"The Regulation Regarding Pre-payable Housing Sales” in Terms of Building Completion Insurance

"The Regulation Regarding Pre-payable Housing Sales” (“the Regulation”) drafted by the Ministry of Customs and Trade has entered into force on 27.11.2014. The Regulation is based on the Article 42 of the Consumer Protection Law (“Law”) No. 6502.

The Article 42 of the Law states that seller shall take out a building completion insurance that is regulated by Undersecreteriat of Treasury before starting to sell buildings; otherwise, the seller shall provide the warrants and conditions determined by Ministry of Customs and Trade.

As per the Article 12 of the Regulation titled “Warranty”, building completion insurance shall be compulsory for the projects, which contain thirty and more buildings. On the other hand, according to the Article 8, insurance coverage will be effective following the date of the end of the period regarding the right of cancellation.