7 things to check in a build-and-share contract

Before handing over your land for a build-and-share project, the clauses your contract must contain: share ratio, schedule, specification, penalties and title transfer.

Build-and-share development is a great opportunity for landowners, but it requires care. A clause missed at the contract stage can lead to disputes lasting years. Make sure your contract covers the following.

1. Share ratio and allocation of units

A percentage alone is not enough. Which floor, which facade and which size of apartment belongs to whom should be clearly marked on the preliminary design.

2. Delivery time and start date

It must be stated whether the period starts from the permit date or the contract date. The definition of force majeure should be kept narrow.

3. Technical specification

The brand, class and quality of materials (tiles, joinery, elevator, kitchen cabinets etc.) should be attached as a list. Avoid vague phrases such as "first-class materials".

4. Penalty clause

There should be a concrete penalty for delay, such as payment of a monthly rent equivalent.

5. Staged title transfer

Title deeds to be transferred to the contractor should be transferred in stages tied to construction levels. A lump transfer at the start is risky for the landowner.

6. Responsibility for permit and occupancy

Obtaining the building permit, paying building inspection fees and obtaining the occupancy permit should be the contractor's responsibility; delivery should not count without the occupancy permit.

7. Notarisation

Since a build-and-share contract involves transfer of real estate, it must be executed before a notary. Otherwise it risks being invalid.

At İlka Grup we include these clauses as a standard part of the contract in all our build-and-share projects. Request a free survey for your land.