Developer Abandons a Real Estate Project in Turkey: How Can Foreign Buyers Recover Their Investments? (2026 Updated Guide)

A developer abandons a real estate project in Turkey after receiving payments from foreign buyers. Learn about contract termination, refund claims, title deed lawsuits, interim injunctions, asset attachment, compensation and fraud risks.

Foreign buyers purchasing off-plan apartments, villas or commercial properties in Turkey can face substantial losses if the developer stops construction, abandons the project, becomes insolvent or disappears after collecting purchase payments. The buyer may have paid a deposit or substantial installments while the property remains unfinished and the title deed has not been transferred. In such circumstances, waiting indefinitely for construction to restart can increase the risk of losing both the property and the investment. The buyer should immediately examine the sale agreement, title deed records, construction status, developer’s assets, mortgages and attachments affecting the property, payments already made and whether other buyers are facing the same problem. Depending on the circumstances, legal remedies may include demanding completion or transfer, terminating the agreement, seeking repayment and damages, requesting interim protection, pursuing enforcement proceedings and, where genuine criminal conduct is indicated, filing a criminal complaint.

When Is a Real Estate Project Considered Abandoned?

A temporary construction delay should be distinguished from genuine abandonment. Warning signs may include complete cessation of construction, removal of workers and equipment, closure of the developer’s office, inability to contact company representatives, unpaid subcontractors, numerous enforcement proceedings, mortgages or attachments against the project, insolvency proceedings or attempts to sell the same units to new buyers.

The legal strategy depends on the actual reason construction stopped.

Review the Sale Agreement Immediately

The contract is the starting point. Foreign buyers should determine exactly what the developer promised concerning the property, completion date, delivery date, title transfer, specifications, payment schedule, delay compensation and termination.

The legal effect of the agreement should also be examined according to its form and the circumstances of the transaction.

Determine Whether the Buyer Has Received the Title Deed

This distinction can radically affect the case. Some buyers may already hold registered title but face an unfinished property, while others may have paid substantial sums without receiving title.

A buyer without title should investigate the project’s current land registry status immediately.

Obtain Current Land Registry Records

The property may have changed significantly since the contract was signed. Check ownership, mortgages, attachments, annotations, rights in favor of third parties and other restrictions affecting the project.

Do not rely on an old title deed document provided by the developer.

Check Whether the Developer Still Owns the Land

In some projects, the developer may never have owned the land directly and may instead be constructing under an agreement with the landowner.

This can create additional disputes concerning the developer, landowner and buyers.

Investigate Mortgages

A project may be subject to substantial bank financing. If mortgages were registered before or during construction, their legal effect should be assessed before deciding whether pursuing title transfer remains commercially sensible.

Check for Attachments and Enforcement Proceedings

Multiple creditor attachments can indicate serious financial distress. Buyers should determine whether enforcement proceedings have already reached the developer’s real estate, bank accounts or other assets.

Speed can become important where many creditors are competing for limited assets.

Can the Foreign Buyer Demand Completion?

Depending on the contract and circumstances, the buyer may potentially seek performance of contractual obligations rather than immediately demanding a refund.

However, a court victory requiring completion may have limited practical value if the developer has no financial capacity to finish the project.

Can the Buyer Demand Transfer of the Property?

Where the legal and factual conditions support a claim for transfer, title-related remedies should be evaluated. The precise remedy depends on the agreement, its legal validity, registration status, ownership structure and third-party rights.

This analysis should be completed before choosing between obtaining the property and recovering money.

Can the Buyer Terminate the Contract?

Potentially. Serious non-performance, prolonged failure to deliver or abandonment may support contractual remedies including termination under the applicable legal framework.

Termination should be handled carefully because its legal consequences affect both parties’ obligations and the buyer’s repayment claim.

Can the Buyer Recover the Purchase Price?

Where termination or another legal basis supports repayment, the buyer may seek recovery of amounts paid to the developer.

Bank transfers, receipts, payment schedules and correspondence should be collected immediately.

Cash Payments Can Create Evidentiary Problems

Foreign buyers sometimes make payments in cash or through intermediaries. If a payment does not appear clearly in banking records, preserve receipts, signed acknowledgments, messages, emails and other evidence establishing the transfer.

Foreign-Currency Payments Require Careful Analysis

If the buyer paid in euros, dollars or another foreign currency, the contract and applicable legal rules should be reviewed to determine the appropriate repayment claim.

The buyer should preserve evidence showing the currency and date of every payment.

Can the Buyer Claim Interest?

Interest may potentially be claimed depending on the nature of the debt, contractual provisions, default and applicable legal rules.

The correct starting date and type of interest should be determined according to the specific claim.

Can Additional Damages Be Claimed?

Potentially. A foreign buyer may suffer losses beyond repayment of the purchase price, including financing costs, temporary accommodation expenses or other provable losses.

The existence and amount of recoverable damages depend on causation, foreseeability, contractual provisions and the applicable legal framework.

Lost Profit Claims Require Strong Evidence

A buyer may argue that the property would have generated rental income or increased in value. Such claims should not be based merely on speculation.

Documented rental arrangements, market evidence and expert valuation may become relevant depending on the claim.

Property Value Increase Can Become Important

If a buyer paid for a property years earlier and receives only the original nominal amount after a long dispute, substantial economic loss may result.

The legal strategy should therefore consider the nature of the available restitution and compensation claims rather than focusing only on the original payment figure.

Send a Formal Notice to the Developer

Before or alongside litigation where appropriate, the buyer may need to place the developer formally in default, demand performance, request repayment or communicate termination.

The content of the notice should match the legal strategy. Contradictory demands can complicate later proceedings.

Do Not Sign a New Agreement Without Reviewing It

Financially distressed developers may offer revised completion dates, replacement units, settlement agreements or repayment plans.

Signing a new document can alter existing rights. Foreign buyers should understand whether the document waives earlier claims or releases the developer from liability.

Be Careful With Replacement Apartment Offers

A developer may offer a unit in another project instead of repayment. Before accepting, verify the new property’s ownership, construction status, mortgages, permits and market value.

A buyer should not exchange one uncertain investment for another without due diligence.

Interim Injunctions Can Be Critical

If there is a risk that the disputed property will be transferred or legally altered during litigation, the possibility of interim judicial protection should be evaluated immediately.

The requirements depend on the requested measure and circumstances.

Precautionary Attachment May Also Be Relevant

Where the buyer’s principal claim is monetary and the legal conditions are satisfied, precautionary attachment may potentially help preserve assets against enforcement.

Timing can be particularly important when the developer is experiencing severe financial distress.

Investigate the Developer’s Other Assets

The project itself may not be the only source of recovery. Depending on the enforcement stage and legally available mechanisms, other real estate, bank accounts, vehicles, receivables or company assets may become relevant.

Company and Shareholder Assets Are Not Automatically the Same

If the developer is a limited liability or joint-stock company, the company’s obligations should not automatically be treated as the personal debts of shareholders or managers.

Personal liability requires a separate legal basis.

Can Company Managers Be Personally Liable?

Potentially in specific circumstances, but management status alone does not automatically make a manager personally responsible for every contractual debt.

Personal conduct, guarantees, unlawful transactions and other relevant legal grounds should be examined separately.

Asset Transfers Should Be Investigated

If the developer transferred valuable property to related parties after financial problems emerged, those transactions may require examination.

Transfers to shareholders, relatives, affiliated companies or other connected persons should not automatically be assumed fraudulent, but suspicious transactions can become relevant to creditor-protection remedies.

Insolvency Changes the Strategy

If the developer enters bankruptcy, restructuring or another collective debt procedure, ordinary litigation may no longer be the only issue.

Buyers should identify procedural deadlines and determine how their claims must be asserted.

Multiple Buyers May Be Affected

Abandoned projects frequently involve dozens or hundreds of buyers. Evidence from other purchasers can reveal patterns concerning duplicate sales, false completion promises, payment collection or asset transfers.

Nevertheless, each buyer’s contract, payments and property position should be analyzed individually.

What If the Same Apartment Was Sold Twice?

Multiple sales of the same unit can create serious civil and potentially criminal issues. Immediately obtain land registry records and compare contracts, payment dates and representations made to each buyer.

Priority and available remedies depend on the legal status of the competing transactions.

What If the Developer Sold the Land to Someone Else?

The effect of a later transfer depends on the buyer’s legal position, contract, any registered rights and the circumstances surrounding the transfer.

Urgent title investigation and litigation strategy may be required.

Construction Permits Should Be Checked

Some abandoned developments suffer from regulatory problems rather than only financial problems. Check whether construction permits, approved plans and other necessary project authorizations exist and remain relevant.

A project that cannot legally be completed presents a different recovery problem from a project that simply lacks financing.

Unauthorized Construction Can Affect the Buyer’s Choice

If the building materially violates approved plans or legal requirements, insisting on completion may not be the most effective remedy.

Technical and municipal records should be reviewed before litigation strategy is finalized.

Obtain an Independent Technical Report

An engineer or architect can document the percentage of construction completed, defects, missing work and estimated cost of completion.

This can be valuable where the developer claims that the project is almost finished despite visible abandonment.

Preserve Photographic Evidence

Take dated photographs and videos of the construction site. Preserve advertisements, brochures, floor plans and promotional materials showing what was promised.

Online advertisements can later disappear.

Save Emails and Messaging Records

Communications may show promised completion dates, admissions of delay, repayment promises or explanations for the abandonment.

Preserve original electronic records rather than only isolated screenshots where possible.

Preserve Marketing Representations

Foreign buyers may have purchased based on statements concerning guaranteed rental income, hotel operation, citizenship eligibility, completion dates or investment returns.

The legal significance of those representations depends on the circumstances, but the evidence should be preserved.

Was the Property Purchased for Citizenship?

If the real estate transaction was connected with an investment-based citizenship application, abandonment can create additional complications.

The buyer should separately review whether the property and transaction continue satisfying the requirements relevant to the citizenship process.

Do Not Assume a Citizenship Application Protects the Investment

Immigration or citizenship procedures do not replace ordinary property due diligence.

The buyer’s contractual and property rights must still be protected independently.

Can the Buyer Start Enforcement Proceedings?

Depending on the nature and maturity of the monetary claim, enforcement proceedings may potentially be available.

The appropriate route should be selected after reviewing the contract, payment evidence and any anticipated objections.

What If the Developer Objects to the Debt?

The dispute may then require additional enforcement or court proceedings depending on the procedural route selected.

Evidence of payment and contractual non-performance becomes central.

Mandatory Mediation May Need to Be Considered

Depending on the legal characterization of the dispute and the parties involved, mandatory mediation requirements may apply before litigation.

The procedural route should therefore be determined before filing the case.

Can the Buyer File a Criminal Complaint?

A failed real estate project does not automatically constitute fraud. Business failure, construction delay and insolvency can remain civil matters.

However, a criminal complaint may become relevant where there is concrete evidence of intentional deception, fraudulent representations, duplicate sales, forged documents or other conduct satisfying the elements of a criminal offense.

Do Not Use Criminal Proceedings Merely to Collect a Civil Debt

The existence of an unpaid refund does not by itself transform a contractual dispute into criminal fraud.

The criminal allegations must be supported by facts showing the required criminal conduct and intent.

What If the Developer Collected Money Knowing the Project Would Never Be Built?

Evidence that money was collected through deliberate false representations despite knowledge that the promised project could not be delivered may materially change the legal analysis.

Corporate, financial and communication records can become important.

Can Assets Be Seized During a Criminal Investigation?

Where the statutory conditions for criminal protective measures are satisfied, seizure or other measures may arise in criminal proceedings. These measures are distinct from civil precautionary attachment and enforcement.

Foreign buyers should not assume that a criminal complaint automatically secures repayment.

Civil Recovery Should Be Protected Independently

Even where a criminal investigation exists, the buyer should separately evaluate civil, enforcement and property-law remedies.

Waiting exclusively for the criminal investigation can create additional recovery risks.

What If the Developer Has No Assets?

Obtaining a favorable judgment does not guarantee collection. Before investing substantial time in litigation, the buyer should investigate the debtor’s financial position and available enforcement possibilities.

Asset recovery strategy should begin early.

Review Payments to Related Companies

Sometimes the sale agreement names one company while payments were transferred to another company or individual.

Determine why the money was paid to that recipient and the legal relationship between the entities.

Foreign Buyers Should Preserve International Payment Records

SWIFT records, bank statements, foreign bank confirmations and currency-conversion records can establish both payment and source of funds.

These documents can be especially important where the developer disputes the amount received.

Power of Attorney Should Be Reviewed

Foreign buyers frequently purchase property through representatives. Examine whether the representative acted within the authority granted and whether payments or contracts were handled properly.

Any conflict of interest should be investigated.

Real Estate Agents May Have Separate Liability

If a broker or consultant made independent misrepresentations or mishandled funds, potential responsibility should be assessed separately from the developer’s liability.

Do not assume every intermediary is legally responsible for the developer’s breach.

2026 Strategy for Foreign Buyers

A foreign buyer facing an abandoned project should avoid focusing exclusively on the question, “When will construction restart?” The more important questions are whether the developer remains financially capable of performing, who currently owns the property, which mortgages and attachments exist, whether assets are being transferred and which legal remedy offers the greatest realistic recovery.

A rapid combination of land registry investigation, contractual analysis, asset investigation, evidence preservation and appropriate interim protection can be significantly more effective than waiting for repeated informal promises.

Immediate Action Plan

The foreign buyer should immediately obtain the sale agreement and payment records, secure current land registry information, investigate mortgages and attachments, determine the actual construction status, preserve communications and advertisements, examine the developer’s financial position, review whether other buyers are affected, calculate the amount already paid, evaluate performance versus termination and refund, consider interim injunction or precautionary attachment where legally available, review enforcement options and assess criminal proceedings only where concrete evidence indicates criminal conduct.

Frequently Asked Questions

Can a foreign buyer recover money if the developer abandons the project?

Potentially. The available remedy depends on the contract, payments, legal status of the project and grounds for termination or other restitution claims.

Can the buyer demand the apartment instead of a refund?

Potentially, depending on the validity and enforceability of the agreement, ownership structure, registered rights and third-party interests.

Can the property be prevented from being sold during the lawsuit?

Where the legal conditions are satisfied, interim judicial measures may potentially be requested. The appropriate measure depends on the claim and facts.

What if the project is mortgaged to a bank?

The mortgage’s date, scope and priority should be examined immediately because it can materially affect the buyer’s position.

Can the buyer recover more than the original purchase price?

Potentially, depending on the legal basis and provable losses. Interest, damages and other claims require case-specific analysis.

What if the developer offers another apartment?

The replacement property should undergo independent title, mortgage, construction and regulatory due diligence before any settlement is signed.

Does abandonment automatically constitute fraud?

No. A failed or insolvent project is not automatically a criminal offense. Fraud requires facts satisfying the relevant criminal-law elements.

Can a foreign buyer file both civil and criminal proceedings?

Potentially, where independent legal grounds exist. A criminal complaint should not replace necessary civil and enforcement measures.

What if several foreign buyers were affected by the same project?

Common evidence can be useful, but each purchaser’s contract, payments, unit and title position should still be reviewed individually.

What should a foreign buyer do first?

Immediately investigate the current title and financial status of the project before relying on further promises from the developer. The central question is not only whether the buyer has a valid claim, but whether the property or other assets can still be protected before they are transferred, attached or exhausted by other creditors.

Client-Focused Legal Support for Abandoned Real Estate Projects

Foreign buyers facing an abandoned development may need urgent assistance concerning title deed records, developer insolvency, contract termination, purchase-price recovery, title transfer claims, interim injunctions, precautionary attachment, enforcement proceedings, duplicate sales and potential real estate fraud. Fırat Fesih Kaya Law Office assists foreign property buyers and international investors in disputes arising from unfinished and abandoned real estate developments. Lawyer Fırat Fesih Kaya provides legal assistance in investigating project ownership and encumbrances, protecting disputed properties and developer assets, pursuing refund or property-related claims, handling enforcement proceedings and coordinating civil and criminal remedies where the circumstances require them.

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