Gov’t to secure risks in pre-paid house sales

ISTANBUL

New regulations are expected to help house buyers to eliminate risks.

Turkey is to introduce new measures emulating German insurance regulations against risks when buying property after only seeing a model version, Customs and Trade Minister Hayati Yazıcı has said. 

“We plan to introduce an insurance system for the consumer who buys property after only seeing a model version of it,” Yazıcı said at a press meeting. He added that an expert team from Germany had come to Turkey about the issue, noting that in order to guarantee the well-functioning of the “Building Completion System” all construction firms that conduct sales with prepayments should have to sign deals with insurance companies. If they do not sign such deals, they will not be allowed to conduct sales with just models. The cost of the insurance will be paid by the construction firm, Yazıcı said. But the sector players expect the costs to reflect also on buyers.