Buying property directly from a Turkish construction company? Learn the essential legal checks every foreign buyer should complete before signing a purchase agreement. This 2026 guide covers developer due diligence, title deeds, mortgages, occupancy permits, contracts, payment security, and hidden legal risks.

Turkey remains one of the most attractive real estate markets for international investors, with thousands of foreigners purchasing newly built apartments, luxury villas, commercial properties, and mixed-use developments directly from Turkish construction companies every year. Buying directly from a developer often provides advantages such as lower prices, flexible installment plans, modern amenities, and customization options.

However, purchasing property from a construction company also carries legal risks that are not always visible during the sales process. Foreign buyers frequently rely on glossy brochures, model apartments, and verbal promises without independently verifying the developer’s legal status, the project’s permits, land ownership, financing arrangements, or contractual obligations.

Many disputes arise because buyers discover hidden mortgages, incomplete licenses, delayed delivery, construction defects, or developer insolvency only after signing the purchase agreement or paying substantial deposits.

Before signing any contract, every foreign investor should conduct comprehensive legal due diligence to ensure that both the developer and the project comply with Turkish law.

This guide explains the essential legal checks that should be completed before purchasing property from a Turkish construction company.

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Why Buy Directly From a Construction Company?

Buying directly from the developer may offer several advantages, including:

• Lower purchase prices.
• Flexible installment payment plans.
• Access to newly built properties.
• Modern construction standards.
• Developer warranties.
• Higher investment potential.
• Early-stage pricing opportunities.
• Custom interior options.
• Energy-efficient buildings.
• Strong rental potential.

These advantages should always be balanced against the legal risks involved.

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Verify the Construction Company’s Legal Status

The first step is confirming that the construction company legally exists and has authority to sell the property.

Your lawyer should verify:

• Company registration.
• Trade Registry records.
• Tax registration.
• Company address.
• Authorized representatives.
• Board resolutions (if required).
• Shareholding structure.
• Corporate history.

Purchasing from an improperly authorized entity may create serious legal complications.

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Investigate the Developer’s Reputation

Before signing, investigate:

• Previous projects.
• Delivery history.
• Customer complaints.
• Ongoing litigation.
• Financial stability.
• Insolvency proceedings.
• Regulatory investigations.
• Professional reputation.

A developer’s track record often predicts future performance.

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Confirm Ownership of the Land

One of the most critical legal checks is determining whether the developer actually owns the land.

Review:

• Title deed.
• Ownership history.
• Co-ownership arrangements.
• Land development agreements.
• Existing mortgages.
• Easements.
• Court disputes.
• Rights of third parties.

If the land ownership is unclear, the apartment purchase may be at risk.

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Check for Construction Mortgages

Many developers finance projects through bank loans secured by mortgages over the land.

Your lawyer should determine:

• Whether mortgages exist.
• Mortgage amount.
• Mortgage holder.
• Priority ranking.
• Whether your unit is affected.
• Planned discharge procedure.

The purchase agreement should clearly state how any mortgage will be released before or at the title transfer.

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Review the Building Permit

Every project should have a valid building permit issued by the competent municipality.

The permit should correspond with:

• Number of floors.
• Approved plans.
• Independent units.
• Construction scope.
• Building specifications.

Unauthorized construction may lead to administrative penalties or future legal disputes.

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Verify the Occupancy Permit (Iskan)

The Occupancy Permit (Iskan) confirms that:

• Construction complies with approved plans.
• Municipal inspections have been completed.
• The building is legally fit for occupation.

Without an Iskan, buyers may experience difficulties with permanent utility connections, financing, resale, and future transactions.

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Review Zoning Compliance

Confirm that:

• The project complies with zoning plans.
• No demolition decisions exist.
• No unauthorized construction has occurred.
• Future development restrictions are understood.
• Urban transformation plans do not affect the project.

Municipal records should always be reviewed independently.

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Examine the Sales Agreement Carefully

Developer contracts often contain clauses that strongly favor the seller.

The agreement should clearly regulate:

• Purchase price.
• Payment schedule.
• Currency.
• Delivery date.
• Completion specifications.
• Delay penalties.
• Refund rights.
• Termination rights.
• Force majeure.
• Warranty obligations.
• Dispute resolution.
• Governing law.

Every clause should be reviewed before signing.

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Review the Technical Specifications

The agreement should attach a detailed technical specification covering:

• Construction materials.
• Flooring.
• Kitchens.
• Bathrooms.
• Windows.
• Insulation.
• Heating systems.
• Electrical installations.
• Air conditioning.
• Common facilities.

Verbal promises should always be incorporated into the written contract.

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Construction Completion Date

The agreement should specify:

• Fixed completion date.
• Delivery procedure.
• Grace period.
• Delay compensation.
• Buyer’s termination rights.

Unclear delivery provisions are one of the most common sources of litigation.

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Construction Defects

Before accepting delivery, inspect the property for:

• Structural defects.
• Water leaks.
• Cracks.
• Electrical issues.
• Plumbing problems.
• Fire safety deficiencies.
• Poor workmanship.
• Missing fixtures.

Independent technical experts should inspect high-value properties.

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Common Area Rights

Review ownership and use of:

• Parking spaces.
• Swimming pools.
• Gyms.
• Gardens.
• Security systems.
• Children’s play areas.
• Storage rooms.
• Social facilities.

Shared ownership rights should be clearly documented.

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Site Management Plan

The management plan regulates:

• Monthly service charges.
• Building rules.
• Voting rights.
• Maintenance obligations.
• Common expense allocation.

Many foreign buyers underestimate these long-term financial obligations.

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Utility Connections

Verify permanent connections for:

• Electricity.
• Water.
• Natural gas.
• Sewer systems.
• Internet.

Temporary construction utilities should not be accepted as permanent infrastructure.

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Payment Security

Never make payments without:

• Written contracts.
• Verified bank accounts.
• Payment receipts.
• Legal supervision.
• Secure transfer procedures.

Avoid paying cash or transferring funds to personal accounts unless their legal basis has been thoroughly verified.

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Foreign Exchange Compliance

Foreign buyers should ensure that all payment procedures comply with applicable Turkish foreign exchange regulations and banking requirements in force at the time of the transaction.

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Legal Due Diligence

A comprehensive legal review should include:

• Company verification.
• Title deed review.
• Land ownership.
• Mortgages.
• Easements.
• Building permits.
• Occupancy Permit (Iskan).
• Municipal approvals.
• Zoning.
• Litigation.
• Tax review.
• Contract analysis.

Professional legal due diligence is the most effective protection against hidden liabilities.

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Common Mistakes Made by Foreign Buyers

Foreign investors frequently:

• Trust marketing materials.
• Ignore developer history.
• Skip legal due diligence.
• Fail to investigate mortgages.
• Sign standard contracts without negotiation.
• Ignore Occupancy Permit requirements.
• Pay deposits before legal review.
• Accept verbal promises.
• Ignore zoning issues.
• Purchase without independent legal advice.

Most disputes could have been avoided through proper legal planning.

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Top 30 Legal Checks Before Buying From a Construction Company

1. Verify company registration.
2. Review Trade Registry records.
3. Confirm authorized representatives.
4. Investigate company history.
5. Review previous projects.
6. Check litigation history.
7. Verify land ownership.
8. Search for mortgages.
9. Review easements.
10. Verify title deed.
11. Confirm building permit.
12. Verify Occupancy Permit (Iskan).
13. Review zoning compliance.
14. Review municipal approvals.
15. Confirm architectural plans.
16. Review construction specifications.
17. Verify delivery date.
18. Review penalty clauses.
19. Confirm refund rights.
20. Review payment schedule.
21. Verify banking arrangements.
22. Confirm utility connections.
23. Review management plan.
24. Assess common area rights.
25. Investigate tax obligations.
26. Review insurance.
27. Conduct technical inspection.
28. Complete legal due diligence.
29. Verify title before transfer.
30. Complete the purchase with an experienced Turkish real estate lawyer.

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Frequently Asked Questions

1. Is buying directly from a Turkish construction company safe?

Yes, provided that the developer has been thoroughly investigated and comprehensive legal due diligence is completed before signing any agreement or making any payment.

2. Should I verify that the developer owns the land?

Absolutely. A buyer should confirm that the developer has the legal authority to sell the property and that the land is free from legal issues that could affect the transaction.

3. Can newly built apartments be subject to mortgages?

Yes. Many projects are financed through bank loans secured by construction mortgages. Buyers should ensure that any mortgage affecting the purchased unit will be discharged before or simultaneously with the title deed transfer.

4. Why is the Occupancy Permit (Iskan) important?

The Iskan confirms that the building has been completed in accordance with approved plans and is legally authorized for occupation. Its absence may create difficulties with utilities, financing, resale, and legal compliance.

5. Should I negotiate the developer’s standard contract?

Yes. Standard developer agreements are often drafted primarily to protect the developer. Buyers should review and negotiate key provisions relating to payment, delivery, penalties, warranties, and termination.

6. Is legal due diligence necessary if the project is brand new?

Yes. A new development may still present legal risks, including land ownership issues, construction mortgages, permit deficiencies, zoning problems, or developer financial difficulties.

7. Can foreign buyers purchase directly from developers without visiting Turkey?

Yes. Foreign buyers can complete the transaction remotely by granting a properly prepared Power of Attorney to a Turkish lawyer or other authorized representative.

8. Why should foreign buyers hire a Turkish real estate lawyer?

A Turkish real estate lawyer can investigate the developer, verify land ownership, review title deeds, identify mortgages and encumbrances, examine permits and zoning compliance, negotiate purchase agreements, supervise secure payment procedures, coordinate the title deed transfer, and protect the buyer throughout every stage of the transaction.

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Legal Support – Contact Our Real Estate Lawyers

Buying directly from a Turkish construction company can be an excellent investment opportunity, but only when supported by comprehensive legal due diligence. Independent legal advice before signing any agreement is the most effective way to avoid hidden liabilities, contractual disputes, and financial losses.

Fırat Fesih Kaya and our legal team advise foreign individuals, international investors, expatriates, developers, and corporate clients on developer due diligence, construction contracts, title deed verification, real estate acquisitions, zoning reviews, foreign investment, real estate litigation, and property law matters throughout Turkey.

24/7 Emergency Phone: +90 532 769 22 22

Office Phone: +90 312 434 22 22

Email: info@firatfesihkaya.av.tr

Address: Mevlana Boulevard No:221, Yıldırım Tower, Office No:148, 06520 Balgat, Çankaya, Ankara, Turkey