REFUND CASE DUE TO INVALID CONTRACT

Contracts for the sale of immovable property with a title deed, but outside of the registered title deed process, are invalid. This is stipulated in Article 706 of the Turkish Civil Code, Article 237 of the Turkish Code of Obligations, Article 26 of the Land Registry Law, and Article 60 of the Notary Law, which state that transactions concerning the sale of immovable property only gain legal validity if a formal sales contract is concluded.

If the property is sold through an invalid contract, the buyer may request a refund of the money paid based on unjust enrichment. On the other hand, if no notice of payment was given, default interest cannot be claimed.

When determining the price of the purchase to be refunded to the buyer as of the refund date

• Inflation,
• PPI-CPI increase rates,
• Increases in interest rates, gold, and exchange rates,
• Averages of economic indicators such as increases in civil servant salaries and worker wages are taken into account.

In summary, the amount to be refunded must be adjusted to reflect the purchasing power of the original payment date.

For more information on this matter and for any other questions, you can consult with our experienced real estate lawyers