Developer due diligence in Turkey is the process of investigating the company, land, construction authority, project structure, financial protections and contractual obligations behind a new-build or off-plan property before committing substantial money.
For foreign buyers, this process is particularly important because a professionally designed sales office can make a project appear much simpler than its underlying legal structure actually is.
A buyer may see one brand name on:
- the project's website;
- billboard;
- brochure;
- sales office;
- Instagram account.
But legally, the project may involve several different entities:
Landowner
↓
Developer
↓
Construction Contractor
↓
Seller / Contracting Company
Those entities may be the same company.
They may also be completely different.
This means that the question:
“Is this a famous developer?”
is not enough.
A better due-diligence process asks:
Which legal company is selling the apartment?
Who owns the project land?
Who is legally constructing the building?
Does a valid building permit exist?
Are there mortgages or restrictions on the land?
What protects buyer payments if the project fails?
Who is contractually responsible for delivering my apartment?
These questions become especially important in an off-plan property purchase, where the foreign buyer may transfer a significant part of the purchase price months or years before receiving the finished apartment.
Turkey's Ministry of Trade updated its official prepaid-housing guidance on March 5, 2026. The guidance expressly tells consumers to investigate ownership of the project land, check land-registry annotations and declarations, examine the independent-section plan and technical specification, understand the protection covering buyer payments and verify that a building permit exists before entering into the relevant prepaid housing contract.
Developer due diligence therefore should not be treated as an optional internet reputation check.
It is part of the actual purchase-risk analysis.
Important: This guide provides general information and not transaction-specific legal, financial or engineering advice. Consumer protections discussed below apply where the transaction falls within the relevant Turkish prepaid-housing consumer framework; company purchasers, commercial transactions or differently structured deals may require a different analysis.
What Is Developer Due Diligence?
Developer due diligence means examining whether the people and companies behind a real estate project have the:
- legal identity;
- authority;
- property rights;
- construction permissions;
- contractual structure;
- financial protections;
- operational capacity;
necessary to perform what they are promising the buyer.
The process should answer three broad questions.
1. Does the project legally exist as represented?
Is there:
- identifiable land;
- identifiable ownership;
- a building permit;
- an approved project;
- an identifiable unit?
2. Are the companies involved legally authorized and correctly connected?
Who is:
- the landowner?
- the seller?
- the developer?
- the contractor?
3. What protects the buyer if something goes wrong?
For example:
- completion protection;
- bank guarantee;
- progress-payment system;
- contract remedies;
- refund rights;
- registered contractual protection.
Developer due diligence is therefore broader than simply asking how long the company has existed.
Developer Due Diligence vs Property Legal Due Diligence
These two reviews overlap, but they are not identical.
Property Legal Due Diligence
Focuses primarily on:
- the specific property;
- Tapu;
- ownership;
- mortgages;
- attachments;
- takyidat;
- contract;
- foreign-buyer eligibility.
Developer Due Diligence
Focuses more heavily on:
- project company;
- developer structure;
- construction contractor;
- land-development relationship;
- permit;
- construction capacity;
- financial security;
- development history;
- completion risk.
Article 22 covers the first topic in detail:
Legal Due Diligence for Property in Turkey 2026.
This article focuses on the second.
Developer, Seller, Contractor and Landowner Are Not Always the Same Company
This is one of the most important concepts in new-build property due diligence.
Imagine a project marketed as:
“Istanbul Residence”
The structure could be:
Landowner
ABC Arsa A.Ş.
Developer / Project Manager
XYZ Gayrimenkul A.Ş.
Construction Contractor
DEF İnşaat Ltd. Şti.
Seller Signing Your Contract
XYZ Proje Pazarlama A.Ş.
All four companies may be related.
But legally, they have different roles.
A foreign buyer should identify exactly:
which company owes which obligation.
Why the Legal Seller Matters
Suppose the famous developer brand is:
Global Istanbul Developments
but your contract is with:
Example Proje 7 Ltd. Şti.
Your contractual counterparty may be the smaller project company, not the parent brand appearing in advertising.
Before signing, determine:
- full legal company name;
- corporate form;
- MERSİS number;
- trade-registry number;
- tax information where relevant;
- registered address;
- authorized signatories.
Do not rely only on a logo.
1. Verify the Company's Legal Existence Through MERSİS
Turkey operates the Merkezi Sicil Kayıt Sistemi — MERSİS, its Central Registry Record System.
The Ministry of Trade explains that MERSİS centrally stores and processes company and commercial-enterprise registration, amendment and deregistration information and provides a unified registration framework for legal entities and economic units.
For developer due diligence, this helps verify that the company being presented to the buyer corresponds with an actual registered legal entity.
Check whether:
- exact company name exists;
- legal entity is active;
- company details correspond to documents provided;
- MERSİS information is consistent.
A Brand Name Is Not a Company Name
Marketing names are frequently shorter and more attractive than registered corporate names.
For example:
Project Brand: Bosphorus Crown
Developer Brand: ABC Holding
Legal Seller: ABC Gayrimenkul Yatırım Proje Geliştirme Sanayi ve Ticaret A.Ş.
Only the correct legal entity should appear in the transaction documents where appropriate.
Ask:
“What is the full registered legal name of the company signing my contract?”
Then verify it.
2. Check the Türkiye Ticaret Sicili Gazetesi
Turkey's Trade Registry Gazette — Türkiye Ticaret Sicili Gazetesi publishes registered corporate announcements.
Its official platform provides access to published notices going back to 1957 and supports company-title searches and access to registered announcements.
Depending on available company records, these notices can help investigate matters such as:
- company formation;
- name changes;
- capital changes;
- management changes;
- authorized representatives;
- address changes;
- corporate restructuring;
- share-related announcements where legally published;
- liquidation-related registrations.
This is far more useful than typing the developer's name into Google and looking only at advertisements.
What the Trade Registry Does Not Tell You
Corporate registration proves that a company is registered.
It does not automatically prove that the company:
- has enough cash to finish the project;
- has never had a dispute;
- always delivers on time;
- builds high-quality property;
- will remain solvent.
Corporate verification is only one layer.
It answers:
“Who is this company?”
not:
“Will this company definitely complete my apartment?”
3. Verify Who Can Sign for the Developer
A salesperson is not automatically authorized to bind a company.
The contract should be signed by:
- an authorized company representative;
- or another person acting under valid authority.
Check:
- authorized signatory;
- signature circular / authorization where appropriate;
- Power of Attorney where someone signs as representative;
- current corporate representation records.
A beautiful sales office does not prove that the person sitting across the desk can legally sign a €400,000 contract on behalf of the project company.
4. Verify the Construction Contractor
The company selling the project may not be the company physically responsible for construction.
Turkey maintains a contractor authorization and classification framework through YAMBİS — Yapı Müteahhitliği Bilişim Sistemi.
Official Ministry guidance states that construction subject to building permits must operate under the responsibility of an authorized building contractor and that contractor authorization numbers are used in documents including the building permit and occupancy documentation.
Identify:
- contractor's legal name;
- contractor authorization number;
- current status;
- contractor classification/group.
Can the Contractor Be Checked Online?
Yes.
Ministry guidance explains that contractor authorization information and status can be queried electronically, including through YAMBİS/e-government systems.
The official rules also provide that contractor:
- authorization numbers;
- classification groups;
- commercial names;
- cancellation actions;
are publicly accessible through YAMBİS.
That gives buyers another verification point beyond sales materials.
Does a Contractor License Guarantee Construction Quality?
No.
A valid authorization number establishes regulatory registration/authorization.
It is not an independent guarantee that:
- workmanship is excellent;
- every material matches the brochure;
- project will finish early;
- no defects will occur.
Treat it as:
a compliance check
not:
a quality certificate.
Developer vs Contractor Track Record
Ask for a list of previously completed projects.
But verify which entity actually completed them.
A project may be marketed as:
“Our 25th successful development.”
Yet some earlier projects may have been completed:
- by another subsidiary;
- by another contractor;
- before a corporate restructuring;
- as a joint venture.
The relevance of past experience depends on who actually holds the obligation in your current deal.
5. Verify Who Owns the Project Land
This is one of the most important checks in an off-plan purchase.
The Ministry of Trade's current 2026 guidance expressly recommends researching ownership of the land on which the home will be constructed through the Land Registry and checking the title for annotations or declarations that could affect value.
Ask:
Does the developer own the land?
There are several possibilities.
Developer owns the land directly
Simpler structure, although encumbrances still need checking.
Related company owns the land
Relationship must be understood.
Third-party landowner owns the land
Developer may operate under a construction-for-land-share or revenue-sharing structure.
Multiple owners own the land
Authority and project rights need closer analysis.
Developer Does Not Own the Land: Is That Automatically Bad?
No.
Many legitimate Turkish developments are built through arrangements between:
landowner + developer.
Common structures can include agreements broadly described as:
- kat karşılığı inşaat;
- arsa payı karşılığı construction;
- revenue-sharing development.
The existence of such a structure is not itself a red flag.
The buyer needs to understand whether the developer has sufficient legal rights to:
- build;
- sell;
- transfer the relevant apartment.
Questions to Ask When a Third Party Owns the Land
Determine:
- Who is the registered landowner?
- What agreement allows the developer to build?
- Which units belong to the developer?
- Which units belong to the landowner?
- Is your apartment within the developer's sale authority?
- Does the landowner need to participate in title transfer?
- Are there disputes between landowner and developer?
A foreign buyer should not assume that possession of a sales office proves ownership of the project land.
6. Check the Land Registry for Mortgages and Restrictions
The underlying project land should be checked for current takyidat.
TKGM defines takyidat broadly as registered restrictions and rights including:
- annotations;
- declarations;
- easements;
- real-estate obligations;
- mortgages;
- other relevant registered matters affecting ownership.
Possible project-land issues can include:
- construction finance mortgage;
- attachment;
- sale promise;
- easement;
- third-party right;
- other registered restriction.
Not every entry makes a project unacceptable.
Every material entry should be understood.
A Land Mortgage Is Not Automatically a Red Flag
Developers often use project finance.
A bank mortgage over project land may therefore have a legitimate financing explanation.
The important questions are:
- Which bank holds the mortgage?
- What amount or security structure exists?
- How will your independent section be released?
- Does the lender issue release approvals unit by unit?
- When will the mortgage be removed from your unit?
- Is removal linked to your payment?
The buyer needs an exit mechanism from the project mortgage.
Never Accept “The Mortgage Is Normal” as the Entire Explanation
“Normal” is not a legal mechanism.
If a project mortgage exists, ask for the documented process showing how the unit can eventually transfer without an unwanted bank mortgage remaining over it.
The contract should coordinate:
buyer payment
with
mortgage release
and
Tapu transfer.
7. Check the Building Permit — Yapı Ruhsatı
A valid Yapı Ruhsatı, or building permit, is a fundamental developer due-diligence item.
Turkey's Ministry of Trade states clearly in its March 2026 guidance:
A prepaid housing contract with a consumer cannot be concluded before the building permit has been obtained.
For an off-plan buyer, ask for:
- permit number;
- permit date;
- issuing municipality;
- parcel;
- project information;
- contractor information.
Then confirm that the permit corresponds to the project being sold.
“Permit Application Submitted” Is Not the Same as “Permit Issued”
These phrases should not be treated as equivalent:
“The municipality is processing our permit.”
and
“The building permit has been issued.”
If the applicable transaction legally requires the permit before the prepaid housing contract is concluded, a future permit is not the same as an existing permit.
8. Compare the Building Permit With the Land and Project
Check whether the permit corresponds to:
- correct ada;
- correct parsel;
- correct project;
- correct developer/contractor structure;
- correct type of construction.
A document from the developer is useful only if it actually relates to the property you are buying.
9. Review the Approved Project
A developer should be able to identify the official project behind the marketing plans.
Foreign buyers should compare:
marketing plan
with
approved legal project
where appropriate.
Check:
- block;
- floor;
- independent unit;
- unit type;
- orientation;
- balcony;
- terrace;
- parking;
- storage;
- common areas.
The Ministry of Trade's current guidance requires the consumer to receive project-related documents including the independent-section plan, site plan, floor plan and technical specification before the relevant prepaid housing contract.
10. Verify the Exact Apartment
Do not buy:
“a 2+1 unit in Block C.”
Buy an identifiable property.
The contract should allow you to determine:
- building;
- floor;
- unit number;
- independent section where established;
- orientation;
- net/gross area.
For a development with 500 apartments, vague descriptions are unnecessary risk.
Net Area vs Gross Area
A developer may advertise:
120 m²
while actual internal usable area is significantly lower.
The Ministry of Trade specifically tells consumers to compare:
- gross area;
- net area;
- position;
- orientation;
- promised internal characteristics;
against the contract.
Ask:
What exactly does the advertised square meter figure include?
11. Review the Technical Specification
The technical specification — often referred to as the mahal listesi / teknik şartname — can be one of the most valuable documents in a new-build transaction.
It can define:
- flooring;
- doors;
- windows;
- kitchen cabinetry;
- appliances;
- bathrooms;
- heating;
- air conditioning;
- façade;
- insulation;
- smart-home systems;
- common facilities.
The Ministry's 2026 guidance specifically identifies the technical specification among documents buyers should inspect before contracting.
Brochure Quality Is Not Contract Quality
A brochure may promise:
- Italian kitchen;
- premium marble;
- smart home;
- infinity pool;
- landscaped park.
But if the contract says:
“Developer may substitute equivalent materials at its discretion,”
the legal commitment may be much weaker than the brochure suggests.
Important product specifications should be incorporated into enforceable contractual documents wherever appropriate.
12. Obtain the Mandatory Pre-Contract Information
For qualifying prepaid housing sales, the seller must provide the consumer with a pre-information form at least one day before the contract is concluded.
The Ministry's March 2026 guidance also says the form and contract must contain the mandatory information prescribed by the relevant regulation.
Foreign buyers should not accept:
“Sign now and we will send the technical documents afterward.”
where the applicable legal framework requires prior disclosure.
13. Verify the Formal Contract Structure
Qualifying prepaid housing transactions are subject to formal requirements.
According to the Ministry's current guidance, a valid prepaid housing sale can be structured through:
- registration of kat irtifakı in favor of the consumer together with the required written contract; or
- a promise-of-sale agreement executed by a notary in the prescribed form.
The Ministry further states:
If a valid contract has not been established, the seller cannot demand payment from the consumer under any name or require a document placing the consumer under debt.
This is highly relevant to developer due diligence.
“Reservation Fee” Does Not Automatically Bypass Consumer Law
A payment may be described by the sales team as:
- booking fee;
- reservation payment;
- Kapora;
- processing fee;
- first installment.
The label does not necessarily determine whether the payment is legally permissible under a qualifying prepaid housing structure.
The underlying transaction matters.
For deposits generally:
Property Deposit in Turkey 2026 — Article 21.
14. Check How Buyer Payments Are Protected
The critical off-plan question is:
What protects my money if the developer cannot finish the project?
For qualifying prepaid housing projects containing 30 or more homes, the Ministry of Trade currently requires the seller, before beginning sales, to provide at least one recognized protection method such as:
- building completion insurance;
- bank guarantee;
- progress-payment system;
- linked-credit protection;
- another Ministry-approved method protecting consumer payments.
For projects below 30 homes, that specific security requirement does not apply, although other prepaid-housing rules remain applicable.
Ask for the Exact Protection, Not a Generic Promise
Do not ask:
“Is the project guaranteed?”
Ask:
“Which statutory payment-protection mechanism applies to this project?”
Then request documentation.
For example:
Building Completion Insurance
Who is the insurer?
What exactly is insured?
Bank Guarantee
Which bank?
What amount?
Who is beneficiary?
Progress-Payment System
Which bank controls the account?
When are funds released to the developer?
Linked Credit
Which part of the purchase price is actually protected by the linked credit?
Building Completion Insurance
Under Turkey's prepaid-housing framework, bina tamamlama sigortası is designed to provide consumer protection against defined project-completion risks.
Official consumer guidance describes coverage concepts associated with matters such as developer insolvency or inability to complete the property under the applicable conditions.
A buyer should verify that the insurance actually relates to:
- this seller;
- this project;
- this transaction.
Do not rely on a generic insurance-company logo in a brochure.
Bank Guarantee
A bank guarantee can provide stronger payment protection when properly structured.
The applicable prepaid-housing regulation describes the bank guarantee mechanism as a definitive, indefinite bank undertaking relating to protected consumer payments where the seller fails relevant obligations.
Ask for the actual document or reliable confirmation.
“Supported by Bank X” can mean many things other than a legally effective buyer guarantee.
Progress-Payment System — Hakediş Sistemi
Under a hakediş system, consumer payments are deposited into a designated bank account and released to the seller according to verified construction progress.
The regulation states that funds are held blocked until permitted release based on construction progress.
This changes buyer risk significantly.
Money released only as construction advances is very different from:
70% paid directly to developer before foundations are complete.
Linked Credit Protection
If a prepaid housing purchase uses a qualifying linked-credit structure, the statutory protection applies within the relevant credit amount.
The regulation also provides that where the purchase price exceeds the linked-credit amount, the remaining part must be separately secured where required.
Do not assume:
“Bank finances project”
means:
“Bank guarantees my entire purchase.”
15. Understand the Developer's Financial Structure
A company can be legally registered and still face financial stress.
Developer due diligence should therefore ask:
- Is the project dependent on continuous presales?
- Is construction materially financed by buyer installments?
- Does the land have project-finance mortgages?
- Are payment milestones linked to construction progress?
- What formal consumer protection exists?
- Is the seller a thinly capitalized project company?
Not every answer will be available publicly.
That uncertainty itself should be acknowledged rather than replaced with optimistic assumptions.
Ask for Financial Evidence Where the Exposure Justifies It
For a major off-plan acquisition, advisers may consider requesting appropriate evidence such as:
- relevant corporate information;
- project financing structure;
- bank guarantee;
- completion insurance;
- other project-security documents.
The objective is not to audit the entire developer.
It is to understand:
what financial mechanism allows the project to reach completion if apartment sales slow down.
Do Not Confuse Corporate Capital With Available Project Cash
A registered capital figure does not necessarily tell you how much liquid cash is currently available to finish a particular project.
Likewise:
large company ≠ zero project risk.
Use multiple indicators.
16. Check Construction Progress Independently
For an under-construction apartment, determine:
- actual construction stage;
- percentage completed;
- whether work is active;
- whether progress appears consistent with timeline.
Do not rely solely on:
“Project is 70% completed.”
Ask how that percentage was calculated.
Visit the Construction Site
If possible, inspect the site.
For a remote buyer, arrange:
- live video;
- independent representative;
- engineer;
- property inspector.
Look for:
- active workers;
- machinery;
- completed floors;
- façade progress;
- infrastructure;
- access roads;
- common-area construction.
A CGI rendering does not demonstrate construction progress.
Compare Progress Over Time
Ask for dated evidence.
For example:
January
foundations
April
structural floors
July
façade
Progress over several months is more informative than a single construction photo.
17. Verify the Developer's Previous Projects
Past performance can provide useful evidence.
Ask for:
- completed-project names;
- locations;
- delivery years.
Then independently inspect some of them.
Check:
- Is the project actually completed?
- Was occupancy obtained?
- Are owners living there?
- Does the physical quality resemble the marketing?
- Are common areas operational?
A developer's previous building is more informative than a sales presentation about a future one.
Talk to Existing Owners Where Possible
Existing owners may provide practical information about:
- delivery delays;
- snagging;
- after-sales service;
- site management;
- aidat;
- common facilities;
- build quality.
Treat individual opinions carefully.
One unhappy online review does not prove systemic misconduct.
But consistent patterns across multiple independent sources can justify further investigation.
Online Reviews Are Evidence, Not Proof
Do not conclude:
“Five stars = safe developer.”
or:
“One complaint = bad developer.”
Online reviews can be:
- genuine;
- incentivized;
- fake;
- outdated;
- unrelated to your project.
Use them as leads for additional questions.
Not as substitutes for documents.
18. Check Delivery History
Ask:
Were previous projects delivered when promised?
But verify what “delivered” means.
Developers may use different definitions:
- keys handed over;
- apartment physically finished;
- occupancy obtained;
- title transferred;
- common facilities completed.
Delivery quality matters as much as delivery date.
19. Check the Contractual Delivery Date
The agreement should contain a specific delivery obligation.
Avoid vague wording such as:
“Estimated completion Q4.”
Ask:
What contractual date creates seller liability?
For qualifying prepaid housing, the current Ministry guidance states that the legal delivery period cannot exceed 48 months from the contract date, although the parties can agree a shorter period, in which case the seller is bound by that shorter contractual deadline.
Key Handover Is Not Necessarily Legal Delivery
This is an important 2026 due-diligence point.
The Ministry explicitly states that merely physically handing over the property or giving the keys does not by itself mean legal delivery has been completed under the prepaid-housing rules.
Therefore ask:
- When are keys delivered?
- When is Tapu transferred?
- What title status exists?
- Is the apartment legally occupiable?
- What documents exist at handover?
20. Review Delay Penalties
If the developer is late:
What happens?
The contract may provide:
- compensation;
- monthly payment;
- right to terminate;
- grace period.
Pay attention to clauses allowing the developer to extend delivery for broad reasons.
A six-month grace period can materially alter an advertised “June 2027” delivery.
Force Majeure Should Not Mean Everything
Developer contracts often contain long lists of force-majeure events.
Review whether ordinary commercial difficulties are being shifted to the buyer.
Questions include:
- Does material-price inflation automatically extend delivery?
- Does labor shortage automatically extend delivery?
- Can financing problems become force majeure?
- Is government action covered?
- What notice must the seller provide?
The clause should not turn a fixed delivery date into a purely optional target.
21. Investigate Project Changes
The buyer should understand how much the developer may change after contract signing.
Potential changes include:
- apartment plan;
- building design;
- common areas;
- landscaping;
- materials;
- project amenities.
Under current prepaid-housing consumer guidance, qualifying project changes must be communicated to the consumer in writing or through a permanent data medium. A consumer who does not accept a qualifying change can, within the applicable one-month period, withdraw under the conditions described by the Ministry.
“Equivalent Material” Clauses Need Limits
A developer may need reasonable flexibility.
But a clause allowing unlimited substitution creates quality risk.
For example:
Contract promise: engineered oak flooring
should not casually become:
low-cost laminate
because the developer calls it “equivalent.”
Technical specifications should be specific enough to measure performance.
22. Verify the Payment Recipient
Payments should make commercial and legal sense.
If your contract is with:
ABC Gayrimenkul A.Ş.
but you are told to transfer money to:
an employee
or
unrelated company
ask why.
Developer due diligence should connect:
Contracting Seller
↓
Bank Beneficiary
↓
Property
Unexplained payment chains create recovery and compliance risk.
Avoid Paying Salespeople Personally
A salesperson may be authorized to negotiate.
That does not automatically mean the salesperson is authorized to personally receive:
€10,000 reservation money
or
€200,000 installment payments.
Verify the beneficiary independently.
23. Link Payments to the Transaction
For installment purchases, the contract should state:
- payment amount;
- due date;
- currency;
- trigger.
Where commercially possible, buyers should understand whether payments are linked to actual construction progress.
This is particularly important in off-plan purchases.
Large Upfront Payment Increases Developer Risk
Compare:
Structure A
20% now
20% after structural completion
30% after façade
30% at title/delivery
with:
Structure B
80% immediately
20% at delivery in two years
Structure B creates much greater exposure to developer non-performance.
Price discount should be evaluated against the additional risk.
24. Understand Consumer Withdrawal Rights
For qualifying prepaid housing contracts, consumers currently have a 14-day statutory withdrawal right from contract formation without giving a reason or paying a contractual penalty.
This is separate from:
- commercial cancellation;
- deposit terms;
- the longer statutory withdrawal mechanism.
Foreign buyers should establish whether their transaction legally falls within the relevant consumer regime.
24-Month Withdrawal Mechanism
The current Ministry guidance also states that consumers in qualifying prepaid housing transactions may, subject to the statutory framework, withdraw for up to 24 months after the contract date.
Depending on timing, defined compensation may apply.
Do not confuse this with a developer voluntarily offering:
“Free cancellation.”
Statutory and contractual rights are different.
25. Check Refund Timing
Even where a buyer has a refund right:
When must the money actually be returned?
Current Ministry guidance states that qualifying refunds following use of the 14-day withdrawal right must be returned, together with relevant debt documents, within a maximum of 14 days after the withdrawal notice reaches the seller.
For the separate statutory withdrawal-from-contract mechanism, the current guidance identifies a maximum 180-day refund period.
These distinctions should be understood before signing.
26. Review the Promise-of-Sale Protection
Where a prepaid housing transaction is structured through a notarized taşınmaz satış vaadi sözleşmesi, the Ministry explains that the consumer can request annotation of that agreement in the land registry.
Such annotation can help make the buyer's contractual right visible in the registry.
Foreign buyers should ask whether this protection is relevant to their transaction.
27. Check Citizenship Claims Separately
A developer may market apartments as:
“Citizenship Eligible.”
That phrase should trigger additional due diligence.
Do not assume eligibility merely because:
- price exceeds $400,000;
- developer has sold to citizenship buyers before;
- marketing brochure says “passport property.”
A citizenship transaction also requires examination of:
- valuation / TTB;
- seller/property eligibility;
- ownership history where relevant;
- DAB;
- payment evidence;
- Tapu amount;
- required undertaking;
- holding-period requirement.
Citizenship eligibility is transaction-specific.
Developer Guarantee vs Government Citizenship Rules
A sales company cannot override Turkish citizenship regulations.
A contract that says:
“Citizenship guaranteed”
should still be analyzed against the official requirements.
The safer question is:
“Which objective citizenship requirement does this property satisfy, and what happens contractually if it fails?”
28. Check Foreign-Buyer Eligibility
The fact that the developer can sell the property generally does not necessarily mean every foreign national can acquire every unit.
Foreign-buyer restrictions may depend on:
- nationality;
- location;
- military/security restrictions;
- statutory acquisition limits.
The foreign buyer's eligibility should be verified separately from developer quality.
29. Remote Buyers Need Stronger Developer Controls
Foreign investors buying from abroad often rely heavily on the developer's international sales department.
That creates information asymmetry.
A remote buyer should independently verify:
- corporate identity;
- land ownership;
- building permit;
- construction progress;
- exact apartment;
- contract;
- payment recipient.
Do not allow the developer to be the only source verifying itself.
See:
Buying Property in Turkey Remotely 2026 — Article 25.
30. Building Quality Is a Separate Due-Diligence Workstream
Company due diligence does not determine engineering quality.
A developer may have:
- correct corporate records;
- valid permit;
- correct contract;
and still produce poor workmanship.
Technical review may involve:
- structural engineer;
- architect;
- building inspector;
- snagging specialist.
Developer due diligence should therefore be combined with technical inspection where appropriate.
Contractor Classification Is Not an Earthquake Certificate
The YAMBİS contractor system evaluates regulatory qualification/registration.
It does not certify that a specific building will perform safely in a future earthquake.
For earthquake-related acquisition decisions, investigate:
- construction date;
- design code;
- structural system;
- ground conditions;
- engineering documentation;
- professional assessments where necessary.
31. Check İskan for Completed Developer Property
If the project is already physically finished, due diligence changes.
Ask:
- Is the Yapı Kullanma İzin Belgesi / İskan obtained?
- Is the building legally completed?
- Is the unit kat mülkiyeti or kat irtifakı?
- Are utilities fully operational?
- Are common areas complete?
A project marketed as:
“ready to move”
should be investigated as a completed property, not merely accepted based on furniture and keys.
32. Check Kat Mülkiyeti vs Kat İrtifakı
A recently completed apartment may still have kat irtifakı rather than kat mülkiyeti.
That is not automatically unacceptable.
But buyers should understand:
- why;
- what documentation remains outstanding;
- when conversion is expected.
A completed project with unresolved legal completion questions deserves closer review.
33. Review the Management Plan
A major residential project continues to create costs after purchase.
Ask for information about:
- site management;
- common facilities;
- parking;
- use restrictions;
- management structure;
- estimated aidat.
Do not focus only on the purchase price.
A luxury compound can create significant monthly operating costs.
Estimate Aidat Before Buying
The developer may say:
“Aidat has not been determined yet.”
Ask for a realistic estimate based on:
- swimming pools;
- security;
- landscaping;
- concierge;
- gym;
- lifts;
- heating/cooling systems.
A low rental yield can become even lower after site-management charges.
34. Review Assignment and Resale Before Delivery
Investors buying off-plan sometimes plan to resell the contract before completion.
Do not assume this is unrestricted.
Check whether the contract allows:
- assignment;
- nomination;
- resale before Tapu.
And whether it imposes:
- developer consent;
- transfer fee;
- minimum holding period;
- restrictions.
An “easy exit” promised by a salesperson should appear in the contractual structure if it is important to your investment.
35. Rental Guarantees Need Separate Verification
Some projects advertise:
Guaranteed 8% rental return
or similar offers.
Ask:
- Who gives the guarantee?
- Developer?
- Hotel operator?
- Separate management company?
- For how long?
- Gross or net return?
- In TRY, USD or EUR?
- Is aidat deducted?
- What happens if operator defaults?
Do not value a rental guarantee as equivalent to a government bond.
It is a contractual promise from a specific counterparty.
36. Guaranteed Buyback Clauses
The same principle applies to:
“Developer will buy your apartment back after three years.”
Verify:
- legal entity making the promise;
- price formula;
- currency;
- conditions;
- deadline;
- financial ability of guarantor.
A buyback clause is only as strong as the entity obligated to honor it.
Documents to Request From a Developer
A serious buyer may need to review or obtain relevant copies/information concerning:
| Document / Information | Why It Matters |
|---|---|
| Legal company details | Identifies contractual counterparty |
| MERSİS information | Verifies registered entity |
| Trade Registry announcements | Helps review corporate history and authority |
| Signatory authority | Confirms who can bind company |
| Contractor authorization / YAMBİS | Confirms construction contractor status |
| Land title information | Shows ownership |
| Takyidat record | Reveals mortgages/restrictions |
| Building permit | Confirms authorized construction framework |
| Approved unit / project plans | Identifies what is legally planned |
| Technical specification | Defines promised construction/materials |
| Pre-information form | Required in qualifying prepaid consumer transaction |
| Buyer payment security documentation | Shows how advance payments are protected |
| Delivery schedule | Defines completion obligation |
| Management information | Helps estimate post-purchase costs |
Not every project will present the documents in the same form.
The buyer's lawyer should determine which are necessary for the specific transaction.
Developer Due Diligence Scorecard
Instead of relying on one factor, evaluate several dimensions.
| Area | Lower Risk Signal | Higher Risk Signal |
|---|---|---|
| Corporate Identity | Clear legal seller | Brand/entity confusion |
| Land | Ownership/rights documented | Seller cannot explain land rights |
| Takyidat | Explained and manageable | Undisclosed restrictions |
| Permit | Issued and matches project | “Permit coming soon” |
| Contractor | Valid and identifiable | Contractor unclear |
| Buyer Security | Documented mechanism | Verbal “guarantee” |
| Contract | Property-specific and balanced | Vague and highly one-sided |
| Payments | Traceable to proper entity | Personal/unrelated accounts |
| Progress | Independently verifiable | Only CGI/marketing images |
| Delivery | Specific deadline | “Estimated completion” only |
| Track Record | Verifiable completed projects | Unverifiable claims |
| Technical Specs | Detailed annex | Brochure-only promises |
No single green signal eliminates all risk.
Green, Amber and Red Findings
Green
Example:
- seller clearly identified;
- land rights verified;
- permit exists;
- contractor authorized;
- payment protection documented;
- project progressing as represented.
This does not guarantee future performance, but the structure is clearer.
Amber
Example:
Project land carries a bank mortgage.
However:
- lender relationship is documented;
- unit-release procedure exists;
- contract coordinates mortgage release before transfer.
This may be manageable.
Red
Example:
- developer does not own the land;
- seller cannot produce evidence of development rights;
- no valid permit;
- large payment demanded immediately;
- payment goes to unrelated personal account.
Do not treat a discount as a substitute for resolving structural risk.
Major Developer Red Flags
| Red Flag | Why It Matters |
|---|---|
| Developer refuses to disclose full legal seller name | Buyer may not know contractual counterparty |
| Brand name does not match contract company and relationship is unexplained | Parent brand may not legally guarantee project company |
| Seller cannot explain who owns the land | Fundamental project-right risk |
| “Building permit coming soon” but contracts/payments demanded | Potential formal/legal problem |
| Contractor identity cannot be verified | Construction responsibility unclear |
| Project security for qualifying 30+ home project is unexplained | Buyer money may lack required protection |
| Mortgage exists but release mechanism is vague | Unit may remain encumbered |
| Payment requested to salesperson | Recovery/documentation risk |
| Contract apartment cannot be matched to project plan | Asset identity uncertain |
| Technical specification not provided | Quality promise remains vague |
| Large discount offered for nearly full upfront payment | Buyer assumes major completion exposure |
| Delivery date described only as an estimate | Enforcement risk |
| Developer can change project without meaningful limits | Buyer may receive different product |
| Only previous-project renders are shown | Track record may not be independently verifiable |
| Sales team discourages independent lawyer | Significant warning sign |
| Citizenship marketed as automatically guaranteed | Eligibility requires separate legal verification |
| Buyer asked to sign before receiving required documents | Due diligence compressed by sales pressure |
| Refund promise has no deadline | Money recovery risk |
| Construction progress cannot be independently verified | Completion claim uncertain |
Developer Due Diligence Checklist
Corporate Identity
Contractor
Land
Permits / Project
Consumer Protection
Financial / Payment
Track Record
Contract
Final Decision
20 Questions to Ask a Property Developer Before Buying
- What is the full legal name of the company selling my apartment?
- What is its MERSİS number?
- Who is authorized to sign my contract?
- Who legally owns the project land?
- If you do not own the land, what agreement gives you development and sale rights?
- What are the project's ada and parsel numbers?
- Does the land have a mortgage?
- If yes, how will the mortgage be released from my apartment?
- Has the building permit been issued?
- What is the permit number and date?
- Who is the registered construction contractor?
- What is the contractor's YAMBİS authorization?
- What statutory protection covers my advance payments?
- What exact unit am I buying?
- What is its net and gross area?
- What technical specification forms part of my contract?
- What is the binding delivery date?
- What compensation applies if delivery is late?
- Can you show me completed projects delivered by the same company or contractor?
- What happens to my money if the project is not completed?
A serious developer should be able to answer basic project-structure questions without treating them as unreasonable.
Example: Strong Developer Structure
Imagine an off-plan Istanbul project with:
Legal Seller
ABC Gayrimenkul A.Ş.
Landowner
ABC Gayrimenkul A.Ş.
Contractor
XYZ İnşaat A.Ş., with verified contractor authorization.
Building Permit
Issued and matched to project parcel.
Land
Bank mortgage exists.
Mortgage Release
Written lender-approved unit release procedure.
Buyer Protection
Hakediş system through a named bank.
Contract
Specific unit + technical specification + fixed delivery date.
Construction
35% completed and independently verifiable.
This does not eliminate all development risk.
But the structure is understandable.
Example: Weak Developer Structure
Now consider:
Project Brand
Luxury Istanbul Residence
Seller
Sales team will not provide full legal company name until deposit is paid.
Land
“We work with the landowner.”
No documentation provided.
Permit
“Almost ready.”
Deposit
€20,000 required today.
Beneficiary
Sales manager's personal account.
Delivery
“Approximately two years.”
Security
“Don't worry, our company is very strong.”
This structure contains multiple unresolved risks.
A beautiful showroom should not override them.
Developer Due Diligence for Completed New-Build Property
If the apartment is already complete, the focus shifts.
Check:
- legal seller;
- current title;
- mortgage;
- İskan;
- kat mülkiyeti / kat irtifakı;
- common-area completion;
- defects;
- management plan;
- aidat;
- handover condition.
Completion reduces construction risk.
It does not eliminate title, contract or quality risk.
Developer Due Diligence for Off-Plan Property
For off-plan purchases, prioritize:
- seller identity;
- land ownership;
- development rights;
- building permit;
- contractor;
- statutory buyer-payment security;
- formal contract structure;
- construction progress;
- delivery deadline;
- mortgage release.
The earlier the construction stage, the more important these controls become.
Developer Due Diligence for Citizenship Property
For citizenship purchases, add a second independent review.
The property must satisfy:
Developer / transaction safety
and
citizenship eligibility.
A project can be legitimate but still fail the buyer's citizenship objective.
Verify:
- eligible transaction value;
- TTB / valuation;
- DAB;
- seller/property conditions;
- payment trail;
- citizenship undertaking;
- three-year restriction where applicable.
Do not allow developer due diligence and citizenship due diligence to become one vague statement:
“Everything is okay.”
What Developer Due Diligence Cannot Guarantee
Even a strong review cannot guarantee:
- zero construction defects;
- future market appreciation;
- rental yield;
- future exchange rate;
- future developer profitability;
- no regulatory changes;
- no construction delay.
Due diligence reduces identifiable risk.
It does not eliminate investment risk.
Should You Buy Only From Large Developers?
Not necessarily.
Large developers may offer:
- longer track records;
- greater resources;
- more institutional financing.
Smaller developers can sometimes offer:
- good locations;
- lower overhead;
- strong local execution.
The correct question is not:
“How big is the developer?”
It is:
“Is the legal, financial and construction structure of this specific project acceptable?”
Does a Famous Brand Make an Off-Plan Property Safe?
No brand eliminates project-specific due diligence.
A famous group may create a separate company for each project.
Therefore verify:
- which entity signs;
- whether parent company guarantees obligations;
- which company owns land;
- which company receives payments.
Brand reputation is useful context.
Legal structure determines rights.
FAQ: Developer Due Diligence in Turkey
How can I check a property developer in Turkey?
Start by identifying the developer's exact legal company name and reviewing MERSİS and Türkiye Ticaret Sicili Gazetesi information.
Then investigate:
- land ownership;
- takyidat;
- building permit;
- contractor authorization;
- project documentation;
- buyer-payment security;
- contract;
- previous projects.
MERSİS is Turkey's centralized commercial registration system, while the Trade Registry Gazette provides access to registered corporate announcements.
What is MERSİS?
MERSİS is Turkey's Central Registry Record System.
The Ministry of Trade describes it as the centralized system used for company and commercial-enterprise registration, amendments, deregistration and related legal-entity information.
Can I check a Turkish construction contractor?
Yes.
Turkey maintains contractor authorization and classification records through YAMBİS, and official Ministry information states that contractor authorization numbers, status and relevant classification information can be queried electronically.
Does every Turkish contractor need authorization?
For construction falling within the applicable building-permit framework, Ministry guidance states that the building must be constructed under the responsibility of a contractor with the required authorization number.
Should I check who owns the project land?
Yes.
Turkey's Ministry of Trade specifically advises consumers buying prepaid housing to investigate land ownership through the Land Registry and check for annotations or declarations affecting the property.
Is it bad if the developer does not own the land?
Not automatically.
Projects can legitimately be developed under agreements with separate landowners.
The buyer should verify the developer's legal development and sale rights and confirm that the chosen unit can legally be transferred.
Should I buy if the project land has a mortgage?
A mortgage does not automatically prevent a purchase.
But the buyer must understand:
- lender;
- security;
- unit-release process;
- timing of mortgage removal.
Do not proceed based only on a verbal promise that the mortgage will disappear later.
Does an off-plan project need a building permit?
For qualifying prepaid housing consumer sales, the Ministry of Trade states that the contract cannot be concluded before the relevant building permit has been obtained.
Can a developer collect money before a valid prepaid housing contract?
For transactions falling within the relevant prepaid-housing consumer framework, current Ministry guidance states that the seller cannot demand payment under any name or require the consumer to undertake debt before a valid contract satisfying the required formal structure has been established.
How are buyer payments protected in an off-plan project?
For qualifying prepaid housing projects containing 30 or more homes, the seller must provide a recognized security mechanism such as building completion insurance, bank guarantee, progress-payment system, linked-credit protection or another Ministry-approved method protecting consumer payments.
Do projects with fewer than 30 apartments need the same security?
The Ministry's current guidance states that the specific statutory security requirement described for projects with 30 or more homes does not apply to projects below 30 homes, although other prepaid-housing rules continue to apply.
What is building completion insurance?
It is one of the protection mechanisms available under Turkey's prepaid-housing framework for qualifying projects, intended to protect the consumer against defined developer/project completion risks.
What is a hakediş system?
Under the progress-payment or hakediş system, consumer funds are deposited with a bank and released to the seller according to construction progress rather than being freely available immediately.
How long can a developer take to deliver an off-plan property?
Under current Ministry guidance for qualifying prepaid housing sales, the legal delivery period cannot exceed 48 months from the contract date.
If the contract promises a shorter period, the seller is bound by that shorter contractual period.
Does receiving the keys mean the developer has legally delivered the property?
Not necessarily.
The Ministry specifically states that physical handover or merely giving the keys does not by itself establish official legal delivery under the prepaid-housing framework.
Can a developer change the project after I sign?
Applicable consumer rules regulate project changes in qualifying prepaid housing transactions.
Current Ministry guidance requires qualifying changes to be notified and provides a right to withdraw in certain circumstances where the consumer does not accept them.
Should I trust a developer because a Turkish bank finances the project?
Bank involvement can be relevant, but it does not automatically guarantee:
- every buyer payment;
- construction quality;
- investment performance.
Determine the bank's actual legal role.
Is a developer's previous project history important?
Yes, but verify it independently.
Look at actual completed projects and distinguish between:
- developer;
- contractor;
- related company.
Historical experience is useful evidence, but not a guarantee of future performance.
Is developer due diligence enough before buying?
No.
A buyer may also require:
- legal property due diligence;
- technical inspection;
- valuation;
- contract review;
- foreign-buyer eligibility review;
- citizenship review where applicable.
Developer due diligence is one component of the wider acquisition process.
Final Advice for Foreign Buyers
Developer due diligence in Turkey should answer a question that sales presentations rarely answer completely:
Who is actually responsible for turning my payment today into a legally transferable, completed apartment later?
A buyer should be able to trace the project through a clear chain:
Legal Seller
↓
Corporate Registration
↓
Land Ownership / Development Rights
↓
Building Permit
↓
Authorized Contractor
↓
Approved Project
↓
Buyer Payment Protection
↓
Construction
↓
Delivery
↓
Tapu Transfer
If one part of that chain is missing, the buyer should understand why before proceeding.
For an off-plan foreign buyer, the most important checks include:
- identify the exact legal seller;
- verify MERSİS and trade-registry information;
- verify signing authority;
- identify and check the authorized contractor;
- verify land ownership;
- investigate mortgages and other takyidat;
- confirm the building permit;
- review the approved project and exact unit;
- review technical specifications;
- identify the statutory payment-protection mechanism;
- investigate actual construction progress;
- examine previous completed projects;
- understand the binding delivery date;
- verify refund and delay remedies;
- coordinate payment with title and mortgage release.
Turkey's current consumer-protection guidance provides foreign buyers with several useful control points.
For qualifying prepaid housing, the Ministry requires pre-contract disclosure, prohibits contracting before the building permit exists, requires formal contract structures, directs consumers to check project land and land-registry restrictions, and requires payment-security mechanisms for qualifying projects with 30 or more homes.
But regulation does not remove the need for buyer judgment.
A project can comply with basic formal requirements and still be:
- overpriced;
- poorly located;
- commercially unattractive;
- technically weak;
- financially risky.
That is why the correct decision framework is not:
“Is this developer famous?”
It is:
“Have I independently verified the company, land, permit, project, protection and contractual path to delivery?”
That is the standard a foreign investor should apply before transferring substantial money to a Turkish property developer.
