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Unable to get the habitation certificate

| 16/01/2011 | 0 Comments

The question:“Hi,I posted this on a forum and was advised to contact you. I’m buying at a … project with … developers in Didim. My apartment and the complex was suppose to be complete Dec. 30, 2010, but there is still building work ongoing in the complex so the facilities (pools, restaurant, gym) won’t be ready until April.

Yesterday I discovered the builder is unable to get the habitation certificate for another two months and thus the transfer deed is unavailable to sign. My final stage payment is due the third week in January.

Should I pay? Also this is one of a number of problems with this development. For example, we are buying a top floor penthouse but they have taken out a complete floor below us without informing us so we are not as high as we thought. In addition they told us no complex would be built in front of this project so we would have an uninterrupted view of the golf course complex.

However, another complex is being built in front of the one we are buying from. Do I have options such as taking the developer to court?” I should probably provide some basic information about the legal guidelines regarding construction and ownership of real estate in Turkey. General principles regarding these topics are regulated under the Turkish Code of Obligations.

Under Turkish law there is no such requirement that an agreement for construction services be in written form, thus it is not a must to have a written agreement. In practice, construction projects are made on the basis of a written agreement.

Basically, a construction contract is written by and between two parties; undertaker (contractor) and client (there may also be other parties included such as designers, sub-contractors, suppliers, etc). Within the framework of such a contract, contractors undertake the construction of a building for a client, in consideration of a certain fee. The contractor is under obligation to commence, carry on and accomplish the construction in a timely manner.

According to the Turkish Code of Obligations, the agreed upon amount for the construction project shall be paid after the completion of construction unless otherwise agreed by the parties. Clients may also agree to make partial payments while construction is ongoing. For the taking over of the premises by the owner, parties may stipulate a pre-condition, such as requiring that the contractor obtain an occupancy permit (habitation certificate).

It should be underlined that occupancy permits can only be granted by the authorities upon the completion of construction. In Turkey, a completed building can only enter into legal use after obtaining construction, zoning and occupancy permits. In the event parties agree on a due date for the building to be ready to move into and the contractor does not finish all construction by that date, the client shall grant the contractor an additional period for the fulfillment of any deficiencies.

If the delivery is not realized at the end of this extended period, the client is entitled to claim:

(i) fulfillment of the remaining obligations of the contractor, along with the payment of compensation for the delay;

(ii) compensation for the non-fulfillment of contractual obligations;

(iii) and/or termination of the agreement. As for your case, since you mention that it was agreed that the apartment be completed and a transfer deed be ready by Dec. 30, 2010 and the building has not yet been completed, in accordance with the above explained general principles, it is safe to say you are under no obligation to pay the agreed fee until the completion of construction in due course or, if stated in the agreement, until the contractor obtains an occupancy permit.

However, in order to get a more specific answer, the terms and conditions of the agreement executed with the contractor should also be examined, since certain minor partial payments may also be set forth in such an agreement. In addition, special provisions such as a penalty clause might also be stated, in the event of the late completion of a building.

With respect to the new plaza being built in front of your apartment, legal and contractual claims such as compensation and/or penalty can also be made for a breach of contract, violation of undertaking, etc.

Berk Cektir http://www.berkcektir.av.tr/ The information provided here is intended to give basic legal information. You should get legal assistance from a licensed attorney at law while conducting legal transactions and not just rely on the information in this corner. http://www.todayszaman.com/ info@berkcektirlaw.com

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