What should be considered in a land-for-flats construction agreement?

Ownership, land share, mortgage, lien, usufruct, annotation and other restrictions should be examined in the current title deed record. Zoning status, plan notes, parcel geometry, need for abandonment or unification and the legal status of the existing building are the beginning of architectural feasibility. The signature/authorization status of all owners and representatives must also be verified.

The contractor's credentials, financial capacity, work in progress and completed references should be investigated prior to contract negotiation. It should be noted that the land owners and the contractor have different advisors; The draft prepared by the contractor should be reviewed by an independent lawyer, and the project and technical annexes should be reviewed by architects and engineers.

The phrase “55 percent to the land owner” does not indicate which flats, shops, parking lots or warehouses will be owned by whom. Each independent section should be written on the distribution table with its floor, facade, type of use, number, net and gross area, land share, balcony/terrace and additions. The project on which the ruler is based must bear the date and version number.

If the project changes during the licensing phase, it should be determined how the independent section distribution will be updated, which changes will require owner approval, and how the area difference will be compensated. If the approximate area is to be used, the accepted tolerance and the monetary or in-kind equivalent of the missing/excess area outside the tolerance must be clear.

• Independent section number, floor, facade and type
• Net/gross area definition and calculation method
• Land share, parking lot, warehouse and other add-ons
• Date and version of the project sheet
• Field tolerance and value compensation

Linker attachmentThe numbered and signed project annex explains the contract, not the visual presentation.

Perspective or sales brochure; It does not replace the commitment of space, materials and independent sections.

Transferring land shares collectively at the beginning of the contract may reduce the strongest assurance of land owners before the work is done. Transfers may be considered to be tied to license, foundation, rough construction, finishing works, settlement or similar verifiable milestones. It should be written who will confirm which stage has been completed and with which document.

Bank guarantee letter, mortgage, surety, insurance or other guarantees are not in name; It should be examined in terms of amount, duration, conversion into cash condition and scope. Annotation to the title deed, prohibition on transfer and limits of power of attorney should be handled by the lawyer according to the structure of the concrete contract. It should be noted that administrative guarantees do not cover all contractual risks of owners.

The duration should not be written only as "24 months". Separate deadlines for license application, demolition, start of work, foundation, rough structure, facade, finishing works, occupancy and delivery; It should be stated how the delay caused by the administration or force majeure will be documented and how much extension it will cause. The start/end conditions for rental assistance, late fees and payments must match this calendar.

The technical specification should include performance, product class, application standard and equivalent product approval method, rather than immeasurable adjectives such as “luxury” or “premium”. The scope of the load-bearing system, insulation, facade, joinery, mechanical-electrical installations, elevators, common areas and landscaping should be consistent with the project annexes.

• Separate deadlines for licensing and start-up
• Phased work schedule and owner reporting scheme
• Measurable product/performance specification
• Written approval for project and material changes
• Definition of delay, rent and force majeure

Delivery condition; It should include the actual usability of the building, occupancy certificate, condominium ownership, subscription infrastructure, completion of common areas and determination of deficiencies in independent sections with a report. Provisional acceptance, period for correcting missing work, warranty, defect notification and final acceptance should be distinguished.

In case of default, quitting the job, failure to obtain a license, bankruptcy or severe delay, the mechanism for notification, additional period, termination, settlement and transfer of the remaining work should be written. When determining the place and method of dispute resolution, provisions that narrow the legal rights of the parties or are difficult to implement should be avoided. This section must be prepared by an independent lawyer according to the concrete file.