Defective New Apartment After Urban Transformation in Turkey: Can the Owner Claim Compensation? (2026 Updated Guide)

Is your new apartment defective after urban transformation in Turkey? Learn when property owners may request repair, price reduction, compensation or other remedies for construction defects in 2026.

Yes. A property owner who receives a defective replacement apartment after an urban transformation project may have important contractual remedies against the contractor. Depending on the nature and seriousness of the defect, the circumstances may support demands for repair, a reduction reflecting the defect, compensation for resulting losses or other remedies available under the construction agreement and applicable law.

The Turkish Code of Obligations expressly regulates liability for defective works. After delivery, the owner is expected to inspect the work as soon as reasonably possible and notify the contractor of defects within an appropriate period. Where the contractor is responsible for the defect, the statutory framework includes remedies such as keeping the work and requesting a reduction, requiring free repair where this would not create excessive expense, and preserving the right to claim damages under the general rules. More serious defects can raise additional remedies subject to the statutory conditions.

For urban transformation owners, however, the practical question is often more complicated than simply asking whether there is “a defect.”

The replacement apartment must be compared with the redevelopment agreement, technical specifications, approved plans and the standard of construction actually promised.

Lawyer Fırat Fesih Kaya assists foreign property owners with defective construction, incomplete works, technical-specification violations, hidden defects, compensation claims and contractor disputes following urban transformation.

What Counts as a Defective Apartment?

A construction defect does not necessarily mean that the apartment is completely unusable.

A defect can involve a failure to provide the characteristics required under the agreement or deficiencies affecting the quality, functionality, durability or value of the property.

Examples can include serious water leakage, defective waterproofing, persistent dampness, cracked finishes, defective flooring, window problems, inadequate insulation, faulty electrical or plumbing installations, heating problems, roof leakage or construction that does not comply with the agreed technical specifications.

The legal significance of each problem depends on its nature, seriousness and contractual context.

A small cosmetic imperfection should not automatically be treated in the same manner as recurring water penetration or a major installation defect.

Defective Work and Incomplete Work Should Be Distinguished

This distinction can be important.

A defective work generally exists where the contractor performed the relevant work but the result does not have the required characteristics or quality.

Incomplete work concerns something the contractor was required to provide but did not complete or provide at all.

For example, badly installed flooring may involve defective work.

If the contractor promised flooring but left a room unfinished, the issue may instead involve incomplete performance.

An apartment can contain both categories simultaneously.

Owners should therefore prepare a detailed technical list rather than describing every problem simply as “bad construction.”

Start With the Reconstruction Agreement

The reconstruction agreement is one of the most important documents in a defect dispute.

Owners should identify what quality of apartment the contractor promised.

The agreement may specify construction materials, insulation, windows, flooring, kitchen units, sanitary products, heating systems, elevators, common areas and landscaping.

The main agreement may contain only general obligations while a detailed technical specification is attached separately.

That annex can become critical.

If the contractor agreed to use particular materials or meet specific technical standards, the completed apartment should be compared with those obligations.

The Technical Specification Can Be as Important as the Main Contract

Owners sometimes keep the signed contract but lose the technical specification.

That can be a serious mistake.

The technical specification may contain the detailed promises that determine whether construction is defective.

It can specify brands or quality categories, insulation systems, facade materials, flooring, windows, doors, kitchen equipment and bathroom fixtures.

The owner should therefore obtain the complete contractual package before evaluating the contractor’s performance.

Cheap Materials Can Create a Contractual Dispute

Suppose the contractor promised one quality category but installed substantially inferior materials.

The apartment may still be physically usable.

Nevertheless, the issue can constitute a contractual performance problem if the materials do not comply with the binding specifications.

Owners should preserve evidence before replacing those materials themselves.

Photographs, invoices, product information and expert inspection can help establish what was actually installed.

Water Leakage Is a Common Serious Defect

Water-related problems frequently create significant post-construction disputes.

An owner may discover water entering through the facade, roof, terrace, balcony or windows.

There may also be leakage from internal plumbing or neighboring units.

The source should be identified technically.

Repeated cosmetic repairs may not solve the underlying waterproofing problem.

Where substantial damage exists, an expert should determine the cause, required repair and resulting damage before evidence disappears.

Dampness and Mold Should Be Investigated Technically

Persistent dampness or mold can result from several causes.

These may include waterproofing deficiencies, thermal bridging, ventilation problems, facade defects or plumbing leaks.

An owner should not assume that repainting resolves the defect.

Likewise, the contractor should not automatically dismiss the problem as improper ventilation without technical investigation.

A professional report can help identify whether the cause originates from construction.

Cracks Require Proper Assessment

Not every crack has the same significance.

Some cracks may involve surface finishes, while others can indicate more substantial construction issues.

The owner should avoid making structural conclusions without technical expertise.

Photographs should be taken, dates recorded and significant or recurring cracks professionally evaluated.

If the contractor performs repairs, the condition should ideally be documented before the repair begins.

Insulation Problems Can Reduce Property Value

Thermal, acoustic and waterproofing performance can materially affect a newly reconstructed apartment.

Poor insulation can produce excessive energy costs, noise problems, condensation and reduced comfort.

Where the contract or applicable construction requirements required a particular system, an expert can compare the installed construction with the required standard.

A newly completed building should not automatically be considered contractually satisfactory merely because the apartment can physically be occupied.

Windows and Exterior Doors Can Be Defective

Poorly installed windows can cause water penetration, air leakage, noise and heat loss.

Doors can also fail to meet contractual specifications or operate correctly.

These problems should be documented.

If replacement is required, owners should consider obtaining technical evidence before removing the original installation.

Otherwise, proving the original condition later can become more difficult.

Plumbing Defects Can Cause Damage Beyond the Apartment

Defective plumbing can create serious losses.

A concealed leak may damage flooring, walls, furniture or neighboring apartments.

The owner should identify the source promptly and preserve evidence.

Where urgent repairs are required to prevent further damage, photographs, videos, professional findings and invoices can become especially important.

The legal claim may extend beyond the cost of repairing the defective pipe itself if additional recoverable damage resulted from the defect.

Electrical Defects Should Not Be Treated as Minor Issues

Electrical deficiencies can create both functionality and safety concerns.

Improper installations, defective circuits, insufficient capacity or non-compliant work should be assessed by a qualified professional.

The owner should distinguish between personal modifications made after delivery and problems already existing when the apartment was handed over.

That distinction can become important if the contractor disputes responsibility.

Common-Area Defects Can Affect Apartment Owners Too

The problem may not be located inside the apartment.

Urban transformation projects can contain defects in the roof, facade, foundations, elevators, garage, drainage systems, staircases, landscaping or other common areas.

These defects can still affect the value and usability of individual properties.

The appropriate legal approach may differ depending on whether the defect concerns an individual unit, common property or both.

Owners should therefore avoid limiting the inspection to the interior of their own apartment.

Does the Owner Have to Inspect the Apartment After Delivery?

Inspection and notification are extremely 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 discovered defects within an appropriate period. Either party can also request an expert examination at its own expense.

For this reason, an owner who receives the keys should not postpone inspection for months merely because the apartment is new.

A systematic inspection shortly before or immediately after handover can significantly improve the evidentiary position.

Visible Defects Should Be Recorded at Handover

Visible defects should preferably be identified before an unconditional handover record is signed.

The owner can prepare a defect list covering each room and common relevant area.

Photographs and video should be taken.

Where the contractor agrees that repairs are necessary, the promised repair schedule should be documented.

An owner should be cautious about signing language stating that the apartment has been delivered completely, without defects and in full conformity with the agreement if significant problems are already visible.

What Happens If the Owner Accepts the Apartment Without Objection?

Acceptance can have important consequences.

Article 477 of the Turkish Code of Obligations provides rules concerning express or implied acceptance. It also preserves contractor responsibility for defects intentionally concealed and defects that could not have been discovered through the ordinary inspection process. Defects appearing later must be notified without delay.

This makes the distinction between visible and hidden defects particularly important.

Owners should not assume that taking the keys necessarily eliminates every future claim, but neither should they treat inspection and notification requirements as unimportant.

What Is a Hidden Defect?

A hidden defect is generally a problem that could not reasonably have been discovered during an ordinary inspection at delivery and becomes apparent later.

Examples can include concealed waterproofing problems, hidden plumbing deficiencies or other construction problems that only reveal themselves after use or particular weather conditions.

When such a defect appears, the contractor should be notified without unnecessary delay.

The owner should also document when and how the problem first became apparent.

Can the Owner Demand Free Repair?

Where the statutory requirements are satisfied, free repair can be one of the available remedies.

Article 475 provides that an owner may demand free repair at the contractor’s expense where the repair does not require excessive cost.

The repair should address the actual cause of the problem rather than merely conceal symptoms.

For example, repainting a water-damaged wall may not constitute an adequate solution if the underlying waterproofing defect remains.

Owners should therefore consider obtaining technical specifications for the proposed repair where the problem is significant.

Can the Owner Request a Reduction?

A reduction corresponding to the defect is another remedy expressly contemplated by Article 475 where the contractor is responsible for the defective work.

This may become relevant where the owner keeps the apartment but the defect or deviation reduces its value.

The amount should not simply be guessed.

Depending on the defect, technical repair cost and market-value evidence may both be relevant.

Can the Owner Claim Compensation?

Yes, compensation may potentially be claimed where the applicable requirements are satisfied.

Article 475 expressly preserves the owner’s right to seek damages under the general rules in addition to the statutory defect remedies.

The compensable loss depends on the circumstances.

A defect may cause direct repair costs, damage to other property or other provable financial consequences.

Causation and evidence are therefore essential.

The existence of a defect alone does not mean that every claimed financial loss will automatically be recoverable.

Can Alternative Accommodation Costs Be Claimed?

Potentially, depending on the circumstances.

If a serious construction defect makes the apartment temporarily unusable while repairs are carried out, accommodation expenses may become part of the loss analysis.

However, the owner should preserve evidence of both necessity and amount.

Hotel invoices, rental agreements, payment records and technical evidence concerning why the apartment could not reasonably be occupied can become important.

Can Lost Rental Income Be Claimed?

A defective apartment may be intended as an investment property.

If serious defects prevent lawful or practical rental, the owner may claim that rental income was lost.

Such a claim requires evidence.

The owner should establish the defect, the period during which the property could not reasonably be rented, causation and the amount of the alleged loss.

Existing lease documents, market rental evidence and expert valuation can be relevant.

What If the Contractor Refuses to Repair?

The owner should document the refusal.

Informal telephone conversations alone can create evidentiary problems.

A written defect notification should identify the relevant problems and preserve the owner’s position.

Where necessary, an independent technical report can establish the nature of the defect and required repair.

The appropriate legal remedy can then be evaluated according to the agreement, statutory rights and seriousness of the problem.

Can the Owner Repair the Apartment and Send the Bill to the Contractor?

Owners should be careful before carrying out extensive repairs themselves.

Emergency action may sometimes be necessary to prevent additional damage.

However, evidence of the original defect should be preserved before it disappears.

The contractor should generally be notified appropriately, and the contractual and statutory position should be considered.

Photographs, expert findings, quotations and invoices can become essential if reimbursement is later claimed.

An Independent Technical Report Can Be Crucial

Technical evidence is often the foundation of a construction-defect claim.

The expert can identify what is defective, why the defect occurred, whether the construction complies with the project and specifications, what repairs are necessary and the approximate cost.

For serious disputes, a simple contractor-generated repair list may be insufficient.

The owner’s evidence should be independent and detailed enough to distinguish cosmetic complaints from genuine construction defects.

Evidence Should Be Preserved Before Repairs Begin

Once defective work has been removed, establishing its original condition can become difficult.

Owners should therefore preserve photographs, video, measurements and expert findings before substantial repairs.

Samples, product labels or other material evidence may also be relevant depending on the defect.

Where urgent intervention is necessary, the condition before and during repair should be documented as thoroughly as possible.

The Approved Project Should Also Be Checked

A defect may actually involve construction contrary to the approved project.

The owner should therefore compare the completed apartment with the approved architectural and technical documents where relevant.

A contractual defect and a deviation from the approved project are not necessarily identical legal issues.

Both may exist at the same time.

The technical report should identify the distinction where possible.

What If the Contractor Used Different Materials?

The technical specification should be checked.

If the contract required a particular product, quality level or performance standard and the contractor substituted inferior materials, the substitution can be relevant even if the material has not yet physically failed.

The owner should document what was promised and what was installed.

Where product identification is disputed, technical inspection may be required.

Can the Contractor Say the Defect Was Caused by the Owner?

The contractor may deny responsibility by arguing that the owner caused the problem through later renovation, misuse or incorrect instructions.

The Turkish Code of Obligations also recognizes circumstances in which a defect attributable to the owner’s instructions or responsibility can affect defect remedies.

This is another reason why the condition at delivery should be documented.

If the owner later carries out substantial renovation, evidence showing which defects existed beforehand becomes especially valuable.

What If the Defect Is in the Contractor’s Unit Rather Than Mine?

The source and location of the defect should be technically established.

For example, water may enter an owner’s apartment from a terrace, facade or another unit.

Responsibility cannot always be determined simply by identifying where the damage became visible.

The construction system and source of failure should be investigated.

Common-area and neighboring-unit issues may require a broader analysis.

What Is the Limitation Period for Defective Construction Claims?

Article 478 of the Turkish Code of Obligations provides a specific limitation framework for defective works. Claims concerning defective immovable structures are generally subject to a five-year period beginning from delivery, while a twenty-year period applies where the contractor is grossly at fault.

However, owners should not interpret this as permission to wait five years before notifying a visible defect.

Inspection, notification and limitation are separate issues.

A defect should be addressed promptly when discovered.

Do Not Confuse the Limitation Period With the Notification Obligation

This distinction is critical.

An owner may think:

“I have five years, so I can notify the contractor later.”

That can be dangerous.

The Code separately regulates inspection, notification and acceptance. Visible defects should be addressed following delivery within the applicable inspection and notification framework, while later-discovered defects must be reported without delay.

Prompt action therefore matters even when the ultimate limitation period has not expired.

Does Urban Transformation Law Remove the Contractor’s Defect Liability?

No general rule should be assumed merely because the construction occurred within an urban transformation project.

The redevelopment framework regulates the transformation process, while the relationship between owner and contractor also involves contractual obligations and general private-law rules.

Indeed, the Urban Transformation Directorate’s recent activity reporting expressly describes current safeguards intended to protect owners where qualifying private redevelopment projects are not completed or are not carried out in accordance with legislation and the agreement, including completion insurance or other required security mechanisms in relevant cases.

The existence of urban transformation procedures therefore does not mean that owners must accept defective construction.

Check Whether Security or Completion Protection Exists

In serious contractor-failure cases, owners should also determine whether the project has statutory security, building completion insurance or another protection mechanism.

These mechanisms should not be assumed to compensate automatically for every minor defect.

Their scope, trigger conditions and project-specific documents must be reviewed.

However, where the construction is materially incomplete or seriously inconsistent with the contractual redevelopment arrangement, the existence of security or completion protection may become important.

Owners should obtain the relevant documentation rather than assuming that no protection exists.

Defects in Common Areas Should Be Investigated Before Final Project Closure

Roofing, facade, drainage, elevators, garages and other common elements can produce expensive future disputes.

A building may appear completed while significant defects remain.

Owners should therefore consider a broader technical inspection before accepting that the redevelopment has been fully and properly completed.

A defect affecting common property can ultimately impose substantial costs on all owners if contractor responsibility is not addressed in time.

Foreign Owners Living Abroad Should Arrange an Independent Inspection

A foreign owner should not rely solely on photographs sent by the contractor.

Before final acceptance, an independent technical professional can inspect the replacement apartment.

The owner can then receive a detailed defect report remotely.

This is particularly useful where the owner cannot travel immediately.

The owner’s lawyer can simultaneously review the contractual documents and ensure that the technical findings are compared with the contractor’s actual obligations.

Do Not Give an Unnecessarily Broad Power to Accept Defective Work

A power of attorney should be reviewed carefully.

Authority to collect keys or attend a meeting does not necessarily need to include unrestricted authority to waive defect claims or sign a comprehensive release.

Foreign owners should understand what their representative can sign on their behalf.

If a representative has already signed a handover or release document, the exact document and scope of authority should be examined.

What Documents Should the Owner Collect?

The owner should preserve the reconstruction agreement, technical specifications, architectural annexes, approved project and any subsequent amendments.

The handover record is particularly important.

Photographs and video from delivery should be retained together with written defect notifications.

Technical reports, repair quotations, invoices and correspondence with the contractor should also be collected.

Where compensation is claimed, evidence of additional financial losses should be preserved separately.

The objective is to establish the contractual promise, the defect, contractor responsibility and resulting loss.

2026 Practical Legal Strategy

The first priority is inspect the apartment before unconditional acceptance. Do not assume that a newly constructed apartment is automatically defect-free.

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

The third priority is separate defective work from incomplete work because the legal characterization can affect the claim.

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

The fifth priority is notify the contractor appropriately rather than relying only on informal conversations.

The sixth priority is obtain an independent technical report where the defect is significant, disputed or likely to require expensive repair.

The seventh priority is preserve evidence before repair work destroys the original condition.

The eighth priority is quantify the financial consequences. Repair costs, property-value reduction and other provable losses should be documented separately.

The ninth priority is review any handover, acceptance or release document before signing.

The tenth priority is act promptly when hidden defects appear. Under the statutory framework, later-discovered defects require notification without delay.

The core principle is straightforward: an owner who surrendered property for reconstruction is entitled to examine whether the replacement apartment complies with the agreed project and contractual quality. Urban transformation does not require an owner to accept defective construction without investigating repair, reduction, compensation or other available remedies.

Frequently Asked Questions

1. Can I claim compensation if my new apartment has construction defects?

Potentially, yes. Where the contractor is responsible for defective work, the Turkish Code of Obligations provides specific defect remedies and preserves the owner’s right to seek damages under the general rules.

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

Free repair is one of the statutory remedies where the applicable conditions are satisfied and repair would not require excessive expense.

3. Can I request a reduction instead of repair?

Yes, a reduction corresponding to the defect is among the remedies regulated for defective works where the statutory conditions are satisfied.

4. What if the defect appears months after delivery?

A later-discovered defect may still be relevant, particularly where it could not reasonably have been detected during the ordinary inspection. Once it appears, it should be documented and reported without delay.

5. What if I already signed the handover document?

The wording and circumstances of the handover should be reviewed. Acceptance can have legal consequences, but the Code contains separate rules concerning concealed defects and defects that could not have been discovered through ordinary inspection.

6. Can I claim the cost of temporary accommodation?

Potentially, where a serious defect makes the apartment unusable and the necessary legal conditions for damages are established. Evidence of the defect, necessity, causation and actual expense should be preserved.

7. Can I claim lost rental income?

Potentially, if the defect prevented the property from being rented and the resulting loss can be established with sufficient evidence.

8. How long do I have to bring a defective-building claim?

For defective immovable structures, Article 478 generally provides a five-year limitation period from delivery, with a twenty-year period where the contractor is grossly at fault. This should not be confused with the separate duty to inspect and notify defects promptly.

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

Where possible, significant defects should be documented before they are altered. Urgent repairs may still be necessary to prevent additional damage, but evidence of the original condition should be preserved.

10. What evidence is most important?

The reconstruction agreement, technical specifications, approved plans, handover records, photographs, videos, written defect notifications, independent technical reports, repair invoices and evidence of resulting financial losses can all be important.

Legal Assistance for Defective Apartments After Urban Transformation

A new apartment should not be considered properly delivered merely because construction has ended and the keys have been handed over.

The replacement property should be examined against the reconstruction agreement, technical specifications, approved plans and promised construction quality.

Visible defects should be identified early, while hidden defects should be documented as soon as they become apparent.

Where the contractor refuses to repair serious problems or the defects have caused measurable financial loss, the owner should evaluate the available contractual and statutory remedies without unnecessary delay.

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

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

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