Developer refuses to finish site - advice needed

Sunnyshores · #1 19-03-2008, 02:29 PM

I wondered if any of you with experience of Turkish property matters could advise me please:

We purchased an off plan appartment in Turkbuku, Bodrum. The developer is Yapi Endustrisi, who has completed several developments in the Bodrum area and in Istanbul.

Completion was due for July 2007, we paid stage payments, 20% being due on completion. So we have paid 80%.

We brought through a well known English property investment company who sold 12 of these appartments. Their sub-agent in Turkey sold another 10. We are all using the same Turkish lawyer. All 72 apartments on the site were sold.

We travelled out there last July for completion, but it was obvious they needed several more months to finish. Not so much the appartments, which just needed decoration, but the cobbled roads, the second pool, shops and landscaping.

None the less in August they had a flash opening ceremony with the fashion designer present who had designed the complex, models, Istanbul press. I know of at least 2 couples that did move into their apartments.

The lawyer visited and produced a snag list (as ours) and gave them 2 more months to finish (as in the contract). October, they asked for more time. Late completion Penalties came into force, but all was amicable. Then last week the lawyer was told Yapi have no intention of finishing the appartments as they are now working on a another project in Istanbul.

They say they will finish if they are paid E300,000 (the final 20% of everyones costs). However, they need E300,000 for this and another E300,000 for paperwork, licenses etc. (I dont understand this but the lawyer says it is right). They said they wont pay penalties.

So what to do ?

1. Pay E300k. They still dont have enough money to complete and who says they will use this money for our development, not Istanbul instead. At least we get ownership though, albeit in a building site.

2. Call their bluff and go to court. More money committed and it takes years. Meanwhile the site stands in ruins and we have cash tied up.

3. Shotguns at dawn? preferable!!

Any advice gratefully received.

Aegean · #2 19-03-2008, 07:55 PM

Yap en is a big organisation here in Turkey - Is it only their bodrum Office who is not helping? If yes excalate it up to their CEO.

If its Yap En as an organisation start to name and shame them on all the forums you can. turkishliving.com is a good one to start with. Also contact Turkish Daily News as I am sure they would run an article on this.

TH4S · #3 26-03-2008, 06:58 AM

Quote:

Sunnyshores 12-03-2008, 11:42 AM My appartment in Bodrum is now complete and assuming I get any rentals I presumably need to register myself for the equivalent of income tax and upon an eventual sale, CGT.

http://www.totallyproperty.com/turke...html#post37178

Or are you talking about another appartment in Bodrum,?

Sunnyshores · #4 26-03-2008, 10:36 AM

TH4s - how very observant of you.

I was told my appartment was complete last June and every month since. It is only now the developer says he isnt going to finish it.

So do you have any advice?

TH4S · #5 26-03-2008, 02:08 PM

Yes i am very observant, thank you ,

1. Speak to your lawyer,

2.Change your lawyer,

3. Contact the The developer's direct .. you can find there head office if you put there name in google,

I am sure everything will turn out just fine for you in the end.. and you can rent your Bodrum property,

Ps dont use a shotgun in Turkiye unless you own a license!

Sunnyshores · #6 26-03-2008, 04:50 PM

TH4S Thanks! I do now get the impression this is the Bodrum office pulling a fast one.