Building Completion Insurance
Building Completion Insurance is an insurance product that guarantees the completion and delivery of the construction to the business owners if the construction company fails and / or deliberately leaves the project committed, especially in urban transformation projects and housing projects.
It is obligatory for construction companies to make BUILDING COMPLETION INSURANCE or to provide at least one of the other collaterals against the risk that the buildings and projects that cause consumers' grievance will be left incomplete or not started at all.
Pursuant to the “General Terms for Building Completion Insurance” enacted by the Turkish Undersecretariat of Treasury, effective as of 03/16/2015, which is based the article 42 paragraph 1 of the Law on Consumer Protection No. 6502, the Insurer, as the guarantor of the debtor (seller/business developer), shall provide cover to the beneficiaries of the bonds (consumer/buyer/purchaser) specified in the policies subject to the general conditions specified herein and within the terms and conditions given in the special conditions of the policy against the risk of failure by the debtor to fulfill the debt obligation defined in the policy.
The insurer shall make payment to the relevant beneficiary or beneficiaries pursuant to the obligation undertaken by it under the individual certificates/bonds/guarantees issued on behalf of the purchasers.
The Insurance Company will indemnify the beneficiaries under the following cases:
a) The seller goes bankrupt.
b) In case the seller is a real entity, the seller dies, provided that the inheritors reject the inheritance,
c) Except the conditions stated in articles A.3 and A.4 of the “General Terms for Building Completion Insurance”, the seller fails in completing the house or time share vacation within 12 months following the delivery date undertaken in the agreement for the prepaid house or time share vacation sales within the scope of the Law on Consumer Protection No. 6502.
d) The seller fails to obtain the final certificate of occupancy from the Authorities