Beware of falling into the trap of real estate fraud

Falling into the trap of real estate fraud, the subject may seem horrific and raise fears for fear of pumping a large amount of money into real estate investment without being careful and following the correct steps, tips and instructions, and drifting behind flimsy and vague advertisements that do not reveal to the investor all the details of the investment process, and then reap losses and fall into Legal problems, so it is necessary to identify the indicators of real estate fraud:

Real estate fraud indicators

• Dealing with a real estate company that has no headquarters on the ground

Recently, virtual real estate companies have appeared that practice real estate sales without having a legal identity, and this originally violates the conditions for establishing real estate companies in Turkey, so be sure to deal with a reliable company that carries out its activities in the Real estate market in Turkey legally.

• Unlicensed companies

Even in light of the Corona pandemic and the manifestations of the quarantine that paralyzed the investment movement in the country and the emergence of electronic marketing methods for real estate and the introduction of foreign investors to this method of buying and selling, even in electronic real estate marketing, the real estate company that you will deal with must be licensed by the Chamber of Commerce, and it has a real estate advisor and registered with the Tax Department in Turkey.

• Controversial real estate prices

When real estate prices do not match the specifications of the property offered for sale, the matter raises the question for fear of falling into the trap of real estate fraud. Here, you can verify the price by reviewing more than one real estate company and raising the issue with them regarding the compatibility of the price of the property with its specifications.

• Illegal offers

These are offers to sell real estate that contradict Turkish law, as if some brokers resort to offering real estate suitable for the conditions of obtaining Turkish citizenship, but it is less than the price legislated by Turkish law, which is 250 thousand US dollars, or to convince you that real estate can be resold immediately after ownership, which is incompatible with Turkish law, which requires that the property not be sold for three years.

• Exaggeration of profits

Some real estate is offered for investment with irrational and exaggerated profit returns to attract the largest number of buyers, and for the sake of knowledge, real estate returns in Turkey vary according to the region, its importance and the type of investment, ranging between 10% and 20% of the property value annually.

• Sale of properties under construction

Many investors resort to buying under-construction properties because the cost of construction in Turkey is somewhat low and therefore the profit margin will be high, so the possibility of falling into the real estate fraud trap is very possible, especially if the process is done without an official real estate broker, while honest real estate companies offer properties under construction with a guarantee of the Turkish government or a licensed construction company with a known entity to avoid fraud.

• Refusal to inspect the property on the ground by the owner of the advertisement.

Examining the property and verifying its specifications is your natural right, and depriving you of this right raises questions, of course.

• Allegation that the property owner is currently outside the country.

If he postponed the completion of the sale and transfer of ownership until the owner of the property returns or the presence of an official and legal agent on his behalf.

• Urgency in requesting a financial advance, whether it is small or large.

After we have explained to you the manifestations of real estate fraud, we will provide you with some tips to avoid falling into a trap.

Tips to avoid falling into the real estate fraud trap:

1. Warning against paying the full price of the property before completing the construction process and receiving the property with the seller at the notary public.
2. A field visit to the building site by the owner or the real estate consultant responsible for the purchase procedures.
3. Matching the procurement specifications after the completion of the project from construction.
4. Appointing an architect to follow up on the conformity of the property specifications that were agreed upon during the purchase process on the plan.
5. Insisting on the request to amend the defect discovered in the property immediately before receiving it, if any, and this is the right of the buyer, as it violates the terms of the agreement in terms of the property's assets.
6. Hiring a specialized lawyer to follow up on the legal procedures after presenting all papers and documents with the buyer, explaining the methods of purchasing and concluding contracts, and whether there are financial payments and how to pay them, or the full amount has been paid, so that the process of dealing with real estate fraud is carried out within Turkish law.
7. Not to sign any contract between you and the seller before inspecting and reviewing the property
8. You must verify the identity of the person you are dealing with officially.
9. You must make sure that the real estate agent is officially authorized to work.
10. To keep your personal information and not to give it to anyone (personal documents, bank information, real estate statements).
11. When you search for apartments for sale in Turkey, make sure that they are offered by reliable and well-known real estate companies.
12. Obtaining a real estate appraisal document: The Turkish government has imposed a requirement to obtain a real estate appraisal document at any purchase or sale, as the real estate appraisal is a detailed report on the status of the property to be sold and presents the price of the mentioned property in the real estate market, This report is issued by licensed companies specialized in valuing real estate in Turkey, and this permit is issued within about a week after the seller submits the application to the competent company, and this document is valid for three months from the date of its issuance, and this document is important for the investor because it guarantees the following information:

• Land registry information (title deed) of the real estate.
• Information about the property's address, location and internal specifications (construction, decoration, floor, design, views, and cladding).
• Real estate problems and negatives and all legal information about it.
• Information about the average price of similar properties in the market

13. Obtaining a tax number for the buyer from the relevant tax department:
14. Attached to the primary contract is the title deed of the real estate and is in the name of the owner who signed the contract or his official representative.
15. In addition to a copy of the project's building permit, two personal photos of the buyer, a translated and certified copy of the buyer's passport and a copy of the seller's identity card. Part of the property value is paid as a deposit to reserve the property.
16. Communicate with the Land Registry Office, to make sure that the property you are considering to buy is legal and that the title deed does not contain any fines or outstanding debts, which is a block on ownership.
17. It is necessary to know if the house to be purchased has a condition that prevents selling, such as a mortgage.
18. Obtaining a “housing” or habitability certificate if the house is habitable and built in accordance with building codes and earthquake regulations
19. Track down the sources of disturbance from the vicinity of the project before purchasing.

With this guide, you will be fully aware of the assets of real estate investment and you will protect yourself from falling into the trap of real estate fraud if you follow the advice given to help you in the correct investigation of the property so that your decision in choosing is sound and successful and fulfills your desire and is in your interest.

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