Preliminary Real Estate Contract under Turkish Law

Preliminary Real Estate Contract is type of agreement that can frequently be seen in practice. Under an Preliminary Real Estate Contract, the seller takes on the obligation to sell a particular property to the buyer and the buyer in return assumes the obligation to buy the property at particular a time and price permanently agreed. Parties may not want to transfer or receive ownership of a property immediately if they are expecting a future condition/s to be satisfied. Preliminary real estate contracts can especially be seen in prepaid real estate transactions because at the moment of its signing the property is still in process of construction so the condition in such a case is the completion. Preliminary real estate contracts must be in official format and therefore executed before a notary. In practice, determining the competent court in case of a dispute arising from preliminary real estate contracts can be problematic. In this article, I am going describe preliminary real estate contracts in general terms and then specifically focus on and discuss the question of determining competent court in case of a dispute arising from preliminary real estate contracts.