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The Regulations on the Procedure for Selling in the Electronic Environment under the Enforcement and Bankruptcy Act, and the Regulations Amending the Regulations on the Enforcement and Bankruptcy Act (“Regulations”) were published in the Official Journal of March 8, 2022 and bear the number 31772, entering into force on the same day.
The regulation on the procedure of sale to be carried out in the electronic environment according to the law on execution and bankruptcy determines the procedures and principles concerning the auctions to be held within the framework of the law on execution and bankruptcy number 2004 via the electronic sales portal integrated with the information system of the national judicial network.
The Regulations Amending the Law on Forced Execution and Bankruptcy, on the other hand, introduced changes to the articles concerning the practice of electronic sales.
In accordance with the procedures and principles set out in the Regulations, sales will take place as follows:
- At auction; it is mandatory to use movable and immovable property auction specifications, auction advertisements made in an electronic sales environment, newspaper advertisements and auction results in the form of hard copies. The specifications must contain the basic information of the movable or immovable property.
- To participate in the auction, a cash guarantee amounting to 10% of the estimated value of the seized property must be deposited via the Electronic Sales Portal to the bank account of the enforcement office conducting the sale, until at 11:30 p.m. the day before the end of the auction period. In the event that the guarantee is lodged
- in the form of a letter of bank guarantee, it will be delivered to the Execution Office by hand or electronically, if the system infrastructure is established, until the end of the business day preceding the end of the period of adjudication.
- The bidding period in the auction is 7 days. The difference between the given offers cannot be less than 1 per thousand of the estimated value of the goods sold and 100 Turkish liras. The highest bidder will not be able to withdraw their bid and receive a refund unless a higher bid is made during the auction period. If a new bid is placed in the last 10 minutes of the auction period, the auction will be extended for another 10 minutes, for once.
- The sell request cannot be withdrawn after the start of the auction period. If the debt is fully paid at the end of the auction period, the sale process will be stopped.
- The first and second auctions will start at 50% of the estimated value of the seized goods on the day and time determined by the Executive Director in the advertisement. The property concerned will be awarded to the highest bidder if the conditions are met.
- If the highest bidder does not pay the bid price, the security deposit received will not be returned and will be deducted from the selling costs. If a balance remains, the remaining part will be paid to the beneficiaries in return for their claims.
- While the auction continues, the cash collateral will be returned to the bidder, if a higher bid is placed and the bidder requests the return before the end of the auction. Cash collateral deposited by participants other than the highest bidder will be returned through the National Judicial Network Information System after the announcement of the auction result report on the electronic auction portal. To withdraw the letter of guarantee, you must contact the enforcement office.
- Following the first auction, the announcement of the auction will be deleted from the Electronic Sales Portal from the date of payment of the price of the offer. If the bid price is not paid, the corresponding ad will remain accessible until the end of the second auction.
- On the first business day following the end of the auction, a report will be drawn up by the Executive Director regarding the result of the auction and the information contained in the report will be announced on the electronic sales portal on the same day. Information such as the closing date and time of the auction, the auction of the goods to the highest bidder if the conditions are met, the fact that the auction price must be deposited in the account of the office of execution within 7 days from the announcement of the minutes and the reason why the offer cannot be made if the conditions are not met must be clearly stated in the minutes.
- Even if the bidder makes a request for termination of the invitation to tender, he must pay the sale price to the account of the competent execution office within 7 days from the publication of the minutes. The goods sold will not be delivered before the finalization of the invitation to tender.
- In the event of cancellation of the call for tenders for lack of having reached the minimum price of the offer or because the highest bidder has not submitted the price, a second auction will be organized under the same conditions as those applied at the first auction.
- If the buyer does not show up or if the conditions are not met, the creditor may request that the day of sale be given within the time for the sale request remaining to run from the previous sale request. The sell request period will end with the sell request. The reprieve will begin to run where it left off from the date of the report establishing that the offer could not be made or cancelled.
The above-mentioned procedures and principles will be applied to the auctions to be announced from the date determined in the provinces or districts where the application of electronic sales will be announced by the official website of the ministry. On the whole of the territory, it will apply to the auctions which will be announced at the end of one year at the latest from the date of entry into force.
In accordance with the new system, the Regulations on the Execution and Bankruptcy Law have been reorganized with regard to the compulsory paper documents to be used for execution and bankruptcy work, and certain provisions have been repealed. Again, in provinces and districts where electronic sales are not yet implemented, the repealed provisions will continue to apply until electronic sales are implemented.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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