Today and tomorrow I am planning to discuss a case study regarding the same topic. I believe that a case study will be a good simulation to show you the consequences of a contract made by a careless land owner. When I mentioned the steps of making a contract for construction in return for a building, I said that finding a decent and credible contractor is one of the most important steps in the whole process.
The reason you have to be more careful is that you are leaving yourself in the hands of the contractor, who will block your land until the construction is completed. This becomes very important if your investment plan is based on a tight schedule.
What you basically provide to the contractor is not only your land but also your commitment to not assign another contractor during the term of the contract. So, you are basically giving exclusivity to the contractor.
The contractor is able to register this contract for construction in return for a building and his exclusivity with the records of the Land Registry Directorate.
The case
I will give the name of Mr. Investor to the land owner, and since the contractor is still a contractor, I will call him as Mr. Contractor.
The investor bought land from Turkey five years ago and the land is now worth 10 times more than what he paid at the time of investment.
Looking for a contractor to sell the land only makes it 10 times more valuable, but building villas on it and selling the villas multiplies its value even more. With luck, Mr. Investor meets a good contractor in a couple of days.
The play is on stage
The contractor drives a very nice brand new SUV and dresses really well. Mr. Contractor takes Mr. Investor to lunch, a dinner in the same day and even to breakfast the next day.
They visit some construction sites where Mr. Contractor waved to the workers and some guys came and shook his hands. They visited several construction sites. The contractor says the construction is his and his partner’s ongoing projects.
This goes on during the week which Mr. Investor stays in Turkey. Now the contractor and the investor become good friends in a very short time.
Note
I have to interrupt here and underline one thing. Please do not take this as offensive about the genuinely warm hospitality shown by Turkish people. It is a fact that Turks show great respect to their guests and show sincere hospitality. Please note that it is quite normal to take your guests or business partners to lunch or a dinner.
The point
What is being done by Mr. Contractor is not merely hospitality but part of the game, and the main target is to keep Mr. Investor from looking into other opportunities or other contractors. It is necessary that you meet different contractors. It is not wise to meet different contractors, all introduced by the same person. The contractors should be introduced by different sources.
NOTE: Attorney at law Berk Çektir is available to answer questions on the legal aspects of living in Turkey. Send enquiries to b.cektir@todayszaman.com The names of the readers are disclosed only upon written approval of the sender.
DISCLAIMER: The information provided here is intended to give basic legal information. You should get legal assistance from a licensed attorney at law while conducting legal transactions and not just rely on the information in this corner.
