Prepaid Housing Sales Contract: Definition, Legal Qualities and Conditions

Prepaid housing sales contracts provide great convenience for consumers who want to own a house , they also carry some risks. These contracts, especially offered with mass housing projects and long-term payment plans, are based on consumers making their payments in advance for houses to be delivered in the future .

However, it is vital to protect the rights of the consumer and clearly define the responsibilities of the seller during this process. For this reason, Law No. 6502 on the Protection of Consumers and the relevant regulations have regulated the formal conditions of the contract, collateral mechanisms and the rights and obligations of the parties in detail. In this article, the legal nature of the prepaid housing sales contract , its validity conditions , consumer rights and legal sanctions will be discussed in detail.

Subheadings:

1. Definition and Importance of Prepaid Housing Sales Contract
2. Legal Nature of Prepaid Housing Sales Contract
3. Elements of a Prepaid Housing Sales Contract
4. Form Requirement in Prepaid Housing Sales Contract
5. Rights and Obligations of Seller and Consumer
6. Differences Between Prepaid Housing Sales Promise Contract and Other Sales Contracts
7. The Role of Title Deed and Notary Transactions in Prepaid Housing Sales
8. Consumer's Right of Withdrawal and Compensation Conditions
9. Types of Collateral in Prepaid Housing Sales Contracts
10. Validity of Prepaid Housing Sales Contract and Legal Sanctions

1. Definition and Importance of Prepaid Housing Sales Contract

A prepaid housing sales contract is a type of sale in which the consumer pays the price of a house in full or in part in advance and the house is delivered at a later date. This contract is a legal regulation that is frequently encountered, especially in housing projects , and aims to secure consumer rights.

1.1. Definition

In Turkish law, the prepaid housing sales contract is regulated under Article 40 of the Consumer Protection Law (Law No. 6502) . In this contract:

• Consumer : The person who pays in advance the price of the house he/she will buy,
• Seller : The person or institution that is responsible for delivering the house.

1.2. Features:

1. The consumer pays all or part of the price in advance at the contract stage.
2. The delivery of the house takes place on the date specified in the contract.
3. If the seller fails to comply with the delivery commitment, he is obliged to compensate the consumer for his damages .

Importance

We can evaluate the importance of the prepaid housing sales contract under several headings:

a) Consumer Protection While
prepaid sales make the process of purchasing a home easier for the consumer, they also carry some risks. Therefore, the contract must protect the rights of the consumer by:

• Right of withdrawal ,
• Collateral conditions ,
• legal sanctions .

b) Financial Convenience
These types of contracts make home ownership more accessible by providing consumers with the opportunity to pay in installments . It is also a great advantage for contractor companies in terms of financing projects.

c) Economic Vitality
Prepaid housing sales contribute to economic growth by providing a significant cash flow to the construction sector . In this process, both the consumer and the seller gain economically.

d) Ensuring Trust Protection
of the contract by legal regulations reduces risks for the consumer and encourages contractors to deliver reliable projects. Thus, it creates a more solid trust environment in the sector.

The prepaid housing sales contract is an important regulation that both protects consumer rights and secures housing projects. The main purpose of this contract is for the consumer to make their payments safely and for the house to be delivered on the promised date. Therefore, acting in accordance with the contract provisions strengthens the trust between the parties and ensures that the process is completed in a healthy manner.

2. Legal Nature of the Prepaid Housing Sales Contract

The legal nature of the prepaid housing sales contract is shaped within the framework of the Turkish Law of Obligations and Consumer Law principles. This contract is a specially designed type of sales contract and aims to protect the consumer and determine the obligations of the seller.

2.1. Legal Basis

The prepaid housing sales contract is regulated under Articles 40-46 of the Consumer Protection Law No. 6502. In addition, detailed procedures and principles regarding the contract are explained in the Regulation on Prepaid Housing Sales .
These legal bases determine the legal nature of the contract and set rules to prevent arbitrary behavior in practice.

2.2. Legal Nature

1. A Bilateral Contract Creating Obligations A
   prepaid housing sales contract imposes obligations on both the consumer and the seller:

• Seller's Obligation : To deliver the real estate in accordance with the time and conditions specified in the contract,
• Consumer's Obligation : To pay the sales price as agreed in the contract.

2. Contains a Promise to Sell Real Estate
   This contract is a promise to sell . When the contract is signed, the transfer of ownership does not occur immediately; the delivery of the real estate is made at a later date. However, the obligations of the parties begin with the establishment of the contract.
3. It is a Contract Dependent on Form.
   In order for the prepaid housing sales contract to gain legal validity, it must be drawn up in the presence of a notary . Otherwise, the contract is considered invalid.

• The form requirement aims to protect the consumer and provides legal assurance in case of disputes that may arise in the future.

4. A Special Regulation Under Consumer Law
   This contract is subject to special provisions to protect the consumer economically:

• Right of withdrawal ,
• Guarantee and warranty conditions ,
• Seller's obligation to explain and inform .

5. Protective Legal Nature
   In case the seller fails to fulfill his obligations specified in the contract, the rights of the consumer are protected through the right of withdrawal , compensation claims and legal sanctions. In this respect, the contract has a protective nature arranged in favor of the consumer.

2.3. Security of the Rights and Obligations of the Parties

• Seller's Obligation : He/she must deliver the house in accordance with the contract terms and provide assurance to the consumer.
• Consumer Protection : Safeguards such as collateral or bank guarantees have been introduced to prevent any grievances that may arise due to the consumer paying the price in advance .

Therefore, the prepaid housing sales contract is not one-sided , but has a balanced structure that includes mutual rights and obligations.

The prepaid housing sales contract is a promise to sell real estate and is a formal , bilateral and protective contract. Its legal framework is designed to protect the rights of the consumer and determine the obligations of the seller. In this way, consumer safety is ensured and the seller's responsibilities arising from the contract are legally secured.

3. Elements of a Prepaid Housing Sales Contract

In order for a prepaid housing sales contract to be valid and legally established, it must contain certain elements . These elements are designed to protect the rights of the parties to the contract and to ensure that the process is carried out in accordance with legal principles .

3.1. Parties

The parties to the prepaid housing sales contract are as follows:

• Consumer : The person who purchases the house and pays the sales price in full or in part in advance. The consumer must be a natural person . Legal entities cannot be considered within the scope of this contract.
• Seller : The person or institution that undertakes the sale of the house and is responsible for its delivery. Sellers are usually contractors , real estate companies or institutions that manage housing projects.

Nature of the Parties:

• The seller must be a legal entity or a natural person capable of making a contract.
• that the consumer has the title of consumer and the contract is made on his/her behalf.

3.2. Subject of the Contract

The subject of the contract is the clear definition of the house that is the subject of sale . The following details must be specified during the definition:

• Location of the residence (address information),
• Qualities of the house (square meters, number of rooms, purpose of use, etc.),
• The project phase and delivery date of the house ,
• If applicable, independent section number and land registry information.

This information ensures that the consumer has complete information about the real estate he will purchase and makes the seller's obligations concrete.

3.3. Price and Payment Conditions

One of the most important elements of the contract is the sales price and payment schedule.

• Sales Price : The sales price of the real estate must be clearly stated in the contract.
• Payment Plan : It must be clearly agreed whether the price will be paid in cash or in installments.
  • In installment payments, the amount and payment dates of each installment must be stated separately.
  • The payment terms of the total amount (interest, delay, etc.) must be explained.

These elements ensure that disputes between the consumer and the seller are avoided during the payment process.

3.4. Delivery Date

In the prepaid housing sales contract, the delivery date of the house must be clearly stated.

• cannot exceed 36 months from the date of signing the contract (Law No. 6502, article 44).
• If the product is not delivered within the specified time, the consumer may exercise his/her right to compensation and terminate the contract.

The delivery date is one of the most critical elements of the contract. Therefore, a clear and definite date must be given to protect the consumer's rights.

3.5. Form Requirement

In order for a prepaid housing sales contract to be valid, the written form requirement must be met.

• The contract must be drawn up in the presence of a notary .
• Contracts without notarization are considered invalid and do not have any legal consequences on the parties.

The form requirement is intended to protect the consumer and clarify the seller's responsibilities.

3.6. Right of Withdrawal and Guarantee Conditions

the right of withdrawal that the consumer has and the guarantees offered by the seller:

• Right of Withdrawal : The consumer may exercise his/her right of withdrawal within 14 days from the signing of the contract without giving any reason and without paying any penalty.
• Types of Guarantees : The seller must provide guarantees such as a bank letter of guarantee or insurance contract to secure the price paid by the consumer .

These elements protect the consumer from possible grievances and provide confidence in the sales process.

The elements of the prepaid housing sales contract ensure that the contract is valid and legally established. Elements such as the identity of the parties, sales price, delivery date, form requirement and right of withdrawal secure the rights of the consumer. In particular, the requirement to be drawn up in the presence of a notary and the conditions of collateral ensure that the process is carried out in a transparent and reliable manner.

4. Form Requirement in Prepaid Housing Sales Contract

In order for a prepaid housing sales contract to gain legal validity, it is mandatory to comply with the form requirement . In Turkish Law, contracts regarding real estate sales are regulated according to form in order to protect the rights of the parties and to prevent possible disputes .

4.1. Legal Basis for the Form Requirement

the Consumer Protection Law No. 6502, prepaid housing sales contract:

• in writing .
• The contract must be drawn up in the presence of a notary .

This form requirement is a condition for the validity of the contract . If the form requirement is not complied with, the contract is considered invalid and has no legal binding effect on the parties.

4.2. Purpose of the Form Requirement

The form requirement was introduced to protect consumer rights and to make the seller's obligations concrete. Its main purposes are as follows:

• Ensuring that the consumer makes an informed decision : A written contract helps the consumer clearly understand their rights.
• Clarification of the Seller's Responsibilities : The contract made in the presence of a notary public concretizes the seller's obligations and prevents their denial.
• Preventing Disputes : Written and notarized contracts serve as evidence in possible disputes between the parties .

4.3. The Role of Notarization

Notarization plays a critical role in the legal validity of the contract:

• The notary verifies the identities of the contracting parties and ensures that the contract is drawn up in accordance with the procedure.
• Notarization indicates that the contract has been reviewed by an impartial third party .
• It ensures that the parties understand the terms of the contract and sign it with their consent.

Contracts without notarization are legally invalid and the seller cannot demand payment from the consumer based on this contract.

4.4. Consequences of Compliance with the Form Requirement

a) Compliance with the Form Requirement
: Once the contract is drawn up before a notary public:

• Consumer rights are safeguarded.
• The contract becomes binding on the parties.
• The consumer may take legal action in case of non-compliance with the terms of the contract.

b) Failure to Comply with the Form Requirement
In case of non-compliance with the form requirement, the contract:

• It is considered invalid ,
• The parties cannot make any legal claims against each other,
• The consumer may request a refund of the amount paid.

4.5. Importance of the Form Requirement in Practice

Especially considering the delays encountered in housing projects or houses not delivered, contracts drawn up in the presence of a notary:

• the consumer to quickly exercise his legal rights in the event that the seller fails to fulfill his responsibilities .
• It prevents the seller from avoiding the obligations he has undertaken and reduces the victimization of the consumer.

In addition, notarized contracts constitute an important basis for registration procedures in the land registry in real estate sales.

The form requirement in the prepaid housing sales contract requires the contract to be made in writing and drawn up before a notary. This requirement is of great importance in terms of the validity of the contract , protection of consumer rights and securing the seller's obligations. Contracts that do not comply with the form requirement do not have legal consequences and cannot protect the rights of the parties.

5. Rights and Obligations of Seller and Consumer

The prepaid housing sales contract is a contract that creates mutual rights and obligations between the consumer and the seller. These rights and obligations are clearly regulated within the framework of the Consumer Protection Law No. 6502 and the relevant regulation. Fulfilling the obligations of both parties ensures that the contract is executed in a fair and reliable manner.

5.1. Seller's Obligations

a) Information Obligation The seller is obliged
to inform the consumer completely and accurately about the property before the contract . The information that the seller must provide within the scope of this obligation is as follows:

• The location , size and qualities of the residence ,
• Delivery date and contract terms,
• Sales price, payment plan and installment information, if any,
• The right of withdrawal that the consumer has and the conditions for using this right.

b) Obligation to Provide Security The seller
must provide security to secure the consumer's payments . The types of security are as follows:

• Bank letter of guarantee ,
• Building completion insurance ,
• The seller's vesting system or collateral accounts.

This obligation aims to prevent the consumer from experiencing any grievances during the delivery of the home.

c) Delivery of the House on Time
The seller is obliged to deliver the house completely and in accordance with the contract on the date specified in the contract.

• cannot exceed 36 months from the signing of the contract .
• In case of undelivered housing, the seller is obliged to pay compensation to the consumer .

d) Preparation of the Contract in Accordance with the Form
The seller must prepare the contract in writing and in the presence of a notary. This condition is mandatory for the validity of the contract .

5.2. Obligations of the Consumer

a) Payment Obligation The consumer is obliged to pay
the sales price agreed in the contract in accordance with the specified payment plan.

• Payment methods, either cash or in installments, must be clearly stated in the contract.
• In case of delayed payments, default interest may be applied if agreed in the contract.

b) Compliance with the Terms of the Contract
The consumer is obliged to act in accordance with the terms of the contract. In particular, in cases of non-compliance with the contract:

• The seller may have the right to terminate the contract.
• The consumer may be liable to pay compensation if the contract terms are not fulfilled.

c) Informing and Using the Right of Withdrawal The consumer may use
the right of withdrawal within 14 days after the contract is signed, without giving any reason and without paying any penalty .

• The exercise of the right of withdrawal is an important guarantee for the consumer.
• The seller has the obligation to inform the consumer about this right.

5.3. Seller's Rights

• Right to Request Payment : If the consumer does not pay the price agreed upon in the contract on time, the seller has the right to request this payment.
• Termination of Contract : If the consumer does not fulfill his obligations, the seller may terminate the contract and claim compensation.
• Right to Compensation : In case the consumer violates his obligations, the seller may demand compensation for the damages incurred.

5.4. Consumer Rights

a) Right of Withdrawal
The consumer may exercise the right of withdrawal within 14 days from the signing of the contract without giving any reason. The seller cannot demand a penalty from the consumer who wishes to exercise the right of withdrawal.

b) Right to Withdraw from the Contract
If the seller does not deliver the house on time, the consumer has the right to withdraw from the contract. In this case:

• Refund of the paid amount to the consumer ,
• The consumer's grievances must be compensated .

c) Right to Compensation
If the seller acts in breach of contract, the consumer may demand compensation for the damage suffered. The right to compensation comes into play especially in cases of incomplete or faulty delivery of the house.

d) Right to Benefit from Guarantees:
Thanks to the guarantees that the seller is obliged to provide, the consumer ensures that the price he pays is secured.

In the prepaid housing sales contract, the mutual rights and obligations of both the seller and the consumer are regulated in detail. These regulations have been introduced to protect the rights of the consumer and clearly define the responsibilities of the seller. While the rights of the consumer such as the right of withdrawal, collateral security and compensation claims increase the reliability of the contract, the seller's payment and termination rights also ensure that the process works in a balanced way.

6. Differences Between Prepaid Housing Sales Promise Contract and Other Sales Contracts

The prepaid housing sales promise contract has a different legal nature than other contracts regulating the sale of real estate. This type of contract is a contract that is subject to detailed regulations, especially for the purpose of consumer protection. When compared to different real estate sales contracts, significant differences emerge in terms of purpose, form requirements, parties' obligations and legal consequences .

6.1. Definition of Prepayment Housing Sales Contract and Sales Contract for Promise of Sale

• Prepaid Housing Sales Contract : This is a contract in which the consumer pays the price of the house in full or in part in advance and the house will be delivered at a later date.

• The main feature: It contains special regulations for the purpose of protecting the consumer and is bound by form.

• Real Estate Sale Promise Contract : It is a preliminary contract in which the real estate sale is promised at a later date . There is no payment requirement in this contract , it only guarantees that the real estate sale will be made in the future.

6.2. Differences in Form Requirements

• Prepaid Housing Sales Contract :

• in writing before a notary public .
• If the form requirement is not complied with, the contract is deemed invalid .

• Promise of Sale Agreement :

• This contract must also be made in the presence of a notary . However, if the parties to the contract do not comply with the notary requirement, the contract will again be invalid.
• guarantee provisions that specifically protect the consumer .

6.3. Obligations of the Parties

• Prepaid Housing Sales Contract :

• The seller is obliged to deliver the house completely and in accordance with the contract within the specified time.
• The consumer is obliged to pay the cost and a guarantee is provided in return for this cost.

• Promise of Sale Agreement :

• The seller undertakes to sell the real estate in the future ; however, there is no obligation to deliver the real estate or pay the price at this stage.
• The consumer or buyer may only request that the sale be made.

6.4. Guarantees and Assurances

• Prepaid Housing Sales Contract :

• In order to protect the consumer , assurances such as bank guarantee letters and building completion insurance are mandatory.
• These guarantees ensure that the price paid by the consumer is refunded if the house is not delivered on time .

• Promise of Sale Agreement :

• There are no guarantees or insurance provisions. In case of breach of contract, the buyer can only claim the fulfillment of the contract or compensation.

6.5. Delivery and Registration Time

• Prepaid Housing Sales Contract :

• The delivery date of the real estate is specified in the contract and cannot exceed 36 months .
• The registration process is carried out at the land registry office after the delivery of the house.

• Promise of Sale Agreement :

• Since the delivery and registration of the real estate will be done in the future, a clear date is not determined .
• However, the parties can complete the transaction at the land registry office when the necessary conditions for registration are met.

6. 6. Legal Consequences

Prepaid Housing Sales Contract:

• If the seller fails to fulfill his delivery obligations, the consumer has the right to withdraw from the contract or demand compensation.
• The consumer may exercise his/her right of withdrawal within 14 days without giving any reason.

Promise of Sale Agreement:

• If the seller fails to fulfill the contract, the buyer can only demand the sale to be made or file a lawsuit for damages.
• The right of withdrawal is not regulated in this contract .

The prepaid housing sales contract is a sales contract that specifically aims to protect the consumer and determines the delivery date. In contrast, the sales promise contract is only a commitment contract for the sale of real estate and does not include delivery and payment obligations. In particular , differences such as collateral conditions , the right of withdrawal and delivery obligation make the prepaid sales contract safer for the consumer.

7. The Role of Title Deed and Notary Transactions in Prepaid Housing Sales

In prepaid housing sales contracts , title deed and notary transactions play a vital role in ensuring the legal validity of the contract, protecting the rights of the parties and increasing reliability. These processes ensure that the contract gains a legal basis and serves as evidence in case of disputes that may arise in the future.

7.1. The Role of Notary Procedures

a) Compliance with the Form Condition of the Contract
In order for the prepaid housing sales contract to be valid, it must be drawn up before a notary . This condition is clearly stipulated in Article 40 of the Consumer Protection Law No. 6502 .

• The notary checks the legal elements of the contract and ensures that it was signed with the consent of the parties.
• If the form requirement is not met, the contract is deemed legally invalid .

b) Identification of the Parties
The notary verifies the identities of the parties to the contract and documents that the signatures belong to real persons. This process increases the reliability of the contract by eliminating the risk of forgery .

c) Information and Protection
The notary informs the parties about the legal consequences of the contract:

• The consumer's right of withdrawal and the period for exercising this right,
• Seller's obligations and types of guarantees,
• Housing delivery dates and sanctions to be applied in case of non-compliance with the contract.

This information process allows the consumer to make an informed decision .

d) Evidential Nature
Contracts drawn up in the presence of a notary are conclusive evidence in legal disputes that may arise in the future . In particular, in the event of the seller failing to fulfill his obligations, a notary-certified contract provides a legal basis for the consumer's claims for compensation and termination .

7.2. The Role of Title Deed Transactions

a) Importance of the Land Registry The land registry
is an official public registry where the ownership rights on real estate are recorded . In prepaid housing sales, the title deed transactions ensure the transfer of ownership to the buyer after the delivery of the house.

• The seller must deliver the house on time and in full .
• The rights over the real estate do not pass to the buyer before the ownership transfer is made at the land registry office.

b) Seller's Obligations
The seller is obliged to deliver the house on the date agreed upon in the contract and to complete the registration procedures in the land registry. During the registration process:

• It is confirmed that there are no mortgages or restrictions on the property .
• ownership rights over the real estate are secured.

c) Protection of Consumer Rights
Title deed transactions ensure that the consumer obtains the right of ownership in return for the price paid. The following processes are important to ensure that the consumer is not victimized:

1. The seller must not transfer the title deed to another person until the delivery of the house,
2. mortgages or similar obstacles in the land registry record ,
3. Timely completion of title deed registration procedures.

d) Legal Consequences of Registration
: With the registration process carried out at the Land Registry:

• The buyer becomes the official owner of the real estate.
• Property rights are protected against third parties .

In real estates where the title deed is not registered, the consumer cannot legally assert his/her ownership rights and this may lead to grievances.

7.3. Operation of Title Deed and Notary Transactions Together

In prepaid housing sales, notary and title deed transactions are two complementary stages:

1. Notarization : It ensures that the contract is valid and the obligations of the parties are determined.
2. Title Deed Registration : After the delivery of the house, the ownership rights are transferred to the buyer.

Completing these two stages in a healthy manner is of critical importance in terms of protecting consumer rights and making the process reliable.

In prepaid housing sales , notary transactions ensure the legal validity of the contract and secure the rights of the parties; while title deed transactions officially transfer the ownership of the real estate to the buyer. These two transactions play a vital role in preventing consumer grievances and increasing the reliability of the contract. The complete fulfillment of notary approval and title deed registration during the contract process strengthens the legal security between the parties.

8. Consumer's Right of Withdrawal and Compensation Conditions

In prepaid housing sales contracts, the right of withdrawal and compensation terms are specifically regulated for the protection of the consumer. These rights are introduced to prevent the consumer from suffering and to provide legal security against the seller.

8.1. Consumer's Right of Withdrawal

a) Definition
: The right of withdrawal is a right that allows the consumer to withdraw from the contract within a certain period of time after the contract is signed, without giving any reason and without paying any penalty.

b) Legal Basis
The right of withdrawal is guaranteed by Article 45 of the Consumer Protection Law No. 6502 and the Regulation on Prepaid Housing Sales .

c) Term and Terms of Use

• within 14 days from the date of signing the contract .
• In order to exercise the right of withdrawal, it is sufficient for the consumer to notify the seller in writing .
• The consumer is not required to give any reason or pay a penalty fee in order to exercise his right of withdrawal.

Important Point : The seller must inform the consumer in writing about the right of withdrawal . If the seller does not provide this information, the period of the right of withdrawal is extended to one year .

8.2. Consequences of Using the Right of Withdrawal

In case the consumer exercises his right of withdrawal:

1. Refund of the Paid Price : The seller is obliged to refund all the prices collected from the consumer within 14 days from the date on which the notice of withdrawal reaches him .
2. No Additional Costs Can Be Charged : No penalty or additional costs can be charged to the consumer who exercises his/her right of withdrawal.
3. Seller's Obligation : The seller must refund the price paid by the consumer without interest .

8.3. Consumer's Right to Compensation

a) Definition of Compensation
The consumer's right to compensation arises in the event that the seller fails to fulfill the obligations specified in the contract. In particular, if the house:

• Failure to deliver on time ,
• Situations such as incomplete or defective delivery give the consumer the right to claim compensation .

b) Compensation in Case of Non-Delivery
If the seller does not deliver the house within the period agreed upon in the contract, the consumer:

• your right to withdraw from the contract ,
• a refund of the amount you paid ,
• compensation for material and moral damages arising from the delay .

c) Compensation in Case of Defective or Incomplete Delivery If
the house delivered by the seller does not comply with the conditions specified in the contract or is defective, the consumer:

• To remove the fault ,
• A discount on the price ,
• To be replaced with a faultless house ,
• to withdraw from the contract and request a refund .

Important Point : The consumer's right to compensation is valid under all circumstances except for force majeure reasons in cases where the seller fails to fulfill its obligations .

8.4. Seller's Indemnification Obligation

The seller's liability for compensation arises in the following cases:

1. Exceeding the Delivery Time : The seller's failure to deliver the house within the time limit.
2. Incomplete or Defective Delivery : Delivery of the house in violation of the contract.
3. Failure to Fulfill Security Obligations : Seller's failure to provide a bank guarantee letter or insurance.

In these cases, the seller must fulfill his obligations to refund the price and compensate for the damages in order to eliminate the consumer's grievances.

8.5. Safeguards Protecting Consumer Rights

The right of withdrawal and compensation terms constitute important safeguards to protect the rights of the consumer:

• The consumer has the right to withdraw from the contract before the delivery of the house is completed.
• If the seller fails to fulfill his obligations, the consumer's damages are compensated.
• The seller's actions contrary to the contract are subject to legal sanctions .

The consumer's right of withdrawal and compensation terms are among the most important regulations aimed at protecting the consumer in a prepaid housing sales contract. The right of withdrawal provides the consumer with the freedom to withdraw from the contract without giving any reason; while compensation terms guarantee that the consumer's damages will be covered in the event that the seller fails to fulfill his obligations. These regulations increase the reliability of the contract and protect the balance of rights between the parties.

9. Types of Collateral in Prepaid Housing Sales Contracts

The types of guarantees in prepaid housing sales contracts are arranged to secure the price paid by the consumer. These guarantees provide legal protection to prevent the consumer from being victimized in the event that the seller fails to deliver the house in accordance with the terms set forth in the contract. The guarantee regulations are clearly stated within the scope of the Consumer Protection Law No. 6502 and the relevant regulation.

9.1. Legal Basis for Types of Collateral

Article 42 of Law No. 6502 , if the seller collects all or part of the price from the consumer before delivery, the seller shall provide a guarantee for the price paid by the consumer. The purpose of this regulation is :

• Protection of the consumer's monetary rights,
• Increasing the seller's responsibility to deliver the project on time and completely.

9.2. Bank Letter of Guarantee

ensures that the amount paid by the consumer will be repaid under the bank guarantee in case the seller fails to fulfill the obligations undertaken in the contract .

• The seller presents the letter of guarantee received from the bank to the consumer.
• If the seller does not deliver the house, the consumer can apply to the bank and get back the amount paid.
• refunds the amount due to the consumer without any deductions .

Advantage : A bank letter of guarantee secures the entire amount paid by the consumer and increases the seller's responsibility to complete the project.

9.3. Building Completion Insurance

Building completion insurance covers the seller's:

• Going bankrupt,
• Failure to complete the project by the delivery date,
• It is a type of insurance that covers the consumer's losses in cases such as failure to deliver the house as specified in the contract.

How it works :

• The seller issues an insurance policy for the amount paid by the consumer .
• If the seller fails to fulfill its obligations, the insurance company compensates the consumer for their grievances and refunds the paid amount to the consumer.

Advantage : Insurance protects the rights of the consumer, regardless of the financial situation of the seller, and provides strong assurance against the risk of not being able to complete the project .

9.4. Entitlement System

The entitlement system is a type of guarantee that requires the seller to collect payments from the consumer according to the progress level of the project.

• is made in stages depending on the progress of the housing project .
• The seller cannot request a new payment from the consumer before completing a certain construction phase.

How it works :

1. Construction stages are controlled by independent auditing firms or authorized organizations.
2. If the controlled stage is completed, the seller requests the progress payment from the consumer.

Advantage : The entitlement system prevents the consumer from paying for unfinished projects and allows the seller to progress the construction process in a planned manner.

9.5. Collateral Account

The guarantee account is based on the principle that the amount paid by the consumer is blocked in a bank account .

• The seller cannot directly use the price received from the consumer.
• The amount collected in the bank account is released according to the project completion rate.

Advantage : In this system, the consumer's payments are kept under control and the risk of the seller abandoning the project is minimized.

9.6. Comparison of Collateral Types

In prepaid housing sales contracts , collateral types minimize risks by ensuring that the price paid by the consumer is secured. Bank guarantee letter, building completion insurance, entitlement system and collateral accounts are important tools that protect the consumer against the seller's financial problems or the risk of not being able to complete the project. These regulations aim to create a transparent, reliable and consumer-focused housing sales process.

10. Validity of Prepaid Housing Sales Contract and Legal Sanctions

The validity of a prepaid housing sales contract depends on the fulfillment of the formal requirements and the preparation of the contract in accordance with the relevant legislation. In case of violation of the validity conditions, various legal sanctions are foreseen for the purpose of protecting the consumer. These sanctions ensure the reliability of the contract and at the same time increase the responsibilities of the sellers.

10.1. Conditions of Validity

a) Compliance with the Form Condition
In order for a prepaid housing sales contract to be valid:

• in written form ,
• to draw up in the presence of a notary .

Importance of the Shape Condition :

• Contracts without notarization are considered legally invalid .
• Invalid contracts do not create any rights between the parties and the amounts paid by the consumer must be refunded.

b) Contract Content
In order for the contract to be valid, the following information must be included completely:

• Identity information of the parties,
• Clear description of the property subject to sale (location, size, qualities),
• Sales price and payment plan,
• Delivery date and conditions,
• The consumer's right of withdrawal and other legal rights.

c) Guarantee Provisions The seller must provide a guarantee to protect the price paid by the consumer. If the guarantees (bank guarantee letter, insurance, entitlement system) are not provided,
legal sanctions will arise even if the contract is valid .

10.2. Legal Sanctions

The main legal sanctions to be applied in case of violation of the validity conditions or failure of the seller to fulfill its obligations are as follows:

a) Invalidity of the Contract

• Contracts made without notary approval are considered invalid. In this case, the consumer may request the refund of the amount paid by the seller, together with interest .
• If the seller acts contrary to the contract, the contract becomes void .

b) Consumer's Right of Withdrawal
If the seller acts contrary to the terms of the contract, the consumer:

• He/she may withdraw from the contract ,
• You may request a refund of the entire amount paid ,
• its right to compensation due to delay or defective delivery .

c) Compensation Obligation
In case the seller does not deliver the house within the period specified in the contract or delivers it incompletely/defectively:

• may request withdrawal from the contract or compensation for damages .
• Material and moral damages due to delay in delivery must be compensated.

d) Administrative Fines According to Law No. 6502,
administrative sanctions are applied if the seller acts contrary to the contract provisions :

• Failure to provide the guarantees specified in the contract,
• Failure to inform the consumer about his/her right of withdrawal,
• Administrative fines are imposed in cases such as providing incomplete or misleading information .

e) Sanctions
If the illegal actions of the seller cause the consumer to suffer:

• Legal action may be initiated against the seller ,
• Protection of rights is ensured by applying to consumer courts.

10.3. Consumer Courts and Application Processes

In case the consumer is victimized, consumer courts step in. Consumers can file complaints for the problems they experience:

• the Consumer Arbitration Committee .
• In case of any undesirable behaviour by the seller, they may file a lawsuit for compensation .
• In litigation processes, notarized contracts serve as definitive evidence and make it easier for the consumer to prove their rights.

10.4. Monitoring of Seller's Responsibilities

In order to prevent the seller from acting contrary to the terms of the contract, the consumer must pay attention to the following issues:

• Checking whether the contract has been drawn up in the presence of a notary,
• the seller provides building completion insurance or collateral,
• Ensure that the payment schedule is clearly stated in the contract.

These tracking mechanisms help the consumer protect their rights and the seller fulfill their obligations.

The validity of prepaid housing sales contracts is ensured by fulfilling the written form requirement and drawing up the contract before a notary. In the event of the seller’s behavior contrary to the contract or failure to fulfill collateral obligations, administrative sanctions , compensation obligations and legal processes come into play. These regulations aim to protect the consumer while also clearly defining the seller’s responsibilities. Contracts executed in accordance with the law both ensure consumer safety and increase confidence in the housing sales market.

11.Conclusion

The prepaid housing sales contract is an important legal mechanism designed to advance the consumer's home ownership process on a safe and legal basis. Focused on protecting consumer rights , this type of contract clarifies the responsibilities of sellers and puts into effect assurance mechanisms such as collateral systems , right of withdrawal and compensation terms to ensure that the consumer does not suffer .

For the validity of the contract, it is essential that it is drawn up before a notary and that the formal requirements are followed . Otherwise, the contract becomes null and void and has no legal binding effect on the parties. In addition, if the seller does not comply with the terms of the contract, the consumer has the right to demand compensation and withdraw from the contract.

These regulations ensure that housing sales are conducted in a transparent, reliable and fair manner; they both protect the rights of the consumer and increase confidence in the construction sector. It is of great importance for the consumer to act consciously, carefully examine the contract details and know their rights in this process.

As a result, the prepaid housing sales contract has a strong structure that ensures the protection of the rights of the parties, thanks to legal guarantees and legal sanctions . It provides a transparent framework for both consumers and sellers, allowing the housing acquisition process to be completed in a healthy way.