the agreement.

 

10. How can CCS Law assist with Land-for-Build Agreements?

CCS Law offers expert legal support, including:

Drafting and reviewing Land-for-Build Agreements to ensure compliance with Turkish law.

Advising on annotation and registration processes.

Handling disputes and protecting your rights during construction and delivery.

 

11. Why is it essential to seek legal assistance for Land-for-Build Agreements?

These agreements are complex and require strict adherence to Turkish legal formalities. Legal advice ensures:

The protection of your rights.

Compliance with Turkish laws and regulations.

Mitigation of risks related to construction and property transfer.

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