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May 26, 2012
 
 
 
 
 
 
Expat Zone 04 May 2007, Friday 0 0 0 0
BERK ÇEKTİR
b.cektir@todayszaman.com

Construction contracts in return for building: Questions and answers

I prefer rainy days to sunny days. The unsatisfactory thing about the rain in İstanbul is that it gives me the feeling of the thin and greasy rain of northern Europe. It does not give me the feeling of proper rain.
I personally love the way it rains in İzmir, there you really feel that it is raining. You get soaked in a minute. I even see that each single drop of rain enjoys the happiness of being a member of proper heavy rain. I admire the “accomplishment”…

Two quick and short questions from a reader: “Is there any form requirement I have to comply with? If yes, can you please give some details? Many thanks for your response…”

A “construction contract in return for a building” is also a “contract” and therefore should contain the basics of any contract.

The Turkish Code of Obligations, Article 1, states that a contract is formed with the mutual consent and declaration of all parties involved. The declaration of mutual consent can either be in explicit or implicit ways.

Under Turkish law, contracts and legal transactions are not subject to any special form requirement unless otherwise stated in particular by law.

A construction contract in return for a building is not subject to any form requirements specifically. Technically speaking, it should be possible to conclude such a contract orally. On the other hand, if any conflict occurs, it would be very difficult to prove even the existence of the contract.

Moreover, a “construction in return for a building contract” should also include an agreement to transfer the title of the properties to be built in the future to the land owner. This “undertaking to sell real estate” contract is subject to a special form requirement. It should be concluded before a public notary. Thus the parties make a “construction in return for a building contract” before a public notary.

In short, you should include a “undertaking to sell a real estate” contract in a “construction in return for a building contract” and conclude this agreement before a public notary.

Please make sure that the agreement -- not just an approval of the agreement -- is made before the public notary. This is important. Otherwise a contract executed by the parties by themselves and just certified by the notary may be at risk of not being qualified as is required by the law.

A Supreme Court decision clearly states this requirement: “The contract between the parties is a construction in return for a building contract, which includes a real estate sale guarantee and, for its validity, ex officio execution in front of a notary is obligatory…”

In respect to the information given above, I would recommend that you insist on having the contract executed before a notary, in the form of an official act, and keep away from any possible dispute about the validity of the contract.


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.

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