Articles

Recent financial difficulties in the construction sector and developments regarding incomplete projects have increased the legal risks faced by individuals who have purchased real estate from such projects. In practice, disputes particularly those related to the failure to deliver properties and transfer title deeds have become more frequent.

In this context, the legal position of real estate buyers and the procedures to be followed in the event of the bankruptcy of contractor companies are of critical importance. The bankruptcy decision rendered against Yeşil Gayrimenkul Yatırım Ortaklığı A.Ş., which has come to public attention in connection with the Innovia 4 project located in Esenyurt, Istanbul, constitutes a current and concrete example in this regard.

Following the bankruptcy decision issued by the Bakırköy 1st Commercial Court of First Instance dated 05.03.2026, the liquidation process has been initiated under the file numbered 2026/14 Bankruptcy before the Bakırköy 1st Enforcement and Bankruptcy Office. The declaration of bankruptcy was publicly announced on 06.03.2026 pursuant to Article 166 of the Enforcement and Bankruptcy Law.

With the publication of this announcement, the following legal consequences arise for individuals who have purchased real estate from the project:

• The announcement is deemed as a formal notification to all creditors and marks the commencement of statutory time limits.
• Buyers are required to file a claim registration application before the bankruptcy estate within the prescribed period starting from the date of announcement.
• Failure to apply within the specified time may result in exclusion from the liquidation process and the substantial loss of the right to assert claims.

Upon the declaration of bankruptcy, all assets of the debtor company are consolidated under the bankruptcy estate, and buyers must assert their rights through this estate. In this respect, the registration of claims with the bankruptcy estate constitutes a fundamental and mandatory step from a legal standpoint.

Applications for claim registration must be submitted to the relevant bankruptcy office together with supporting documents such as contracts, payment records, bank statements, and other evidence. It should be noted that, in most cases, buyers’ claims are considered unsecured and are therefore subject to the ranking process.

Following the examination conducted by the bankruptcy administration, a ranking schedule (order of priority) will be established, determining whether claims are accepted and their respective order. In the event that a claim is rejected or partially accepted, it is necessary to file a claim registration lawsuit within the statutory period following the announcement of the ranking schedule.

However, the bankruptcy process is not limited solely to the collection of receivables. In practice, alternative resolution mechanisms may also come into play through negotiations with the bankruptcy administration. Within this framework, solutions such as the direct transfer of the property to the buyer in exchange for a certain payment or through set-off against existing claims may also be possible.

In general, the most significant risk for real estate buyers in the event of a construction company’s bankruptcy is being excluded from the process. Nevertheless, by making timely applications and conducting an effective legal follow-up, it is possible not only to prevent loss of rights but also to achieve concrete outcomes including the transfer of title through appropriate legal strategies.

For this reason, it is of utmost importance for individuals facing similar situations to promptly evaluate the process and determine and implement a legal roadmap tailored to their specific circumstances in order to avoid any loss of rights.

Nexpo Legal