

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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Yes, subject to appropriate authorization. This can be particularly important where the buyer cannot travel frequently while concordat proceedings and related property disputes continue.
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.
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.
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.
Signing a settlement or replacement agreement may include releases, waivers or acknowledgment clauses.
A buyer should understand precisely which existing claims are being abandoned.
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.
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.
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.
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.
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.
Concordat is not a one-time announcement.
Court decisions, commissioner reports, creditor procedures and the developer’s financial position can change during the process.
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.
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.
No. The effect depends on the legal structure of the purchase, title status, contract and stage of performance.
Full payment alone should not automatically be equated with registered ownership. The contract and land-registry position must be examined.
Potentially, depending on the legal status of the transaction, the property and the concordat proceedings.
Not automatically. The contract and developer’s ability to perform should be reviewed before payments are suspended.
Potentially. However, converting the relationship into a monetary claim may have important consequences in an insolvency situation, so the alternatives should first be compared.
The mortgage’s date, scope and legal priority should be investigated immediately.
Where the buyer has a claim subject to the concordat process, the relevant creditor procedures and deadlines should be examined promptly.
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.
The effect on the underlying investment and citizenship process should be examined separately together with the property dispute.
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.
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