TERMINATION OF THE TENDER

The buyer to whom the property is auctioned by the enforcement office acquires ownership of that property. The enforcement office determines how the property will be maintained and managed until the auction is finalized.  Upon the request of the auction buyer, the enforcement office orders the person residing in the property under a lease agreement to deposit the rent, or in other cases, the monthly usage fee determined by an expert, to the enforcement office. If the person concerned fails to deposit the rent or the determined amount despite the warning, the provisions of Article 356 shall be applied by analogy. The amount deposited in this way shall be paid to the rightful owner according to the outcome of the auction.

 The annulment of the auction may be requested only by the creditor requesting the sale, the debtor, those registered in the official register of the seized property, holders of limited real rights, and those who participated in the auction by bidding, provided they indicate an address within the country, through a complaint to the enforcement court within seven days from the date of the auction, including the reasons specified in Article 281 of the Turkish Code of Obligations No. 6098 dated 11/1/2011. If the annulment of the auction is requested by persons other than those specified, the court will definitively reject the request based on the file. It is assumed that the interested parties became aware of any irregularities in the transactions that took place up to the time of the auction at the latest on the day of the auction.

 Requests for annulment of an auction conducted by persons other than creditors, debtors, officially registered interested parties, and holders of limited real rights are subject to a proportional fee based on the auction price. Half of this fee must be paid in advance when making the request. If the request is accepted, this fee is not charged to anyone else and is refunded upon request. If the request is rejected, the fee is not refunded, and the remaining portion of the fee is collected from the person requesting the annulment of the auction.

 In the event of a request for annulment of an auction by persons other than creditors, debtors, officially registered interested parties, and holders of limited real rights, a security deposit equal to five percent of the auction price must be provided to cover potential losses for the interested parties. If a claim for damages is not filed within one month of the finalization of the decision rejecting the request, the court shall notify the collection office of the fine imposed in accordance with the provisions of the Law No. 6183 on the Collection Procedure of Public Receivables dated July 21, 1953. If the collection office fails to collect the fine from the security deposit within three months of the notification, the security deposit shall be returned to the interested party upon request.  If a request for annulment of the auction is made due to the failure to deposit the security deposit or the fee required pursuant to the third paragraph, or due to insufficient deposit, the court shall, in a memorandum to be served, inform the bidder that the security deposit or fee must be completed within a strict two-week period; otherwise, the request for annulment of the auction will be definitively rejected based on the file. If the security deposit or fee is not completed within the specified period, the court shall immediately reject the request for annulment of the auction.

 Upon a request for annulment of the auction, the enforcement court shall hold a hearing within twenty days of the date of the request and shall render the necessary decision even if the parties do not appear. However, in cases where the request for annulment of the auction should be dismissed on procedural grounds, a decision may be rendered without a hearing. The enforcement court;

1. The sale is requested by persons other than the creditor, debtor, those registered in the official registry of the seized property, holders of limited real rights, and those participating in the auction by bidding
2. With regard to persons other than the creditor requesting the sale, the debtor, those registered in the official registry of the seized property, and the holders of limited real rights, due to waiver,
3. Getting to the heart of the matter,

If the court decides to reject the request, it shall sentence the party requesting the annulment of the tender to a fine of up to ten percent of the tender price.

In the collection of receivables arising from housing finance as defined in the first paragraph of Article 38/A of the Capital Market Law No. 2499, and receivables secured by collateral belonging to the Housing Development Administration, the rate specified in the fifth paragraph shall be applied as twenty percent.[54]

 If a complaint regarding the annulment of the auction is filed with an enforcement court or court lacking jurisdiction or authority, the enforcement court or court shall examine the documents and issue a decision of lack of jurisdiction or authority within ten days at the latest from the date of application, and shall, by covering the costs from the expense advance, send the file ex officio to the competent or authorized enforcement court. These decisions are final.[55]

 Those who purchase the immovable property are obliged to pay the sale price immediately or within the period specified in Article 130, even if the annulment of the auction is requested, provided that they did not participate in the auction by offsetting their claim against the purchase price. The enforcement officer shall have the paid auction price held in banks for interest until the decision regarding the annulment of the auction becomes final. Upon the final decision on the acceptance or rejection of the complaint regarding the annulment of the auction, the auction price, along with the accrued interest, shall be paid to the rightful owners.

The auction price will not be paid to the creditors until the auction is finalized and the auctioned goods are delivered to the buyer or made ready for delivery. If the auctioned goods cannot be delivered or made ready for delivery, the auction will be canceled by the enforcement officer and the auction price will be paid to the buyer.

If the sales notice was not served, or if an error in the essential characteristics of the sold property or irregularities in the auction is discovered later, the complaint period begins from the date of notification. However, this period cannot exceed one year from the date the decision regarding the auction was announced on the electronic sales portal.[56]

The party requesting the annulment of the tender through a complaint must prove that their interests have been harmed as a result of the alleged corruption.

Notification to the land registry office for registration will be made after the expiration of the specified period for filing a complaint, or, if a complaint has been filed, after the decision finalizing the complaint has become final.

Notification to the land registry and forced eviction for registration purposes:

After the immovable property is auctioned to the buyer and the price is received, a memorandum is written to the land registry in order to register it in the name of the buyer, in compliance with the period written in article (134).

 If the immovable property is occupied by the debtor or by others without a formal document proving an act performed prior to the seizure, an eviction order is served on the debtor or the occupier within fifteen days. If the property is not vacated within this period, the occupier is forcibly removed and the property is delivered to the buyer. (Added sentence: 24/11/2021-7343/28 art.) The person who purchases the immovable property from the auction buyer after its registration in the buyer's name, but before the eviction takes place, also has the right to request eviction pursuant to this paragraph.

The Importance of the Lawyer

🔑 5 Essential Contributions of an Expert Lawyer in Contract Cancellation

 1. Eliminating the Risk of a 10% Fine

According to Article 134 of the Enforcement and Bankruptcy Law, when a request for annulment of an auction is rejected, the court must not only dismiss the case but also impose an administrative fine of 10% of the auction price on the plaintiff .

The Role of the Lawyer: Based on Supreme Court precedents, the lawyer analyzes in advance whether the "element of damage" has occurred and whether your claim constitutes a legally valid reason for termination. By preventing the filing of baseless or expired lawsuits, the lawyer protects you from the risk of penalties amounting to hundreds of thousands of liras.

2. Detecting Procedural Errors and "Notification Defects" in Enforcement Files

80% of lawsuits challenging the cancellation of tenders are won due to irregularities in the administrative steps prior to the sale.

The lawyer's role: They meticulously examine and scrutinize the sales phase of the enforcement file (valuation, sales notice, notification documents).

• Whether the sales notice was improperly served to the debtor, creditor, or mortgage holder (violation of the Notification Law rules),

• Check whether the information in the advertisement (area, zoning status, permit registration, etc.) is incomplete or misleading

• It identifies obvious errors in determining the estimated value.

3. Management of Strict Statutory Limitations

The time limit for filing a lawsuit to annul a tender is, as a rule, 7 DAYS from the date of the tender.

The Role of the Lawyer: If the sales notice was not properly served or if irregularities in the auction are discovered later, the 7-day period begins from the "date of learning." The lawyer prevents the deadline from being missed and the right from being forfeited by proving the date of learning with legal evidence.

4. Proving Bid Rigging and Losing Customers

It is difficult to detect and prove instances of bid rigging, such as preventing participation during the bidding process, offering money to bidders to withdraw, or threatening them

The lawyer's role: By presenting camera recordings, witness statements, enforcement records, and police reports to the court, the lawyer ensures the cancellation of the unfair tender.

5. To Protect the Rights of the Winning Buyer or Creditor

The lawsuit to annul the auction is a critical stage not only for the debtor whose property has been sold, but also for the honest buyer (auctioneer) or creditor who participated in the auction and acquired the property

The lawyer's role: By defending the rights of the winning bidder, the lawyer swiftly dismisses lawsuits filed by the debtor that are improper and merely intended to prolong the process (maliciously); and expedites the registration and delivery of the auctioned property.