Erdal Nuhbasa – Law and Consulting Firm – Legal Services
ERDAL NUHBASA
LAW AND CONSULTING FIRM
Erdal Nuhbasa – Law and Consulting Firm – Legal Services
ERDAL NUHBASA
LAW AND CONSULTING FIRM
With the announcement of the Ministry of Justice, as of January 02, 2023, the tenders prepared in the execution offices and sales offices of the provincial and district courthouses of all provinces and districts of the country have started to be held completely electronically, and the procedures and rules to be used in sales were published in the Official Gazette dated May 28, 2022 and numbered 31849. Within the scope of both the Execution and Bankruptcy Law and the new regulations issued, how this sale takes place, the rules you need to know and the issues you need to pay attention to will be included in this text.
First of all, in order for the sale to take place, the movable, vehicle or immovable must be seized due to a finalized debt. Afterwards, it is obligatory to request a sale within one year from the date of seizure. During this request, sales expenses and appraisal costs are paid in advance by the person who wants to sell. For vehicles, preservation costs are also paid in advance. If the sale is requested but the seized property cannot be sold within one year, then the period of request for sale is extended for a year after the end of one year as of the date of seizure.
After the appraisal is made, this value of the seized goods is notified to the parties. (For example, let’s consider a 100m2 house, if the average price is determined by the expert as $1 Million, this will be its estimated price.) Before proceeding to electronic sale, the law gives the debtor a final right at this stage. Within 7 days from the notification, if the debtor wishes, he/she can request authorization to sell the property himself/herself and sell the property within 15 days (except for the proceedings through foreclosure of the pledge). The sale value shall not be less than 90% of the estimated price or the sum of the other creditors having priority to the receivables of the creditor requesting the sale, whichever is higher.
In other words, the state has set this rule in order to protect these people in case the creditor is also a debtor, in order to determine the minimum sale value in a way to protect their receivables. The enforcement office evaluates this rule and sends the file to the enforcement court to decide on the approval of the sale and the transfer and delivery of the goods.
After the sale of the seized goods is requested as described above and its approximate value is determined, the enforcement offices put the seized goods on sale through the UYAP (national judiciary informatics system) system, which is briefly called electronic sale. The type of commodity, qualifications, amount of collateral to be deposited, VAT rate, electronic sale start and end dates and times, and the estimated value of the goods to be sold are included in the announcement. Basically there are 5 steps that you must follow to buy seized goods.
Go to esatis.uyap.gov.tr and log in with your e-Government password.
After searching by categories, select the vehicle, movable or immovable property you want to tender.
Deposit 10 percent of the total price as collateral.
Submit the highest bid until the auction end date and time written in the system.
After deducting deposit, pay the value of the goods and the taxes.
After performing these steps, a report is prepared by the Execution Manager and if you are the last highest bidder in the tender, you will be asked to deposit the remaining money to the enforcement office within 7 days by deducting the collateral from the price you won. Also, you must pay VAT between 1% and 18% of the sale price. Stamp Duty (5.69 per thousand of the sale price), and for immovables only, plus the fees to be paid at the Land Registry Office (2% of the sale price as Land Registry Purchase Fee and Revolving Fund Fee).
Deliver of the immovable to you or registration of the property in your name will be possible after the tender is legally finalized. You can pay the stamp duty and value added tax only after the tender is finalized.
If you do not have the highest bid in a tender you have entered, after your request your deposit will be returned one business day after the bidding period is completed without any deduction.
There are some rules during electronic sales which you have to follow. Rules that you should pay attention to or know;
Depositing money through UYAP system is only possible through Vakıfbank. However, there are also alternative ways.
The finalization of the tender will be when;
a) No complaint has been filed within seven days from the date of the tender,
b) No action for annulment of the tender has been filed or
c) A lawsuit for the annulment of the tender has been filed within seven days from the date of the tender, but the annulment request has been rejected and this decision has become final.
Who may request the cancellation of the tender;
a) The creditor requesting the sale,
b) The debtor is the related parties registered in the official registry of the seized item,
c) Limited real right holders and
d) Those who participate in the tender by bidding
These people above must apply for the cancellation within 7 days from the date of the tender. After the request, the execution court holds a hearing and makes a decision within 20 days from the date of the request. The appeal against this decision is possible. The application period for appeal is 10 days from the date of the announcement or notification. The Court of Appeal must also render a decision within 15 days.
As a result, if a lawsuit for the termination of the auction is filed and all means of objection are used, a period of 3-4 months is foreseen for the finalization of the decision. However, if the objection remedies are not used, the decision will become final after 7 days.
If you have purchased an immovable property after a tender and this immovable property is occupied by others before the date of foreclosure, not based on a leasing contract, an order will be sent by the enforcement office for eviction within fifteen days. If it is not evicted within this period, it will be forcibly evicted and delivered to you. However, if there is a lease agreement, tenant must be dispossessed according to general provisions.
For more questions you can contact me.
