Antalya, with its natural beauty, touristic appeal, and dynamic population, is a constantly evolving city. Along with this development, the need to renovate structures at risk of earthquakes or those that have reached the end of their economic life is also increasing daily. Urban transformation projects are crucial for both the modernization of our cities and the provision of safe and comfortable living spaces for our citizens. However, the urban transformation process can pose significant legal risks for landowners, especially during the contractor selection phase. This article will provide a detailed overview of the legal considerations to consider when selecting a contractor for urban transformation projects in Antalya.
Legal Framework and Importance of the Urban Transformation Process
Urban transformation, implemented under Law No. 6306 on the Transformation of Areas at Disaster Risk, is the process of identifying and demolishing at-risk structures and constructing new ones in their place. This process encompasses not only the renovation of buildings but also landscaping, infrastructure improvements, and the creation of social amenities. In metropolitan cities like Antalya, the proper and safe progress of urban transformation is vital for urban resilience and quality of life. Transforming at-risk structures not only prevents loss of life and property in potential disasters but also contributes to the creation of a modern and aesthetically pleasing urban fabric. For landowners, this process means the appreciation of their old and depreciated properties and the acquisition of safer and more modern housing. It is crucial that the process proceeds with sound legal grounding.
Initial Steps and Legal Research in Contractor Selection
The success of an urban renewal project is directly linked to selecting the right and reliable contractor. Choosing a contractor can entail risks in many areas, from construction quality and delivery time to financial reliability and legal liability. Therefore, thorough research and legal due diligence are essential.
Investigating the Contractor’s Background and Reliability
Before signing a contract with a contractor, thorough research should be conducted on their track record and reputation. This research will help identify potential legal issues early on.
* Trade Registry Records and Tax Certificate: The contractor’s Trade Registry Gazette records should be reviewed to verify the company’s founding date, capital structure, partnership structure, and areas of activity. The tax certificate should be checked to verify that the company is currently tax-liable.
* References and Completed Projects: The contractor’s previous completed projects should be examined on-site, and if applicable, previous landowners should be contacted to learn about their experience. Issues such as construction quality, adherence to deadlines, and how potential problems were resolved should be inquired about.
* Financial Status and Enforcement Proceedings: The contractor’s financial status is critical to project completion. It’s important to investigate whether the company is facing check and bill protests, enforcement proceedings, or bankruptcy proceedings. Such negative circumstances increase the risk of project interruption or delay.
* Legal Permits and Licenses: The contractor must be verified to ensure they have all necessary legal permits and licenses. In particular, the “Building Contractor Authorization Certificate” issued by the Ministry of Environment, Urbanization and Climate Change must be current and valid.
Evaluation of Technical Capacity and Experience
Not only the financial and legal reliability of the contractor, but also his technical capacity is important for the success of the project.
* Project Management Team and Technical Staff: The competence and experience of the contractor’s architects, engineers, and other technical personnel should be evaluated. Experience in urban transformation projects is preferred for the project management team.
* Experience in Similar Projects: Urban transformation projects have unique legal and technical processes. A contractor’s previous experience with urban transformation projects in Antalya or similar regions demonstrates their expertise in these processes.
Legal Review of Construction Contract in Return for Flats
In urban renewal projects, the foundation of the relationship between landowners and contractors is the “Construction Agreement in Return for Flats” or “Construction Agreement in Return for Land Shares.” This agreement is the most important legal document, defining all the details of the project and the rights and obligations of the parties.
Essential Elements of the Contract and Form Conditions
A construction contract in exchange for a flat is an official document that must be executed before a notary public, in accordance with the Turkish Code of Obligations and relevant legislation. Contracts without notarization are considered legally invalid. The contract must include the following essential elements:
* Identity Information of the Parties: Complete and accurate identity information of the land owners and the contractor company.
* Land Information: Title deed records, block/parcel number and surface area of the land subject to conversion.
* Sharing of Independent Sections: How the independent sections to be built (flats, shops, etc.) will be shared between the land owners and the contractor, and on which floors and facades they will be located, should be specified in detail.
* Nature and Quality of Construction: Details such as the technical specifications of the structure, the brand and quality of the materials to be used, workmanship standards, heat and sound insulation should be clearly defined.
* Delivery Time and Delay Penalties: The start and end dates of the construction and the penalties that will be applied in case of possible delays (rent assistance, compensation, etc.) should be clearly stated.
Articles Protecting the Rights of Land Owners
The contract must contain provisions that will protect the interests of the land owners to the maximum extent.
* Guarantees: It is critical that the contractor provide sufficient collateral to ensure project completion. These collateral may include a bank guarantee, a mortgage on another property owned by the contractor, construction completion insurance, or an annotation on the title deed in favor of the landowners. The amount of collateral must be appropriate to the size and cost of the project.
* Delay Penalties and Rental Assistance: Daily or monthly late penalties to compensate landowners for the hardship caused by construction not being completed on time, as well as the amount and terms of rental assistance to be paid until the new homes are delivered, must be clearly stated. This is the contractor’s obligation, independent of any rental assistance provided under Law No. 6306.
* Liability for Defective and Incomplete Work: The contractor’s liability for defective or incomplete work that may arise after construction is completed, along with the timeframes for correcting these defects, must be specified in the contract. While the contractor has a warranty against defects under the Turkish Code of Obligations, it is important to detail these matters in the contract.
* Occupancy Permit and Title Deed Transfer: The contractor’s obligation to obtain the occupancy permit and transfer the title deeds of the individual units to the landowners after completion of construction should be clearly stated. Failure to complete these processes can create serious legal problems for landowners.
* Conditions for Withdrawal from the Contract: In the event that the contractor seriously breaches his contractual obligations (e.g., does not start construction at all, stops construction for a long time, becomes financially insolvent), the landowners’ rights to withdraw from the contract and the legal and financial consequences that will arise in this case should be regulated in detail.
Contractor’s Obligations and Responsibilities
The contractor’s obligations under the contract must also be fully defined.
* Project and License Processes: The contractor must be responsible for all administrative and legal processes such as preparing projects, obtaining licenses from the relevant municipality, and completing insurance procedures.
* Taxes and Duties: It should be clarified which party will cover all taxes, duties, and expenses (such as title deed fees, occupancy fees, etc.) incurred during and after construction. Except for the title deed transfer costs for individual units, which generally fall to the landowners, all other costs are the responsibility of the contractor.
* Liability to Third Parties: It should be clearly stated that any damage to the environment, occupational safety violations or liabilities that may arise towards third parties during construction belong to the contractor.
Preventing and resolving disputes
A comprehensive and transparent contract largely prevents future disputes. However, disputes can still arise, and in these cases, it’s important to be aware of the legal options available.
* Mediation: Reaching a settlement through mediation before resorting to litigation can be more advantageous in terms of both time and cost. Including a mediation clause in the contract can encourage this approach.
* Legal Remedies: If disputes cannot be resolved through mediation, there is a right to file a lawsuit in Turkish courts. Various legal remedies, such as contractual claims, defective performance claims, or contract termination claims, may be pursued.
The Role of Legal Consultancy in Urban Transformation
Given the complexity and legal risks inherent in the urban transformation process in Antalya, it’s essential for landowners to seek professional legal support. Consulting services from a law firm will protect landowners’ rights at every stage of the process and prevent potential grievances.
* Preparation or Review of the Draft Contract: Legal professionals can prepare a draft contract that will protect the interests of the landowners at the highest level, comply with the legislation and cover all the details, or they can identify risky clauses by examining the draft contract submitted by the contractor from a legal perspective.
* Representation in Negotiations with the Contractor: Representing landowners during contract negotiations can help them gain a stronger position with their legal knowledge and experience.
* Ensuring that the process progresses in accordance with the law: It can supervise the progress of the urban transformation process in accordance with Law No. 6306 and other relevant legislation, and ensure that the necessary notifications and applications are made on time.
* Identifying Possible Risks in Advance: By identifying legal risks that may arise throughout the process, landowners can be informed and help take preventive measures against these risks.
Choosing a contractor for urban renewal projects in Antalya is a critical decision that directly impacts your future quality of life and the value of your assets. Rather than rushing into this decision, thorough research, meticulously following legal processes, and seeking professional legal support are crucial for a smooth and successful project completion. Establishing a solid contractual basis with a reliable contractor is key to maximizing the benefits of urban renewal.