Contractor's obligation to complete and deli̇ver the building in a construction contract in return for land share

The construction contract in return for land share is a mixed contract frequently encountered in practice. Under this agreement, the landowner undertakes to transfer certain shares of the immovable property to the contractor, while the contractor undertakes to complete and deliver specific independent units to the landowner. Pursuant to Article 26 of the Turkish Code of Obligations (TCO), such contracts may be freely arranged and may involve full transfer, partial transfer, or staged transfer depending on the progress of construction. In these contracts, delivery does not take place through physical transfer of possession, but when the contractor explicitly or implicitly informs the landowner that the building is completed and relinquishes control over it. For delivery, the structure must be complete. Defective work does not prevent delivery, but if essential parts are missing, the building is not deemed finished and delivery does not occur. With delivery, benefits and risks pass to the landowner. Periods for inspection, liability for defects, and limitation periods for incomplete performance also begin to run. At the same time, the obligation to transfer the contractor's land share becomes due. If the contractor fails to complete or, despite completion, does not deliver, debtor's default arises. The contractor must not only complete construction but also deliver it in a way that enables the landowner to use and benefit from it. Until delivery occurs, performance is not considered fulfilled, and the TCO provisions on debtor default apply. Keywords: Construction contract in return for land share, Landowner, Contractor, Completion, Delivery.