Alanya is one of Turkey’s most active real estate markets — and at the heart of that market sit land-for-flats construction agreements (kat karşılığı inşaat sözleşmesi) between landowners and developers. These deals don’t always go to plan. When a contractor fails to deliver on time or to the agreed standard — in other words, falls into default (temerrüt) — the landowner faces the start of a serious legal battle.

Land-for-flats agreements have become extremely common across Turkey’s fast-growing coastal and residential areas, especially in Alanya. Under this arrangement, the landowner contributes their plot while the contractor builds on it and acquires certain completed units in return. It’s an attractive model on paper, but it can go badly wrong. When a contractor fails to meet their obligations, the consequences for the landowner — financially and personally — can be severe.

This guide covers everything you need to know as a landowner in Alanya: what contractor default actually means under Turkish law, which situations count as default, what legal rights you have, and the steps you need to take to enforce them. Acting correctly at each stage minimises your losses and keeps your legal position as strong as possible.

Alanya Land-for-Flats Agreement — Sample Document

Sample Land/Flat-for-Flats Construction Agreement (link)

Key Concepts and Each Party’s Obligations

A land-for-flats construction agreement (also known in Turkey as an arsa payı karşılığı inşaat sözleşmesi) is a hybrid contract: the landowner makes their plot available, and the contractor builds on it in exchange for receiving certain completed units. Because it combines elements of both a works contract and a real estate transfer, Turkish courts apply the Turkish Code of Obligations (TBK) and the Turkish Civil Code (TMK) together. The agreement must be executed formally — either at the Land Registry (Tapu Müdürlüğü) or before a notary public — otherwise it may be void.

There are two principal parties: the landowner and the contractor, each carrying detailed obligations. The landowner must hand over the plot on time, cooperate with the planning permission and licensing process, and transfer the agreed land shares to the contractor. The contractor, for their part, must complete the project to the agreed specification and within the agreed timeframe, build in compliance with technical requirements and planning regulations, and hand over the completed units to the landowner in full.

Landowner’s Obligations

• Hand over the plot on time and in full
• Cooperate throughout the planning permission process
• Transfer the agreed land shares to the contractor
• Refrain from interfering in the construction process

Contractor’s Obligations

• Hand over the units in full and without defects
• Complete the project in accordance with the contract terms
• Meet the agreed delivery deadline
• Comply with technical specifications and planning regulations

Legal Nature of the Agreement

• Contains elements of a works/construction contract
• Subject to the rules governing real estate transfers
• Must be executed in the prescribed formal form (notary public or Land Registry)
• Both the Turkish Code of Obligations (TBK) and the Turkish Civil Code (TMK) apply

The contract itself should clearly cover the delivery date, the unit-sharing ratio, the technical specifications of the build, any penalty clauses, and the conditions for termination. The more precisely these provisions are drafted — leaving no room for ambiguity — the better protected you are if a dispute arises later. In a high-density development area like Alanya, it’s also essential that the contract takes account of local planning schemes and municipal regulations from the outset.

Golden Tips for Landowners Before Signing

• Supervision: Have an independent technical adviser carry out periodic site inspections throughout the build, and keep written records of every visit.
• Records: Back up all WhatsApp messages, texts and emails with the contractor as digital copies stored securely.
• Limitation period: Bear in mind that the general statute of limitations for claims arising from these agreements is 10 years from when your right arises — don’t let time slip away.

What Is Contractor Default?

Which Situations Count as Default?

Default, in its broadest sense, occurs when a debtor fails to perform a due obligation properly. In the context of a land-for-flats agreement, contractor default means the contractor has failed to fulfil their obligations within the timeframe and under the conditions set out in the contract. Under Article 117 of the Turkish Code of Obligations (TBK), default arises when the obligation is due and the creditor has served a formal notice (ihtarname) on the contractor. However, if the contract specifies a fixed delivery date, the contractor automatically falls into default on that date without any notice being required.

In practice, contractor default takes a number of forms. The most common are: failure to complete the build within the contractual deadline; never starting construction at all, or abandoning it partway through; delivering units that do not meet the technical specification in the contract; failing to obtain the building permit or the occupancy permit (iskan — the official certificate confirming the building is fit for habitation); and constructing in breach of planning regulations.

Deadline Default

The most common form of default is simply the contractor’s failure to complete the project by the contractually agreed delivery date. Once that date has passed, no formal notice is needed to establish default.

Construction timelines in Alanya are directly tied to both local planning rules and the seasonal building restrictions that apply given the area’s tourist character. These restrictions are crucial when calculating how long a contractor has actually been in default.

Defective Performance (Partial or Substandard Delivery)

If the building handed over does not match the qualities promised in the contract — for example, because substandard materials were used or significant defects are present — this constitutes defective performance. The landowner is not required to accept delivery in this condition.

Failure to Start Construction

If the contractor fails to break ground within a reasonable time after signing the contract, this is the most serious form of default and immediately lays the groundwork for termination of the agreement.

Abandoning the Build Midway

Stopping work at an intermediate stage and failing to resume — particularly common in Alanya during periods of economic turbulence — is another recognised form of default with serious legal consequences.

Failure to Obtain the Occupancy Permit

Even if the building is physically complete, the contractor’s failure to obtain the occupancy permit (iskan) is a significant form of default: without it, the landowner cannot obtain full legal title to their units.

One further point matters when establishing default: whether the contractor is actually at fault. Force majeure events — earthquakes, pandemics, armed conflict — will generally excuse a contractor from liability for delay. But delays or deficiencies that fall outside any genuine force majeure event remain the contractor’s responsibility. As Alanya practitioners frequently see, rising material costs or difficulty finding workers do not, as a rule, constitute force majeure under Turkish law — they do not extinguish the contractor’s liability for default.

Common Contractor Default Scenarios in Alanya

Local Patterns and Examples

Alanya’s rapidly expanding real estate market attracts both domestic and international investors in large numbers. That growth has increased the volume of land-for-flats agreements — and with it, the number of default cases. Several dynamics are specific to this area: the tourist season disrupts construction schedules, foreign national contractors operate here, planning rules change, and building costs fluctuate — all of which add both frequency and complexity to default disputes.

The most common scenario locally is the contractor who signs without having fully secured project financing. Construction may get off to a quick start, but once cash runs out, work stops — leaving the landowner having lost both their plot (now tied up under the agreement) and their expected units. A second recurring pattern is what might be called a “pooled default”: the same contractor takes on multiple projects simultaneously but lacks the workforce and capital to deliver on all of them at once.

Default Due to Insufficient Financing

The contractor runs out of money and construction grinds to a halt. This is a particularly common scenario in Alanya involving foreign investor-developers.

Multiple-Project Default

A single contractor takes on more projects than their capacity allows, leading to shortfalls of labour and materials across several sites — leaving multiple landowners out of pocket.

Planning Permission and Permit Problems

The contractor fails to obtain project approval or a building permit, or constructs in a way that deviates from the approved plans — resulting in the occupancy permit (iskan) being refused.

Construction Not Matching the Technical Specification

Instead of using the materials and methods specified in the contract, the contractor cuts corners with cheaper alternatives — leaving delivered units that simply don’t meet the agreed standard.

There is another issue specific to Alanya that deserves a clear warning: contractors who are foreign nationals — particularly those from Russia, Ukraine and various European countries — are active in the area. When such a contractor defaults, additional legal complexities arise around jurisdiction, service of process, and enforcement. In any agreement with an international element, it is essential that the contract contains an express clause specifying that Turkish law governs and that Turkish courts have jurisdiction.

Your Legal Rights When a Contractor Defaults

Remedies Available to the Landowner

Once a contractor is in default, the landowner has several options under the Turkish Code of Obligations (TBK). These are not mutually exclusive, but you need a careful legal assessment to decide which route is right for your situation. The three main choices are: termination of the contract, a claim for specific performance (i.e. demanding the contractor actually completes the work), and a claim for compensation.

Right to Terminate the Contract

Where the contractor is in default, the landowner can grant a reasonable additional period to perform. If performance still doesn’t happen within that period, the landowner may terminate the agreement. Termination takes effect retrospectively, meaning both parties are required to return what they have received.

Claim for Specific Performance

Rather than terminating, the landowner can go to court to compel the contractor to complete the build and deliver the units. This is often the preferred route where construction is already well advanced.

Compensation Claims

The landowner can claim damages for the financial losses caused by the contractor’s default — including lost rental income, the cost of alternative accommodation, and diminution in property value. Any penalty clause (cezai şart) agreed in the contract can also be claimed on top.

Preliminary Injunction and Precautionary Attachment

During proceedings, you can apply to the court for a preliminary injunction (ihtiyati tedbir) or a precautionary attachment (ihtiyati haciz) to prevent the contractor from dissipating assets before a judgment is obtained. These interim measures are critical for securing your eventual recovery.

Cancellation of Title Deed and Re-registration

Where land shares have already been transferred to the contractor, the landowner can bring a claim for cancellation of the title deed (TAPU) and re-registration in their own name. This is one of the most important remedies for protecting your ownership rights.

Criminal Complaint

If the contractor’s conduct amounts to a criminal offence — such as fraud or breach of trust — you can file a criminal complaint with the prosecutor’s office. Civil and criminal proceedings can run in parallel.

To exercise any of these rights properly, you must follow the correct procedural steps. First and foremost, a formal demand letter (ihtarname) must be sent to the contractor through a notary public, granting a reasonable additional period to perform — typically 30 to 60 days under Turkish law. Once that period expires without performance, you can exercise whichever remedy you choose. The content and timing of the demand letter will have significant legal consequences for any subsequent court proceedings, so professional legal advice at this stage is essential.

Termination, Compensation Claims and Enforcement: A Step-by-Step Guide

The Legal Process, Stage by Stage

Handling a contractor default correctly — from the moment you identify the problem through to enforcement of a judgment — matters enormously, both for your timeline and your costs. Below is a systematic breakdown of each stage, from establishing default to going to court and enforcing the outcome. Getting every step right procedurally protects you from losing rights further down the line.

• Document the Default — Record all deficiencies and delays with evidence
• Send a Formal Demand Letter — Serve an ihtarname through a notary public giving the contractor a reasonable additional period of 30–60 days to perform
• Mediation or Litigation — For commercial disputes, complete the mandatory mediation process before filing a lawsuit
• Court Proceedings — Bring claims for cancellation of title deed (TAPU), specific performance, or compensation before the Civil Court of First Instance (Asliye Hukuk Mahkemesi) in Alanya
• Enforcement — Apply for precautionary attachment or injunctions to freeze the contractor’s assets; proceed to title deed cancellation and debt recovery

This five-stage process is designed to protect your rights as fully as possible. The key points and practical tips for each stage are set out in detail below.

Key Points When Terminating the Contract

• The termination notice must be served through a notary public
• All evidence must be secured on the date of termination
• The mutual restitution obligations of both parties should be calculated in advance
• A claim for cancellation of title deed (TAPU) in respect of any land shares transferred to the contractor should be planned from the outset
• The penalty clause amount and delay compensation should be quantified and included in the claim

Heads of Loss in a Compensation Claim

• Lost rental income: Market rent for the period between the agreed delivery date and actual delivery
• Diminution in value: The drop in property value caused by defects or incomplete construction
• Alternative accommodation costs: Rental expenses incurred while waiting for delivery
• Contractual penalty clause: The delay penalty agreed between the parties at the outset
• Court costs and attorney’s fees: Legal costs awarded by the court

Enforcement Options

• Enforcement based on a court judgment (ilamlı icra)
• Enforcement based on documentary evidence without a prior judgment (ilamsız icra)
• Seizure of the contractor’s real estate and bank accounts
• Attachment of third-party debts owed to the contractor (wages, rental income, etc.)

Identifying the contractor’s assets is a critical step in enforcement. Contractors active in Alanya often operate through several companies or legal entities. Before commencing enforcement proceedings, it is therefore strongly advisable to carry out a thorough asset search covering all real estate, vehicles, bank accounts and company shareholdings attributable to the contractor. A precautionary attachment order from the court can then be applied most effectively once that search is complete.

This five-stage process is designed to protect your rights as fully as possible. The key points and practical tips for each stage are set out below.

Key Points When Terminating the Contract

• The termination notice must be served through a notary public
• All evidence must be secured on the date of termination
• The mutual restitution obligations of both parties should be calculated in advance
• A claim for cancellation of title deed (TAPU) in respect of any land shares transferred to the contractor should be planned from the outset
• The penalty clause amount and delay compensation should be quantified and included in the claim

Heads of Loss in a Compensation Claim

• Lost rental income: Market rent for the period between the agreed delivery date and actual delivery
• Diminution in value: The drop in property value caused by defects or incomplete construction
• Alternative accommodation costs: Rental expenses incurred while waiting for delivery
• Contractual penalty clause: The delay penalty agreed between the parties at the outset
• Court costs and attorney’s fees: Legal costs awarded by the court

Enforcement Options

• Enforcement based on a court judgment (ilamlı icra)
• Enforcement based on documentary evidence without a prior judgment (ilamsız icra)
• Seizure of the contractor’s real estate and bank accounts
• Attachment of third-party debts owed to the contractor (wages, rental income, etc.)

Identifying the contractor’s assets is a critical step in enforcement. Contractors active in Alanya often operate through several companies or legal entities. Before commencing enforcement proceedings, it is therefore strongly advisable to carry out a thorough asset search covering all real estate, vehicles, bank accounts and company shareholdings attributable to the contractor. A precautionary attachment order from the court can then be applied most effectively once that search is complete.

What You Need to Know Before Going to Court

Gathering Evidence, Mediation and Limitation Periods

The preparation you do before filing a lawsuit is one of the biggest factors determining whether you succeed. You need to build a strong evidence file, consider mediation carefully, and be rigorous about limitation deadlines. Get these three things right and you give your case the best possible foundation.

Evidence: What to Gather and How to Preserve It

Your evidence file in a contractor default case should include: the signed contract and all annexes (technical specification, project drawings, floor plans); notarised demand letters and proof of delivery; all written communications in full (emails, SMS and WhatsApp messages, with screenshots); dated photographs and video footage of the site; an independent technical expert report; the building permit and occupancy permit (iskan) where obtained; and any relevant entries at the Land Registry (Tapu Müdürlüğü). To make digital evidence admissible in court, it is advisable to have a notary public prepare a formal record (tespit tutanağı) certifying the content.

Mediation: Mandatory or Optional?

Since legislation that came into force on 7 June 2019, mediation is a mandatory pre-condition before bringing a lawsuit in commercial disputes in Turkey. Disputes arising from land-for-flats agreements may fall within this scope, so you need to satisfy the mediation requirement before filing. Don’t treat mediation as a box-ticking exercise — if a settlement can be reached with the other side, it offers real savings in time and cost compared with full litigation. Bear in mind too that offers made and records kept during mediation sessions can be used as evidence in subsequent court proceedings.

Limitation Periods: Critical Deadlines You Cannot Afford to Miss

Under the Turkish Code of Obligations (TBK Art. 146), the general statute of limitations for claims arising from land-for-flats agreements is ten years. However, shorter periods apply to certain specific claims: claims for defective performance may be subject to a five-year limitation period. Time begins to run from the moment your right arises — that is, from when the default occurred and you became aware of it. Once the limitation period expires, your right to sue is lost. If you notice something has gone wrong, take legal advice as soon as possible — delay can be costly.

Important note: In land-for-flats disputes concerning property in Alanya, the competent court is the court where the property is located — the Civil Court of First Instance (Asliye Hukuk Mahkemesi) in Alanya. Filing in the wrong court will trigger a jurisdiction objection and delay the proceedings significantly. Where a foreign national contractor is involved, international service of process takes additional time — factor this into your planning from the start.

If mediation fails to produce a settlement, proceedings are commenced by reference to the date of the final mediation record. That final mediation record must be attached to the claim; without it, the court will dismiss the case on procedural grounds alone. A list of mediators active in Alanya can be obtained from the Alanya Courthouse or through the Turkish Mediators Registry.

Conclusion and Recommendations

Steps to Protect Your Rights

A land-for-flats agreement, properly managed, is a highly profitable model for both sides. But every stage — from drafting the contract through to handover — demands careful attention, and building your legal protections in from the start is what prevents serious loss if default occurs. In a dynamic, multinational market like Alanya’s, these precautions matter more than ever.

Have the Contract Drafted with Legal Advice

Make sure the contract clearly sets out the delivery date, penalty clauses, technical specification, termination conditions and dispute resolution mechanism — with no room for ambiguity.

Carry Out Regular Site Inspections

Instruct an independent technical adviser to inspect the site periodically against the contract and technical specification, and keep a written record of every inspection.

Keep All Correspondence and Documents

Archive every piece of communication with the contractor — messages, payment records, photographs, meeting notes — in a systematic way, and store digital copies securely in the cloud.

Act Immediately at the First Sign of Default

The moment you notice a delay, a work stoppage or a departure from the agreed specification, seek legal advice without waiting — and send a formal notarised demand letter if required.

Instruct a Local Specialist Lawyer

Working with a lawyer who has hands-on experience of real estate and construction law in Alanya means the process is handled correctly from the outset — and your rights are protected every step of the way.

10 Years — General Limitation Period

The statute of limitations for general claims

30–60 Days — Additional Period After Formal Notice

The reasonable additional time given to the contractor following a notarised demand letter

5 Years — Defective Performance Limitation Period

The limitation period applicable to claims for defective performance

Ultimately, the most effective way to deal with contractor default is to build a solid legal foundation that prevents it from happening in the first place. A thorough legal review at the contracting stage, regular inspections throughout construction, and meticulous documentation of all communications will strengthen both your evidence chain and your legal position if default ever arises. Instructing an experienced real estate lawyer based in Alanya is a genuinely worthwhile investment — whether you’re drafting the agreement or navigating a default when things go wrong.

“The most powerful way to protect your rights is to know them — and to act in time.” If you spot any sign of default in your land-for-flats agreement, don’t wait: get specialist legal advice immediately. Early action almost always prevents the need for a long and costly court battle.