Developer instalment plans in Turkey: how to read the offer and protect your payments

Instalment plans are one of the main things that draw buyers to new projects in Turkey: a down payment, then comfortable instalments until handover. But it is a long financial contract, and its details decide whether it is a good deal or a risk.

What does a plan usually look like?

• Down payment: often between a third and a half of the price.
• Instalments: monthly or quarterly until the handover date.
• After handover: some developers extend instalments beyond handover, usually at a higher price.
• Payment on handover: sometimes a portion remains to be paid when you receive the keys.

Cash price vs instalment price

Many developers offer a discount for paying in cash. The difference between the two prices is the real cost of the instalments. Example: if the instalment price is 10% higher and the instalments run for two years, you are paying roughly 5% a year for the instalments.

Currency

Some plans are in dollars or euros, and some are in lira with periodic adjustment. Turkish law restricts foreign-currency contracts between residents of Turkey, so ask which currency is allowed in your case, and work out how exchange rates affect your instalments.

Where do your rights stand while you pay?

This is the most important question in any plan:

1. Title deed in your name with a mortgage for the developer: the unit is transferred to you from the start, and a mortgage is registered in the developer’s favour until payment is complete. The most protective option for you.
2. A notarised promise-of-sale contract registered as an annotation: protects your right to the unit until the title deed is transferred. See the promise-of-sale contract guide.
3. A private contract only: the weakest. Do not accept it on its own for large sums.

Clauses to read twice

• The late-payment penalty on instalments, when the developer may terminate, and what is refunded to you if it does.
• The late-delivery penalty payable by the developer, with a clear amount.
• Early payment: do you get a discount if you pay ahead of schedule?
• Assignment: can you sell your unit to someone else before handover? For what fee?

Citizenship and residence

• Property-based residence requires a title deed in your name for a residential property.
• Citizenship has specific requirements for the payment method and the contract. See the guide to citizenship file mistakes.

Questions to ask before signing

1. What is the cash price? And what is the difference?
2. When do I receive the title deed? And how are my rights protected before then?
3. Does the project have a building permit? What is the developer’s delivery track record? See the guide to choosing a reliable developer.
4. What are the penalties on each side?
5. What happens if the developer runs into difficulty?

Summary

Instalments make buying possible for many people, but a good plan is not the one with the lowest instalment; it is the one that protects your rights most clearly: a title deed or a notarised promise of sale, balanced penalties, and a price whose real cost you know compared with cash. And always compare ready and off-plan property.

Browse off-plan projects and the payment plans available, or contact us and we will go through the instalment offer with you.