Property Developer Enters Concordat Proceedings in Turkey: Rights of Foreign Buyers (2026 Updated Guide)

What happens when a property developer enters concordat proceedings in Turkey? Learn the rights of foreign buyers regarding unfinished apartments, title deeds, payments, claims, guarantees, termination and recovery.

A foreign buyer may purchase an apartment, villa or commercial property in Turkey while the project is still under construction and make substantial payments before receiving the title deed. If the developer subsequently enters concordat proceedings, the buyer may suddenly face uncertainty about construction, delivery, title transfer and recovery of money already paid. The existence of concordat does not automatically mean that the buyer loses the property or every payment made, but it can fundamentally change how claims against the developer are pursued. The buyer should immediately determine the legal status of the property, whether title has already been transferred, how much has been paid, whether the sale has been formally protected, what security exists and how the buyer’s rights should be asserted within the concordat process.

What Is Concordat in Turkey?

Concordat is a court-supervised restructuring mechanism intended to address a debtor’s financial difficulties while providing a legal framework for dealing with creditors. For a property developer, this can affect bank debts, contractors, suppliers, employees and purchasers who have paid for properties that have not yet been delivered or transferred.

For foreign buyers, the critical question is not simply whether the developer is in concordat. It is what legal right the individual buyer holds against the developer and the property.

Does Concordat Mean the Construction Company Is Bankrupt?

No. Concordat and bankruptcy should not automatically be treated as the same procedure. A developer entering concordat may continue operating and may seek to complete projects as part of its restructuring.

However, buyers should not assume that construction will continue normally. The financial and legal status of the project must be investigated immediately.

First Determine Whether the Title Deed Has Been Transferred

This is one of the most important distinctions.

A buyer who already holds registered ownership may be in a fundamentally different position from a buyer who has only signed a private sales agreement and paid the developer.

The land registry should therefore be reviewed immediately.

What If the Buyer Already Owns the Property?

If ownership has validly transferred to the buyer, the property does not automatically become an asset belonging to the developer merely because the developer later enters concordat.

Nevertheless, mortgages, attachments, construction issues, common-area obligations or other registered restrictions may still create problems.

What If the Title Deed Is Still in the Developer’s Name?

This situation requires substantially greater caution.

A foreign buyer may have paid most or all of the purchase price but still hold only a contractual right to demand transfer. The legal consequences depend on the form and content of the agreement, land-registry status, project structure and other circumstances.

Review the Property Sale Agreement Immediately

The contract should be examined for the exact property, purchase price, payment schedule, delivery date, title-transfer obligation, construction specifications, termination provisions, penalties, guarantees and dispute-resolution clauses.

Do not rely solely on brochures, advertisements or verbal promises made by sales representatives.

Was the Contract Made in the Legally Required Form?

Real-estate transactions are subject to formal legal requirements. Whether a document gives the buyer merely a contractual monetary claim or supports stronger rights concerning transfer can depend on how the transaction was structured.

The contract should therefore be legally reviewed before deciding whether to demand performance, terminate or register a monetary claim.

Check Whether the Buyer’s Right Is Registered or Annotated

Where relevant, determine whether any contractual right has been formally protected through the land registry.

A buyer whose rights have been properly reflected in official records may face a different legal position from someone holding only an unregistered private document.

Obtain a Current Land Registry Record

The current registry should be checked for mortgages, attachments, liens, rights of third parties, ownership changes and other restrictions.

This should be done even if the buyer previously obtained a clean record at the time of purchase.

Check Whether the Developer Mortgaged the Project

Developers frequently finance construction through bank loans secured against project land or individual units.

A foreign buyer who has paid for an apartment should determine whether a mortgage exists and when it was registered.

Priority Can Become Critical

Concordat may involve numerous competing creditors. Banks, secured creditors, contractors, public authorities and buyers may have different legal positions.

The date and nature of each right can therefore be extremely important.

Buyers Should Identify the Concordat Court and File

The buyer should determine which court is handling the concordat proceeding and obtain the relevant case information.

Important matters may include temporary or definitive concordat periods, commissioner appointments, creditor announcements and decisions affecting the developer’s activities.

Monitor Official Creditor Announcements

A buyer should not assume that the developer will personally contact every foreign purchaser.

The concordat process can contain formal announcements and deadlines affecting creditor participation. Missing a procedural opportunity can complicate recovery.

Should the Foreign Buyer Register a Claim?

Where the buyer has a monetary or other claim against the developer, it may be necessary to take appropriate action within the concordat process.

The exact claim should be calculated and documented carefully rather than submitting only a general statement that an apartment was purchased.

What Documents Should the Buyer Collect?

The buyer should immediately preserve the sale agreement, payment receipts, bank transfers, invoices, title records, construction specifications, correspondence, delivery promises, advertisements, photographs and communications with the developer.

If payments were made from abroad, retain the international banking records.

WhatsApp and Email Correspondence Can Be Important

Messages concerning completion dates, promised title transfer, defects, payment demands and acknowledgments by the developer may become relevant evidence.

Preserve the original communications rather than keeping only isolated screenshots.

Foreign Currency Payments Should Be Documented

Where the purchase price was paid in euros, dollars or another currency, preserve the payment date, currency and banking evidence.

Currency issues may become important when calculating claims and losses.

Should the Buyer Continue Paying Installments?

A buyer should not automatically continue or stop payments simply because concordat has been announced.

The contract, project status, court-supervised process and developer’s ability to perform should first be evaluated. Unilateral non-payment without legal analysis may create a separate contractual dispute.

Can the Developer Demand Remaining Installments?

Potentially, depending on the contractual relationship and status of the transaction. Concordat does not automatically eliminate every receivable owed to the developer.

The buyer should examine whether the developer remains capable of performing the corresponding obligations.

Can the Buyer Demand Completion of the Apartment?

Potentially, depending on the legal status of the contract, project and concordat process.

For some buyers, obtaining the property may be commercially more valuable than receiving only partial recovery of a monetary claim. The strategy should therefore be selected before automatically terminating the contract.

Performance or Refund: Which Is Better?

There is no universal answer.

If construction is almost complete and the apartment can realistically be transferred, pursuing performance may be attractive. If construction has stopped indefinitely and the project is heavily encumbered, recovery of money or other remedies may become more important.

The buyer should compare both scenarios.

Check the Actual Construction Percentage

Do not rely solely on the developer’s statements.

Photographs, site inspections, technical reports and project documentation can help determine whether the development is genuinely close to completion.

What If Construction Has Completely Stopped?

The buyer should investigate why. The cause may involve lack of financing, unpaid contractors, permit problems, attachments, termination of construction contracts or other issues.

The possibility of project completion depends heavily on the underlying cause.

Can the Buyer Terminate the Contract?

Potentially, but termination should be evaluated carefully within the particular contractual and concordat context.

A buyer who terminates may convert a demand for property transfer into a monetary claim. That change can materially affect the buyer’s economic position.

Do Not Terminate Automatically

Before sending a termination notice, determine what the buyer would receive if the contract remained in force and what legal position would result after termination.

The difference can be substantial.

What Happens to Advance Payments?

Payments already made do not simply disappear, but recovery depends on the buyer’s legal position, available security, developer’s assets and concordat outcome.

Detailed proof of every payment should be maintained.

What If the Buyer Paid the Full Price?

Full payment can strengthen the factual basis of the buyer’s claim but does not by itself guarantee title transfer if ownership remains registered to the developer.

The formal legal status of the sale remains critical.

What If the Developer Sold the Same Apartment Twice?

This creates a significantly more serious dispute.

The buyer should immediately examine the land registry, competing contracts, payment dates and whether another purchaser has obtained registered ownership.

Urgent legal measures may need to be considered.

Can the Developer Sell the Property During Concordat?

The ability to dispose of important assets can be affected by the court-supervised concordat framework and specific court decisions.

Any suspicious transfer involving the buyer’s unit should therefore be investigated promptly.

Can an Injunction Be Requested?

Depending on the nature of the buyer’s claim and applicable procedural requirements, interim judicial protection may potentially be considered to prevent an irreversible transfer or other prejudice.

The availability of such relief depends on the specific facts and evidence.

Bank Guarantees and Other Security Should Be Checked

Some property transactions may involve guarantees, collateral or other security arrangements.

The buyer should determine whether any security exists independently of the developer’s general financial position.

What About a Bank Mortgage on the Apartment?

A registered mortgage can significantly affect the buyer’s position. Determine when the mortgage was established, what debt it secures and how it relates to the buyer’s rights.

Do not assume that paying the developer automatically removes the bank’s registered security.

Contractors May Also Have Claims Against the Project

Unpaid construction contractors and subcontractors can create additional disputes affecting completion.

Foreign buyers should understand the overall project structure rather than viewing their individual apartment in isolation.

Obtain Information About Other Buyers

Where many purchasers face the same problem, common factual issues may exist concerning construction, mortgages, title transfers and developer representations.

However, each buyer’s contract and payment history should still be examined individually.

Can a Foreign Buyer Participate in Turkish Proceedings?

Foreign nationality does not prevent a purchaser from asserting contractual or property rights through the Turkish legal system.

The buyer should ensure that procedural representation and documentation are properly organized.

Can a Buyer Living Abroad Act Through a Lawyer?

Yes, subject to appropriate authorization. This can be particularly important where the buyer cannot travel frequently while concordat proceedings and related property disputes continue.

Citizenship-by-Investment Buyers Face Additional Risks

If the property was purchased as part of a citizenship investment, developer financial distress can create issues beyond ordinary delivery and refund disputes.

The buyer should examine whether the property transaction and registered rights continue to satisfy the requirements relevant to the investment process.

Do Not Make Additional Payments to Unknown Accounts

Financially distressed developers may request that purchasers pay new accounts, affiliated companies or third parties.

Before making such payments, verify the legal recipient and contractual basis carefully.

Be Careful With New Agreements

A developer may offer a replacement apartment, revised delivery date, discount or new payment plan.

Any amendment should be reviewed for its effect on existing rights before signature.

Do Not Surrender Existing Rights Without Understanding the Consequences

Signing a settlement or replacement agreement may include releases, waivers or acknowledgment clauses.

A buyer should understand precisely which existing claims are being abandoned.

Claims for Delay May Still Matter

If the developer has already missed the contractual delivery date, the buyer may have claims arising from delay depending on the agreement and circumstances.

These claims should be identified when calculating the buyer’s overall position.

Rental Loss May Be Relevant

A buyer who purchased property for rental income may allege losses caused by delayed delivery. Whether such losses can be recovered depends on proof, causation and the applicable legal framework.

Evidence should nevertheless be preserved.

Currency and Inflation Can Magnify the Loss

A refund of the nominal amount paid years earlier may have a very different economic value from receiving the contracted property.

This is another reason why the choice between performance, termination and monetary recovery requires careful analysis.

What If the Concordat Fails?

If the restructuring is unsuccessful, the developer may face more serious insolvency consequences, potentially including bankruptcy depending on the circumstances and court decisions.

Buyers should therefore evaluate both successful and unsuccessful concordat scenarios.

What If the Concordat Is Approved?

An approved restructuring can affect how creditor claims are treated and paid.

The buyer should understand whether their particular right is affected by the plan and whether the project is expected to continue.

Foreign Buyers Should Monitor the Case Continuously

Concordat is not a one-time announcement.

Court decisions, commissioner reports, creditor procedures and the developer’s financial position can change during the process.

Warning Signs Requiring Immediate Legal Review

Particular urgency exists where the developer has stopped construction, refuses to transfer title, requests unusual additional payments, has mortgaged the property, appears to have sold the same unit again, proposes a waiver agreement or faces simultaneous enforcement and insolvency problems.

Immediate Action Plan for Foreign Buyers

A foreign purchaser should immediately obtain the current title record, review the sale contract, document every payment, identify mortgages and other encumbrances, determine the concordat court and case status, monitor creditor procedures, investigate the actual construction stage, calculate the buyer’s claims and decide whether the principal objective should be title transfer, completion, termination, refund or another remedy.

The strategy should be selected before irreversible contractual steps are taken.

Frequently Asked Questions

Does the developer’s concordat automatically cancel my property purchase?

No. The effect depends on the legal structure of the purchase, title status, contract and stage of performance.

I paid the entire price but have no title deed. Do I own the apartment?

Full payment alone should not automatically be equated with registered ownership. The contract and land-registry position must be examined.

Can I still demand the title deed?

Potentially, depending on the legal status of the transaction, the property and the concordat proceedings.

Should I stop paying installments?

Not automatically. The contract and developer’s ability to perform should be reviewed before payments are suspended.

Can I ask for my money back?

Potentially. However, converting the relationship into a monetary claim may have important consequences in an insolvency situation, so the alternatives should first be compared.

What if there is a bank mortgage on my apartment?

The mortgage’s date, scope and legal priority should be investigated immediately.

Can I register my claim in the concordat?

Where the buyer has a claim subject to the concordat process, the relevant creditor procedures and deadlines should be examined promptly.

Can the developer sell my apartment to another person?

If ownership remains with the developer, the risk of third-party transactions should be investigated. Depending on the circumstances, urgent protective remedies may need to be considered.

What if I purchased the property for Turkish citizenship?

The effect on the underlying investment and citizenship process should be examined separately together with the property dispute.

What should a foreign buyer do first?

Obtain the current land-registry record and the concordat case information before making further payments, terminating the agreement or signing a restructuring proposal. The buyer’s strategy depends primarily on whether ownership has transferred, what security exists and how the contractual claim is treated within the developer’s financial restructuring.

Client-Focused Legal Support for Foreign Property Buyers

A developer’s concordat can create simultaneous issues involving unfinished construction, title transfer, mortgages, creditor claims, installment payments, contract termination, refund demands and emergency protection against third-party transfers. Fırat Fesih Kaya Law Office assists foreign property buyers and investors facing developer insolvency and concordat-related real-estate disputes. Lawyer Fırat Fesih Kaya provides legal assistance in reviewing sale contracts and land-registry records, protecting purchaser claims in concordat proceedings, evaluating title-transfer and refund strategies, challenging problematic property transactions and pursuing appropriate judicial remedies.

Phone: +90 312 434 22 22

Mobile / WhatsApp: +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