This guide was prepared based on the Istanbul Builders Association’s (İNDER) Contractor Selection Guide in Urban Transformation Areas with Questions and Answers, meticulously reviewed item by item with 2026 legislative changes and current Supreme Court precedents.
How to use this list? The checklist is divided into six stages: (1) preparation, (2) preliminary contractor research, (3) bid evaluation, (4) contract and guarantees, (5) construction process, (6) delivery and occupancy permit. Complete each stage in order; do not proceed to the next stage before the previous one is completed. You can print the list (Ctrl+P) and fill it out with your apartment committee. ★ Items marked with ★ are “mandatory” — if even one is not met, that contractor should not be pursued.
About the source: who prepared the guide, and from what perspective?
The guide forming the framework of this list consists of 51 questions and answers; it was prepared by Urban Planner Dr. Gülcemal Alhanlıoğlu, with contributions from Lawyer Ali Güvenç Kiraz, Civil Engineer Ayten Babaoğlu and Senior Civil Engineer Çağdaş Aygün, and published by İNDER. It consists of five sections: risk assessment and initial steps, contractor research and selection, contract and guarantees, project management and delivery, financial and legal matters.
The guide is one of the most comprehensive resources for citizens, and most of its recommendations are in favor of the landowner. However, İNDER is a professional organization of contractors and some of the guide’s answers naturally reflect the contractor’s perspective. Below, we have also marked both three points that need to be updated due to changes in legislation/case law, and two points that should be read carefully by the landowner. In the rest of the list, each item from the guide is clearly stated; items added by us that are not in the guide do not refer to the guide.
A. Three pieces of information updated due to legislation and case law
Update 1 — Deeds of third parties in retroactive termination. In the section of the guide explaining termination models, it is stated that in retroactive termination, landowners would reclaim all deeds transferred to the contractor and that the deeds could be reclaimed even if the contractor had sold them to third parties. This information has changed with the decision dated 16.05.2025, numbered E.2024/1, K.2025/2, of the Grand General Assembly for Unification of Jurisprudence of the Court of Cassation (Official Gazette 18.07.2025, No. 32959). According to the decision, in case of determination of the invalidity or retroactive termination of the contract, the claims of third parties who acquired real rights in good faith by relying on the deed from the contractor are heard; property and mortgage rights are protected. For the immovable property to return to the landowner, the proof of bad faith is now required. Practical result: the annotation of the contract on the title deed has become the primary line of defense for the landowner. (Other findings of the guide — that retroactive termination can be used below the 90% threshold, that a penalty clause cannot be demanded in this model, that a penalty clause can be demanded in prospective termination — maintain their validity.)
Update 2 — Owner meeting and decision-making procedure. The guide stated that there was no obligation for the meeting to be held officially under Article 15/2 of the Regulation on the Implementation of Law No. 6306, but that the execution of the relevant provision was suspended by the decision of the Council of State Administrative Litigation Chambers Board dated 20/9/2023 and Appeal No: 2023/692. Therefore, it was advised that holding the meeting officially would be beneficial until a new regulation is issued. The expected regulation has been issued: With the amendment to the Regulation published in the Official Gazette dated 04.02.2026 and numbered 33158, the meeting and decision-making procedure has been re-regulated. In current practice: at the request of at least one of the owners, all owners are invited to the meeting; the invitation is made using Annex-12 form attached to the Regulation and announced for fifteen days at the mukhtar’s office or, if the building has not yet been demolished, on the building’s door/notice board, or communicated through a notary; the meeting is held with at least a simple majority participation proportional to their shares, and decisions are made by at least a simple majority. It has been made mandatory to attach meeting invitations and minutes to the application file; furthermore, a condition has been introduced requiring that, before the construction permit application, notification to owners who did not participate in the decision must be completed and an application must have been made to the relevant directorate for the sale of their shares.
Update 3 — The rate of collateral provided at the license stage. The guide states that a collateral amounting to 10% of the construction cost is required at the building permit stage for parcels with a risky building annotation. This rate has been reduced to 6% for parcels containing risky structures with an amendment made to the Implementation Regulation of Law No. 6306. Furthermore, according to the temporary article added to the Regulation with the amendment dated 04.02.2026, collateral provided under building permits issued from 1/1/2024 will be re-regulated at a rate of 6% upon the request of the building contractor. Other findings of the guide regarding this collateral — that the collateral is taken on behalf of the landowners, that a license is not issued to contractors who cannot provide it, and that the collateral is returned only after the occupancy permit is obtained — remain valid. (In risky areas and reserve building areas, graduated rates are applied based on the building construction area.)
B. Two points the landowner should read carefully
Attention 1 — The obligation “not to revoke until the work is finished”. While the guide correctly emphasizes that penalty clauses should be reciprocal, it also lists the item “to issue a power of attorney and not to revoke until the work is finished” among the landowner’s obligations and suggests imposing a penalty clause if these are not fulfilled. From the landowner’s perspective, this is a serious concession: even if the contractor acts in breach of contract, not being able to reclaim the power of attorney means losing the most effective means of defense at your disposal. Our recommendation: if the prohibition of revocation is accepted, the exception that the right to revoke arises in case of a material breach of contract by the contractor must be explicitly stated; and the effect of this provision should be limited by issuing the power of attorney on a transaction-specific and time-limited basis.
Attention 2 — Adding the litigation period to the construction period. The guide states that if shareholders object and file a lawsuit, the contractor may postpone the work and operations until the court decision is finalized and add this period to the construction period; it is at the contractor’s discretion whether to continue construction, but if a preliminary injunction is issued, the work must be stopped. If this provision is included in the contract without limitation, even a single lawsuit filed by an owner and subsequently rejected could suspend the project for years. Our recommendation: the extension of time should be limited only to the case where a preliminary injunction is issued and to the period during which work is actually stopped; when the injunction is lifted, the contractor’s obligation to resume work within a certain period and a related penalty clause should be stipulated.
STAGE 1 Preparation: before starting to search for a contractor
One of the most accurate recommendations in the guide is for landowners before entering the urban transformation process and before a risky structure assessment is made to establish a committee among themselves, start researching contractor firms, and collect bids at this stage. According to the guide, this is of great importance for the smooth and rapid progress of the process.
| # | ✓ | Check item | Why is it important? / Basis |
|---|---|---|---|
| 1 | ☐ | A representation committee was formed among the owners; the committee’s authority was limited in writing (it has the authority to hold meetings and collect documents, but no signing authority) | The guide recommends that landowners appoint a committee among themselves before the risky structure assessment. The non-delegation of signing authority is our addition. |
| 2 | ☐ | An encumbered title deed record was obtained for all independent sections (attachment, mortgage, annotation, declaration) | Guide: to obtain an encumbered title deed sample in apartments/sites, special authorization must be given to the manager or all title deed records must be examined through a legal professional. |
| 3 | ☐ | The impact of encumbrances on the transformation was evaluated | Guide: encumbrances such as attachment, mortgage, etc., do not constitute an obstacle to construction under Law 6306 and can be transferred to the title deed record of the newly constructed independent section. |
| 4 | ☐ | Inheritance and transfer procedures were completed | The guide lists this among the landowner’s obligations. |
| 5 | ☐ | Property tax debts were paid | Guide: the building must be delivered vacant and free of debt, cleared of encumbrances that hinder construction. |
| 6 | ☐ | An zoning status certificate was obtained from the municipality; during the application, the title deed, along with the cadastral survey plan and site plan sketch prepared by a licensed map and cadastre office, were provided. | Guide: the zoning status certificate contains information on the purpose of use, buildability, number of floors, construction conditions, and any relinquishment to road/green areas. |
| 7 | ☐ | The existing building’s approved license project was obtained from the municipality; it was compared with the actual situation. | Guide: for the detection of unauthorized additions and irregularities, a report should be obtained from an authorized architect/civil engineer if necessary. |
| 8 | ☐ | It was examined whether the existing land shares were proportionate to the value of the independent sections. | Guide: it should be examined whether the land share was arranged in the title deed process as you are entitled to. |
| 9 | ☐ | If necessary, the option of an action for correction of land share was evaluated. | This lawsuit, filed later, may become a pending issue during the transformation process (added by us). |
| 10 | ☐ | A land and building valuation report was obtained from an CMB-licensed real estate valuation company. | Guide: valuation forms a solid basis in negotiations with contractors and in the share sale transactions of minority owners who do not participate in the contract. |
| 11 | ☐ | A lawyer and a technical consultant (architect/civil engineer) were appointed at the beginning of the process. | The guide recommends working with experienced lawyers and technical consultants for each of the three transformation models. |
| 12 | ☐ | It was confirmed that an application would be made to a Ministry-licensed institution for risky structure assessment. | Guide: official risky structure reports that can be annotated on the title deed are only issued by licensed institutions; university or municipality reports are considered private reports and are not annotated on the title deed. |
| 13 | ☐ | In structures where floor easement/condominium ownership has not been established, with land share title deeds, it was known that the assessment would be carried out by the land share owner. | Guide: if the structure belongs to someone else in the title deed and this is specified, an application by the party in whose favor the annotation is placed is required. |
| 14 | ☐ | The 15-day objection period for risky structure assessment and notification procedure were entered into the calendar. | Guide: the notice is posted on the apartment entrance door and announced at the headman’s office for 15 days; the last day of the announcement is considered the notification date. Objections do not have to be reasoned. |
| 15 | ☐ | It was learned where to submit the objection. | Guide: to district municipalities in Istanbul, Ankara, and Izmir; to the relevant Ministry unit in the province for other provinces and districts. |
| 16 | ☐ | The owner’s meeting was planned according to the current Regulation procedure (Annex-12 call form, 15-day announcement or notary notification, simple majority participation and decision). | Regulation amendment dated 04.02.2026 (Update 2 above). |
| 17 | ☐ | The transformation model was determined: construction in return for flats, contracting (in return for payment) or revenue-sharing construction. | The guide defines three basic methods; each has different advantages, disadvantages, and cash requirements. |
| 18 | ☐ | Tenants were informed; electricity, water, and natural gas cut-off, change of residence, and evacuation schedule were planned. | The guide explicitly lists these among the landowner’s obligations. |
STAGE 2 Contractor preliminary investigation
2.1. Legal identity and authority
| # | ✓ | Check item | Why is it important? / Basis |
|---|---|---|---|
| 19 | ☐ | ★ Contractor’s authorization certificate number was received in writing and yambis.csb.gov.tr verified via | The guide requires ensuring that the contractor possesses the authorization certificate issued by the Ministry, by indicating the same inquiry address |
| 20 | ☐ | ★ It was confirmed that the record is “active” (not canceled/inactive) | A canceled document stops the project at the licensing stage (added by us) |
| 21 | ☐ | Authorization certificate group was ascertained and checked to be sufficient for the project’s size | According to the regulation, groups are divided into A, B, B1, C, C1, D, D1, E, E1, F, F1, G, G1, H and temporary; each group can undertake works whose approximate construction cost does not exceed a certain threshold (no restriction applies to group A) |
| 22 | ☐ | It was checked that the work was not divided into parts to stay below the group limit | The regulation prohibits dividing a single work into parts to stay below these values; structures on the same plot or those considered mass housing are counted as a single work |
| 23 | ☐ | It was investigated whether the group upgrade was obtained through a recent transfer/merger | In a merger through acquisition or establishment of a new company, the authorization certificate group can be used one year after the merger’s registration in the commercial registry |
| 24 | ☐ | Simultaneously ongoing construction sites and their completion rates were inquired about | A contractor managing many construction sites simultaneously, even if appearing sufficient on paper, may not be able to allocate capacity to the project (added by us) |
| 25 | ☐ | It was confirmed that the company carrying out the demolition has a demolition contractor authorization certificate (Y1/Y2/Y3) | Demolition contracting is separately defined and certified in three groups (added by us) |
| 26 | ☐ | It was investigated whether there was any past cancellation of the document number or group | False statements and breach of obligations lead to cancellation (added by us) |
| 27 | ☐ | Commercial Registry Gazette records were examined (establishment, title changes, partnership, and capital movements) | The guide requires a detailed investigation of the capital structure and financial history |
| 28 | ☐ | Paid-up capital was assessed to be proportional to the project’s size | Guide: A company that does not comply with the minimum capital limits of the Turkish Commercial Code or whose capital is disproportionate to the project’s requirements is a warning sign |
| 29 | ☐ | If an ordinary partnership is involved, it was confirmed that all partners would be parties to the contract and jointly and severally liable | To ensure there is no uncertainty about whom the claim should be directed to (added by us) |
| 30 | ☐ | Relevant professional chamber and association memberships, certificates, records, and licenses were inquired about | The guide considers these as indicators of professionalism and reliability |
2.2. Financial capability
| # | ✓ | Checklist item | Why is it important? / Rationale |
|---|---|---|---|
| 31 | ☐ | ★ It was investigated whether the company’s partners had financial problems in the past such as bankruptcy, bankruptcy postponement cases, or foreclosure/mortgage | Guide: these situations provide important information about the company’s financial stability |
| 32 | ☐ | Outstanding enforcement proceedings were queried | Payment discipline history is an indicator of future behavior (added by us) |
| 33 | ☐ | The legal problems, financial issues, and disputes the contractor faced in past projects were investigated | The Guide explicitly requires this to be investigated when selecting a contractor |
| 34 | ☐ | A Findeks / credit bureau report was requested | Guide: encountering a company with low credibility in the Findeks report is a warning sign in terms of financial adequacy |
| 35 | ☐ | Reference interviews were conducted with the banks it works with, and bank reference letters were obtained | These are two methods directly recommended by the Guide |
| 36 | ☐ | The balance sheet and income statement for the last 3 years (approved by financial advisor) were examined | Evaluation of equity adequacy and cash cycle (added by us) |
| 37 | ☐ | “No tax and SSI debt” letters were obtained | A “no debt” letter from SSI is required at the occupancy permit stage; the guide lists this among the occupancy documents |
| 38 | ☐ | It was investigated whether its relationships with subcontractors and suppliers were healthy | The Guide lists this as a separate heading among the legal regulations to be considered when selecting a contractor |
| 39 | ☐ | It was checked whether it had guarantees such as insurance policies and letters of guarantee | Guide: these guarantees help minimize financial loss in case of setbacks during the project |
| 40 | ☐ | It was confirmed that it is sensitive regarding compliance with occupational health and safety and environmental regulations | The Guide lists this as the final checklist item in contractor selection |
2.3. Technical competence and references
| # | ✓ | Check item | Why is it important? / Basis |
|---|---|---|---|
| 41 | ☐ | ★ The occupancy permit (building use permit) for the reference projects was confirmed by the municipality | Finishing construction and obtaining the occupancy permit are different tasks; apartments cannot be sold in a building without an occupancy permit, and condominium ownership cannot be established (added by us) |
| 42 | ☐ | At least two completed projects were visited on-site; people living in those projects were interviewed | The guide explicitly recommends personally visiting completed projects and interviewing the residents there |
| 43 | ☐ | Feedback was received regarding the contractor’s capacity for project completion and problem-solving by contacting their previous clients or business partners | The guide lists this as a method for measuring professional/technical competence |
| 44 | ☐ | It was learned how many months late the reference projects were delivered compared to the contractual period | Past delay is the strongest indicator of future delay (added by us) |
| 45 | ☐ | The technical staff to be assigned to the project were interviewed face-to-face and the company’s equipment list was requested | These are two methods directly recommended by the guide |
| 46 | ☐ | It was asked who the site manager would be and how many sites they are simultaneously responsible for | It is mandatory to assign an authorized site manager to every project (added by us) |
| 47 | ☐ | Project management, crisis management, and financial management capacity were evaluated | The guide lists these among the competencies to be sought in the contractor for the timely completion of the project |
STAGE 3 Interview and offer evaluation
| # | ✓ | Checklist item | Why is it important? / Basis |
|---|---|---|---|
| 48 | ☐ | Written proposals were obtained from multiple contractors and compared | The Guide recommends that the committee obtains and evaluates proposals from companies |
| 49 | ☐ | ★ The decision was not made solely based on the offered square meters; workmanship quality, material standards, and timely completion were evaluated together | The Guide defines this as the most common mistake in contractor selection: “an unreliable contractor should not be chosen for a small difference in acquisition” |
| 50 | ☐ | ★ It was clarified in writing according to which criterion the definitions of net / gross / total gross area were used | The Guide makes three definitions in line with the 2018 Istanbul Zoning Regulation (see box below) |
| 51 | ☐ | The impact of the floor-for-share ratio on the land share was understood | Example from the Guide: A homeowner with a 10% land share transfers 4% of their share in a 60% landowner / 40% contractor split; the land share of their new apartment becomes 6% |
| 52 | ☐ | Was the gross/net area, number of rooms, and premium value of the new apartment evaluated to be consistent with your land share and rights in the existing apartment? | The Guide lists this among the points to consider in a new project |
| 53 | ☐ | The floor, location, and facade of the offered apartments were clarified | “An X m² apartment” commitment can also be met with a poorly located apartment (added by us) |
| 54 | ☐ | It was asked whether rental assistance would be provided to landowners, its amount, and payment schedule | The Guide lists this among the questions to be asked during the meeting |
| 55 | ☐ | The durations for license / construction / occupancy permit were asked separately | The Guide’s recommendation: for the license, following contract signing, 6–9 months; for construction completion, following license acquisition, 12–30 months; for occupancy permit, following completion, 3–6 months |
| 56 | ☐ | It was asked whether subcontractors would be used, as well as the workflow and delivery processes | The Guide lists this among the questions to be asked during the meeting |
| 57 | ☐ | Clear and concise information was obtained regarding payment terms and potential additional costs | The Guide lists this among the questions to be asked during the meeting |
| 58 | ☐ | The communication and reporting processes were agreed upon | The Guide both poses this as a meeting question and lists lack of communication among common mistakes |
| 59 | ☐ | It was asked who would own the common areas (shelter, rooftop terrace, parking, facade) | If common areas are not regulated in the contract, a dispute over de facto occupation arises (added by us) |
| 60 | ☐ | The text of the “pre-protocol” was not signed without being reviewed by a lawyer | Pre-protocols often bind the sharing and duration but do not contain provisions protecting the landowner (added by us) |
Area definitions in the guide (in accordance with the 2018 Istanbul Zoning Regulation):
Net area of independent section: The sweepable area between the walls after entering through the entrance door, where flooring is laid. Walls, columns, ventilation shafts, open/closed balconies, and terraces are not included.
Gross area of independent section: The area enclosed by the independent section’s own outer boundaries; in case of adjacency, the central axis of the common wall is considered the boundary. Interior walls, columns, ventilation shafts, open/closed balconies, and terraces are included; floor lobbies, common stairs, elevators, accessory storage units, and parking areas are not included.
General gross area of independent section (area subject to title deed): The area obtained by adding the share falling from all common areas in the building (floor lobbies, elevators, common and fire stairs, parking, security, shelter, technical areas, social facilities, pool, etc.) to the gross area.
STAGE 4 Contract and guarantees
4.1. Form and title deed
| # | ✓ | Control item | Why is it important? / Basis |
|---|---|---|---|
| 61 | ☐ | ★ The contract was made in the form of a notarized deed (not an approval) | Since the contract also includes the sale of real estate, a formal form is mandatory (added by us) |
| 62 | ☐ | ★ The construction for land share agreement was annotated in the land registry | The guide stipulates that the agreement must be annotated in the land registry during the title deed process. Following the Unification of Jurisprudence Decision dated 16.05.2025, this has become the only effective protection against bona fide third parties. |
| 63 | ☐ | The annotation’s five-year in rem effect was recorded in the schedule. | In long-term projects, the position must be updated before the annotation period expires (added by us) |
| 64 | ☐ | The title deed schedule was written into the contract: demolition permit → after demolition, the cancellation of floor easement and return to co-ownership of the land → after the permit, the registration of the permit project in the land registry and establishment of a new floor easement → after occupancy permit, transition to condominium ownership | This is the sequence described by the guide; the establishment of floor easement can be postponed to a later stage by contract |
| 65 | ☐ | The contractor’s transfer of earned share and how these transfers will be made were regulated in the contract | The guide lists this as the first among the elements encouraging the contractor to finish the job |
| 66 | ☐ | The land share transfer schedule was linked to construction stages (the entire share was not transferred from the beginning) | The transferred share is the contractor’s financing advance; early and lump-sum transfers increase risk (added by us) |
| 67 | ☐ | If transfer is mandatory, a construction guarantee mortgage was established on the transferred shares and the stages for lifting the mortgages were determined in the contract | Guide: the construction guarantee mortgage is established on the apartments and shops given to the contractor at the determined value, rank, and degree; the stages of establishment and lifting are determined in the contract |
| 68 | ☐ | In case of share transfer due to economic hardship, the rights of the land owners were clearly determined | The guide explicitly lists this among the subjects that must be included in the contract |
4.2. Guarantees
| # | ✓ | Control item | Why is it important? / Basis |
|---|---|---|---|
| 69 | ☐ | ★ A letter of guarantee within the scope of the contract was obtained; the amount and refund stages (work completion rates) were specified | Guide: in practice, generally a letter of guarantee corresponding to 10–20% of the construction cost is obtained; thus, it is secured from the start of construction until the occupancy permit is obtained |
| 70 | ☐ | Performance guarantee was arranged | Guide: guarantee of timely and contract-compliant completion of the project; usually a bank letter of guarantee corresponding to 10% of the project’s construction cost. Insurance companies can also offer similar guarantees |
| 71 | ☐ | If any, advance payment guarantee was arranged | Guide: securing advance payments made at the start of the project; usually a bank letter of guarantee corresponding to the advance amount. According to the guide, if the contractor inspires confidence, a guarantee note can also be accepted as a third option |
| 72 | ☐ | ★ The contracting company’s main partner signed as a personal guarantor to the contract | Guide: the contractor is mostly a legal entity, and debt collection is not possible unless there is a registered bank account or property in its name; with personal guarantee, the main partner becomes responsible with their personal assets |
| 73 | ☐ | Within the scope of Law 6306, the guarantee given to the Administration before the license was confirmed to have been deposited | In parcels with risky structures, it is mandatory to provide a guarantee amounting to 6% of the approximate construction cost before obtaining the building permit. The 10% rate in the guide has been updated (Update 3). A license is not issued to those who cannot provide the guarantee, and the guarantee is refunded only after the occupancy permit is obtained |
| 74 | ☐ | It was stated that the contractor would procure construction all-risk insurance and submit an example of the policy | The guide considers procuring all-risk insurance among the contractor’s obligations |
4.3. Term, penalty clause, and technical specification
| # | ✓ | Check item | Why is it important? / Basis |
|---|---|---|---|
| 75 | ☐ | ★ The deadlines for site delivery, obtaining the construction permit, completion of construction, and obtaining the occupancy permit after actual delivery were clearly stated separately | Guide: leaving these deadlines uncertain encourages the contractor to act flexibly and to prolong the process |
| 76 | ☐ | If the deadline is exceeded at any stage, the applicable penal clauses and termination rights were determined separately | The Guide requires that in case of exceeding the deadlines, these be definitely determined |
| 77 | ☐ | It was stated that in case of delay, the fair market rent of the apartment for each month shall be paid | Guide: penal clauses, such as the fair market rent of the apartment per month of delay, encourage the contractor to complete on time |
| 78 | ☐ | In case of delay, a clause for compensation of additional costs such as loss of rent (deprivation of rights) was included | The Guide lists this among the measures to be taken against late delivery |
| 79 | ☐ | If a cap was placed on delay compensation, it was stated that the right to terminate arises if the cap is exceeded | If a cap is set alone, delay becomes gratuitous after the cap (added by us) |
| 80 | ☐ | Penal clauses were regulated mutually and based on the principle of equality | Guide: penalties should be defined mutually, not unilaterally; landowners also have obligations such as giving consent, making choices, and issuing power of attorney |
| 81 | ☐ | The amount of the penal clause was determined at a level that would not lead to the ruin of the other party and is defensible | It is the Guide’s criterion; a judge may reduce excessive penal clauses |
| 82 | ☐ | Penal clauses and termination rights were determined for cases of working with unauthorized subcontractors and placing a construction lien on the building | The Guide explicitly lists these two cases |
| 83 | ☐ | ★ The technical specification was made an annex to the contract; the nature of the work, material quality, and product brands were clearly stated | Guide: the inclusion of the technical specification in the contract prevents uncertainties |
| 84 | ☐ | “Equivalent material” and similar expressions were removed from the technical specification | The Guide explicitly states that these phrases should not be included in the technical specification |
| 85 | ☐ | A penal clause was defined for non-compliance with the technical specification and deviations from material quality/brands | The Guide also lists this among the penal clauses to be sought |
| 86 | ☐ | A penal sanction was imposed for cases of non-compliance with legal requirements such as violation of occupational safety rules | The Guide lists this among the penal clauses to be sought |
| 87 | ☐ | The floor sharing scheme and the management plan to be submitted to the land registry office for floor easement were made annexes to the contract | The Guide states that it is important for both to be annexes to the contract |
| 88 | ☐ | A prohibition of transfer clause was included | The Guide explicitly lists this among the details that should be included in the contract |
STAGE 5 Construction process
| # | ✓ | Control item | Why is it important? / Basis |
|---|---|---|---|
| 89 | ☐ | The scope and limits of the power of attorney given to the contractor were clearly defined; unnecessarily broad powers were avoided | This is a direct statement from the guide; seeking legal advice when preparing the power of attorney is also a recommendation of the guide |
| 90 | ☐ | ★ Special terms and conditions were determined for critical transactions related to property, such as sales; these powers were not granted as a rule | The guide requests the determination of special terms and conditions regarding the use of such powers |
| 91 | ☐ | The validity period and cancellation conditions of the power of attorney were clearly stated | It is a direct recommendation of the guide |
| 92 | ☐ | If there is a prohibition of dismissal in the contract, an exception was added stating that the right to dismiss arises in case of a material breach | A balancing provision against the guide’s recommendation “not to dismiss until the work is finished” (Caution 1 above) |
| 93 | ☐ | The limits of time extension in case of litigation/preliminary injunction were stipulated | A balancing provision against the guide’s explanation that the contractor may add the litigation period to the construction period (Caution 2 above) |
| 94 | ☐ | An independent technical consultant was appointed; the right to enter the construction site and inspect was stipulated in the contract | Guide: the technical consultant is responsible for supervising quality — this can be an expert architect/engineer, a project management firm, or a construction supervision firm with an expanded scope of responsibility. It creates problems if individuals or institutions without technical competence undertake this task |
| 95 | ☐ | The appointment of the building inspection firm and the limits of its scope were confirmed | Guide: building inspection is automatically assigned from the municipal database under Law No. 4708 when the total construction area exceeds 200 m². Its main responsibility is the control of critical materials (iron, concrete) and installations (formwork, rebar) |
| 96 | ☐ | ★ A separate technical consultant was hired for architectural interior decoration (doors, parquet, joinery, kitchen, etc.) | Guide: these items and application details are outside the scope of responsibility of the building inspection firm; hiring a separate technical consultant is recommended |
| 97 | ☐ | Regular progress reports are being received; construction stages are closely monitored | Guide: this allows early detection and intervention in case of possible delays |
| 98 | ☐ | It is monitored that the contractor’s apartment sales are conducted in accordance with regulations | Guide: sales permits for apartments falling to the contractor’s share are granted in stages based on the municipality’s approval according to the completion levels of the construction; the contractor cannot sell all apartments and shops falling to their share before completing the construction without the permission of all landowners |
| 99 | ☐ | Proof of subcontractor payments is requested | Against the risk of a construction lien being placed on the building due to subcontractor debt (added by us; the guide lists this risk under penal clauses) |
| 100 | ☐ | It was clearly stated in the contract that occupational safety responsibility belongs to the contractor; if necessary, a separate additional contract was made with the project manager | Guide: recommends this to prevent the landowner from being blamed in case of any accident |
| 101 | ☐ | Contract amendments are made with an amendment agreement in the presence of a notary | Guide: contract amendments only become official with an amendment agreement signed by both parties in the presence of a notary |
| 102 | ☐ | Evidence was recorded in case of delay or stoppage | Court determination of the construction level is fundamental evidence for both administrative termination and litigation (added by us) |
The guide’s accurate warning regarding termination rights: Construction contracts in return for land share, cannot be terminated unilaterally in any way, except for the exceptional termination model specific to risky buildings; however, they can be terminated by a court decision. The exceptional model applies after the unanimous agreement of the land owners or a decision taken by the simple majority (%50.01) of their land shares, if construction work is not started within one year due to reasons originating from the contractor, or if work is stopped and not continued with sufficient team and equipment for at least six months. The administration gives the contractor 30 days time; if work is not started or continued within the period, the contract is ipso facto terminated. As the guide emphasizes, the biggest advantage of this method is that land owners can continue construction by agreeing with a new contractor; the claim/compensation relationship is resolved separately in civil courts.
STAGE 6 Delivery, occupancy permit, and condominium ownership
| # | ✓ | Check item | Why is it important? / Basis |
|---|---|---|---|
| 103 | ☐ | A detailed list of deficiencies and errors was prepared before delivery and officially submitted to the contractor | This is the first step of the guide |
| 104 | ☐ | Deficiencies were documented with supporting materials such as photos and videos | The guide requests these to be provided, if possible |
| 105 | ☐ | ★ The phrase “with all my legal rights reserved against defective and/or incomplete works” was added to the apartment handover report | This is the most practical and important advice of the guide |
| 106 | ☐ | The warranty terms in the contract and the periods stipulated for rectifying errors were reviewed | This is the second step of the guide |
| 107 | ☐ | An action plan was determined with the contractor regarding how and when the deficiencies will be rectified | This is the third step of the guide; an independent third-party assessment may be requested if necessary |
| 108 | ☐ | A lawyer was consulted regarding the distinction between patent defects / latent defects and notification periods | The guide states that the consulting lawyer will provide guidance according to the relevant defect provisions of the Consumer Protection Law and the Law of Obligations |
| 109 | ☐ | It was checked that all systems (electricity, water, heating etc.) are in proper working order and safety standards are met | The guide lists this among the completion checks |
| 110 | ☐ | The finishing works, landscaping, and outdoor arrangements of the building and its surroundings were completed | The guide lists this among the completion checks |
| 111 | ☐ | The required documents for occupancy permit were completed: completion certificate, “no debt” letter from SGK, proof of completion of electricity/water/natural gas connections | The guide lists the requirements for the occupancy permit in this manner |
| 112 | ☐ | ★ The building occupancy permit (iskân) was obtained, and it was confirmed that there are no unauthorized constructions preventing occupancy in the building | Guide: the acquisition of the occupancy permit must be financially secured in the contract |
| 113 | ☐ | ★ The conversion of title deed annotation to condominium ownership was ensured, and the condominium title deed was received from the contractor | Guide: the condominium title deed is the final step in property transactions; the contractor’s obligations under the contract cease upon obtaining a defect-free and complete occupancy permit and receiving the condominium title deeds. |
| 114 | ☐ | The Energy Performance Certificate, user manuals, warranty documents, and maintenance instructions were received; building insurances (earthquake, fire, flood) were kept updated; common area planning was done within the framework of the management plan | The guide lists these among the actions to be taken upon project completion; the energy performance certificate is mandatory as per the Energy Performance in Buildings Regulation |
Don’t forget rent and relocation support: According to the guide, applications for rent support must be made within one year from eviction and, in any case, from demolition. The support is organized by the Ministry of Environment, Urbanization and Climate Change or, if delegated, by district municipalities, and is provided not only to owners, but also to tenants and real right holders subject to residency requirements. Relocation support is a one-time payment, while rent support is paid regularly for a specific period.
Red flags: 12 signs to stop immediately when seen
If any of the following situations apply, there is no need to fill out the rest of the list:
YAMBİS registration is missing, passive, or cancelled.
The offer “Let’s get a license through an acquaintance who has one.”
The authorization certificate group is not sufficient for the project’s size, or the group was recently upgraded through a merger.
Balance sheet, bank reference, and a no-debt letter are not shared (claiming “trade secret”).
The company’s main partner refuses to be a personal guarantor.
A bank guarantee letter as the main collateral cannot be provided. (The guide accepts a promissory note as a third option only for advance payment guarantee and if the contractor inspires confidence; reducing the main collateral to a promissory note should not be accepted in our opinion.)
The reference projects’ occupancy permits have not been obtained or cannot be confirmed by the municipality.
Resistance is met regarding the contract being executed in the form of a notarized deed.
Objection is raised to the annotation of the revenue-sharing agreement on the title deed.
There is a persistent desire to include the phrase “equivalent material” in the technical specifications.
An unlimited and indefinite power of attorney, also including the authority to sell, is requested; no exception is accepted for the prohibition of revocation.
Without examining the documents, pressure is exerted with the phrase “let’s go to the notary tomorrow”.
The principle highlighted by the guide: The main point to consider when determining the revenue-sharing ratio for a flat-for-land agreement is the necessity not to choose an untrustworthy contractor for a small difference in acquisition. The guide also describes a contractor’s inability to complete the work as a “very difficult process to resolve” and emphasizes that the main goal should be to start with a good contractor and a solid contract.
Why is expert legal support necessary?
Approximately one-third of the 114 articles above are legal, one-third are technical, and one-third are financial in nature. The guide itself repeatedly recommends that the process be carried out with a lawyer and a technical consultant; it explicitly states that the lawyer ensures the best possible conditions are obtained by protecting the client’s interests during the negotiation process, and that legal fees, although perceived as high in the initial stage, will be beneficial in preventing difficult-to-remedy situations that may arise.
2M Law Office offers support to landowners, covering this entire checklist in the fields of urban transformation law, condominium law, and real estate law:
Preliminary review (due diligence) report for contractor candidates in terms of legal, financial, and registry aspects,
Owner meeting, execution of the Annex-12 call and notification procedure in accordance with the current Regulation,
Management of the share sale process for owners who do not participate in the simple majority decision,
Analysis of incoming offers and preliminary protocols in favor of the landowner, preparation of a counter-text,
Drafting of the construction contract in return for land share and technical specifications, notary processes, and title deed annotation,
Establishment of a letter of guarantee, construction guarantee mortgage and personal guarantee structure,
Limiting the scope of the power of attorney and providing an exception to the prohibition of dismissal,
During the construction process: discovery of evidence, notice letters, and precautionary measure processes,
Preparation and follow-up of the administrative ex officio termination application under Law No. 6306,
Lawsuits for contract termination, title deed cancellation and registration, delay compensation, penal clause, and incomplete/defective workmanship costs.
Our office, based in Tuzla, operates in the regions of Tuzla, Pendik, Kartal, Maltepe, Ataşehir, Ümraniye, Sancaktepe, Sultanbeyli, Kadıköy and Üsküdar, as well as Kocaeli, Gebze, Darıca and Çayırova, under the service headings of urban transformation lawyer, Istanbul urban transformation lawyer, Tuzla urban transformation lawyer, flat-for-land construction contract lawyer, land share construction contract lawyer, risky building lawyer and real estate law lawyer.
Frequently Asked Questions
What source is this checklist based on?
The framework of the list is based on the Istanbul Constructors Association (INDER)’s Contractor Selection Guide in Urban Transformation Areas with Questions and Answers. Items from the guide are also indicated; three pieces of information that need to be updated due to changes in legislation and case law, and two points that the landowner should read carefully, are marked in separate boxes.
When should I start researching contractors?
The guide’s advice is clear: before entering the urban transformation process and before conducting a risky building assessment. Landowners should form a committee among themselves to research contractor companies, obtain offers from these companies, and evaluate them. According to the guide, this is of great importance for the smooth and fast progression of the process.
How do I check the contractor’s license?
Ask the contractor for their authorization certificate number and query it via yambis.csb.gov.tr — this is the address indicated by the guide. Also, confirm that the record is active and that the document group matches the size of your project. Authorization certificate groups are categorized as A, B, B1, C, C1, D, D1, E, E1, F, F1, G, G1, H, and temporary.
What guarantees can I request from the contractor?
Five assurances are listed in the guide: performance bond (usually a bank guarantee letter for 10% of the construction cost), advance payment guarantee, guarantee letter to be provided under the contract (in practice, 10–20% of the construction cost), construction guarantee mortgage and the main partner of the contractor firm’s personal guarantee. In addition to these, there is a legal guarantee given to the Administration at the license stage under the scope of Law 6306.
What is the guarantee rate taken from the contractor at the license stage?
On parcels with risky structures, it is mandatory to provide a guarantee equal to 6% of the estimated construction cost before obtaining a building permit. The 10% rate mentioned in the guide has been updated with an amendment made to the Implementation Regulation; furthermore, guarantees for permits issued from 1/1/2024 onwards can be re-regulated according to the new rate upon the contractor’s request. A permit is not issued to a contractor who cannot provide the guarantee, and the guarantee is only refunded after the occupancy permit is obtained.
How are net and gross apartment square meters distinguished?
According to the definitions in the guide, in line with the 2018 Istanbul Zoning Regulation: net area is the sweepable area between the walls after the entrance door (excluding walls, columns, ventilation shafts, balconies, and terraces). Gross area is the area enclosed by the outer boundaries of the independent section (including interior walls, columns, balconies, and terraces; excluding floor hall, common stairs, elevator, annexed storage, and parking). Overall gross area is found by adding the share from all common areas to the gross area and is the area subject to the title deed.
How should deadlines be determined in a land share construction contract?
The guide’s recommendation: for the permit, following the contract signing, 6–9 months; for the completion of construction, following the permit acquisition, 12–30 months; for the occupancy permit, following completion, 3–6 months. In case the works specified within these intervals cannot be completed, penal clauses and termination rights must definitely be determined.
What should be the scope of the power of attorney given to the contractor?
According to the guide, the scope and limits of the power of attorney should be clearly defined, excessively broad authorities should be avoided, special terms and conditions should be set for critical property-related transactions such as sales, and the validity period and cancellation conditions should be explicitly stated. The guide also recommends seeking legal advice when preparing a power of attorney. In return, if the clause “not to dismiss until the work is finished” , which is listed among the landowner’s obligations in the guide, is to be accepted, we strongly recommend that an exception be added stating that the right to dismiss arises in the event of a fundamental breach.
Does the building inspection firm also inspect the work inside my apartment?
No. According to the guide, the main responsibility of the building inspection firm is to check the conformity of critical materials used (iron, concrete, etc.) and installations (formwork, rebar, etc.) with specifications and the licensed project. Architectural interior decoration materials (doors, parquet, joinery, kitchen, etc.) and application details are outside the scope of responsibility of the building inspection firm; it is recommended to hire a separate technical consultant for these. Building inspection is automatically assigned when the total building construction area exceeds 200 m².
If I sign the delivery report, will I lose my rights?
The guide’s advice is that if an apartment delivery report is being prepared, the phrase “with all my legal rights reserved against defective and/or incomplete works” must be added to the report. Deficiencies should also be officially communicated to the contractor in a detailed list and documented with photos and videos.
Can the contract be terminated unilaterally?
According to the guide, construction contracts in return for land share, except for the exceptional termination model specific to risky structures, cannot be unilaterally terminated in any way; however, they can be terminated by court order. The guide defines three models: retroactive termination (if the construction completion rate is below 90%; in this model, a penal clause cannot be demanded), prospective termination (the contractor retains independent sections corresponding to the completion rate as earned value; a penal clause can be demanded), and exceptional (administrative) termination under the scope of 6306.
Can the contractor be changed while construction is ongoing?
According to the guide, it is possible but a complex process involving many legal difficulties, and if possible, it should be managed in cooperation with the existing contractor. Changing the contractor while construction is ongoing requires a change in the construction permit and leads to the re-execution of many procedures, such as a new contracting agreement, a new building inspection agreement, and a new construction permit.
Conclusion
In urban transformation, the most powerful ace in the landowner’s hand is their questions before signing. The 114 items above are the systematic form of these questions; none require special expertise, only order and patience are needed.
The only principle the list carries is this: verify every piece of information the contractor gives you from an independent source. The authorization certificate from YAMBİS, the occupancy permit from the municipality, the financial status from the bank and the balance sheet, and references from the residents of that building. No unverified statement, no promise without a counterpart in the contract, should be taken into consideration.
For the legal articles of the checklist, you can contact 2M Law Office with documents related to your project (title deed records, zoning status, contractor’s offer, preliminary protocol, and draft contract).
Main References
INDER, Contractor Selection Guide in Urban Transformation Areas with Questions and Answers (prepared by: Dr. Gülcemal Alhanlıoğlu; contributors: Atty. Ali Güvenç Kiraz, Ayten Babaoğlu, Çağdaş Aygün)
Law No. 6306 on the Transformation of Areas Under Disaster Risk and its Implementation Regulation (including the amendment published in the Official Gazette dated 04.02.2026 and numbered 33158)
Regulation on the Classification and Registration of Construction Contractors (OG 2/3/2019, 30702) and YAMBİS
Zoning Law No. 3194; Law No. 4708 on Building Inspection; Title Deed Law No. 2644, Art. 26; Turkish Civil Code No. 4721, Art. 1009, Art. 1023; relevant provisions of the Turkish Code of Obligations No. 6098 and the Law No. 6502 on Consumer Protection; Regulation on Energy Performance in Buildings
Plenary Session of the Supreme Court of Appeals for Unification of Jurisprudence, 16.05.2025, Docket No. 2024/1, Decision No. 2025/2 (OG 18.07.2025, No. 32959)
Council of State, Board of Administrative Litigation Chambers, 20/9/2023, YD Objection No: 2023/692 (decision mentioned in the guide)
Legal Disclaimer: This article is prepared for general informational purposes only and does not constitute legal advice or legal services. The checklist is general in nature and must be adapted to the specific conditions of each project; the completion of the items on the list alone does not provide legal assurance. The information conveyed from the guide reflects its status as of the publication date of the guide; points updated due to changes in legislation and case law are additionally marked in the article. Legislation is constantly changing; rates, durations, and procedures must be confirmed from current legislation before implementation. The citations of judicial decisions mentioned in the article must be confirmed with their full text via the UYAP / Supreme Court Decision Search system before being used in any petition, opinion, or publication. Before taking any steps regarding your specific case, always consult an attorney.
