Buying a Property from a Construction Project: Risks, Legal Process, and Refund Rights If No Title Deed Has Been Issued

Buying a property “from the project”—meaning before construction is completed—has become increasingly common, especially in major cities and coastal regions. This method often offers more affordable prices and flexible payment plans. However, purchasing a property before it is completed also involves legal and financial risks.

If the title deed has not yet been transferred, the buyer’s rights are significantly stronger, and in many cases, a full refund is legally possible.

In this article, we explain the legal framework of off-plan property purchases, potential risks, buyer protections, and how the refund / cancellation process works when the deed has not yet been issued.

What Is an Off-Plan (Pre-Construction) Property Sale?

An off-plan property sale refers to the sale of a property that is not yet completed, sometimes even not yet started, and is sold based on architectural drawings, plans, or a sample apartment.

In Türkiye, such sales are regulated under the Consumer Protection Law (Law No. 6502) as “Pre-Paid Housing Sales.”

The Sales Contract Must Be Executed at the Notary

Pre-paid housing sale contracts must be notarized.
If the contract is not executed at the notary, it may later be considered invalid or unenforceable.

Common Risks When Buying a Property from a Construction Project

RiskDescriptionConstruction is not completedFinancial problems, lack of permits, or bankruptcy may lead to an unfinished project.Delivery date is delayedIf the developer fails to deliver the property on time, the buyer may claim delay compensation.The same property is sold to multiple buyersA common problem where no title deed has been transferred yet.Contract includes terms against the buyerPenalties, deductions, and non-refundable payments may be written into the contract.

Tip: Always have the contract legally reviewed before signing.

Can You Request a Refund If You Have Not Received the Title Deed?

Yes.
If the title deed has not been transferred, the buyer is still considered a consumer, and consumer protection law applies.

You can legally cancel the contract and request a full refund if:

• The project is not completed within the contractual timeframe,

• The property is constructed differently than agreed (defective construction),

• The seller fails to fulfill obligations,

• The same apartment is sold to another person.

Full Refund Without Deductions Is Often Possible

Even if the contract states that a cancellation fee or percentage deduction will apply, such clauses are often deemed invalid in consumer contracts.
This means the buyer may request a full refund with legal interest.

What Is the Refund / Cancellation Process?

1. A formal written notice (notary letter) is sent to the seller to cancel the contract.

2. Mandatory consumer mediation is initiated.

3. If no settlement is reached, the buyer may proceed with:

   • Debt enforcement (execution proceedings), or

   • A civil lawsuit to recover payments.

If the title deed has not yet been transferred, the legal process is generally faster and more favorable for the buyer.

What If the Title Deed Has Already Been Transferred?

Even after the title deed transfer, the buyer still has legal rights.

If the property:

• Has less square meter than stated,

• Contains material or workmanship defects,

• Differs from the original project plan,

The buyer may file claims for:

• Price reduction (compensation),

• Repair,

• or in extreme cases, rescission of the sale contract.

Frequently Asked Questions (FAQ)

1. How can I check if the developer is reliable?
You can review commercial registry records, past projects, bank guarantees, and building permits.

2. Can I get all my money back if I cancel before receiving the title deed?
In many cases, yes — a full refund without deductions is legally possible.

3. Do I have to go to court?
Not always. Many disputes are resolved through mediation or negotiation.

4. Can I claim compensation if the project is delayed?
Yes. You may request delay compensation depending on the contract terms.

Conclusion

Buying property from a construction project can be a smart investment, but it must be done carefully.
Before signing, it is essential to:

• Review the contract in detail,

• Verify permits and legal documentation,

• And understand your legal rights as a consumer.

If the title deed has not yet been issued, your refund and cancellation rights are significantly stronger.