Buying Off-Plan (From a Model): Risks and Protections

Buying a unit in a project that is not yet finished, or has not even started, generally offers a lower price and a more flexible payment plan than a finished unit. In exchange, the buyer takes on risks such as delivery delays, changes to the project, the contractor running into financial trouble, and the occupancy permit not being obtained.

Legal framework: pre-paid housing sales

Sales to consumers where all or part of the price is paid in advance and the home is delivered later are regulated under the Law on the Protection of Consumers as pre-paid housing sales. These contracts must be drawn up at a notary, must contain certain information, and must give the consumer a right of withdrawal. The law also gives the consumer, under certain conditions, the right to rescind the contract or to terminate it against limited compensation.

What the contract must include

• The unit's block/parcel, block, floor and independent-unit number; its gross and net area.
• A reference to the approved project and a list of the materials to be used.
• A firm delivery date and the penalty payable in case of delay.
• The payment plan and the account payments are to be made to.
• Who will obtain the occupancy permit and by when.
• The guarantees given by the contractor.

Construction servitude and the title deed

Units bought off-plan are often deeded with a construction servitude (kat irtifakı) before the building is finished. A construction-servitude deed is the preliminary stage of the condominium ownership to be established later, and registers the land share in your name. Getting the deed early largely protects you if the contractor runs into financial trouble.

Research the contractor

• Visit projects they have previously delivered and talk to the residents there.
• Find out from the municipality whether their past projects obtained occupancy permits on time.
• Ask about the project's building permit and the flat-for-land agreement with the landowners.
• Projects backed by a bank loan offer some extra assurance; the bank having evaluated the project is a good sign.