Construction agreement in return for land share

Under a construction agreement in return for land share, the landowner undertakes to transfer part of the land shares while the contractor undertakes to construct independent units on the land and deliver the agreed units to the owner. The model dominates Turkish residential development.

Legally it is a mixed contract combining a works contract with a promise to sell immovable property; since it involves the transfer of land, it must be executed in notarised official form. The division is agreed by allocating specific units on the floor plans to each party, and the contract may be annotated on the title.

Disputes typically concern late delivery, construction contrary to the project and contractor insolvency. Rights of third parties buying flats from the contractor at this stage depend on the contractor performing its obligations toward the landowner, which makes reviewing the underlying agreement critical for off-plan purchasers.