Buying off-plan has advantages fort he purchaser, stick with a company that has a good track record of previous developments.

Buying off-plan is increasingly popular in Turkey, as else where. As the name suggests, this method of purchasing involves making a commitment to buy a property that has yet to be built. Selling off-plan is popular with developers as it reduces the financial risks of a Project. Third advantage is passed on to the buyer as a discounted price, often significantly below the market value of the completed property. In a country like Turkey where property prices are rising rapidly, the buyer also benefits from the growth of his capital investment during the building period. Over a typical building period this can amount to 15-20% or more.

The buyers base their decision to purchase off-plan on information provided by the developer or estate agents. This information should include a detailed description of the location; a site plan and details of communal facilities and a floor plan and building specifications. There should also be a Schedule for when the various stages of the construction will be completed.

The buyer than secures the property by paying a deposit, typically 10-15% of the total price, at the time of entering into a contractual relationship with the developer. As with any type of legal contract, it is wise to have an independent Turkish solicitor examine the document before signing. They will also check that the developer either owns the land or has authority to develop on the land, and that all the necessary planning permissions are in place.

Generally speaking, off-plan contracts set out the builder’s responsibilities and the Schedule of payments. Payment is usually in installments and may be due on dates specified in the contract. Alternatively, payments may be linked to the completion of particular stages of the building process. This gives the buyer security, allowing them to withhold payment if work has not been completed, or if the work is not to the standards specified in the contract it is a very good idea personally inspect the property before releasing the final payment, as getting a builder back once to last installment is paid can be difficult. As an added incentive to get the job done on time, some developers are now including a penalty clause, with payments made to the purchaser if the building is not completed on time. By law construction companies must give a five year guarantee on materials.

It is a good idea to opt for idea to opt a developer who has already completed several similar developments, and, if possible visit one of them for a look around. While you are there, you may even get to chance to talk to one of the owners. Although a good track record doesn’t provide a guarantee, it does give an indication that the developer is reputable and it also gives you an idea of the standard of their work. You can also ask your solicitor to check whether the developer is registered with the local chamber of commerce, although once again, this is not guarantee.

It is also important for your solicitor to check on the title of the land on which the development is taking place. Ideally, the land should be owned by the developer, as this removes the chance of a disagreement between the builder and the landowner affecting the progress of the development. If the land is owned by a third party, your solicitor will have to be satisfied that there is a clear and legally-binding agreement between the two parties, or that the developer has a power of attorney to sell the properties on behalf of the landowner.

If the property you are buying off-plan is part of the complex, you should ask for a copy of the complex rules and enquire about service charges.