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New Regulations in Turkey’s Construction Sector

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Turkey construction sector
Nova Property

The draft legislation which is due to become law in June proposes important changes in the construction sector.

There will be no insurance together with mortgage credit unless the consumer specifically asks for it, and in the event that the consumer does take out insurance, the policy signed by the consumer with the insurance company he or she wants will be accepted.

NO LICENSE NO MODEL

Construction mortgage insurance-Making pre-paid home sales, also known as selling based on a model, will require that a construction license has already been obtained. In other words, homes cannot be sold before the land is acquired, the property project is prepared and approved by the municipality.

-For real estate projects larger than the standard determined by the Ministry of the Environment and Urbanization (being considered as 100 or more homes), it will become obligatory to take out buildings insurance.

-The consumer will have the right to retract from the pre-paid housing contract within 14 days.

-The maximum period for completion of homes will rise from 30 months to 36 months.

-The consumer will be able to opt out of buying the property prior to the date of completion and hand-over of the home, subject to paying the costs and up to 2 per cent compensation.

-The ministry will no longer issue ‘campaign sales permits’. By doing this, the ministry is aiming to erase the incorrect notion that home sales are under the guarantee of the state.

TOKI homes will also be ‘faulty’

-The new legislation covers the goods and services supplied by the public sector as well as those supplied by the private sector. This brings TOKI, which have built 500 thousand homes under the scope of the legislation also. So if the walls of the TOKI home bought by a consumer cracks, or if the roof leaks, it can be returned as a ‘faulty’ good.