In Enforcement and Bankruptcy Law, after the proceedings become final, the most critical stage for the creditor to collect their receivable is the conversion of attached assets into money. At this stage, the attached assets are sold through the enforcement office and turned into cash, and the proceeds are paid to the creditor.
The process of selling seized goods consists of the stages of sales demand, valuation, advertisement and auction. The legislature has detailed this process in a way that balances it to protect both the interests of the creditor and the rights of the debtor.
Sales Enquiry
Right to Request the Sale of Seized Property
Enforcement and Bankruptcy Law Under the scope of this, goods upon which attachment proceedings have been carried out are, as a rule, sold upon request. The sale may be requested by the creditor as well as by the debtor.
A sale request cannot be made subject to a condition. If the goods to be sold are outside the jurisdiction of the enforcement office, the sale may be carried out by means of a letter of request.
The person requesting the sale must pay the expenses in advance. Along with the sale request, the costs for appraisal, sale and safekeeping must be paid in advance.
Enforcement Officer's Power of Ex Officio Sale
The enforcement officer may sometimes carry out the sale of property on their own initiative. These situations are:
- If the value of the seized property is depreciating rapidly, or if it is difficult or costly to preserve,
- If the goods subject to sale are goods seized with a supplementary attachment,
- If a supplementary auction is to take place for the sale of the asset, the enforcement officer shall be empowered to carry out the sale of the asset of their own motion.
Durations
Our legal system has set maximum time limits for the enforcement proceedings that have reached the attachment stage, in order for the sale to be requested. Law No. 7343 following the amendment, the distinction between movable and immovable property was removed.
From the seizure Within a year If a sale is not requested, the attachment is lifted. If the first auction does not take place, to the creditor requesting the sale Add 1 year time is allowed.
These time limits stipulated in the law do not run in the presence of certain circumstances. These circumstances are:
- The existence of an instalment agreement between the creditor and the debtor,
- The filing of an interpleader action,
- These are the periods that apply until the temporary attachment and provisional attachment are converted into a definitive attachment.
Valuation, Objection and Validity Period
The enforcement director has an expert assess the estimated value in order to determine the specified price of the property. The drawn-up valuation is served on the interested parties. The interested parties may object to this within 7 days They can apply to the enforcement court by way of complaint.
Valuation of chattels 1 year, in immovable property 2 years is valid throughout. Revaluation cannot be requested until these periods have expired.
Property Sale and Advertisement
Advertising Method
Sales, on the electronics sales portal Notice is hereby given.
Under the law, from the date of the sales request within 3 months Even if the anticipated sale of the immovable property takes place after the projected period, it will still be a valid transaction. The reason for this is that the stipulated 3-month period is of a regulatory nature for the enforcement office.
From the date the sale will take place at least 1 month ago The sale is announced electronically, along with a nationwide distributed newspaper with a circulation of over 50,000. A copy of this announcement is also served upon the debtor, the creditor and the interested parties registered in the land registry.
Conditions of Tender
Following the advertisement, the auction specification is drawn up. The auction specification sets out the characteristics of the goods and the manner in which the sale will be conducted.
Those wishing to join the auction, of the determined price of the property en az %20’si oranında it is compulsory to provide collateral. If the claim of the creditor wishing to participate in the auction is at this rate, no additional collateral condition is required.
Electronic Auction Procedure
The auction is initiated by submitting bids electronically.
- Offer period: Bidding in the electronic environment, starting from the first tender date 20 days ago begin, and finish at the end of the day before the day on which the tender will be completed. The same system operates for the second bidding.
- Lower limit: Elektronik ortamda verilecek teklifler, haczedilen malın tahmin edilen kıymetinin %50’sinden az olamaz.
- Payment of the fee: From the electronic announcement of the auction results report, the winning buyer within 7 days He/She/It is obliged to pay the tender price in cash.
Sale of Movable and Immovable Property in Enforcement Proceedings
Previously, in the sale of movable property 2 months, in property sales about 3 months Timeframes were envisaged. Following Law No. 7343, these timeframes are now tied to the electronic sales calendar in practice.
- In the sale of goods: The advertisement, the auction specifications and the electronic bidding process run parallel to the immovable property sale.
- In the sale of immovable property: The advertisement duration is kept longer; at least 1 month in advance It must be advertised.
Court of Cassation Practice
The Court of Cassation has adopted the following principles regarding the sale period:
- Sales request period (1 year) It is of a forfeiture nature and if not requested in due time, the attachment shall be lifted.
- The actual duration of the sale which was previously envisaged as 2 months/3 months, is of a regulatory nature. Therefore, exceeding the time limit does not affect the validity of the sale.
- If the valuation report is not objected to within the legal period, the report shall be deemed final.
Frequently Asked Questions (FAQ)
What happens if a sales request is not made?
If a sale is not requested within 1 year from the attachment, the attachment is lifted.
Can the debtor request a sale?
Yes, the debtor as well as the creditor can request the sale.
Within what period can an appraisal be appealed?
A complaint may be lodged with the execution court within 7 days of the service of the report.
What is the lower limit for bids in an electronic tender?
Haczedilen malın kıymetinin %50’sinden az teklif verilemez.
Can you enter a tender without depositing a security/guarantee?
Hayır, kıymetin %20’si oranında teminat yatırmak zorunludur.
Within what timeframe must the tender amount be paid?
The winner of the tender must pay the price in cash within 7 days.
Result
Conversion of seized property into cash is one of the most important stages of enforcement proceedings. With the amendments made by Law No. 7343, the sales process has been moved to the electronic environment, the distinction between movable and immovable property has been removed, and the period for requesting sale has been set at 1 year.
The time limits determined for the sale of movable and immovable property, announcements, and electronic auction procedures are of great importance for both the creditor and the debtor. Serious losses of rights may be experienced if the valuation, tender procedures and collateral conditions are not carefully followed during this process.
During the enforcement proceedings To avoid losing rights and to manage the legal process correctly, getting professional support from an enforcement lawyer ensures both that the creditor secures their receivable and that the debtor's rights are protected.