This is the English version of a Turkish article. The original, with further detail and linked petition templates, is at İcradan Mal Almak: Elektronik Satış ve İhalenin Feshi.
Enforcement sales are now conducted electronically, through the national judiciary system's auction portal. For a buyer the critical step is examining the annotations on the land register and the valuation before bidding. An application to set the auction aside must be made to the enforcement court within seven days of the auction.
Buying at an enforcement auction is one way of acquiring property below market value. But it carries risks, and going in without knowing them is expensive.
This article covers the electronic process, challenging the valuation, the grounds for setting a sale aside, and what a buyer must check.
How Does the Electronic Sale Work?
Following the amendments made by Law no. 7343, sales are conducted electronically. They are advertised, and bids made, on the electronic auction portal connected to the national judiciary information system.
In outline:
- The notice of sale is published on the portal, with details of the property, the valuation report and the terms of sale.
- Those wishing to bid pay a deposit.
- Bids are made electronically within the period fixed.
- The property is knocked down to the highest bidder.
- The price is paid within the period allowed; if it is not, the sale is set aside and the deposit forfeited.
At the auction the bid must exceed fifty per cent of the assessed value plus the costs of realisation and distribution, and must cover any preferential claims.
There is also a newer possibility: a power of sale for the debtor (Article 111/a). If the debtor applies within seven days of service of the valuation, they may be given fifteen days to sell the asset themselves by agreement.
Challenging the Valuation
The most critical stage before the sale is the valuation, because it sets the floor for the price.
The valuation report is served on those concerned. It may be challenged by complaint to the enforcement court within seven days.
The right belongs to debtor and creditor alike. For a debtor an undervaluation means the property is sold cheaply; for a creditor an overvaluation means the sale may not happen at all.
If the challenge is not made in time, an undervaluation cannot be raised later in an application to set the auction aside. This is one of the commonest mistakes in practice.
Producing comparable sales and asking for a fresh inspection make the challenge effective.
Setting the Auction Aside
Under Article 134 an auction is set aside by complaint to the enforcement court.
Those who may apply: the creditor who requested the sale, the debtor, those recorded on the land register, and anyone who took part in the auction by bidding.
The period is seven days from the date of the auction. For those who were not notified that the auction had taken place, it runs from the date they learned of it, and lapses in any event one year after the auction.
The principal grounds:
- the notice of sale not having been properly served
- rigging of the auction
- breach of the terms of sale
- errors in the steps preparing for the auction
- the buyer having been misled about the essential qualities of the property
An important limit: an applicant must show that the ground relied on infringed their own rights. And where the application is refused, the applicant is ordered to pay a penalty of ten per cent of the auction price — a deterrent against unfounded applications.
| Stage | Period | Forum |
|---|---|---|
| Challenge to the valuation | 7 days from service | Enforcement court |
| Debtor's own sale | Applied for within 7 days; 15 days allowed | Enforcement office |
| Bidding | Within the period on the portal | Electronic auction portal |
| Payment of the price | Within the period allowed | Otherwise the deposit is forfeited |
| Setting the auction aside | 7 days from the auction; 1 year at most | Enforcement court |
| Refusal of that application | — | A penalty of 10% of the price |
An undervaluation not challenged within seven days cannot be raised later as a ground for setting the auction aside.
What a Buyer Must Check
- The annotations on the register. Which encumbrances are cleared by the sale and which pass with the property — a right of usufruct or a right of habitation annotated before the attachment may survive.
- Occupation. Whether the property is occupied by the debtor or a tenant, and on what basis. A tenancy predating the attachment can be enforceable against the buyer.
- Eviction. A buyer may ask the enforcement office to evict the occupiers; the request must be made within the period the Act allows.
- The physical condition. Auction properties are usually sold without internal inspection; the valuation report's description is the main source.
- Debts attaching to the property. Unpaid service charges and taxes, and how they are treated on the sale.
- The payment period. A buyer who cannot pay in time loses the deposit and may be liable for the difference on a resale.
The seven days for challenging the valuation are the only chance to argue about the price. Miss them and an undervaluation cannot be raised in an application to set the auction aside — and an unfounded application costs ten per cent of the auction price.
Frequently Asked Questions
How are enforcement sales conducted now?
Electronically, on the auction portal connected to the national judiciary system: the notice and valuation are published there, deposits are paid, and bids are made online.
How do I challenge the valuation?
By complaint to the enforcement court within seven days of service of the valuation report, producing comparable sales and asking for a fresh inspection.
How long do I have to set an auction aside?
Seven days from the auction, to the enforcement court. For those never notified, from when they learned of it, and in any event within one year.
What is the risk if my application fails?
A penalty of ten per cent of the auction price, ordered against the applicant. You must also show that the ground relied on infringed your own rights.
What should I check before bidding?
The annotations on the register and which survive the sale, whether the property is occupied and on what basis, the valuation report's description, any debts attaching to the property, and the period for paying the price.