Developer Demands Extra Payment Because Construction Costs Increased in Turkey: Must the Foreign Buyer Pay? (2026 Updated Guide)

A Turkish developer demands additional payment from a foreign property buyer because construction costs increased. Learn whether the buyer must pay, when price increases may be valid, and what legal remedies are available.

A foreign buyer who purchases an apartment, villa or commercial property from a development project in Turkey may later receive an unexpected demand from the developer: “Construction costs have increased, so you must pay an additional amount before we complete or transfer the property.” This can create serious pressure, particularly where the buyer has already paid most or all of the agreed purchase price. However, an increase in construction costs does not automatically give the developer the right to rewrite the agreed purchase price. Whether additional payment can legally be demanded depends primarily on the contract, the nature of the transaction, any valid price-adjustment provisions, subsequent agreements between the parties and the legal grounds relied upon by the developer.

Can a Developer Increase the Agreed Property Price Because Construction Costs Increased?

Not automatically. If the parties agreed on a fixed purchase price, the starting point is the contract. A developer generally cannot simply announce a new price because construction materials, labor, financing or other development expenses have become more expensive.

The contractual structure must be examined before the buyer makes any additional payment.

Start With the Property Purchase Contract

The first document to review is the signed agreement. Identify the total purchase price, payment schedule, currency, delivery date, title-transfer conditions and provisions concerning additional costs or price adjustments.

The precise wording can materially affect the buyer’s rights.

Is the Purchase Price Fixed?

If the agreement clearly establishes a fixed total price, this can significantly strengthen the foreign buyer’s position against an unexpected unilateral increase.

The developer should be asked to identify the contractual clause allegedly authorizing the additional amount.

Does the Contract Contain a Price Adjustment Clause?

Some development contracts contain clauses allowing specified adjustments in particular circumstances. Such clauses should be examined carefully.

The existence of a clause does not mean every increase demanded by the developer is automatically valid. Its wording, calculation method, transparency and application to the actual circumstances matter.

A General “Costs May Increase” Clause Requires Careful Review

Developers sometimes rely on broadly drafted provisions referring to inflation, material prices or unforeseen expenses.

The legal effect of such wording depends on the contract and applicable law. A vague clause should not automatically be treated as unlimited authority to determine a new purchase price unilaterally.

Ask for the Calculation in Writing

The buyer should request a written explanation showing:

• the additional amount demanded;
• the contractual basis;
• the reason for the increase;
• the calculation methodology;
• the costs allegedly affected; and
• the deadline for payment.

Do not rely solely on telephone calls or informal sales-office statements.

Construction Inflation Does Not Automatically Transfer to the Buyer

A developer’s business costs and the buyer’s contractual payment obligations are separate issues. In a fixed-price transaction, the commercial risk of increasing construction expenses cannot automatically be shifted to the purchaser simply because the project became more expensive.

What If Material Prices Increased Dramatically?

A substantial increase in cement, steel, energy, labor or imported construction materials may create genuine economic pressure for the developer. Nevertheless, economic difficulty alone does not automatically establish a right to charge every purchaser an additional amount.

The developer would need a legally sustainable basis for changing the contractual obligations.

Can the Developer Rely on Extraordinary Changed Circumstances?

Depending on the circumstances, Turkish contract law recognizes mechanisms addressing extraordinary changes that seriously disturb the contractual balance. However, the existence and consequences of such circumstances are legal questions.

A developer should not simply assume that invoking inflation or increased costs allows it to determine a new price unilaterally.

Contract Adaptation Is Different From a Unilateral Price Increase

This distinction is critical. A legal claim seeking adaptation of contractual obligations under exceptional circumstances is not the same as sending the buyer a message stating that an extra payment is now mandatory.

The buyer should ask exactly what legal mechanism the developer claims to be exercising.

What If the Developer Threatens to Cancel the Contract?

Do not immediately accept the cancellation threat. Review whether the buyer has fulfilled their own contractual obligations and whether the developer actually has a contractual or statutory termination right.

A buyer who has paid the agreed installments on time may have significant arguments against an unjustified termination.

Keep Evidence of Every Payment

Foreign buyers should preserve bank transfers, receipts, invoices, payment confirmations and correspondence acknowledging receipt of funds.

This becomes particularly important if the developer later alleges that the buyer has an outstanding balance.

Avoid Cash Payments Without Reliable Documentation

If additional money is demanded, the buyer should not make undocumented cash payments merely to secure delivery.

Every payment should have a clearly identifiable legal and contractual basis.

What If the Buyer Already Paid the Entire Purchase Price?

A demand for further payment after the agreed price has been paid deserves particularly careful scrutiny.

The buyer should compare the developer’s demand with the signed agreement and obtain a written explanation before paying anything further.

What If Only Part of the Price Has Been Paid?

The remaining contractual installments should be distinguished from the disputed additional amount.

The buyer should avoid accidentally creating a separate contractual default by failing to make an undisputed installment merely because another part of the developer’s demand is contested.

Can the Developer Refuse to Transfer the Title Deed?

A developer may threaten to withhold title transfer until the extra amount is paid. Whether this is lawful depends on the contractual and factual circumstances.

Where the buyer has performed the agreed obligations, withholding title solely to force payment of an unsupported additional amount may create grounds for legal action.

Can the Buyer Demand Title Transfer Through Court?

Depending on the contractual structure, title status, form of the transaction and other circumstances, litigation concerning title registration or performance may need to be considered.

The property records and agreement should be examined before selecting the remedy.

Check Who Owns the Property

Foreign buyers should verify the current registered owner. The developer selling the project may not always be the registered owner of the relevant land or unit.

This distinction can materially affect litigation strategy.

Check Whether the Unit Has Been Sold or Encumbered

If the dispute becomes serious, investigate whether the property has been transferred to another person or made subject to mortgages, attachments or other restrictions.

Early title-record review can be critical.

Interim Protection May Be Necessary

Where there is a credible risk that the disputed property will be transferred, encumbered or otherwise placed beyond the buyer’s reach, available interim judicial measures should be evaluated promptly.

Waiting until the developer sells the unit can make the dispute substantially more complicated.

What If the Developer Says “Pay More or We Will Sell the Apartment to Someone Else”?

Preserve the communication immediately. Such messages may become relevant evidence concerning the developer’s position and the urgency of legal protection.

The buyer should not respond by making threats or agreeing informally to a new price without understanding the consequences.

Be Careful When Signing an Addendum

A developer may present a supplementary agreement increasing the purchase price.

Signing it can materially alter the buyer’s legal position. The document should therefore be reviewed before signature, particularly where it includes a waiver, release, new delivery date or acknowledgment that the buyer owes additional money.

Do Not Sign a Debt Acknowledgment Without Review

A document described as an “updated payment plan” may also contain an acknowledgment of debt.

Foreign buyers who do not read Turkish should obtain an accurate translation and independent legal review before signing.

What If the Buyer Already Agreed to the Extra Payment?

The consequences depend on how the agreement was made, what was signed, whether payment occurred and the circumstances surrounding consent.

The original contract and subsequent communications should be reviewed together.

Pressure and Misrepresentation Should Be Documented

If the buyer was told that the property would immediately be lost unless a document was signed, preserve emails, messages and other lawful evidence concerning those representations.

The circumstances surrounding a later amendment can become relevant in a dispute.

Construction Delay and Extra Payment Can Become Separate Claims

Sometimes the developer both delays the project and demands additional money.

These issues should be separated analytically. The buyer may need to examine rights arising from delayed delivery independently from the validity of the additional-price demand.

Can the Buyer Claim Compensation for Delay?

Potentially, depending on the contract and circumstances. Relevant losses may include contractual delay compensation or other provable losses where the legal requirements are satisfied.

The agreed delivery date and any valid extension provisions should be identified first.

What If the Developer Blames Force Majeure?

The buyer should ask which specific event allegedly constitutes force majeure and how it affected the project.

General economic difficulty, inflation and higher costs should not automatically be treated as equivalent to every legally recognized force-majeure situation.

Foreign Currency Contracts Require Separate Analysis

Some foreign buyers purchase property using prices expressed or economically calculated in foreign currency. Currency clauses and applicable Turkish rules should be reviewed carefully.

Exchange-rate movements can also create disagreement about how much has actually been paid.

Verify the Payment Currency and Conversion Method

If installments were converted between currencies, preserve the contractual exchange-rate mechanism and bank records.

A developer should not retrospectively use a different conversion methodology merely to create an additional balance unless there is a proper legal basis.

What If the Property Was Purchased for Turkish Citizenship?

An additional-price dispute can become especially sensitive where the property is connected with a citizenship investment.

The buyer should ensure that any settlement, cancellation, refund or property substitution is considered together with the requirements and status of the citizenship process.

Do Not Cancel the Transaction Without Reviewing Citizenship Consequences

Where the investment has been used for a citizenship application, contractual remedies should be coordinated with immigration and citizenship considerations.

A commercially attractive refund may create separate consequences for the investment structure.

Review Construction Progress

Obtain current evidence showing how much of the project has actually been completed.

Photographs, technical reports and construction status can become important if the developer argues that completion is impossible without further payment.

Multiple Buyers May Be Facing the Same Demand

If the developer has requested additional payments from many purchasers, this can help clarify whether the issue is specific to one contract or reflects a broader project financing problem.

Each buyer’s contractual position should nevertheless be evaluated individually.

Investigate the Developer’s Financial Position

Repeated demands for emergency payments, prolonged delays and threats of cancellation can sometimes indicate broader financial difficulties.

Foreign buyers should consider whether mortgages, enforcement proceedings or other risks affect the project.

Should the Buyer Stop All Payments?

Not automatically. A complete payment suspension can create additional risks if undisputed installments remain due.

The disputed extra charge and ordinary contractual payment obligations should be distinguished carefully.

Send a Formal Legal Notice

Where appropriate, the buyer can formally dispute the additional demand, state that contractual rights are reserved and request performance according to the existing agreement.

The wording should reflect the specific contract rather than rely on a generic template.

Can the Buyer Terminate the Contract?

Potentially, depending on the developer’s breach, contractual provisions and applicable law.

Before termination, consider whether the buyer actually prefers completion and title transfer rather than repayment.

Can the Buyer Recover the Money Already Paid?

If the transaction is lawfully terminated or otherwise unwound, repayment claims may arise. The amount recoverable, interest and additional damages depend on the legal basis and facts.

Recovery risk should also be considered if the developer is experiencing financial distress.

Can the Buyer Claim Damages?

Potentially. If the developer breaches the contract and the legal requirements are satisfied, damages may be available.

The buyer should preserve evidence of payments, financing expenses, accommodation costs and other claimed losses.

Lost Profit Claims Require Strong Evidence

A buyer claiming that the property would have produced rental income or resale profit should expect greater evidentiary difficulty than simply proving amounts already paid.

Financial claims should be documented carefully.

What If the Developer Has Already Sold the Property to Someone Else?

Immediate review of the title records and transaction history may be necessary. Remedies can depend on the contractual structure, registration status and circumstances of the subsequent transfer.

Delay can materially complicate recovery.

Foreign Buyers Should Use Independent Legal Representation

The developer’s sales office, broker or recommended consultant represents commercial interests connected with the transaction.

A foreign buyer facing a substantial additional-payment demand should obtain independent review of the contract and title position.

Documents the Foreign Buyer Should Collect

The file should include the purchase agreement, annexes, payment plan, bank records, receipts, title information, project brochures, delivery promises, correspondence, WhatsApp messages, emails, additional-payment demands, proposed amendments and documents relating to construction progress.

A chronological file can significantly improve the legal assessment.

Immediate Action Plan

A foreign buyer who receives an unexpected construction-cost demand should immediately review the fixed purchase price and adjustment clauses, request the developer’s legal and contractual basis in writing, preserve all payments and communications, verify title ownership and encumbrances, continue distinguishing undisputed obligations from the contested amount, avoid signing amendments or debt acknowledgments without review, assess the risk of resale or encumbrance, and consider formal notice, interim protection or litigation where necessary.

Frequently Asked Questions

Must a foreign buyer pay more simply because construction costs increased?

Not automatically. The contract, price structure, adjustment provisions and legal basis relied upon by the developer must be examined.

Can the developer unilaterally change a fixed purchase price?

A fixed contractual price cannot simply be assumed to be freely adjustable. Any claimed right to increase it requires a valid contractual or legal basis.

What if the contract contains an inflation clause?

The exact wording and calculation mechanism should be reviewed. The clause does not necessarily authorize every amount demanded by the developer.

Can the developer cancel the sale if the buyer refuses the extra payment?

That depends on whether the developer actually has a valid termination right. A threat of cancellation does not itself establish such a right.

Can the developer refuse title transfer?

If title transfer is withheld despite the buyer fulfilling the agreed obligations, legal remedies may need to be considered depending on the contract and property status.

Should the buyer sign a revised payment plan?

Not before reviewing whether it changes the purchase price, delivery date, existing rights or includes an acknowledgment of additional debt.

What if the buyer has already paid the full agreed price?

The additional demand should be scrutinized carefully against the original contract before any further payment is made.

Can the buyer obtain an injunction to protect the property?

Depending on the circumstances and legal requirements, interim judicial protection may be considered where there is a risk of transfer or encumbrance.

Can the buyer terminate the contract and request a refund?

Potentially, depending on the nature of the developer’s breach and the contractual and legal framework.

What should the buyer do first?

Do not pay, refuse or sign anything solely because the developer says construction costs increased. First identify the agreed price, the exact adjustment clause—if any—the amount already paid, the current title status and the contractual basis allegedly allowing the developer to demand additional money.

Client-Focused Legal Support for Foreign Property Buyers in Turkey

Disputes over increased construction costs can quickly develop into additional-payment claims, delayed delivery, threatened contract cancellation, refusal of title transfer, refund disputes and urgent property-protection proceedings. Fırat Fesih Kaya Law Office assists foreign individuals and international investors purchasing residential and commercial real estate in Turkey. Lawyer Fırat Fesih Kaya provides legal assistance in reviewing developer contracts, challenging unsupported additional-payment demands, protecting properties against transfer or encumbrance, pursuing title-transfer and refund claims and seeking compensation arising from delayed or failed development projects.

Phone:
+90 312 434 22 22

Mobile:
+90 532 769 22 22

Email:
info@firatfesihkaya.av.tr

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