How to avoid real estate fraud when buying real estate in Turkey?
Table of content
- What is real estate fraud in Turkey?
- Purchase of real estate under construction "on the scheme"
- Tips before buying a property in Turkey
- What can Gars company offer to those who have fallen victim to real estate fraud?
What is real estate fraud in Turkey?
Real estate fraud is one of the most prominent problems that occur during the purchase of the real estate, which is a deliberate deception with the aim of defrauding and obtaining money illegally. As some commercial fraudsters, and some companies that do not have credibility and confidence in the field of real estate investment in Turkey, take advantage of the lack of experience of those wishing to buy a property in Turkey, and the lack of sufficient knowledge they have in the real estate market in Turkey and the minimum limits and higher prices; and therefore, they run out through these things to achieve deception that leads to people harm.
Real estate fraud methods in Turkey
The methods of land fraud are numerous and develop every day; as a result of the development of deception techniques by fraudsters, however, the most prominent method of fraud is to offer a property for sale, without showing the buyer that the costs of investing and maintaining the property may be significant when compared to the proceeds sought, as well as the fact that the property is not systematically listed in the land registry. This means that the buyer will have to pay fines and pay financial fees to legally settle the property's status, and the most dangerous real estate fraud is to impersonate the property owner, or the agency specialized in selling the property, and then falsify documents that only specialists can discover that they are unofficial after they the fraudsters have taken advantage of the absence of the real owner, or the official agent, to sell the property, due to travel or any other reason. Also, some real estate brokers resort to displaying exaggerated prices that do not match the real value of the offered property, taking advantage of the buyer's lack of sufficient information about the prices circulating in the area of the property offered for similar properties.
Real estate fraud penalties in Turkey
Penalties for land fraud are included in the list of penalties for fraud offenses, and the penalty varies according to the classification of the offense in the category of precision fraud, or minor fraud. However, real estate fraud offenses often subject offenders to imprisonment from one to five years, and the penalty for conditional fraud may be up to seven years' imprisonment, with judicial fines up to twice the amount of fraud received by the offender.
How to avoid real estate fraud in Turkey?
The investor must be aware of the real estate investment laws in Turkey, and some things, such as insisting on examining and inspecting the property in all its details, not agreeing on advanced financial payment before making sure that everything is legal, and not signing any contract between the buyer and seller before inspecting the property. In addition to verifying the identity of the person with whom the transaction is being conducted, and making sure that the real estate agent is authorized to work officially, and it is important to preserve personal information and not give it to anyone, especially personal documents, bank information, and material capabilities, and the best safe way is to search for properties for sale by reliable and licensed real estate companies.
What is the real estate appraisal in Turkey?
The real estate appraisal is the science that investigates determining the value of the real estate in all its forms (land - houses - stores - factories - farms) to reach the real market value. And this report shows the market value of real estate according to specific criteria, and it is one of the official documents necessary to complete the transactions of title deed registration in real estate sales to foreigners in Turkey. The real estate appraisal report is prepared by companies or experts who have a license to prepare reports of this type, in accordance with the regulating laws, and the standards and standards applied at the international level.
Why was the real estate appraisal law approved in Turkey?
Perhaps the most important reasons for approving the real estate appraisal law are due to the need to secure a safe investment atmosphere for foreign investors. In addition to protecting the rights of investors in general, and obtaining real-estate price information, which is a major manipulation, thus preventing foreigners from being deceived by some of the weak-willed, who are trying to exploit their lack of knowledge of the laws and the true value of the real estate, in addition to the fact that the adoption of this law prevents tax evasion in the field of construction and real estate.
What is the benefit and importance of the real estate appraisal law in Turkey?
There are many benefits that result from the adoption of this law, the most important of which are: realizing real protection for foreign investors from all fraud, in addition to raising the level of real estate investment security, especially that the law of granting citizenship according to real estate investment is surrounded by many entrances to achieve deception and fraud, with the presence of real estate evaluation determines prices specifically, the investor is aware of the reality of the real estate’s eligibility for citizenship, and controlling real estate prices creates an investment environment that encourages growth and development, which achieves profits and investment returns.
Purchase of real estate under construction "on the scheme"
Many investors want to own a property in Turkey by buying real estate in projects under construction, or what is known as buying an on-the-scheme property. This type of sale is described as cheaper than buying ready-made properties, but it requires waiting for the construction company to complete the construction process, and buying on the scheme is often done through the purchase of virtual property, in properties that have not yet been built. In this case, the buyer is satisfied with the description and information obtained from the seller, but it is expected and very possible that the buyer will be surprised by the appearance of defects in his property upon receipt that contradicts what was agreed upon. With the originating company, the chances of real estate fraud appearing in this type of investment are greater, which means an increased search for safe real estate brokerage firms.
What are the advantages and disadvantages of buying apartments under construction in Turkey?
Investment through the purchase of apartments under construction includes some advantages, as buying a property on the scheme allows dividing the house as desired by the investor, as long as it is still under construction, and the buyer has the option to specify the specifications of his apartment’s cladding and to choose the type and quality of finishes, and from the most important advantages are the low price, as it is lower than the prices of ready-made apartments and properties, which allows the buyer to buy better options in terms of space, at a lower price.
One of the most important disadvantages is to wait for a long time until the construction process ends, and the appearance of some negative specifications in construction and cladding after the completion of work, which was not agreed upon construction, is a matter, and the payment of financial payments before the completion of construction means freezing the capital for a period.
Tips before buying a property in Turkey
One of the most important tips is to buy from reliable and licensed parties or buy from real estate with a government guarantee. The buyer should request all the details of the property, visit the property’s location and take some details on the ground from some of the residents in that place, and the purchase contract must include a detailed description of the property, in terms of the full area, the net area of the property, the total number of rooms and their internal and external extensions, the sub-division of the property. In addition to the exact location of the apartment in the building, or in the area if it is separate property, determining the agreed property price, and the method of payment, and it must specify the document of the agreement with the real estate developer, the date of signing the final contract, and the expected delivery date. The contract must include an appendix describing public utilities, and the quality of materials used in construction.
As for projects under construction, it is advised to consult an architect about the specifications of the property that have been agreed upon, and it is better to document what was agreed upon in the contract with the seller at the notary, in addition to the detailed description of the property and the construction plan, and the real estate developer must also provide the buyer by the joint ownership regulations if the property is an apartment, and these regulations clarify whether professional activities are possible in the building, and what the nature of those works is if they are on the ground floor. It is also advised to include a penal clause for each day of delay, in the event that the construction company is late in delivering the property, a condition that the real estate developer may sometimes oppose to including, but this clause is a legal document in the buyer’s hand that guarantees his right upon delay, and it is also advised to go to the construction site to see the progress of work.
What can Gars company offer to those who have fallen victim to real estate fraud?
Gars Company takes this issue very seriously, and studies the case thoroughly as quickly as possible, to determine the legal frameworks that should be started immediately, through a legal team specialized in this field, and to secure the best lawyers to follow up the case, and to prosecute the perpetrators, to gain the rights of the victims of real estate fraud.
Edited by Gars Consulting Company
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