It was good to lie down on the sand before heading back home to start writing the article for Monday. To me the best time of the year for a holiday is either May or September. It is still calm and quiet, and there are fewer people around in May. The water temperature is excellent in September and again it is less crowded. I once used to go to Kadir's Tree Houses for my holidays, but the place is no longer "undiscovered." Crowds can turn my precious holiday into a nightmare. So I discovered a new undiscovered holiday place for myself. Wooden cottages built by the sea, no tourist attractions around, no electricity -- just nature. I enjoy it for two days every time I go there. Some of my readers may find this article series boring. On the other hand, for some of my readers this mock case study will save millions of euros. No exaggeration. Let's see: A medium size project is worth at 500,000 euros to 1 million euros, and at least a couple of (lucky) investors should have been reading this mock case study. If an investor gets some points through reading this article series they may save their investment.
OK so let's keep on working. Last week I gave the basics of a "contract for construction in return for a building" and also gave a definition of this special type of contract with some remarks. This week I am providing a mock case study. I believe that this will help show you the consequences of a contract made by a careless land owner. I have to note that the facts of this mock case are based on a real case.
Further stakes
Mr. False Contractor keeps operating. He places a phone call to Mr. Investor and tells him that there is one more thing Mr. False Contractor either forgot to mention or just finalized: There are potential buyers waiting in the line to buy the villas.
Mr. False Contractor claims that he can sell the villas at a very good price (this price is generally around 20 percent to 25 percent more than the average market price -- Mr. False Contractor is a professional and he would never let Mr. Investor get suspicious).
At a later stage Mr. False Contractor also undertakes to sell the villas at this price at the end of the construction. In this case, of course, Mr. False Contractor would be entitled to get an additional fee of 3 percent. Who cares? This is fantastic news and this 3 percent is more or less what Mr. Investor would pay for someone else to sell the villas at this price. This Mr. False Contractor, he should be a marketing guru.
Next step of the game
Mr. False Contractor proposes to sign a contract where he undertakes building the houses and where Mr. Investor provides his land for construction.
Mr. False Contractor does everything to make Mr. Investor to sign the agreement without getting any professional assistance. Or even worse, Mr. False Contractor arranges a professional to assist Mr. Investor. What a nice man!
We will keep up the study tomorrow, until then goodbye.
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.
