Construction Defects After Urban Transformation in Turkey: Legal Remedies for Property Owners (2026 Updated Guide)

Discover the legal remedies available to property owners when a replacement apartment has construction defects after urban transformation in Turkey, including repair, reduction, compensation, hidden defects and technical evidence.

Receiving the keys to a newly reconstructed apartment does not necessarily mean that the contractor has properly completed its obligations. Property owners may discover water leakage, cracks, defective insulation, plumbing failures, electrical problems, poor workmanship, inferior materials, unfinished common areas or construction that does not comply with the agreed technical specifications.

Some problems become visible immediately. Others emerge months or even years after delivery.

For owners who surrendered their former property as part of an urban transformation project, these defects can be especially serious. The owner may have waited several years for reconstruction, paid additional amounts to the contractor and accepted temporary accommodation costs, only to receive a property requiring substantial repair.

Construction-defect disputes should therefore be approached systematically.

The owner must determine what the contractor promised, what was actually constructed, whether the problem constitutes defective or incomplete performance, when the defect was discovered, whether it was properly notified and what financial loss resulted.

Under the Turkish Code of Obligations, the owner of defective work can have important remedies, including repair, reduction and, where the legal requirements are satisfied, damages and other remedies. The Code also imposes important inspection and notification requirements after delivery.

For foreign property owners, Lawyer Fırat Fesih Kaya recommends preserving technical evidence before the contractor carries out temporary repairs or the owner begins substantial renovations.

What Is a Construction Defect?

A construction defect generally concerns work that does not possess the characteristics required under the agreement or that fails to meet the quality or performance expected under the relevant contractual obligations.

The defect can affect the apartment itself or the building’s common areas.

Typical disputes involve waterproofing, facade systems, roofs, terraces, windows, insulation, flooring, plumbing, electrical installations, heating systems, drainage, elevators, garages and structural or finishing work.

A defect does not have to make the entire apartment completely unusable.

A property can remain habitable while still containing defects that materially reduce its quality, functionality or market value.

Defective Work and Incomplete Work Are Not the Same

Owners should distinguish defective construction from incomplete construction.

Suppose the contractor installs bathroom tiles, but they are badly installed and begin separating from the surface. This may involve defective work.

If the contractor was required to install the tiles but leaves the bathroom unfinished, the problem may instead involve incomplete performance.

The distinction can affect the legal analysis.

A single replacement apartment can contain both defective and incomplete work, which is why an independent technical inspection should identify each item separately.

The Contractor Agreement Is the First Document to Check

A defect claim should not be based only on the owner’s dissatisfaction with workmanship.

The reconstruction agreement should be reviewed first.

What construction quality was promised?

What materials were specified?

What installations were included?

Were particular performance standards guaranteed?

Was a detailed technical specification attached to the agreement?

The contractor’s performance should be compared against the contractual obligation rather than against vague expectations.

The Technical Specification Can Determine Whether Work Is Defective

In many urban transformation projects, the most detailed construction obligations are contained in a technical specification attached to the main agreement.

This document may identify flooring, windows, facade materials, insulation systems, kitchen installations, sanitary equipment, heating systems, doors and other construction components.

It may also specify particular quality levels or technical characteristics.

Owners should therefore preserve the original technical specification.

A contractor that uses materially inferior products may potentially face a contractual dispute even where those products have not yet completely failed.

What If the Contractor Used Cheaper Materials?

Material substitution is a frequent source of conflict.

The contractor may argue that the replacement product is technically equivalent.

The owner may argue that a substantially cheaper or lower-quality product was installed.

The issue should be determined objectively.

The contractual specification should be compared with the actual product, including its technical characteristics where necessary.

Product labels, photographs, invoices, expert findings and samples can become useful evidence.

If the contractor proposes replacing the disputed material, evidence should be preserved before removal.

Water Leakage Can Be a Serious Construction Defect

Water penetration is among the most important defects to investigate quickly.

Leakage can originate from roofs, terraces, balconies, exterior facades, windows, plumbing or common installations.

Repeated repainting does not necessarily constitute proper repair.

The underlying cause should be identified.

An independent technical expert can determine where water enters, whether waterproofing or another system was incorrectly installed and what repair is necessary.

Owners should photograph the damage when it occurs, particularly after rainfall where weather conditions reveal the problem.

Mold and Dampness May Indicate a Deeper Problem

Mold should not automatically be dismissed as a ventilation issue.

It can result from thermal bridges, insulation deficiencies, water penetration, condensation or concealed plumbing leaks.

The contractor may argue that the owner caused the problem by failing to ventilate the apartment.

The owner may argue that the problem is construction-related.

Technical evidence is therefore particularly important.

A report should identify the probable source rather than merely documenting the existence of mold.

Cracks Should Be Documented Before Repair

Cracks can range from minor surface imperfections to indications of more substantial construction problems.

Owners should not attempt to classify structural significance without appropriate expertise.

Instead, the location, dimensions and progression of significant cracks should be documented.

Dated photographs can help determine whether the problem is developing over time.

Where the contractor proposes immediate filling or repainting, the original condition should first be preserved through appropriate evidence.

Defective Thermal Insulation Can Create Long-Term Loss

Poor thermal insulation can increase heating and cooling expenses and reduce the apartment’s comfort and marketability.

Condensation may also develop.

The owner should compare the construction with the technical specification and approved system.

Where the problem affects the building facade or common elements, the dispute may involve multiple owners rather than one apartment alone.

An independent building-level assessment can sometimes be more useful than examining a single room.

Acoustic Insulation Problems Can Also Be Relevant

A newly constructed apartment may transmit excessive noise between neighboring units or common areas.

Whether this constitutes actionable defective construction depends on the technical and contractual circumstances.

Owners should identify whether the problem results from design, materials, installation or another source.

An acoustic assessment may be required in significant cases.

The fact that the building is new does not automatically prove that every technical performance requirement has been satisfied.

Window and Facade Defects Can Cause Multiple Problems

Poorly installed windows can create air leakage, water penetration, noise and thermal problems simultaneously.

Facade defects can similarly cause recurring water and insulation problems.

Owners should therefore avoid treating each symptom as an unrelated cosmetic issue.

The technical investigation should identify the underlying system failure.

A proper repair should address the cause rather than repeatedly repairing internal paint or plaster.

Plumbing Defects Can Cause Additional Property Damage

A defective pipe or connection may damage much more than the plumbing system itself.

Water can damage flooring, walls, furniture, electrical installations and neighboring properties.

Where urgent action is necessary to stop continuing damage, the owner should still preserve evidence before and during repair.

Photographs, video, expert findings, repair invoices and damaged-property evidence can become important if compensation is later claimed.

Electrical Defects Require Prompt Attention

Electrical defects may present serious safety concerns.

Owners should obtain qualified technical assistance rather than attempting informal repairs.

The investigation should establish whether the problem existed at delivery or resulted from later alterations.

This distinction is particularly important where the contractor claims that the owner or a subsequent renovation contractor caused the defect.

Evidence of the apartment’s original delivered condition can therefore be valuable.

Heating and Mechanical Systems Can Also Be Defective

A replacement apartment may have problems involving heating, ventilation, pumps or other mechanical systems.

Some defects may affect only one unit, while others arise from a central building system.

Owners should determine whether the relevant system forms part of the independent unit or common building infrastructure.

The technical specification should also be checked to establish exactly what system the contractor promised.

Common-Area Defects Should Not Be Ignored

Construction defects frequently arise outside individual apartments.

The roof may leak.

The facade may fail.

The garage may flood.

Drainage may be inadequate.

Elevators may not function properly.

Common electrical or mechanical installations may be incomplete.

These problems can substantially reduce the value and usability of every independent unit.

Owners should therefore inspect the building as a whole rather than focusing exclusively on their apartment.

Owners Have an Inspection Obligation After Delivery

Inspection timing is legally important.

Under Article 474 of the Turkish Code of Obligations, after delivery the owner must inspect the work as soon as reasonably possible according to the ordinary course of events and notify the contractor of defects within an appropriate period. The legislation also allows either party to request expert examination at its own expense.

Owners should therefore avoid putting the keys in a drawer and postponing inspection simply because the apartment is newly built.

A systematic inspection should take place promptly.

Visible Defects Should Be Recorded During Handover

The handover inspection should be detailed.

Owners should inspect walls, ceilings, flooring, windows, doors, bathrooms, kitchens, balconies, heating, electrical systems and visible plumbing components.

A written defect list can be prepared.

Photographs and video should accompany the list where appropriate.

If the contractor acknowledges the defects, the repair commitment and timetable should preferably be documented.

An owner should be cautious about signing an unconditional document stating that the property is completely defect-free when obvious defects remain.

Hidden Defects Require a Different Approach

Some defects cannot reasonably be discovered during an ordinary handover inspection.

Waterproofing may fail only after heavy rain.

A concealed pipe may begin leaking months later.

Insulation deficiencies may become apparent during winter.

The Turkish Code of Obligations specifically addresses defects that appear later. Under Article 477, a later-discovered defect should be notified to the contractor without delay; otherwise, the work can be treated as accepted in relation to the applicable defect rules. The provision also preserves responsibility for intentionally concealed defects and defects that could not have been discovered during the ordinary inspection.

Owners should therefore document the date on which a hidden defect first became apparent.

Do Not Wait to Notify the Contractor

One of the most dangerous mistakes is delaying notification.

The owner may repeatedly telephone the contractor but never create a reliable written record.

Months later, the contractor may dispute when the problem was first raised.

Defects should therefore be communicated in a manner that can later be proved.

The notification should identify the problem clearly rather than merely stating that “the apartment has many defects.”

Where possible, supporting photographs and technical findings should be preserved.

Can the Owner Demand Free Repair?

Yes, free repair is one of the statutory remedies where the applicable conditions are satisfied.

Article 475 of the Turkish Code of Obligations allows the owner to request repair at the contractor’s expense where repair would not require excessive cost. The same provision also recognizes other defect remedies and preserves damages under the general rules.

The proposed repair should actually solve the defect.

An owner does not necessarily have to regard repeated superficial patching as satisfactory where the underlying construction problem remains.

Can the Owner Request a Reduction?

Article 475 also provides for keeping the work and requesting a reduction corresponding to the defect where the statutory conditions are met.

This remedy can become relevant where the defect cannot reasonably be eliminated or where the owner retains a property that is objectively less valuable because of the deficiency.

The amount should be supported by evidence.

Depending on the issue, repair-cost evidence, technical analysis and property valuation may all be relevant.

Can the Owner Claim Compensation?

Potentially, yes.

The Turkish Code of Obligations preserves the owner’s right to claim damages under the general rules in addition to the statutory remedies concerning defective work.

The owner must still establish the relevant legal requirements for the claimed loss.

The defect itself and the financial consequences should therefore be documented separately.

For example, the cost of correcting waterproofing is different from damage to furniture caused by water penetration.

Both may require separate evidence.

Can the Owner Terminate the Agreement Because of Serious Defects?

Article 475 provides a withdrawal remedy where the work is so defective or contrary to the agreement that the owner cannot use it or cannot fairly be expected to accept it. However, the Code also limits withdrawal where the work has been constructed on the owner’s immovable property and removal would cause excessive damage.

In an urban transformation project involving a completed multi-unit building, this makes the practical and legal analysis considerably more complex than an ordinary repair dispute.

Owners should therefore avoid assuming that every serious defect automatically permits cancellation of the entire redevelopment arrangement.

Can Temporary Accommodation Costs Be Claimed?

A serious construction defect may make the apartment temporarily unusable.

For example, extensive water damage or major repair works may require the owner to live elsewhere.

Depending on the circumstances and applicable damages rules, necessary accommodation expenses may become relevant to the compensation claim.

The owner should preserve rental agreements, hotel invoices and payment records.

Technical evidence should also explain why temporary relocation was reasonably necessary.

Can Lost Rental Income Be Claimed?

A foreign investor may have acquired or retained the replacement apartment as a rental property.

If significant construction defects make the apartment unmarketable or unusable for a period, lost rental income may become part of the damages analysis where the applicable requirements are established.

Evidence is essential.

Existing lease arrangements, rental history, market rental evidence and the duration of necessary repairs can all become relevant.

Speculative figures are much weaker than documented economic loss.

What If the Contractor Refuses to Repair?

The refusal should be documented.

The owner should then consider obtaining an independent technical report identifying the defects, cause, required corrective work and estimated repair cost.

This creates a stronger basis for determining the next legal action.

Owners should avoid allowing a dispute to remain indefinitely at the level of informal messages promising that “the team will come next week.”

Can the Owner Repair the Defect Independently?

Urgent repairs may sometimes be necessary, particularly where delay would cause additional damage.

However, owners should preserve evidence before the original defective condition disappears.

Where circumstances permit, the contractor should be notified and given the legally appropriate opportunity to address the problem before substantial corrective work is carried out.

Technical findings, quotations, invoices and proof of payment should be preserved.

The reasonableness of repair costs may later become relevant.

Expert Evidence Is Often the Most Important Evidence

Construction-defect cases are highly technical.

A lawyer can interpret the agreement and legal remedies, but technical evidence is usually necessary to establish what was built incorrectly.

An expert can compare the physical construction with the approved plans, technical specifications and accepted construction standards.

The report should identify the defect, probable cause, necessary repair and estimated cost.

Where relevant, it should also explain whether the problem affects structural elements or common areas.

Preserve Evidence Before the Contractor Covers the Defect

Contractors may respond quickly once a serious complaint is made.

That can be positive, but it can also eliminate evidence.

For example, a leaking wall may be opened, waterproofing replaced and the area closed again.

Before this happens, the original condition should be documented.

Photographs, video and technical inspection can prevent later disagreement about whether the defect existed and what caused it.

What If the Contractor Says the Owner Caused the Defect?

Contractor responsibility is not unlimited.

Article 476 of the Turkish Code of Obligations addresses situations where the defect results from instructions given by the owner despite an express warning from the contractor or is otherwise attributable to the owner. In those circumstances, defect remedies can be affected.

This makes the timeline important.

Owners should document whether the defect existed before later renovation or modification.

Contractors should likewise identify the specific owner action they claim caused the problem rather than making a general allegation of misuse.

What If the Apartment Has Already Been Accepted?

Acceptance requires careful analysis.

Under Article 477, express or implied acceptance can release the contractor from responsibility for defects subject to the statutory exceptions, including intentionally concealed defects and defects that could not have been identified during ordinary inspection.

The owner should therefore obtain the exact handover document.

Did it contain a broad statement that the property was defect-free?

Were reservations recorded?

Was the particular defect visible?

Did it emerge later?

The answers can materially affect the dispute.

What Is the Limitation Period for Construction Defect Claims?

For defective immovable structures, Article 478 generally provides a five-year limitation period beginning from delivery. Where the contractor is grossly at fault, the statutory period is twenty years regardless of the nature of the defective work.

This does not mean that an owner can ignore a visible defect for five years.

The inspection, notification and acceptance rules operate separately.

Owners should act promptly after discovering a problem rather than treating the limitation period as a notification period.

Inspection, Notification and Limitation Are Different Issues

This distinction is fundamental.

The limitation period concerns how long a claim can remain legally actionable under the relevant statutory rule.

The inspection and notification provisions determine what the owner must do after delivery or discovery of a defect.

An owner who confuses these concepts can jeopardize an otherwise legitimate claim.

The safer approach is to inspect promptly, document defects and notify them without unnecessary delay.

What If the Defect Violates the Approved Project?

Some defects involve more than poor workmanship.

The contractor may have built something inconsistent with the approved architectural or technical project.

In that situation, the owner should compare the physical building with the approved documents.

A deviation from the approved project may create regulatory issues in addition to contractual consequences.

The technical report should identify whether the problem concerns poor execution, unauthorized deviation or both.

Urban Transformation Does Not Eliminate Contractor Responsibility

The fact that the project was carried out within the urban transformation framework does not mean owners must accept construction that is inconsistent with the agreement.

Current official reporting from the Urban Transformation Directorate expressly describes safeguards designed to reduce owner losses where qualifying private redevelopment work is not completed or is not performed in accordance with legislation and the agreement. These safeguards include contractor security or building completion insurance in relevant projects.

This reinforces an important practical point: compliance with the redevelopment agreement remains central to owner protection.

Check Whether the Project Has Statutory Security

Current implementing rules require security in qualifying privately undertaken projects on parcels containing risky buildings. Under the current framework, the contractor generally provides security equal to 6% of the approximate construction cost before the construction permit, subject to the regulatory exceptions.

The security is not the same as an automatic compensation fund for every cracked tile or minor defect.

Its role and availability depend on the regulatory conditions and the nature of the contractor’s failure.

However, owners dealing with serious non-completion or material non-compliance should determine whether statutory security exists and obtain the relevant documents.

Building Completion Insurance May Also Be Relevant

The current implementing framework provides that where qualifying building completion insurance meeting the regulatory requirements is obtained, the separate security requirement under that provision does not apply in the same way.

Owners should therefore determine which protection mechanism applies to their project.

The insurance policy, security documents and contractual protections should not be confused with one another.

For ordinary isolated defects, the primary route may remain the contractor’s defect liability. For severe project-level failure, additional protection mechanisms may become more significant.

Serious Common-Area Defects Require Collective Attention

A defective roof, facade, garage or drainage system can affect many owners simultaneously.

Individual repairs inside one apartment may not solve the problem.

Owners should consider whether the defect originates in a common building component.

Where it does, coordinated technical investigation can prevent repeated and inconsistent repairs.

The contractor’s responsibility should be addressed before owners themselves incur substantial common-area repair costs.

Foreign Owners Should Arrange Inspection Before Traveling for Handover

A foreign owner does not necessarily need to wait until personally arriving to discover defects.

An independent technical professional can inspect the replacement property and prepare a report.

The owner’s lawyer can compare the findings with the agreement and technical specification.

This allows problems to be identified before the owner signs final acceptance or settlement documents.

It can also prevent an unnecessary international trip where the apartment is clearly not ready for proper handover.

Foreign Owners Should Be Careful With Powers of Attorney

A power of attorney used during redevelopment should be reviewed before final delivery.

The representative may need authority to inspect, receive documents or communicate objections.

However, owners should be cautious about unnecessarily broad authority to waive defect claims, sign unrestricted releases or accept materially non-compliant construction.

If a representative has already signed a handover document, the document and the representative’s actual authority should both be examined.

What Documents Should Property Owners Preserve?

The owner should keep the complete reconstruction agreement, technical specifications and architectural annexes.

The approved project and relevant revisions should also be obtained.

Handover records, defect lists and written notifications are especially important.

Photographs and videos should be dated where possible.

Technical reports, repair quotations, invoices and payment records should be preserved.

If compensation is claimed, evidence of damaged personal property, accommodation costs or lost rental income should be kept separately.

The objective is to establish four elements clearly: what was promised, what was defective, who was responsible and what loss resulted.

2026 Practical Legal Strategy

The first priority is inspect before unconditional acceptance. A newly constructed property should not be assumed to be defect-free simply because a permit has been issued or the contractor announces completion.

The second priority is compare the physical property with the reconstruction agreement and technical specifications.

The third priority is distinguish defective work from incomplete work and identify each problem separately.

The fourth priority is document visible defects immediately with photographs, video and a written defect list.

The fifth priority is notify the contractor appropriately and preserve proof of notification.

The sixth priority is obtain independent technical evidence for significant or disputed defects.

The seventh priority is preserve the original condition before repairs destroy evidence.

The eighth priority is quantify each category of loss separately, including repair cost, value reduction and other provable financial consequences.

The ninth priority is review project-level protection, including applicable contractor security or completion insurance where the problem extends beyond ordinary isolated defects.

The tenth priority is act promptly when a hidden defect appears. Waiting can create disputes concerning notification, acceptance, causation and limitation.

The central principle is simple: urban transformation should result in a replacement property that complies with the contractor’s binding obligations. Owners are not required to treat defective construction as an inevitable part of redevelopment. Proper inspection, prompt notification, independent technical evidence and careful selection of the legal remedy are essential.

Frequently Asked Questions

1. What are the most common construction defects after urban transformation?

Common disputes involve water leakage, waterproofing, insulation, cracks, windows, flooring, plumbing, electrical systems, heating, facade work, roofs, garages and common installations.

2. Can I require the contractor to repair construction defects?

Potentially, yes. Article 475 recognizes free repair at the contractor’s expense where the applicable conditions are satisfied and repair would not require excessive cost.

3. Can I request compensation instead of repair?

Depending on the circumstances, a reduction or damages may be available. The appropriate remedy depends on the nature of the defect, contractual position and resulting loss.

4. What should I do if I discover a defect immediately after delivery?

Document it, preserve photographs and technical evidence, and notify the contractor promptly. The Code imposes inspection and notification obligations after delivery.

5. What happens if a hidden defect appears later?

Later-discovered defects should be reported without delay. Article 477 separately addresses defects that could not have been discovered during ordinary inspection and defects intentionally concealed by the contractor.

6. How long can I bring a claim involving a defective immovable structure?

Article 478 generally provides five years from delivery for defective immovable structures and twenty years where the contractor is grossly at fault. Inspection and defect-notification obligations should still be addressed promptly.

7. Can I claim temporary accommodation expenses?

Potentially, where a serious defect makes relocation reasonably necessary and the applicable requirements for damages are established. The owner should preserve evidence of necessity and actual expense.

8. Can I claim lost rental income?

Potentially, where the defect prevented rental and the owner can establish causation and the amount of the loss with sufficient evidence.

9. Should I repair the apartment before obtaining an expert report?

Where possible, significant defects should be documented before they are altered. Emergency repairs may still be necessary to prevent additional damage, but the original condition should be preserved through photographs, video and technical evidence.

10. Does the urban transformation system provide additional protection if the contractor seriously fails to complete the project?

Qualifying private redevelopment projects may be subject to statutory security or building completion insurance requirements under the current implementing framework. These mechanisms are distinct from ordinary defect remedies and should be examined according to the particular project.

Legal Assistance for Construction Defects After Urban Transformation

Construction defects can substantially reduce the value, safety, usability and rental potential of a replacement property.

Owners should not limit their investigation to visible cosmetic problems. Waterproofing, insulation, installations, common areas and compliance with the agreed technical specifications may require professional examination.

Foreign property owners should be especially careful before signing unconditional handover documents while relying solely on information supplied by the contractor.

Fırat Fesih Kaya Law Office provides legal assistance to foreign property owners and investors facing construction-defect disputes after urban transformation projects.

Lawyer Fırat Fesih Kaya assists property owners with defective and incomplete construction, hidden defects, technical-specification violations, water and insulation problems, handover disputes, contractor liability, repair claims, reduction claims, technical evidence, compensation claims and serious project-level contractor failures.

Phone: +90 312 434 22 22
WhatsApp: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr