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What is the Legal Nature of Construction Contracts of Flat for Land?
A construction contract of flat for land is a type of contract in which the contractor undertakes the obligation to construct a specified work on the land owned by the employer, and in return, the employer commits to transferring certain shares of the land or the constructed work to the contractor. Although not specifically regulated in the special provisions of the Turkish Code of Obligations, it is a hybrid and double-natured contract that combines elements of both a contract of work and a sales contract. The valid establishment of such agreements requires their preparation and signing before a notary. Due to its sui generis nature, the construction contract of flat for land brings certain problems and disputes in prac...
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I. What are Construction Contracts of Flat for Land?
Construction contracts of flat for land are agreements where the contractor undertakes the construction on the immovable property belonging to the landowner with their own financing. In return, the landowner promises to transfer the immovable property to the contractor as payment. In other words, the contractor undertakes to create a building, and the landowner undertakes to pay a price through the transfer of a land share.
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WHAT IS THE MEANING OF FIDIC? FIDIC refers to the "Fédération Internationale des Ingéniurs Conseils" in other words, the "International Federation of Consulting Engineers" which was established in Lausanne, Switzerland in 1913. France, Belgium, and Switzerland are founding members of FIDIC. Only one organization from each country can become a member of the federation and today the federation is an international professional organization with members from 78 countries. Association of Turkish Consulting Engineers and Architects (ATCEA) affiliated with the federation in 1987 and became Turkey's representative in the federation.
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In practice, the contract which the contractor has the obligations to build the construction determined in the contract and act as intermediary for the sale of independent sections whereas the landowner undertakes to sell independent sections to the third parties and to share the revenue which comes from the sale of independent sections with the contractor is named as Revenue Sharing Construction Contracts. However, such contracts are not expressly regulated in our legislation. Within this context, provisions regarding contract types regulated in our legislation are applied comparatively considering the elements included in such contracts, which are characterized as mixed contracts where both parties have reciprocal obligations in the sense of Law of Obligations.
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The pre-paid housing sale is regulated under the title of “pre-paid housing sales contract” in the Law on Consumer Protection and in the Regulation on Pre-paid Home Sales. However, although pre-paid housing sale is a popular way of housing sale, neither the Law nor the Regulation has any provision regarding the late delivery in pre-paid housing sales. Therefore, regarding the late delivery in pre-paid housing sales which is one of the most important problems that is faced with in pre-paid housing sales, the general provisions must be examined as a result of the Law on Consumer Protection which states that the general provisions shall be applied in case of no relevant provision in the Law on Consumer Protection.
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