Real Estate: Serious Concerns for Buyers in Turkey
The news item here is from the 26 Aug 2016 article in one of the main Turkish papers Cumhuriyet. There is important news within it regarding those of foreign nationality who live, work and have investments here which we have translated for your benefit.
The investigation into the Fethullah Terror Organization has reached into the real estate businesses creating considerable worry for hundreds of thousands of people who have purchased property from them. (FETÖ) Many who have not yet deeds but pay installments faithfully in the hope of achieving their own home now have begun be very concerned.
The entire properties of Dumankaya Constructions’ proprietor and partners Halit Dumankaya, Necla Dumankaya, Uğur Dumankaya, Barış Değer Dumankaya, Ayla Dumankaya and Semih Serhat Dumankaya were confiscated by the government. Meanwhile many projects stilll under their construction in Istanbul Maltepe, Sancaktepe, Kartal, Halkalı and Bahçeşehir continue and include more than 3000 properties whose deeds were not given yet. Dumankaya are still actively selling projects such as Horizon-Kartal, Ritim-Maltepe, VizyonKartal, Miks-Atakent, MozaikSancaktepe, hi-Fit-Bahçeşehir, Flex Ofice-Bahçeşehir. They are also attracting customers to invest in plans for new projects at Adres Cadde, Kadıköy Fikirtepe and Gebze Çayırova.. According to Dumankaya's last statement they are continuing with the project constructions for which deeds as yet werent given to the customers.
5000 at Fi Yapı
Under the investigation of Akfa Holding the boss of Fi Fikret İnan was arrested. Fi Yapı are responsible for 5000 properties whose deeds have not yet been given.Therefore if the property of this company is confiscated what happens to the homes for which money has been paid for by customers but who have not yet been given any deeds. We put this query to real estate lawyer, these are his answers.
No deeds is a problem
Dumankaya's owners and partners have had their property confiscated. In this situation will the owners change? How will their constructions continue and how will this affect them?
When property has been confiscated or an administrator appointed this does not change the actual owner. The company may continue with its construction so there is no change in that respect either.
What will happen to those who have paid by installments for their property but not yet been given the deeds? In this case there a few possibilities, if an administrator is appointed;
a) Those with deeds have no problem at all.
b) Those who have recieved their property but not the deeds can open a case applying to recieve the deeds.
c) For those who have not recieved the deeds or the property the if administrator will see that the construction is finished the deeds should be given without a problem.
c)If the administrator puts the company into recievership, its is declared bankrupt the debts owed to the customer shall be brought to the bankrupcy table and they may be able to recieve a payment.
In the event of confiscation under a State of Emergency or a Govornmental Decree
a) Those with deeds and the property are unaffected.
b) Those who have no deeds but recieved the property under a Govornmental Decree unless there some special revision cannot apply for compensation.
c) For those who neither were given deeds or property nothing can be done.
* Should installments be paid from here on in?
Whilst there has been no administrator appointed or the company has not had its assets confiscated all customers have a duty to pay what they owe legally. When there is an administrator and the company is continuing the customers are deemed continue payments. However in the event of a state of emergency or a govornmental decree the customer may refusal payments stating compelling reasons.
Are sales agreements made at the Notary relating to the deeds of any value?
Sales agreements made at the notary are not of much value in the event of confiscation. These must be inspected when an administrator is appointed.
Is there a way of retrieving paid installments?
Unfortunately there is no legal way to retrieve the payments.
* If the company is overturned to an administrator how are on going projects affected?
The perspective of the Administrator is of importance. If they are likely to declare bankrupcy then then the projects will be halted. Also if there is a state of emergency or a govornmental decree as in the example of Emlak Konut the govornmental decree itself will be of importance.
If an Administrator is Appointed how does this affect the installment and payments?
If the administrator is appointed the payments need to continue to be made. If however a state of emergency or a govornmental decree exsists then oustanding circumstances may be plead and the payments stopped.
No compensation for loss of work.
After the military coup on the 15th July a state of emergency was declared and the restructuring under the consequent govornmental decrees directly effected many companies and their employees. Business Law specialist Muhammet ufuk Tekin and Employment Law specialist Emrullah Yaman, shared their findings on the consequent issues in Hurriyet Dunyasi newspaper.
- For those who have been working but had been made redundent from the closed businesses there is no change in their legal position under the govornmental decree. These workers still have rights under the Employment Law. Those who open a case for the return of their working positions but fail to achieve this may be entitled to redundancy compensation, payment in lieu of notice, and other working compensations.
- For those who are currently working in closed businesses and lost their work because of this the situation is different. They will not be able to sue for their employment. To recover their working rights they must levy an execution. Here the 670 rule of the Govornment Decree clause 5 is important
- Employees may apply to the the Ministry of Finance for their civil rights. The important point is that under the Govornmental Decree 5. Clause 4 the time period of 60 days must not elapse before application. On the 17 August 2016 the 670 rule of the Governmental Decree came into effect. In respect to this the employees must apply for their rights and compensation to the General Directorate for Foundations for charity employees and for all others to the Ministry of Finance by the 17th October 2016.
-If the Ministry of Finance does not compensate entirely or at all under the Labour Law they may open a case at the Labour Court.
-Credit Situation: Law 670 of the Govornmental Decree clause 5 states that all evidence of credit owed to employees must be shown by evidence of notes, documents or other records and submitted in application to the General Directorate for Foundations of the Ministry of Finance as is appropriate.