Building Completion Insurance in Turkey: When Is It Mandatory? (2026)
- Building completion insurance protects the buyer or rights holder against the risk that the contractor fails to complete and deliver the building.
- For off-plan (prepaid) housing sales in projects of 30 or more units, the seller must provide building completion insurance or another guarantee — bank letter of guarantee, progress-payment system or linked loan — before selling.
- Since 9 November 2024, contractors in urban transformation projects under Law No. 6306 must take out building completion insurance or provide a guarantee before the building permit.
- Buyers of off-plan homes have a 14-day right of withdrawal, and delivery may not exceed 48 months from the contract date.
Buying an off-plan home in Turkey, or handing your building to a contractor in an urban transformation project, means trusting the other party until construction is finished. Building completion insurance turns that trust into a legal guarantee. This article explains what the insurance is, when it is mandatory and what buyers should check.
What is building completion insurance?
It is a guarantee insurance policy taken out by the contractor or seller with an insurance company, with the buyer (consumer) — or, in urban transformation, the rights holder — as beneficiary. If the contractor cannot complete and deliver the building as agreed, the insurance applies within the policy terms: the building is completed or the amounts paid are protected.
When is it mandatory?
1. Off-plan (prepaid) housing sales
Under the Ministry of Trade rules, in projects of 30 or more units the seller must, before starting sales, provide at least one of:
- building completion insurance, or
- a bank letter of guarantee,
- a progress-payment (hakediş) system,
- a linked-loan guarantee.
Projects under 30 units have no mandatory guarantee, but the other consumer rights still apply.
2. Urban transformation (Law No. 6306)
Under the provision added to Law No. 6306 by Law No. 7471, the contractor undertaking construction in urban transformation areas and parcels must take out building completion insurance or provide another prescribed guarantee before obtaining the building permit. The rule took effect on 9 November 2024.
Other key buyer rights
| Right | Rule |
|---|---|
| Withdrawal | Within 14 days of the contract, without reason or penalty; refund within 14 days |
| Delivery period | Maximum 48 months from the contract date; a shorter period may be agreed |
| Guarantee threshold | Guarantee before sales in projects of 30+ units |
Checklist before signing
- See the policy or guarantee document: policy number, insurer, beneficiary and amount should be written into the contract.
- Check the delivery date: it should be a clear date within the 48-month limit.
- Review the building permit: do the permit date and scope match the unit being sold?
- Look at the developer's track record: insurance transfers risk, but working with a contractor who delivers on time means never needing it.
The ÇET Yapı view
Since 1993, ÇET Yapı has put the delivery schedule at the centre of its real estate development projects. İnsaya Residences in Merter were completed in 25 months and Yeşilköy Ateş Residence in 20 months. Insurance and guarantees do not replace a well-planned project; they complement it.
This article is for general information. Always review the insurer's general and special policy conditions for coverage and exclusions.
Frequently Asked Questions
Is building completion insurance mandatory in Turkey?
In two cases: (1) for off-plan housing sales in projects of 30 or more units, the seller must provide building completion insurance or another listed guarantee before selling; (2) in urban transformation projects under Law No. 6306, since 9 November 2024 the contractor must take out the insurance or provide a prescribed guarantee before obtaining the building permit.
Is there protection for projects under 30 units?
There is no mandatory guarantee for off-plan sales in projects under 30 units, but the other consumer rights for prepaid housing sales still apply. In smaller projects protection should be secured contractually, e.g. through staged title transfer or a bank guarantee.
Which guarantees are accepted instead of the insurance?
For off-plan housing sales, a bank letter of guarantee, a progress-payment (hakediş) system and a linked-loan guarantee are listed as alternatives; other methods approved by the Ministry may also be accepted.
What is the maximum delivery period for an off-plan home?
In a prepaid housing sales contract, delivery may not exceed 48 months from the contract date. The parties may agree on a shorter period, which then becomes binding.
Can I withdraw from an off-plan purchase?
Yes. The consumer may withdraw from a prepaid housing sales contract within 14 days without giving reasons or paying a penalty; payments are refunded within 14 days at the latest.
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