TURKEY…. A GREAT PLACE TO INVEST….OR A TIME BOMB WAITING TO EXPLODE?

I was interested to read a fellow commentator’s opinions on Turkey, especially his statement that…” Turkey will make an appealing investment proposition”.

Turkey has always been a “femme fatale” for English tourists and buyers. Its beautiful waters and cities, have always drawn the English to its shores, for short or long hops.

Over the years many English ladies have fallen for the strong Turkish physique and married their love, staying their permanently or bringing their new husband to the UK. Let’s not forget Shirley Valentine!

Alex makes many true and valid statements in his piece, but I have to disagree with his use of the future tense in his article, where he says that Turkey will make an appealing investment proposition.

I have been an international property lawyer now, for nearly 30 years and Turkish property has always made a great investment.

Buyers have, for the most part, seen a great return on their investment; whether you calculate this using capital or income, as you starting point.

Of course, there are always those, who foolishly invest, without carrying out the necessary and prudent research, [or “due diligence”, as we call it in the profession], before they hand over their well earned money, to some unscrupulous developer or builder, who says he is something he is not, or who promises the earth and then doesn’t deliver.

These investors are, usually those who think that, just because they have met some locals and the trust them, without thinking twice, they can hand over money and get the same kind of treatment as they would, in most cases here in the UK. It just doesn’t work like that!

Wake up…….., it’s not just in Turkey where this could happen to you,[ although very rare in my long experience]…. it happens all over the world, where a person thinks he can take advantage of another!

In Turkey, the purchase procedure is a strong one, if you follow the rules.

Once you have a contract and you approve the contents, we always recommend that the contract be signed in front of a Turkish Notary, by both parties.

The advantage of this is, that it opens up to the buyer more choices for recovery of outlaid monies, if the developer, or the seller does not hand over the property contracted for at a later stage. This Notarial process costs 6.83 lira per 1000 lira of purchase price.

In addition to Notarisation of signatures, we also always suggest that the parties register the contract at the local land registry. There is also a small registration fee to pay for this. The registration acts as notice to all parties, for all purposes, that a person has paid a deposit and entered into a contract and so prevents the land being sold to a unknowing third party.

Having carried out both these procedures, the buyer then has all the means open to him to recover either the property, by way of a similar process to ours, which we call “Specific performance” or recovery of his monies, from the seller for what is known as “Unjust enrichment”.

If the buyer does not sign the contract, in front of a Turkish Notary, then he cannot make a claim for the property or the land, but only a claim for “unjust enrichment”.

I have acted for claimants over the years, who limited their options, because they thought they would cut corners and not pay the relatively small sum to a Notary, which would then allow them to have all the recovery options, at a future date, when it goes wrong.

Remember, that when you buy from a developer, [this applies to the whole world, not just Turkey], that you need to research the developer’s credit worthiness and whether he or it [ a company] has charges registered on its building land, [This will occur if he has , borrowed from a Bank, for example] that need repaying before you can legally become owner of the land and the property.

This is because unless the builder releases the Bank charge on the land, you will not become the legal owner of the land or the house that is now sitting on it, as the Bank will have a greater and preferential right, which ranks higher than any rights you may have acquired.

If you follow the simple rules, you will protect yourself and your money.

Follow the rules and  be safe!

Turkey has so much to offer a prospective purchaser, whether you seek a city abode or a coastal villa overlooking the crystal blue seas.

I think that although the Turkish Government doesn’t always do itself any favours, or cover itself in glory, by its actions on a world stage, as Alex alludes to, Turkey still remains a good value location to invest in now, as many of my clients have done over the years.I don’t even think that foreigners will lose their land or property by State expropriation as some have suggested in the past.

At Kobalt Law LLP, we have a full service Turkish law desk, led by Senior Turkish Avukat, Ali Onur Ulusakarya, who is an expert property lawyer and who has guided many satisfied clients through the intricacies of buying property or land in Turkey.

For further details on buying land or property in Turkey, please contact Avukat Ali Onur Ulusakarya :

email :aliou@kobaltlaw.co.uk

or call +44 (0) 207 739 1700.

Download the Kobalt Law LLP, free Turkish Buying Guide, packed full of “must have ” information, when buying in Turkey from our website: www.kobaltlaw.co.uk.

You can find general advice and assistance on buying foreign property safely in my Book, available on Amazon, called:

“Investing In Foreign Property….the Ultimate Guide to Buying Safely.”

By Stefano Lucatello

 

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