Practice area
Construction and Build-for-Share Agreements
Advice on drafting build-for-share and construction contracts between landowners, contractors and buyers, and on disputes arising from them.
Scope
A build-for-share agreement establishes a long-term and many-sided relationship between landowner and contractor. Setting out clearly from the outset matters such as completion dates, the allocation of units, defective work and delay is decisive in preventing later disputes. We look after the parties’ interests from the drafting of the contract through to the issue of the occupancy permit.
- Drafting build-for-share agreements executed in notarial form
- Reflecting the unit allocation schedule and security arrangements in the contract
- Staged transfers of title to the contractor and annotations on the register
- Contract review for buyers purchasing homes off-plan
- Advice and representation in disputes over delay, defective performance and incomplete work
- Overseeing the building permit, occupancy permit and conversion to full condominium ownership
Process
How it generally works
- Land and project review
The title and zoning status of the land, the contractor’s commercial records and the proposed project are reviewed.
- Negotiating the contract
Unit allocation, the completion date, penalty clauses and security are negotiated between the parties.
- Notarial execution
The agreement is executed before a notary in official form and, where appropriate, annotated on the register.
- Construction phase
Title transfers linked to progress and the conformity of the works with the contract are monitored at intervals.
- Handover and condominium
The occupancy permit is obtained, the construction servitude is converted into condominium ownership and the units are handed over.
- Land register record for the plot
- Zoning status certificate
- Architectural plans and building permit
- The contractor’s trade registry records and signature circular
- Bank security letter or other security documents
- Unit allocation schedule
- Progress payment and handover reports
Questions
Lawyers working in this area
- Av. Tarık Soylubey · TR EN DE
- Av. Emre Bayraktepe · TR EN
- Av. Burak Tülümen · TR EN
Why must a build-for-share agreement be made before a notary?
Because these agreements include an obligation to transfer a share of the land, they must be made in official form, that is, executed before a notary, in order to be valid. Agreements made in ordinary written form may give rise to questions of validity.
What happens if the contractor does not finish on time?
The penalty, delay compensation and termination clauses in the contract determine the remedies available to the landowner. Which course to take is assessed separately, according to the cause of the delay and the stage the construction has reached.
What should I check when buying a home off-plan?
The seller’s rights over the land, the building permit and whether a construction servitude has been established should be examined. In pre-paid housing sales, the conditions laid down by consumer legislation should also be reviewed.
This content is for general information only and does not constitute legal advice.
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