Sold a Dream, Bought a Legal Problem: What Can a Buyer Do When a Real Estate Agent Misleads Them in Turkey?

Introduction

Purchasing real estate is often one of the most significant financial decisions an individual or investor will ever make. Buyers commonly rely not only on the seller but also on the statements, advertisements, representations, documents and professional guidance provided by real estate agents.

Problems arise when the property turns out to be materially different from what was represented before the transaction.

A buyer may discover, for example, that the property is smaller than advertised, does not have the promised zoning status, cannot legally be used for the represented purpose, is subject to restrictions or encumbrances, lacks necessary permits, has undisclosed occupancy problems, or cannot generate the rental income promised by the real estate agent.

Under Turkish law, such situations should not automatically be treated as ordinary commercial disappointment. Depending on the circumstances, misleading statements by a real estate agent may constitute defective performance of brokerage services, breach of contract, tortious conduct or even fraudulent inducement.

The buyer may therefore have claims not only against the seller but also directly against the real estate agent or real estate brokerage company.

The applicable legal framework principally includes the Turkish Code of Obligations No. 6098, the Consumer Protection Law No. 6502, and the Regulation on Real Estate Trade.

1. When Is a Buyer Considered to Have Been Misled?

Not every incorrect statement made during negotiations will necessarily create legal liability.

The decisive question is whether the information provided by the real estate agent was sufficiently important to affect the buyer’s decision to purchase the property or the price the buyer agreed to pay.

Typical examples of potentially misleading representations include:

• advertising a property as having a larger net or gross area than it actually has;
• falsely claiming that the property has residential or commercial zoning;
• representing an unlicensed or legally problematic structure as fully compliant with municipal regulations;
• concealing mortgages, attachments, annotations or other restrictions affecting the property;
• falsely representing that a property can legally be used as a hotel, office, restaurant or other commercial establishment;
• providing inaccurate information about occupancy permits or construction permits;
• hiding serious disputes involving tenants or occupants;
• giving incorrect information about condominium ownership or construction servitude;
• representing common areas as belonging exclusively to the apartment;
• falsely claiming that alterations or extensions are legally registered;
• guaranteeing unrealistic rental returns;
• creating false expectations regarding resale value;
• presenting legally unusable land as suitable for construction;
• providing misleading information concerning access roads, infrastructure or development plans; or
• withholding information about circumstances that significantly reduce the legal or economic value of the property.

The legal significance of these statements becomes considerably stronger when they can be proven through property advertisements, WhatsApp conversations, emails, brochures, listing screenshots, written offers or brokerage documents.

2. A Real Estate Agent Is Not Merely a Person Who Introduces Buyer and Seller

Real estate brokerage is legally recognised under the Turkish Code of Obligations.

Article 520 of the Turkish Code of Obligations defines brokerage as a contractual relationship under which the broker undertakes to prepare the opportunity for a contract between the parties or to intermediate in the conclusion of that contract and becomes entitled to remuneration where the relevant contract is concluded.

The same provision states that the rules concerning mandate relationships generally apply to brokerage agreements and that brokerage agreements concerning real estate must be made in writing.

This legal structure is important.

A professional real estate agent is not entitled to collect a commission while completely disregarding the accuracy of the information provided to the buyer. Where the broker undertakes professional services concerning a property, the service must be performed in accordance with contractual obligations and the standards reasonably expected from a professional intermediary.

Under Article 112 of the Turkish Code of Obligations, where an obligation is not performed or is improperly performed, the debtor may be required to compensate the creditor for the resulting loss unless the debtor proves that no fault can be attributed to them.

Consequently, where a broker provides materially inaccurate information and the buyer suffers financial damage because they reasonably relied on that information, contractual liability may arise.

3. Real Estate Agents Have Regulatory Responsibilities

The Regulation on Real Estate Trade creates additional rules governing professional real estate businesses in Turkey.

Among other matters, the regulatory framework requires documentation concerning brokerage transactions and provides that sales brokerage agreements contain important information such as identification of the business, title registry information concerning the property, the sale price, payment method, service fee and allocation of transaction-related expenses.

The Regulation also requires a separate property showing document for properties introduced to prospective buyers and regulates when and how brokerage fees may be collected.

These requirements are important in disputes involving misleading information because the written documents can help determine:

1. what information was provided about the property;
2. what the brokerage firm knew or was expected to know;
3. what information originated from the property owner;
4. which representations influenced the transaction; and
5. whether the professional intermediary complied with its regulatory duties.

A broker cannot automatically avoid all liability merely by arguing that the information originally came from the seller.

Liability depends on the circumstances, including whether the agent knew the information was false, whether there were obvious inconsistencies, whether verification reasonably formed part of the undertaken service, and whether the agent independently repeated or confirmed the inaccurate information.

The Regulation does, however, recognise circumstances in which certain information may be based on the property owner’s declaration where the intermediary cannot obtain it from relevant electronic systems or official records. Accordingly, identifying the actual source of the false information can become a central issue in litigation.

4. Consumer Protection Law May Give the Buyer Additional Rights

The Consumer Protection Law No. 6502 is particularly important where a person buys or uses real estate for non-commercial or non-professional purposes.

The statutory definition of a consumer transaction expressly includes brokerage agreements entered into between consumers and persons acting for commercial or professional purposes.

Therefore, a professional real estate brokerage service provided to an individual consumer may fall within consumer law.

This distinction provides the buyer with an important layer of protection.

Under Article 13 of Law No. 6502, a service may be regarded as defective when it does not possess the characteristics agreed by the parties or objectively expected from it.

More importantly for real estate disputes, the legislation also treats a service as defective where it does not possess the characteristics stated by the service provider or contained in advertisements or online listings, or where material, legal or economic deficiencies reduce or eliminate the benefits that the consumer could reasonably expect from the service.

This provision may be particularly relevant to misleading real estate advertisements.

For example, if an agency markets a property as:

“150 m² net residential apartment with full occupancy permit”

but the buyer later discovers that the legally recognised area is significantly smaller and that the property has an occupancy or licensing problem, the advertising material may become important evidence of defective brokerage service.

5. Can the Buyer Demand a Refund of the Real Estate Commission?

Potentially, yes.

Where brokerage services qualify as defective services under Consumer Protection Law, Article 15 provides the consumer with alternative remedies, including:

• re-performance of the service;
• repair of the result produced by the service where appropriate;
• proportionate reduction of the service price; or
• withdrawal from the service agreement.

The consumer may additionally claim compensation under the Turkish Code of Obligations.

In real estate transactions, re-performance of brokerage services may often be commercially meaningless after the property has already been purchased.

Accordingly, disputes frequently focus on:

refund or reduction of brokerage commission and compensation for additional financial losses.

Whether a full commission refund is justified will depend on the seriousness of the defective service and the causal relationship between the inaccurate representation and the completed transaction.

6. Can the Buyer Claim Compensation from the Real Estate Agent?

Yes, provided that the legal requirements for liability are established.

There may be several legal bases for compensation.

Contractual Liability

If there is a brokerage relationship between the buyer and the real estate agent, misleading or negligent professional services may constitute improper performance.

Article 112 of the Turkish Code of Obligations can therefore provide the basis for damages resulting from breach of contractual obligations.

Tort Liability

Article 49 of the Turkish Code of Obligations separately provides that a person who unlawfully and culpably causes damage to another person must compensate that damage.

This may become especially significant where the broker deliberately provides false information or acts outside the scope of the contractual relationship.

Depending on the case, damages may include losses such as:

• the difference between the price paid and the actual market value of the property;
• brokerage commissions;
• unnecessary appraisal expenses;
• financing-related losses;
• expenses incurred because of the defective transaction;
• costs required to remedy certain deficiencies;
• losses caused by inability to use the property for the intended purpose;
• lost rental income where sufficiently proven and legally recoverable; and
• other direct financial losses causally connected with the agent’s conduct.

However, the buyer must establish the causal relationship between the misleading statement and the loss claimed.

This means that merely proving that the agent made an inaccurate statement may not be sufficient. The buyer should also demonstrate that the statement materially influenced the purchasing decision and caused measurable financial damage.

7. What If the Real Estate Agent Intentionally Lied?

Intentional deception can have significantly stronger legal consequences.

Article 36 of the Turkish Code of Obligations regulates fraudulent inducement.

Where one contracting party enters into an agreement because of the other party’s deception, the deceived party is not bound by the contract even if the resulting mistake would not otherwise qualify as an essential mistake.

Real estate transactions require an important distinction, however.

The real estate agent will frequently not be a party to the property sale agreement itself. The principal sale agreement is concluded between buyer and seller.

Where deception comes from a third person, such as an independent real estate agent, Article 36 provides that the deceived party may avoid the contract if the other contracting party—the seller—knew or should have known about the deception at the time the contract was concluded.

This distinction can become decisive.

Suppose an estate agent falsely tells the buyer:

“The apartment is legally 180 square metres and the seller has confirmed it.”

If evidence later establishes that both seller and agent knew that the registered legal area was substantially smaller, the buyer may have a significantly stronger argument that the sale itself resulted from fraudulent inducement.

By contrast, if the agent independently invented the representation and the seller neither knew nor could reasonably have known about the deception, avoiding the sale agreement directly against the seller may require a different legal analysis, while the buyer may still retain claims against the agent.

8. There Is a Critical One-Year Period in Fraud Cases

Buyers should not delay after discovering intentional deception.

Under Article 39 of the Turkish Code of Obligations, a party who entered into a contract because of mistake or deception is deemed to have approved the contract if, within one year from discovering the mistake or deception, the party does not notify the other side that they are not bound by the contract or does not seek restitution.

Importantly, approval of a contract affected by deception does not necessarily eliminate a separate claim for damages.

This is why obtaining legal advice immediately after discovering the misleading representation can be crucial.

9. What If the Property Itself Is Defective?

The liability of the real estate agent must be distinguished from the liability of the seller.

A single transaction can create separate claims against different persons.

For example:

The seller may be liable because the property itself is defective.

The real estate agent may separately be liable because the brokerage service was defective or because the agent negligently or intentionally gave false information.

Where Consumer Protection Law applies to the underlying property sale, Article 11 provides remedies including withdrawal from the sale, reduction of the purchase price, repair in appropriate cases and replacement where legally and practically possible. Compensation may also be claimed under the Turkish Code of Obligations.

For residential and holiday-purpose real estate subject to consumer law, the legislation contains specific limitation periods for claims concerning defective property. Moreover, where the defect has been concealed through gross fault or fraud, the ordinary limitation rules concerning defects do not apply in the same manner.

If the seller is a private individual who is not acting for commercial or professional purposes, however, the Consumer Protection Law may not govern the sale. In that situation, the relevant provisions of the Turkish Code of Obligations concerning sale contracts, defects, fraud and general contractual liability must be examined instead.

10. False Online Advertisements Can Become Powerful Evidence

Modern real estate disputes are increasingly evidence-driven.

Buyers should preserve the original advertisement immediately after discovering a problem.

Useful evidence may include:

• screenshots of the online listing;
• advertisement identification numbers;
• photographs published by the agency;
• WhatsApp communications;
• SMS messages;
• emails;
• voice messages where lawfully obtained and usable;
• brochures;
• reservation documents;
• property showing documents;
• brokerage agreements;
• commission invoices;
• bank transfer records;
• title registry records;
• municipal zoning documents;
• architectural projects;
• occupancy permits;
• appraisal reports;
• expert reports; and
• communications between the agent and seller.

The importance of advertising material is reinforced by Consumer Protection Law, which expressly takes into consideration characteristics communicated by the service provider or contained in advertisements and online portals when determining whether a service is defective.

Therefore, deleting a property advertisement after completion of the sale does not necessarily eliminate its evidentiary importance if the buyer has preserved screenshots or other electronic records.

11. What If the Agent Says, “The Seller Gave Me That Information”?

This defence does not automatically resolve the dispute.

The court would normally need to determine:

• who originally provided the inaccurate information;
• whether the broker merely transmitted the information;
• whether the broker independently confirmed it;
• whether the broker knew it was inaccurate;
• whether a professional intermediary should have identified an obvious problem;
• whether official records were available;
• whether the buyer was expressly informed that the statement was based solely on the seller’s declaration; and
• whether the agent presented the information as verified fact.

The Regulation on Real Estate Trade itself distinguishes between information obtained from official or electronic systems and certain information that may have to be based upon declarations made by the property owner.

Accordingly, liability cannot be determined simply by asking who uttered the first false statement.

The entire communication chain must be analysed.

12. Could the Seller and Real Estate Agent Be Liable at the Same Time?

Yes.

A buyer does not necessarily have to choose only one potential defendant.

If the evidence demonstrates that both the seller and real estate agent participated in the misinformation, separate or overlapping legal responsibility may arise depending on the legal character of the claims.

This may be especially important where the agent and seller acted together to conceal a significant fact—for example:

• illegal construction;
• a serious zoning restriction;
• an existing legal dispute;
• a substantial difference in the property’s actual area;
• an undisclosed occupancy problem; or
• a condition preventing the property’s represented commercial use.

In these situations, communications between the seller and broker can become particularly important evidence.

13. Does Every False Statement Amount to Criminal Fraud?

No.

Civil misrepresentation and criminal fraud are not automatically the same thing.

A negligent mistake by an estate agent can potentially create contractual or civil liability without constituting a criminal offence.

Criminal liability requires the separate elements of the relevant criminal offence to be established.

However, where evidence indicates a deliberate scheme involving deceptive conduct designed to cause the buyer to transfer money or acquire a property under materially false pretences, criminal law considerations may arise in addition to civil remedies.

A criminal complaint and a civil claim serve different legal purposes and should therefore be assessed separately.

14. What Should a Buyer Do Immediately After Discovering the Misrepresentation?

The first objective should be to preserve evidence before confronting the parties.

The buyer should generally:

1. save the original property advertisement;
2. export and preserve WhatsApp and email communications;
3. collect all brokerage and property showing documents;
4. obtain the current title registry record;
5. obtain relevant municipal and zoning records;
6. obtain an independent appraisal where the financial effect is disputed;
7. determine exactly when the false information was discovered;
8. avoid signing releases, settlement documents or acknowledgements without legal review;
9. send an appropriately drafted legal notice where necessary; and
10. evaluate claims against both the seller and the broker before initiating proceedings.

Timing is particularly important where fraud or defective-service claims are being considered.

Under Consumer Protection Law, defective-service liability is generally subject to a two-year limitation period from performance of the service unless a longer period applies; where the defect has been concealed through gross fault or fraud, the statutory provision expressly excludes application of the ordinary limitation rule in that manner.

15. The Most Important Question: Would the Buyer Have Purchased the Property If the Truth Had Been Known?

This question often lies at the heart of the dispute.

Consider two scenarios.

In the first, an agent incorrectly states that the nearest metro station is 500 metres away when it is actually 700 metres away.

Although inaccurate, that statement may not materially affect the purchasing decision.

In the second scenario, the agent states that a property may legally be used as a restaurant, the buyer purchases it specifically to operate a restaurant, and the buyer subsequently discovers that such commercial use is legally impossible.

The second representation directly concerns the economic and legal purpose of the transaction.

The stronger the connection between the misleading information and the buyer’s decision, the stronger the potential argument concerning causation and damages.

Conclusion: A Real Estate Agent’s Misrepresentation Can Create Serious Liability in Turkey

A buyer who discovers that a property was materially misrepresented should not assume that completion of the title transfer ends the matter.

Turkish law provides several potentially overlapping remedies.

Depending on the facts, the buyer may seek:

• reimbursement or reduction of the brokerage commission;
• withdrawal from the brokerage agreement;
• compensation from the real estate agent;
• compensation from the seller;
• reduction of the property purchase price;
• remedies relating to defects in the property;
• avoidance of the transaction where legally justified by fraud; or
• other civil remedies arising from contractual or tortious liability.

The strongest cases normally depend not only on proving that information was incorrect, but also on establishing who made the statement, whether it was known to be false, whether the buyer relied upon it, and exactly what financial loss resulted from that reliance.

For this reason, advertisements, written communications, title registry records, municipal documents, appraisal reports and brokerage paperwork should be examined together.

In major real estate transactions, a relatively simple statement by an agent—such as “there is no legal problem with the property”—can ultimately have consequences worth millions of Turkish lira.

When that statement is false, the buyer may have considerably more legal protection than the real estate agent or seller expects.

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