Unofficial English translation for information only. In case of discrepancy, the Turkish text prevails. This translation is not legal advice.
Turkish source: Law No. 6502, Official Gazette 28/11/2013, No. 28835. Turkish text as published on mevzuat.gov.tr, checked on 26 October 2026: https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=6502&MevzuatTur=1&MevzuatTertip=5
PART FOUR – Consumer Contracts
CHAPTER THREE – Housing Finance
Article 32 – Housing finance contracts
(1) A housing finance contract is a contract for granting credit to consumers for the purpose of acquiring housing, leasing housing to consumers through financial leasing, granting credit to consumers secured by housing they own, and granting credit for the purpose of refinancing such credits.
(2) A housing finance contract shall not be valid unless concluded in writing or remotely. A housing finance institution that has not concluded a valid contract may not subsequently invoke the invalidity of the contract to the detriment of the consumer.[6]
Article 33 – Pre-contractual information obligation
(1) Housing finance institutions are obliged to provide the consumer with the pre-contractual information form containing the terms of the housing finance contract a reasonable time before the contract is concluded.
Article 34 – Default
(1) Where the consumer is in default in paying instalments, if the housing finance institution has reserved the right to demand performance of the entire outstanding debt, that right may be exercised only if the housing finance institution has performed all its obligations and the consumer is in default in paying at least two consecutive instalments. For the housing finance institution to exercise this right, it must give the consumer at least thirty days to pay and issue a notice of acceleration.
(2) Interest, commission and similar expenses shall not be taken into account in calculating the instalments accelerated.
(3) In financial leasing transactions, where the consumer fails to perform their obligation within the period specified in the notice of acceleration, and, after expiry of that period, the housing finance institution terminates the housing finance contract in order to exercise its right to demand performance of the entire outstanding debt, it is obliged to put the housing on sale immediately. Before the sale, the housing finance institution shall have the housing valued by persons or institutions authorised pursuant to the Capital Markets Law No. 6362 dated 6/12/2012. The appraised value shall be notified to the consumer at least ten business days before the sale. The housing finance institution shall sell the housing, taking the appraised value into account and acting as a prudent merchant. If the proceeds from the sale of the housing exceed the outstanding debt, the excess shall be paid to the consumer immediately. Article 33 of the Financial Leasing, Factoring and Financing Companies Law No. 6361 dated 21/11/2012 shall not apply to financial leasing transactions relating to housing finance.
(4) Following the sale of the housing under paragraph three of this article and payment to the consumer of any proceeds exceeding the outstanding debt, the consumer or, where possession has been transferred, the third parties in possession shall be obliged to vacate the housing. If the housing is not vacated, the owner may initiate enforcement proceedings against the consumer or the third parties in possession pursuant to Articles 26 and 27 of the Enforcement and Bankruptcy Law No. 2004 dated 9/6/1932.
Article 35 – Tied Loans
(1) A tied loan contract is a contract under which a housing finance loan is granted exclusively to finance a contract for the purchase of a specific dwelling, and the two contracts objectively constitute an economic unit.
(2) In the case of tied loans, if the consumer exercises one of the optional rights specified in Article 11 of this Law because the dwelling is not delivered at all or is not duly delivered, the seller and the housing finance institution are jointly and severally liable. However, the liability of the housing finance institution is limited to the amount of the loan used and lasts for one year from the date for delivery of the dwelling specified in the housing sale contract or the tied loan contract where the dwelling is not delivered, or from the date on which the dwelling is delivered where it is delivered.
(3) The liability of the housing finance institution granting the loan continues even if loans granted by housing finance institutions are transferred to mortgage finance institutions, housing finance funds or collateral pools for mortgage-covered securities. The institution acquiring the loan is not liable under this Article.
(4) Loans made available by the housing finance institution granting the loan through payment by that institution of the price of a dwelling selected by the consumer, without a contract between the housing finance institution and the seller concerning the supply of a specific dwelling, are not considered tied loans.
Article 36 – Interest Rate
(1) In loans, the portion of repayment amounts exceeding the principal, and in financial leasing transactions, the portion of rental payments exceeding the principal, are deemed interest under this Article.
(2) In loans for housing finance and in financial leasing transactions, the interest rate may be set as fixed or variable, or both methods may be used for the same loan, provided this is stated in the contract. If the interest rate is set as fixed, the rate determined on the date the contract is concluded may not be changed without the consent of the parties. If the rate is set as variable, the rate initially specified in the contract may be changed on the basis of the lowest of the generally accepted and widely used indices, whether domestic or foreign, to be specified in the contract, provided that the periodic repayment amount does not exceed the maximum periodic repayment amount specified in the contract at the outset. If rates are set as variable, consumers must be informed of the possible effects of this method. The reference interest rates and indices that may be used for these purposes are determined by the Central Bank of the Republic of Türkiye.
Article 37 – Early Repayment
(1) The consumer may make one or more instalment payments before they fall due, and may also repay the entire housing finance debt early. In such cases, the housing finance institution is required to make a reduction in all interest and other cost items as required in proportion to the amount repaid early.
(2) If the interest rate is set as fixed, the housing finance institution may, provided this is stipulated in the contract, demand early repayment compensation from the consumer where one or more payments are made before their due date. Early repayment compensation may not exceed one per cent of the amount repaid early by the consumer to the housing finance institution, calculated after making the required interest reduction, for loans with a remaining term not exceeding thirty-six months, or two per cent of that amount for loans with a remaining term exceeding thirty-six months. If the rates are set as variable, early repayment compensation may not be demanded from the consumer.
Article 38 – Provision of Insurance, Ancillary Financial Products and Services
(Amended together with its heading:24/3/2022-7392/5 art.)
(1) Credit-linked insurance may not be taken out without the consumer’s express request made in writing or through a durable data storage medium. The housing finance institution may offer the consumer a housing finance contract that includes credit-linked insurance, provided that it also offers a contract that does not include credit-linked insurance.
(2) The coverage obtained by the consumer from the insurance company of their choice must be accepted by the housing finance institution. Credit-linked insurance must be intended to secure repayment of the loan debt, and in the case of fixed-sum insurance, must be consistent with the outstanding debt amount and its term.
(3) A housing finance contract may not be made conditional on the purchase of ancillary financial products and services, except those related to the loan.
Article 39 – Other Matters
(1) Where an account is opened in connection with a housing finance contract and only loan-related transactions are carried out through that account, no fee or expense may be demanded from the consumer for that account under any name. The account is closed upon repayment of the loan unless the consumer requests otherwise in writing or through a durable data storage medium.[7]
(2) An overdraft contract associated with a housing finance contract may not be concluded without the consumer’s express instruction.
(3) For the purposes of applying the provisions of this Chapter, natural-person members of housing construction cooperatives are also deemed consumers.
(4) The procedures and principles concerning pre-contractual information, the rights and obligations of the consumer and the housing finance institution, the mandatory content of the contract, housing finance advertisements, refinancing, tied loans, default, early repayment, calculation of the annual cost rate and other matters are determined by regulation.
CHAPTER FOUR – Prepaid Housing Sales
Article 40 – Prepaid Housing Sale Contracts
(1) A prepaid housing sale contract is a contract under which the consumer undertakes to pay in advance, in a lump sum or by instalments, the sale price of an immovable property intended for housing, and the seller undertakes to transfer or deliver the immovable property to the consumer after all or part of the price has been paid.
(2) Consumers must be provided, at least one day before the contract is concluded, with a pre-contractual information form containing the matters determined by the Ministry.
(3) A prepaid housing sale contract may not be concluded with consumers before a building permit has been obtained.
Article 41 – Formal Requirements
(1) A prepaid housing sale must be registered in the land register, and a promise-of-sale contract must be executed by a notary in the form of an official deed. Otherwise, the seller may not subsequently assert the invalidity of the contract to the detriment of the consumer.
(2) Unless a valid contract has been concluded, the seller may not require the consumer to make any payment under any name or to provide any document that places the consumer under an obligation.
Article 42 – Security
(1) For projects exceeding the size determined by the Ministry according to the number of dwellings in the project or the project’s total value, before commencing prepaid housing sales the seller is required to take out building completion insurance, the scope, conditions and implementation principles of which are determined by the Undersecretariat of Treasury, or to provide other security and satisfy other conditions determined by the Ministry.
(2) Compensation, security and similar guarantees provided under building completion insurance may not be included in the bankruptcy or liquidation estate, attached, or made subject to interim injunctions or precautionary attachments.
Article 43 – Right of Withdrawal
(1) The consumer has the right to withdraw from a prepaid housing sale contract within fourteen days, without stating any reason and without paying a contractual penalty. It is sufficient for the notice of exercise of the right of withdrawal to be sent to the seller within this period. The seller is required to prove that the consumer was informed of the right of withdrawal.
(2) Where the immovable property is acquired in whole or in part through a tied loan, the tied loan contract enters into force at the end of the withdrawal period provided for in this Article, with effect as of the date on which the contract was concluded. The housing finance institution may not demand any expense from the consumer during the withdrawal period under the name of interest, commission, legal obligation or otherwise.
(3) The consumer shall return what they have received within ten days from the date on which the seller returns the amount received and every document placing the consumer under an obligation.
Article 44 – Delivery of the Dwelling
(1) (Amended:24/3/2022-7392/6 art.) The prepaid dwelling must be delivered to the consumer within the period undertaken in the contract. This period may not, under any circumstances, exceed forty-eight months from the date of the contract. Where possession is transferred upon registration of the condominium easement in the consumer’s name in the land register, the transfer and delivery are also deemed to have taken place.
Article 45 – Rescission of the Contract
(1) (Amended: 2/1/2017-KHK-684/8 art.; Accepted verbatim: 1/2/2018-7074/8 art.) In a prepaid housing sale, the consumer has the right to rescind the contract without stating any reason for up to twenty-four months from the date of the contract. If the consumer rescinds the contract, the seller may demand payment of expenses arising from taxes, duties and similar legal obligations incurred due to the sale of the dwelling or the promise-of-sale contract, as well as compensation of up to two per cent of the contract price for the first three months from the date of the contract, four per cent for the period from three to six months, six per cent for the period from six to twelve months, and eight per cent for the period from twelve to twenty-four months.
(2) If the seller fails to perform its obligations or performs them improperly, the seller may not demand any amount from the consumer. No amount may be demanded from the consumer where the contract is rescinded because the consumer has become unable to make the advance payments due to the consumer’s death or permanent loss of the ability to earn income, or because the seller has refused the consumer’s proposal to replace the contract with an instalment sale contract to be concluded under ordinary conditions.
(3) If the contract is rescinded, the amount to be refunded to the consumer and every document placing the consumer under an obligation must be returned to the consumer no later than one hundred and eighty days from the date on which the notice of rescission reaches the seller. The consumer shall return what they have received within ten days from the date on which the seller returns the amount received and every document placing the consumer under an obligation.[8]
Article 46 – Other Matters
(1) The procedures and principles concerning pre-contractual information, the mandatory content of the contract, the rights and obligations of the consumer and the seller, the right of withdrawal and rescission of the contract, and other matters of implementation are determined by regulation.
Notes
[6] By Article 3 of Law No. 7529 dated 24/10/2024, the phrase “or at a distance” was added after the phrase “in writing” in the first sentence of this paragraph.
[7] By Article 4 of Law No. 7529 dated 24/10/2024, the phrase “or by means of a durable data storage medium” was added after the phrase “in writing to the contrary by the consumer” in the second sentence of this paragraph.
[8] By Article 8 of Emergency Decree Law No. 684 dated 2/1/2017, the phrase “ninety days” in this paragraph was amended to read “one hundred and eighty days”; subsequently, this provision was adopted verbatim and enacted by Article 8 of Law No. 7074 dated 1/2/2018.