Today I will keep writing on the basics of this type of contract:* Consider including a penalty clause when drafting the contract. A penalty clause will keep the parties from breaching the contract unlawfully. Please try to keep the amount of the penalty at a reasonable amount that both parties can afford to pay. There is no point in putting a penalty clause worth millions of euros. The penalty clause should be consistent with the contract value and the amount should be high enough to keep both parties within the scope of the contract.
* Before signing any documents committing you to responsibility and consent, it would be wise to have your file looked at by a professional in the field (notary, real estate agent and/or lawyer).
I repeat this in almost all of my articles related to drafting contract: A single word may change the entire contract.
* Make sure about the signatory authority of the person who is signing the contract. Is he really authorized to sign such a contract?
This is an important issue and I find it useful to go into the details.
Who is authorized to sign a construction contract in return for a building?
On the land owner’s side the authorized person should be the land owner himself or a legal representative appointed by him. It is really easy to see who owns the land. It is written on the deed, the TAPU -- but is this information correct? Maybe it is … maybe it isn’t.
When somebody sells property, the deed of the property is not collected back from the seller, and he may keep the deed for fun or for other purposes. Does this mean that a deed may give misinformation? A correct determination for ownership can only be given through the Land Registry Directorate.
On the contractor’s side, the type of signatory authority depends on the legal classification of the contractor. If the contractor is a legal body (i.e., a company) then there should be some documents showing that the person who is actually signing the contract has the power to sign such a contract.
The company papers showing that the person who is signing the construction contract in return for a building is authorized to sign such an agreement.
There may be limitations on his authorization or, in a worse-case scenario, he may not even be authorized to sign such an agreement.
If possible, you should check the contractor’s ID card and make sure that it is not fake.
* Please make sure that the contractor has the capacity to pay any losses or claims in case of a conflict.
For this you need to rely on local information sources. It would be a good idea to check the credentialed projects of the contractor. Contact local authorities, banks and the chamber of commerce through professionals. Your earlier contacts such as real estate agents or lawyers could be of help to you. At least go to the Internet and try to find out if there is any outstanding information there.
If you see that the contractor has ongoing projects and a successful past in the market then this should be a good point to start.
NOTE: Attorney at law Berk Çektir is available to answer questions on the legal aspects of living in Turkey. Send enquiries to b.cektir@todayszaman.com The names of the readers are disclosed only upon written approval of the sender.DISCLAIMER: The information provided here is intended to give basic legal information. You should seek legal assistance from a licensed attorney at law while conducting legal transactions and not just rely on the information in this corner.
