Regulation on the Procedure of Sales to be Made in the Electronic Platforms in Turkey Came Into Force

Regulation on the Procedure of Sales to be Made in the Electronic Platform published on the Official Gazette dated 08.03.2022 and numbered 31772 and came into force.

Scope of the Regulation

Information to be included in the auction specifications of the movable:

• File number,
• Name and surname of the creditor and debtor,
• Day and time interval of the first and second auctions,
• Type of movable,
• Its approximate value,
• Those who will participate in the auction are required to deposit ten percent of the appraised value of the movable property as a cash guarantee or a bank letter of guarantee,
• Whether collateral is sought from the creditor or the relevant person who has a right on the movables put up for auction,
• Which expenses will belong to the buyer and other necessary information

The auction announcement of the movable is made on the Electronic Sales Portal. This announcement includes the following:

• The type, nature, location of the thing to be sold, important features, detailed images, appraisal value, the day and time interval of the first and second auctions, and other information in the auction specification.

To participate in the auction:

• Cash collateral amounting to 10% of the appraised value of the mortgage must be deposited via the Electronic Sales Portal to the bank account of the enforcement office that made the sale, at the latest, until 23.30 the day before the end of the auction period.
• If a letter of guarantee is shown as a guarantee, the bidder or the relevant bank, by the end of the business day before the end of the auction period, the final and indefinite bank letter of guarantee in the amount of 10% of the appraised value of the foreclosure subject to the sale, is delivered to the enforcement office by hand or If the infrastructure is created, it must be deposited electronically.
• Persons who will participate in the auction through a representative, together with their representatives, must apply to the enforcement office that made the sale, at the latest, until the end of the working hours on the business day before the end of the auction period, however, it will be sufficient to apply to the enforcement office of the representative holding the power of attorney or document given duly and within the authority of notaries, official offices or competent authorities. In this way, it is obligatory for those who will participate in the tender to deposit the amount of the guarantee into the account of the enforcement office at the time of application or to submit the letter of guarantee to the enforcement office.
• Joint buyers who want to purchase the auctioned property with certain shares in share sales should apply to the enforcement office, which made the sale, at the latest before the end of the auction period, and notify the shareholder or representative who will bid on their behalf in the auction. However, it will be sufficient to apply to the enforcement office of the representative holding the power of attorney or document given duly and within the authority of notaries, official offices or competent authorities. In this way, it is obligatory for those who will participate in the tender to deposit the amount of the guarantee into the account of the enforcement office at the time of application or to submit the letter of guarantee to the enforcement office.
• If the creditor who wants to participate in the auction by requesting a sale, and the shareholder who wants to participate in the auction in the elimination of the partnership by sale, apply to the enforcement office that made the sale until the end of the business day before the end of the auction period, they will not receive a guarantee equal to the amount that the receivable or the partnership share meets the guarantee, In the event that the receivable or the share of the partnership is not sufficient to guarantee, the missing part must be deposited in the account of the enforcement office at the time of application or the letter of guarantee must be delivered to the enforcement office.

Tendering the Goods:

• If the conditions are met, the goods are awarded to the highest bidder.
• The bids to be submitted on the Electronic Sales Portal must exceed fifty percent of the appraised value of the seized property and the sum of the receivables secured by that property, whichever is more than the pre-emptive receivables of the seller, plus this amount plus the costs of converting and sharing.
• In the event that the bidder makes the highest bid and does not pay the tender price in due time, the guarantee received will not be returned and will be paid to the beneficiaries as a deductible from the sales costs.
• In cases where the tender cannot be made because the minimum tender price is not offered, or the tender is canceled due to the highest bidder not depositing the tender price, the second auction will be held again in accordance with the conditions of the first auction.
• The buyer of the tender must pay the entire sale price to the account of the enforcement office, within seven days at the latest, from the date of the announcement of the minutes regarding the execution of the tender on the Electronic Sales Portal.
• Those participating in the sale will be deemed to have seen the specification with all its annexes and accepted its content.
• After the tender is finalized, the registration and delivery of the goods will be carried out.

Information to be included in the auction specifications of the real estate:

• File number,
• Name and surname of the creditor and debtor,
• Day and time interval of the first and second auctions,
• The title deed registration and nature of the immovable,
• If any, the immovable is sold together with the easement rights, mortgages, mortgaged debt securities, income bonds and the personal debts of the debtor provided by this real estate will be transferred to the buyer,
• Other information in the land registry and obligations on the immovable,
• Its approximate value,
• Those who will participate in the auction must deposit ten percent of the appraised value of the immovable as a cash guarantee or a bank letter of guarantee,
• Whether a guarantee will be sought from the creditor or the relevant person who has a right on the immovable that has been put up for auction,
• The latest zoning status of the real estate,
• Which expenses will belong to the buyer and other necessary information is written.

The auction announcement of the real estate is made on the Electronic Sales Portal. This advertisement includes the following:

• Type, nature, location of the thing to be sold, important features, detailed images, appraisal value, day and time interval of the first and second auction, and other information in the auction specification.

The conditions required to participate in the immovable auction are the same as those stipulated for movables, and specific to immovables:

• If any, the mortgagee creditors and other interested parties should notify the enforcement office of their rights on the immovable, in particular their claims regarding interest and expenses, with the proof of the documents, otherwise, unless their rights are fixed with the land registry, they will be excluded from the sharing of the sale price and these issues will not be shared with the easement right holders. is also set to be valid.

The executive manager will issue the auction result report on the first business day after the auction ends and announce it on the Electronic Sales Portal within the same day. This record includes the following:

• Name and surname of the tender buyer.
• What day and time the tender was completed.
• Tender price.
• The content of the tendered goods.
• If the conditions are met, the goods are tendered to the highest bidder.
• The tender price must be paid to the account of the enforcement office within seven days from the announcement of the report.
• For what reason the tender cannot be made if the conditions are not met.

Preparation and announcement processes

• The sale is made by auction. The day and time interval in which the auctions will take place is announced at least fifteen days before the start date of the auction. The date of the second auction is determined so that there is a maximum of 1 month between the end of the first auction. Announcements and specifications to be made on the Electronic Sales Portal are kept open until the end of the auction.
• The form of the announcement and whether it will be made in the newspaper is determined by the enforcement office, taking into account the interests of the relevant parties. It is sufficient to write the internet address to be accessed on the Electronic Sales Portal, which contains information about the type, nature, important characteristics, appraisal value and location of the thing to be sold, the day and time interval of the first and second auction, and the information about the auction, rather than adding the sales specification to the advertisements to be made in the newspaper.
• Except for the mandatory announcements by the enforcement office, the parties may announce the text of the announcement on the Electronic Sales Portal, at their own expense, by any means they wish. However, these announcements do not affect the official treatment.
• In case of differences between the texts announced in the Newspaper and the Electronic Sales Portal, the text announced in the Electronic Sales Portal shall be taken as basis. However, errors in the text announced in the newspaper or on the Electronic Sales Portal are only corrected in the Electronic Sales Portal without changing the date of the auction. This correction notice is not notified to the relevant parties separately.

Bidding time and procedure

• Bidding period in the auction held on the Electronic Sales Portal is seven days.
• In order to bid electronically, the contract prepared by the Ministry must be accepted by the participants.
• The auction is held within the day and time interval specified in the advertisement and by bidding. The personal information of the bidders cannot be seen and displayed in the information system by anyone except the public officials operating the information system during the bidding period.
• The difference between the offers cannot be less than one-thousandth of the approximate value of the goods put up for sale and probably less than one hundred TL.
• The highest bidder in the auction cannot withdraw its bid and receive its guarantee unless a higher bid is made within the auction period.
• If a new bid is submitted within the last ten minutes of the auction period, the auction will be extended by ten minutes for once.
• During the bidding period, necessary actions can be taken to maintain or improve the information system. These actions do not affect the validity of the tender.

Tender Making:

• Increases are started over fifty percent of the appraised value of the seized property. If the conditions are met, the goods are awarded to the highest bidder. It is obligatory that the auction price exceeds fifty percent of the appraised value of the confiscated property and the sum of the receivables secured by that property, which is the priority to the receivables of the seller, whichever is more, and also the conversion and distribution costs in addition to this amount.
• In case the conditions are met on the day and time the auction ends, the property will be awarded to the highest bidder and the property will pass to the bidder. If the bidder makes the highest bid and fails to pay the tender price within the time limit, the guarantee received will not be refunded. First of all, it is deducted from the selling costs. If the amount of the guarantee remains, it is paid to the beneficiaries as a deduction from their receivables.
• As a result of the first auction, the auction announcement is removed from the Electronic Sales Portal as of the date of payment of the tender price. If the tender price is not paid as a result of the first auction, the auction announcement is kept open until the end of the second auction.
• The sales request cannot be withdrawn after the bidding period has started. If the debt is fully paid by the end of the bidding period, the sale is stopped. In the auction, if the buyer does not come out or the conditions written in this article are not fulfilled, the creditor may request that the sales day be given within the sales request period remaining from the previous sales request. The sales request period stops with the sales request and this period starts to run from the date of the report stating that the tender could not be made or cancelled.

Prolongation of the tender due to the failure to submit a bid due to technical reasons:

• If the executive manager determines from the records of the Electronic Sales Portal that no bids can be submitted within the last ten minutes of the auction on the first business day after the auction ends, he decides to extend the auction period by one day.
• In this decision, which will be announced immediately on the Electronic Sales Portal, the day and time range where the auction will start and end is shown. In this case, the start date of the auction cannot exceed three days from the date of the decision to extend the auction period. During this period, new bidders may participate in the auction by depositing the guarantee, as the previous highest bidder will be bound by its bid.

Returns of Guarantees:

• If the bidders, who are offered a higher bid, while the auction is in progress, want to get their cash collateral back before the auction is concluded, the amount of the collateral is returned to them through the system. After the auction is concluded, the cash collateral deposited by the participants other than the highest bidder is returned via UYAP after the auction result report is announced on the Electronic Sales Portal.
• In order for the letter of guarantee to be withdrawn during the auction or upon the conclusion of the auction, an application must be made to the enforcement office.

Payment of the tender price and delivery of the goods:

• The tender buyer has to pay the sales price to the account of the execution office, which made the sale, within seven days from the announcement of the auction result report, even if the termination of the tender is requested.
• The goods sold are not delivered before the tender is finalized and are not registered in the name of the buyer. Upon the finalization of the tender, the delivery of the movable to the tender buyer or the registration of the registered goods in the name of the tender buyer is carried out after the stamp duty and value added tax are deposited.

Conclusion

The provisions of the Regulation will be applied to the auctions to be announced as of the date determined in the provinces or districts determined by the Ministry, and to the auctions to be announced at the end of one year at the latest from the date of entry into force (08.03.2022) throughout the country. The regulation has detailed the procedure for sales to be made in the electronic environment.

For more information, you may contact with AYS Law Firm.