January 8, 2026

What Does Land on a Kat Basis Mean?

What is a land for the floor equivalent?

1. What Does Land According to Floor Mean?

Land according to floor (or legally known as Construction Contract According to Floor) is a type of "mixed" contract in which the landowner commits to transferring certain shares of their land to the contractor, and the contractor commits to delivering certain apartments from the building they will construct on this land to the landowner.

2. How Is Land Transferred to the Contractor According to Floor?

The process generally proceeds with the following steps:

Checking Zoning Status: It is learned from the municipality how many floors and what size of construction can be built on the land.
Contractor Selection: A meeting is held with a company that has strong references and a solid financial structure.
Offer and Sharing: The contractor offers a sharing ratio to the landowner (e.g., 50%-50%).
Contract Preparation: The technical specifications (list of materials to be used) and legal conditions are determined.
Signing in the Presence of a Notary: For this contract to be valid, it must be made at a notary in the "Regulated Form".

3. Calculation of Land According to Floor and Percentages

What Percentage of Land According to Floor?

The land according to floor ratio completely depends on the value of the land and the construction cost.

Valuable Locations (e.g., Beşiktaş, Kadıköy): The landowner's share can rise to 60% - 70%.
Developing Areas: Generally, it is in the 40% - 50% band.
Low-Value Areas: The contractor may offer a share of 30% - 35% to cover costs.

Value Calculation Formula

$$Total Construction Area \times Land Share Ratio = Area to be Allocated to the Landowner$$

4. Responsibilities of the Landowner in Construction Contract According to Floor

The landowner is not only obligated to provide the title deed;

Delivering the Land: Clearing the old building on the land and delivering it ready for construction.
Granting Power of Attorney: A proxy is appointed for permit, project approval, and subscription processes.
Taxes and Fees: Unless otherwise specified in the contract, past property taxes related to the land before construction belong to the landowner.

5. Selling the Landowner's Share

While the process of the construction contract according to floor continues, it is legally possible for the landowner to sell their share; however, this situation brings critical responsibilities.

The landowner is considered to have transferred the obligation to construct in favor of the contractor and other conditions to the new buyer by the contract; that is, the new owner must accept all the provisions of the existing contract (sharing ratios, technical specifications, delivery time, etc.) as it is.

Before the sale process takes place, the "Annotation of Construction Contract According to Floor" in the land registry must be checked, and the contractor's consent or the transfer permissions mentioned in the contract must be taken into account. Otherwise, legal disputes may arise between the parties, and the contractor may have the right to stop the construction or terminate the contract.

5. Example of Construction Contract According to Floor

How many years is the share-based contract valid for?

The validity period of the contract depends on the agreement of the parties. Generally, a period of between 18 and 36 months is specified from the date of obtaining the license. If no period is mentioned in the contract or if the contractor cannot complete the work within a reasonable time, the rights of termination arise under the Turkish Code of Obligations.

Is it possible for the landowner to sell their share?

Yes, the landowner can sell the independent sections (or shares) that will fall to him during the continuation of the contract to third parties. However, in this case, there is generally a "annotation" in the contract, and the new buyer is deemed to have accepted the conditions of the existing construction exchange contract.

Is it sensible to give land in exchange for the property?

Advantage: You can own a new, earthquake-resistant, and high-value property without your own cash capital. Risk: The biggest risk is that the contractor may leave the job unfinished or use poor quality materials. Therefore, requesting Construction Completion Insurance or a Bank Guarantee Letter is vital.

What Should Be Done If the Contractor Leaves the Construction Unfinished?

If the contractor does not complete the construction, an additional period is granted by sending a notice from a notary. If no results can be obtained, the contract may be terminated through the court. The landowner has the right to request delay compensation, cashing of the guarantee letter, and delivery of the construction in its current state.

How is Profit Sharing Done in Construction for Land Exchange?

The distribution is based not only on the number of apartments but also on the value of the apartments' floor, facade, and view (premium). To ensure a fair distribution, it should be clearly stated in the floor plan attached to the contract which apartment belongs to whom, or a lottery method in the presence of a notary should be preferred.