Real Estate Profiteering On Aegean Coast
Following the real estate scam that recently came to light in the Bodrum and Didim area of Turkey's Aegean coast, which has hurt both the pockets of foreigners and the country's reputation, buyers are being urged to exercise more caution and more official supervision is being called for.
The real estate swindle in Bodrum and Didim reached an amount close to 500 million pounds during the last two years. "The illegal real estate agents and such swindles not only result in the loss of confidence in the Turkish real estate sector but also a big amount of tax smuggling," Fikriye Kocagöz, Turkish trained real estate agents association member and Gümbet TURYAP representative said.
Speaking at a meeting of Aegean realtors, Kocagöz stated that while the number of the registered real estate agents was 1,300 in Didim and Bodrum, the number of real estate agents operating illegally was about 6,000. "At least 400 of the illegal real estate agents are foreigners. Police, officials, restaurant owners, waiter, hairdressers, political party representatives... Everyone is in the real estate business except for the old, the ill and the children. We hear that a Kenyan, settled in Bodrum, works from a home office and sell villas and plots of land. The lack of supervision is the main problem."
Kocagöz added, it was stated that the number of foreigners that applied to the police or prosecutor's office and reported to have been cheated exceeded 60. Most people cheated are designated to be from Ireland and the United Kingdom mainly, reported the Doğan news agency.
Loss of confidence in Turkish real estate sector:
Ranking third in the sales of second residence and summer homes in Europe after Spain and Greece, Turkey has lost a lot of prestige and dropped to seventh. In Didim and Bodrum, it was reported that about 13,000 villas and lots were sold to foreigners in the last year yet only 3,500 of them were officially registered and it was revealed that the deeds of the rest, supposed to be handed over with contracts, were not still delivered.
Contract cancellations begin:
Thirty-year-old Kubilay Coşkun Atmaca, a taxi driver two years ago but now in the construction business, and his 40-year-old wife Hande Bakkal caused a big scandal in Turkey's booming coastal real estate market. The couple were selling villas with fake deeds, and managed to flee. The loss of confidence in the sector resulted in the annulment of many contracts with many construction companies.
Nokta Building Construction and Contract Limited Company Administrative Committee Chairman Cengiz Altınbaşcan stated that in the last nine months they sold 350 villas they had built in Bodrum to the Irish, English and the Danes; yet 12 foreigners have canceled their contracts in the last 3 days. "We immediately gave back the money they invested. It is a shameful period for Turkish contractors. Everyone is trying to enter the sector. The coming days will be hard times for many land owners and real investors due to the illegal sales using fake deeds. Increasing the supervision is vitally important. We never perform a sale without a certified interpreter, deed and notarized contract," added Altınbaşcan.
Foreigners being urged to be alert:
To avoid being cheated, TURYAP Göltürkbükü Representative Okan Uçar recommended that foreigners not sign any contracts without the presence of a lawyer and a certified interpreter. "In a trade that costs 80-100 thousand pounds, a good and serious investigation will cost a maximum of 600 pounds. Foreigners who want to purchase estate should obtain information from the deed office and the municipality about the land or the house they want to purchase. They should also research the people who will sign the contract. In the next 3-5 years, the negative effects of the illegal contractors and the real estate agents will become more obvious. Organizations involved in the sector and the government should take serious action. These illegal contractors and real estate agents must be severely punished," said Uçar.
