The Procedure of Sale by Auction and The Legal Aspect of New Regulations Brought by the 9th Judicial Package 21 November 2024
By new regulations brought by the 9th Judicial Package, a new legal frame for the sale of seized goods electronically is instructed according to Enforcement and Bankruptcy Law Article 111/b. Transactions about the sales of seized goods are made via a sale portal integrated with the National Judicial Network Information System (UYAP) by auction. However, because of the legal gaps of the law, an application about the sale transactions cannot be displayed. The amendments introduced by legislators to the law regarding electronic sales in the 8th and 9th Judicial Packages, as well as the newly established regulations, are considered an important step toward making foreclosure processes faster and ensuring that sales transactions are conducted in a safer and more transparent environment.
|
1. The Procedure and the Basis of Electronic Auction |
|
According to Article 111/b of the Enforcement and Bankruptcy Law, the sale process of seized goods begins by seven bidding days. Allowing participants to submit their bids electronically ensures the secure storage of these bids and guarantees that the personal information of the bidders is accessible only to public officials during this process. The necessity for the bids to increase by at least five thousandths of the estimated value of the property during the auction, serves for the generation of a competitive environment. In addition, for any conditions, the lowest auction price is determined as one thousand Turkish Liras. This regulation guarantees the seriousness of the bids submitted during the auction. |
|
The one who offered the highest price during the auction doesn't have a right to withdraw the offer or to take back the collateral. This article is regulated to ensure the trustability and continuity of the auction. On the other hand, if a new bid is submitted within the last ten minutes of the bidding period, the bidding period is extended by three minutes to ensure the continuity of competition. However, these extensions cannot extend one hour; by the decision of the Ministry of Justice, the periods can be removed or shortened. These decisions are announced to the public by the Ministry of Justice and provide legal clarity to electronic sales transactions. |
|
2. Security and Confidentiality Majeures in Electronic Platforms |
|
The protection of the identities of the bidders in the electronic sale platforms is important. Accordingly, bidders' information can only be viewed by authorized public officials and is not accessible to other users. This provision ensures both the protection of the bidder's privacy and the realization of sales transactions in a fair competitive environment. The regulator also takes new measures for the protection of the information infrastructure. The provisions of Law No. 5651 on the Regulation of Publications on the Internet and Combating Crimes Committed through These Publications are applied to websites that interfere with the execution sales portal, violate the rights of buyers, or attack the information system; when necessary, the Ministry of Justice can impose an access ban on such websites for three months. |
|
3. Security of the System and Legal Recourse Rights of Relevant Persons |
|
The access ban brought by the Ministry of Justice is announced in the portal, and against the ban, an objection can be made to the Criminal Court of Peace. This objection right allows fifteen days to the relevant persons after the announcement date. The certainty of the decision of the Criminal Court of Peace ensures that the process continues faster and more effectively. In the condition that the foreclosure sale portal needs maintenance and remediation, short-term maintenance of the system during the bidding process will not affect the validity of the auction/tender. This condition minimizes the impact of technical deficiencies on the electronic procurement process. |
|
4. The Place of Electronic Sale Procedure in Practice and the Shortcomings |
|
The procedure of sales in the electronic system is a reform aimed at making auctions faster, safer, and more efficient. However, instead of the expectation that the sale portal shall make the foreclosure transactions easier, in practice, several problems continue to exist. Firstly, the infrastructure of the system is sometimes insufficient, and it makes participating in auctions difficult. Also, there may be difficulties meeting intense demands, especially in large cities. In addition, the lack of deterrence legal sanction majeures against activities that threaten electronic systems is also criticized. Concerns about the bidding process may be affected during maintenance and improvement operations to ensure security in the electronic environment, which are also among the problems encountered in practice. |
|
In conclusion, the procedure of the sale in an electronic portal is an important novelty to ensure transparency and the increase in the efficiency of foreclosure transactions. However, in order for the new regulations to produce the expected results in practice, some shortcomings need to be addressed. The resolution for the technical and security problems in practice contributes to strengthening confidence in the judicial system. Therefore, the Ministry of Justice and the relevant authorities should make additional arrangements to address these shortcomings over time, which will contribute to a more efficient and smooth operation of the electronic sales portal. |
Other News
-
7.1.2026
Supreme Court Review of the Termination of an Employment Contract for Compelling Reasons from the Perspective of the Employee and Employer
Summary of the Judgment of 9th Civil Chamber of the Court of Cassation, Merits No. 2025/5850, Decision No. 2025/6491, dated 17.09.2025:
-
4.1.2026
Financial Thresholds Under IPO Requirements Updated For 2026
With the decision of the Capital Markets Board of Türkiye (the "CMB") dated 31 December 2025 and numbered 2025/68 (the "Decision"), the financial thresholds required to be met for initial public offering ("IPO") applications to be filed in 2026 by companies whose shares will be offered to the public for the first time have been tightened.
-
25.12.2025
The Duration of the Financial Restructuring Implementation Has Been Extended Again in 2025
The duration of the implementation of the financial restructuring implementation carried out within the scope of Provisional Article 32 of the Banking Law No. 5411 has once again been extended for a period of two years by Presidential Decision No. 10765, which was published in the Official Gazette dated 25 December 2025 and numbered 33118.
-
17.12.2025
Sustainability in KVKK Compliance: Beyond a One - Time Compliance Approach
With the acceleration of digitalization, personal data has become a strategic asset for institutions and companies; accordingly, the lawful processing, protection, and management of such data has gained critical importance both in safeguarding individual rights and ensuring corporate sustainability. Law No. 6698 on the Protection of Personal Data sets forth the fundamental principles and obligations regarding the processing of personal data and imposes comprehensive compliance responsibilities on data controllers. Compliance with the KVKK is no longer merely an obligation aimed at avoiding administrative fines; it has also become an indispensable element for protecting corporate reputation, establishing customer trust, and effectively managing legal risks.
-
14.12.2025
Is an Employee Entitled to Benefit from a Wage Increase Implemented During the Notice Period
Pursuant to Article 17 of the Turkish Labour Act No. 4857, the termination of an indefinite-term employment contract must be notified to the other party in advance. Accordingly, employment contracts shall be deemed terminated:
-
11.12.2025
Extension of the Exemption Period in Capital Loss and Over - Indebtedness Calculations
Article 376 of the Turkish Commercial Code No. 6102 ("TCC") regulates the determination of capital loss and insolvency situations in companies, and the procedures and principles to be followed in such cases are detailed in the "Communiqué on the Procedures and Principles Regarding the Application of Article 376 of the Turkish Commercial Code No. 6102" ("Communiqué on TCC Art. 376"),
-
7.12.2025
What is OFAC? Its Strategic Importance For Investors And Areas Of Application
As the world changes and with each passing day, one of the terms we encounter more frequently is "OFAC". In today's globalized world, investors seeking to make international investments come across OFAC or interact with it in one way or another. This is because the sanctions imposed by OFAC relate not only to U.S. citizens or U.S.-origin companies, but also to individuals who have direct or indirect economic or financial contact with the United States. So, what is this OFAC?
-
3.12.2025
Loans To Shareholders And Adat Invoice
In practice, it is quite common for companies to extend loans to their shareholders. In situations where the company becomes a creditor of its shareholders, adat interest must be calculated on the outstanding balance and an invoice must be issued. Accordingly, adat is a method used to calculate accrued interest based on the period during which company funds are utilized by shareholders or related parties, ensuring that any potential tax loss is compensated. These calculations are important for compliance with transfer pricing rules, accurate determination of the tax base, and the fulfillment of legal obligations such as Value Added Tax (“VAT”).
-
27.11.2025
Notification Process To The Central Securities Depository & Trade Repository Of Türkiye For Bearer Share Certificates And Legal Consequences
1. Issuance and Notification of Bearer Share Certificates Pursuant to Article 484 of the Turkish Commercial Code ("TCC"), joint stock companies have two types of share certificates: registered shares and bearer shares. While the transfer of registered shares is completed through delivery, certain conditions have been introduced under the Communiqué on the Notification and Registration of Bearer Share Certificates with the Central Securities Depository ("Communiqué") for the transfer of bearer shares. Within the scope of the Communiqué, the registration of bearer shares with the Central Securities Depository & Trade Reposıtory of Türkiye ("MKK"), the adoption of a board resolution, and the registration and announcement of this resolution before the relevant trade registry directorate and in the Turkish Trade Registry Gazette are required.
-
19.11.2025
The Letter Of Intent Procsess in Merger and Acquisition Transactions
Merger and acquisition ("M&A") transactions are multi-layered processes from both legal and commercial perspectives. Before the parties proceed to the contractual stage, they enter into a preparatory phase in order to articulate their transactional intentions, exchange commercial expectations, and establish the legal framework. This preparatory phase constitutes the initial stage in which the parties discuss the fundamental principles of the transaction structure, formulate their negotiation strategies, and assess the transactional risks.
-
13.11.2025
New Constitutional Court Decision On Violation Of The Right To A Reasoned Decision Published İn The Official Gazette
1. INTRODUCTION The reasoning constitutes the part of judicial decisions that demonstrates the cause and justification for resolving the matter in the manner indicated in the operative section, and it is an extension of adjudication. The fact that the reasoning is satisfactory and consistent is crucial for ensuring the right to be legally heard and the right to a fair trial. By setting forth the court's impartiality, a reasoned judgment enables the parties to understand and be satisfied with the material and legal grounds upon which they have won or lost the case, owing to reasoning that genuinely aligns with the contents of the file, as well as with logic and law.
-
6.11.2025
Decision Of The Constitutional Court Concercing Excluded Pernonnel
In the Constitutional Court's Judgment published in the Official Gazette dated 22 September 2025.
-
23.10.2025
The Obligation for the Principal and Subcontractor Employers to Jointly Participate in Mediation Has Been Annuled by the Constitutional Court
An important Constitutional Court decision has been published regarding the mediation process that an employee can apply to with a request for reinstatement after the termination of employment relations in the workplace. The Constitutional Court ruled that the provision in paragraph (15) of Article 3 of the Labor Courts Law No. 7036, which states, "In cases where there is a principal employer-subcontractor relationship, for a request for reinstatement to be submitted to a mediator, the employers must participate in the mediation talks together and their intentions must be compatible for an agreement to be reached," is unconstitutional. The decision was published in the Official Gazette dated October 17, 2025, and numbered 33050.
-
22.10.2025
The Constitutional Court Has Annulled The Provision Granting The President Authority To Restrict Foreign Exhange And Money Movements!
In its decision No. 2024/193 Merits 2025/136 Decision1 dated 17 June 2025 ("Decision"), published in the Official Gazette on 15 October 2025, the Constitutional Court ("Court") annulled Article 1 of Law No. 1567 on the Protection of the Value of the Turkish Currency ("Law"). The annulled provision had stated that: "The President is authorized to make decisions for the regulation and restriction of the export from or import into the country of currencies, securities, and bonds, and of the purchase and sale of foreign exchange, cash, securities, bonds, precious metals, precious stones, and any goods and valuables made of or containing them; as well as of commercial papers and all means and instruments used for payment, and to take decisions aimed at protecting the value of the Turkish currency."
-
20.10.2025
Seizure of Property Belonging to Persons Other than the Debtor and Protection of Legal Rights
In enforcement proceedings, the seizure of property that does not belong to the debtor but rather to third parties is a situation frequently encountered in practice that leads to significant aggrievements. Uncertainties arising from property regimes complicate ownership relations, making it difficult to accurately determine to whom the property belongs during enforcement measures. Within this framework, when seizure is imposed on property belonging to the debtor's spouse or another third party, the most important legal remedy is the ownership claim (assertion).
