The Regulation on the Procedures and Principles Regarding Sales to be Conducted in Electronic Environment in accordance with the Execution and Bankruptcy Law has been published in the Official Gazette with the number 31772 and dated March 8, 2022 by the Ministry of Justice and has entered into force.
The regulation determines the procedures and principles for the execution of sales transactions through the Electronic Sales Portal compatible with the National Judiciary Network Information System, which are within the scope of the Execution and Bankruptcy Law through open auction.
The regulation will be applied for auctions announced from the date determined in the provinces or districts where the announcement of the transition to the electronic sales application from the official website of the Ministry of Justice is made, and for auctions announced throughout the country, within one year at the latest from the date it enters into force.
As of January 2, 2023, auctions prepared in all execution offices and sales offices throughout the country are completely carried out in electronic environment.
In electronic sales transactions, it is mandatory to use the printed paper of the auction specifications, electronic auction announcement, newspaper announcement, and auction result report for movable and immovable properties.
Sales Transactions
The electronic sales process is carried out through open auction. The day and time interval for the first and second auctions must be announced at least fifteen days before the auction start date.
The form of the announcement and whether it will be made in the newspaper will be determined by the execution office by determining the one that is most suitable for the interests of the parties concerned.
If there is a difference between the texts announced in the newspaper and the Electronic Sales Portal, the text announced in the Electronic Sales Portal is taken as basis.
In order to participate in the auction, it is necessary to deposit cash collateral in the amount of ten percent of the appraised value of the pledged property into the bank account of the execution office selling the property through the Electronic Sales Portal until 23.30 on the day before the end of the auction period.
A letter of guarantee can also be given instead of cash collateral. However, if there is a letter of guarantee, those who will participate in the auction or the relevant bank must deliver a definite and unlimited bank letter of guarantee in the amount of ten percent of the appraised value of the pledged property to the execution office selling the property by the end of business hours on the last business day before the end of the auction period, either by hand or electronically, if the system infrastructure is established.
It is possible to participate in the auction through a representative. Those who will participate in the auction through a representative must apply to the enforcement office where the sale is made together with their representatives no later than the end of the business day before the end of the auction period. However, if a power of attorney properly issued is available, the representative's application to the enforcement office is sufficient. Those who will participate in the auction in this way must submit the guarantee letter to the enforcement office or deposit the guarantee amount into the account of the enforcement office.
Return of the Guarantee
The bidder who offers the highest bid at the public auction cannot withdraw his bid and cannot retrieve his guarantee unless he detects that a higher bid has been made than his bid during the auction period. However, if the bidder wishes to retrieve his cash guarantee before the auction is finalized, the guarantee amount is refunded to the bidder through the system.
After the public auction is finalized, cash guarantees paid by bidders other than the bidder who offered the highest bid are refunded through UYAP after the auction result report is published on the Electronic Sales Portal. However, if a guarantee letter is given, the bidder must apply to the enforcement office to retrieve it.
Bidding
The public auction is held on the day and time specified in the announcement, and the bidding period is 7 days in the public auction held on the Electronic Sales Portal.
Conclusion of the Public Auction
The public auction is opened at 50% of the appraised value of the seized property. The property is sold to the highest bidder, and ownership of the property is transferred to the auction winner.
The enforcement director prepares an auction result report on the first business day after the auction is over and announces this report on the Electronic Sales Portal on the same day. The report clearly shows the date and time of the auction, the highest bidder who meets the conditions is awarded the property, the auction price must be paid to the enforcement office within seven days of the announcement of the report, and the reasons for failure to meet the conditions if the auction is unsuccessful.
The auction winner is obliged to deposit the sale price to the enforcement office within seven days from the announcement of the auction result report. The auction winner cannot avoid paying the sale price by claiming that the auction has been canceled. However, the sold property is not delivered and the registration process is not carried out in the name of the buyer in the official register until the auction is finalized. The delivery of the property or registration in the name of the buyer is completed after the payment of stamp duty and value-added tax when the auction is finalized.