Sale of Real Estate by Auction in Our Civil Law: Legal Basis and Areas of Application

The sale of real estate through auctions has an important place in both the economic and legal systems. This method aims to protect the right of ownership and to ensure the creditor-debtor balance by ensuring that real estates change hands under transparent, fair and competitive conditions. In Turkish law, auctions are regulated under two different categories: forced auctions and voluntary auctions .

These processes, which are carried out within the framework of the relevant legal regulations, primarily the Execution and Bankruptcy Law, allow real estate sales to be carried out reliably and effectively. In this article, the legal basis of real estate sales through auctions, their areas of application and the economic and legal importance of this process will be discussed in detail.

Subheadings:

Concept and Scope of Real Estate
Auction Law: Definition and Types
Key Differences Between Forced Auction and Discretionary Auction
Legal Nature and Application Area of Compulsory Increase
Optional Auction Process and Stages
Establishment of Sale by Auction and Parties
Transfer of Ownership and Land Registry in Real Estate
Payment of Tender Price and Legal Consequences in Case of Non-Payment
Termination of Tender: Reasons and Procedure
Economic and Legal Importance of Selling Real Estate by Auction

1. Concept and Scope of Real Estate

The concept of real estate in our Civil Law is explained in Article 704 of the Turkish Civil Code (TMK) . The types of real estate included in this concept are as follows:

Land : All land parcels registered in the land registry.
Independent and Permanent Rights : Permanent rights such as easements recorded on a separate page in the land registry.
Independent Sections Subject to Condominium Ownership : Independent sections of a completed building such as floors, flats, workplaces.

the official registration process carried out through the land registry . During this process, all rights and obligations related to the real estate are transferred with the sale.

In a real estate sale, the subject of the sale is not only the land, but also all the structures, trees and other attached elements on it. These regulations are of critical importance in terms of protecting the right of ownership and ensuring the legal security of real estate sales.

2. Auction Law: Definition and Types

Auction law refers to the legal framework that regulates the process of offering real estate or movables for sale in a competitive environment between multiple buyers . In Turkish Law, auctions are divided into two basic types: forced execution (mandatory sale) and voluntary sale .

2.1. Definition of Auction Law

The auction is based on the principle of selling the goods to the highest bidder. The aim of this process is to:

the buyer purchases the goods under fair competition conditions ,
It is to provide the highest value to the seller or creditor .

The legal basis of auctions is based on the regulations in the Civil Code and relevant legislation, primarily the Execution and Bankruptcy Code (EBL) . In particular, public safety and transparency are taken as a basis in the sale of real estate through auction.

2.2. Auction Types

a) Forced Bidding (Compulsory Sale)
Forced bidding is the seizure of the debtor's real estate through enforcement offices upon the request of the creditor and putting it up for sale. The purpose of selling the real estate in this process is to ensure that the creditor collects his receivables .

Legal Basis : Enforcement and Bankruptcy Law (EBL) articles 124-133.
Parties : Creditor, debtor, enforcement office and buyers participating in the tender.
Conditions : In order for the debtor's real estate to be sold, the creditor's receivable must be finalized .

Forced increase process :

Initiation of Enforcement Proceedings
Making a Sales Decision
Determination of Value of Real Estate
Announcement of the Auction
Sale by Auction

This process requires strict application of legal procedures as it regulates the interference with the debtor's property rights.

b) Optional Auction (Voluntary Sale)
Optional auction is the sale of a real estate with the consent of the real estate owner or authorized person upon request.

Purpose : To ensure that the real estate reaches the highest value under market conditions and is sold quickly.
Conditions : Optional auctions usually take place under private law contracts and can be held by private auction houses or in the presence of notaries rather than official institutions.

Discretionary escalation process :

Determining the conditions of sale of the real estate,
Announcement of the auction through an advertisement,
The sale is made to the buyer who makes the highest bid.

In such sales, the free will of the parties is taken into account and the formal procedures are more flexible compared to forced auctions.

2.3. Common Features of Forced and Discretionary Increases

The common purpose of both types of auctions is:

The goods subject to sale change hands at fair market value ,
It is the protection of the buyer's rights.

In both cases, the value of the property is determined by independent appraisers before the auction . In addition, transparency and a competitive environment are ensured during the sales process.

Auction law ensures that fair competition conditions are created in the sale of real estate and that the seller obtains the highest value. While forced auction is a forced sale method for the debtor to pay his debts, voluntary auction allows the owners to sell their real estate with their own consent . These two types contribute to the creation of economic value by providing legal security for real estate sales.

3. Main Differences Between Forced Auction and Voluntary Auction

Real estate sales through auctions are carried out in two different legal types: forced auction and voluntary auction . The main differences between these two methods are evident in elements such as the purpose of the sale, its legal basis, the functioning of the process and the role of the parties.

3.1. Purpose and Legal Basis

Forced Bidding : It is the seizure of the debtor's assets upon the creditor's request and the sale of the real estate by auction. Its main purpose is to ensure that the creditor collects his receivables . Its legal basis is the provisions of the Execution and Bankruptcy Law (EBL) .
Optional Auction : It is the voluntary auctioning of real estate upon the request of the owner or authorized person. The aim here is to ensure that the real estate is sold for the highest price . Its legal basis is the contracts made by the free will of the parties and the Civil Code.

3.2. Party Initiating the Sales Process

Forced Increase : The process is initiated by the enforcement office upon the request of the creditor . The debtor is required to accept the sale of the real estate.
Optional Increase : The process is initiated by the owner of the real estate. Here, the consent and will of the owner are at the forefront.

3.3. Enforcement Directorate and Authorized Institutions

Forced Bidding : The entire process is carried out by enforcement offices . Transactions related to the sale of real estate are carried out by official institutions and are subject to strict legal procedures.
Optional Bidding : Sales transactions are usually carried out by private auction houses , notaries or under special contracts. Official institutions only come into play at the title deed transfer stage.

3.4. How the Sales Process Works

Forced Increase Process :

Initiating enforcement proceedings and making a sale decision,
Determining the value of the real estate,
Announcement of the auction (in the official gazette and on billboards),
The tender is held and the highest bidder purchases the real estate,
Carrying out land registry registration procedures.

Optional Increase Process :

The owner or his authorized person determines the conditions of sale,
Making announcements and announcements (usually through private channels),
Conducting the auction and accepting the highest bid,
Completion of the registration procedures at the land registry office as a result of the agreement of the parties.

Difference : While the process is subject to strict legal regulations in compulsory auctions, the will of the parties and flexibility are at the forefront in discretionary auctions.

3. 5. Status of the Debtor

Forced Bidding : The debtor is obliged to accept the sale of the real estate . Failure to pay the debt will result in the real estate being sold by auction.
Optional Increase : The owner decides to sell the real estate with his own consent. Therefore, there is no compelling reason such as debt or receivables.

3.6. Valuation and Announcement Obligation

Forced Bidding : Before the sale of the real estate, it is mandatory to prepare an independent valuation report and officially publish the auction notice .
Optional Increase : The value of the real estate is generally determined by market conditions. The advertisement process is carried out flexibly according to the owner or the authorized person's preference.

3.7. Participation of Investors

Forced Bidding : The process is more formal and comprehensive. A wide range of investors are reached through public announcements.
Discretionary Bidding : The sale is usually aimed at a limited group of buyers. The owner can determine the terms of the sale.

Forced auction and voluntary auction refer to two different legal mechanisms in the sale of real estate. While forced auction is a process based on mandatory and strict legal procedures, voluntary auction is a more flexible method that depends on the will of the parties. Both processes are designed to ensure that real estates change hands at market value. These differences allow the selection of the appropriate method according to the purpose of the sale of the real estate and the legal status of the parties.

4. Legal Nature and Area of Application of Compulsory Increase

Forced auction is the process of seizing the real estate of the debtor through enforcement upon the request of the creditor and selling the real estate through an auction . This method is regulated as a forced sale method used by the creditor to collect his receivables . In Turkish Law, forced auction is subject to strict rules within the scope of the Execution and Bankruptcy Law (EBL) and is subject to judicial control.

4.1. Legal Nature

Compulsory augmentation is situated somewhere between public law and private law . Its main features are:

A Compulsory Legal Procedure : The debtor does not accept the sale of his real estate optionally; it is carried out compulsorily by the enforcement authorities upon the request of the creditor.
Official Procedure : The entire process is carried out by the enforcement offices and takes place under judicial supervision.
It is based on the principle of public law : The state enables the sale of real estate through enforcement authorities in order for the creditor to collect his rights.

In this respect, compulsory increase is both an intervention in the debtor's property rights and a mechanism to protect the creditor's rights.

4.2. Application Area of Forced Increase

Forced increase is particularly effective in cases of non-payment of debt . Areas of application include:

Sale of Real Estate as a Result of Enforcement Proceedings : It is the sale of the real estate of the debtor through auction due to a finalized enforcement proceeding. The creditor applies to the enforcement office and requests the collection of the debt.
Sale in Bankruptcy : The assets of the bankrupt debtor are sold by the bankruptcy administration through forced auction and distributed to the creditors.
Receivables Secured by Pledge : If a receivable is secured by pledge and the debt is not paid, the real estate is subject to forced increase upon the request of the creditor who owns the lien.
Dissolution of Partnership : Partnerships on real estate can be terminated by a court decision through forced increase upon the request of one of the shareholders.

4.3. Forced Increase Process

The forced increase process is carried out in certain stages according to the Execution and Bankruptcy Law :

Finalization of Enforcement Proceedings

The creditor initiates enforcement proceedings and demands collection of the debt.
A payment order is sent to the debtor and if no objection is made, the pursuit becomes final.

Sale Decision and Valuation

The enforcement office decides on the sale of the real estate.
The market value of the real estate is determined by an independent appraisal .

Advertisement of Sale

The auction is announced to the public through an official announcement . The announcement ensures that the sale is transparent and takes place in a competitive environment.

Conducting the Auction

The real estate is put up for auction in the presence of the enforcement office. The buyer who makes the highest bid wins the tender.
If there are no buyers in the first auction, a second auction is held.

Finalization of the Tender and Title Deed Registration

After the tender is finalized, the title deed of the real estate is registered in the name of the new buyer.
The buyer is obliged to pay the tender price. If not paid, the tender will be cancelled.

4.4. Debtor and Creditor Rights

Debtor's Rights : The debtor can stop the sale of his real estate by paying his debt before the sale . In addition, if he thinks that the tender is made illegally, he can apply to the court to cancel the tender .
Rights of the Creditor : The creditor has the right to collect his receivables from the proceeds of the sale of the real estate.

4.5. Legal Guarantee and Judicial Control

The compulsory increase process is subject to strict legal regulations and is secured by judicial control .

The announcement of sale and the determination of the market value ensure that the real estate is sold at its real value.
The Tender Termination mechanism creates a safeguard against unlawful actions.

Forced auction is a forced sale method that allows the debtor's real estate to be sold within a legal process and the creditor to collect his rights. Legal safeguards protect the balance of rights between the creditor and the debtor, while also ensuring that the real estate is sold at its value. The forced auction process aims to ensure that the sale is made at market value, based on transparency and judicial control.

5. Optional Auction Process and Stages

A voluntary auction is the sale of a real estate by auction by the owner of the real estate or its authorized representative with their own consent . This process, which is not based on a mandatory enforcement proceeding, is based entirely on the free will of the owner . It aims to sell the real estate at a value that is in line with market conditions .

5.1. Legal Basis for Optional Auction

The voluntary auction is regulated within the framework of the Turkish Civil Code and relevant legislation. The owner makes the decision to sell his real estate with his free will and can use a private or official intermediary in this process. The legal framework works as follows:

The terms of sale are determined at the discretion of the owner.
Optional auctions may be conducted through auction houses , in the presence of a notary public , or through private contracts.
The official title deed transfer process is carried out through the land registry offices after the sale .

5.2. Optional Auction Process

a) Determination of Sale Conditions
The real estate owner or his/her authorized person determines the conditions regarding the sale of the real estate:

Sales price starting price,
Where and when the auction will be held,
Issues such as participation conditions and collateral amounts are clarified.

b) Valuation of the Real Estate
The owner may have the real value of the real estate determined before it is offered for sale. For this purpose, an independent valuation expert report may be obtained. This report:

The location, size and purpose of use of the real estate,
It is prepared by taking into account market conditions and comparables.

This step ensures that competition during the auction process is fair and transparent.

c) Announcement Process
After the sales conditions are determined, the optional auction is announced:

Advertisements are published in newspapers , on websites or other communication channels.
The advertisements include detailed information about the real estate, its place of sale, date and participation conditions.

This advertising process is critical to reaching a wide range of buyers .

d) Auction Process
The auction process is started on the determined date and place:

Participants submit their bids for the real estate.
Offers are announced in an open and transparent environment .
The buyer who submits the highest bid wins the tender and the property is sold.

A temporary guarantee is usually taken from the participants. The person who makes the highest bid is obliged to pay a portion of the sales price in advance.

e) Signing of the Sales Contract and Land Registry
A sales contract is signed between the successful bidder and the property owner. The title deed transfer of the real estate is officially carried out at the relevant land registry office.

The buyer takes ownership of the real estate by paying the tender price.
Registration in the land registry ensures the transfer of rights and responsibilities over the real estate to the new owner.

5.3 Advantages of Optional Auction

A voluntary auction offers several advantages for both the owner and the buyer:

Fair Market Value : The property is sold at the highest value in a competitive environment .
Flexibility : Since the sales conditions are determined by the owner, the process becomes more flexible.
Transparency : The auction method creates a fair competition environment among buyers.

5.4. Parties to the Process

The key parties in the voluntary auction process are:

Owner : The person or institution offering the real estate for sale.
Buyers : People who participate in the auction and submit bids.
Agents : Auction houses, notaries or other sales officials.
Land Registry Directorate : The official institution that carries out the title deed transfer after the sale.

The discretionary auction is a method that allows the owner to sell their real estate at the highest market value and at their own will . The sales process allows buyers to compete with each other with its flexible and transparent structure, while also contributing to the preservation of the value of the real estate. The owner provides economic benefits by offering their real estate for sale in a fast, reliable and fair environment through a discretionary auction.

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6. Establishment of Sale by Auction and Parties

Sale by auction refers to the establishment of a legal sales contract during the process of transferring the real estate to the highest bidder . This process is carried out in certain stages in both forced auction and voluntary auction methods, and the roles of various parties come to the fore.

6.1. Legal Nature of Sale by Auction

Sales at auction are a type of contract and are evaluated within the scope of the Law of Obligations. However, in forced auctions, this process acquires the character of public law .

Offer and Acceptance : The offers made during the auction are considered as offers . The sales contract is established by accepting the highest offer.
Conditional Sale : Completion of the sale is contingent upon the bidder paying the tender price .
Registration in the Land Registry : The legal validity of the sale is completed with the registration of the real estate in the land registry.

Transfer of ownership in an auction sale occurs if the buyer fulfills his obligations.

6.2. Stages of Establishing the Sale

a) Conducting the Tender and Receiving Bids
The auction is held on the specified date and place. The process consists of the following steps:

Starting Price is determined and announced.
Participants declare their bids clearly.
The participant who submits the highest bid wins the tender.

b) Finalization of the Tender
The buyer who makes the highest bid at the end of the auction gains the right to purchase the real estate. However, at this stage, the sale does not become final:

The buyer must pay the tender price within the specified time.
In case of non-payment, the auction will be terminated and the second highest bid may be awarded or a new auction will be held.

c) Payment of the Sales Price
The Buyer completes his obligations for the transfer of the real estate by paying the price determined as a result of the tender.

In the forced auction, payment is made to the enforcement office .
In a discretionary auction, payment is made using the method determined by the owner.

d) Registration in the Land Registry The transfer of ownership of the real estate is carried out by
the Land Registry Directorate after the payment of the sales price . With registration in the Land Registry, the ownership officially passes to the new buyer.

6.3. Parties in the Sales Process

The parties to the auction process may vary depending on how the process works:

Seller (Owner) : The person or institution that owns the real estate and initiates the sales process.

In a forced auction, the enforcement office acts as the seller.
In a voluntary auction, the owner is the direct seller.

Buyer (Tender Winner) : The person who makes the highest bid in the auction and obtains the right to purchase the real estate.

The buyer takes over the ownership by paying the sales price.

Enforcement Directorate or Authorized Intermediaries :

In a forced auction , the sale is carried out by the enforcement office. The enforcement office ensures that the process proceeds in accordance with the law.
In a discretionary auction, a notary, an auction house or specially authorized representatives manage the sales process.

Land Registry Directorate : Responsible for completing the sale and carrying out the registration procedures.
Independent Appraisal Firms : They contribute to determining a fair starting price by determining the value of the real estate.

6.4. Buyer's Obligations

The buyer who wins the auction must fulfill certain obligations in order to complete the sales process:

Payment of Tender Price on Time : If payment is not made, the tender will be terminated and the buyer will lose his temporary guarantee.
Covering Necessary Expenses : Payment of title deed fees, taxes and other expenses.

6.5. Rights of the Seller and the Debtor

Seller's Right : He/she may request that the full payment be collected after the sale is made.
Debtor's Rights : In a forced auction, the debtor has the right to object to the termination of the tender . If the sale is unlawful, he can apply to the court.

The auction sales process is a contract based on the principle of offer and acceptance . The process is completed with the purchase of the real estate by the buyer who makes the highest bid and the registration of the title deed. The protection of the rights of the parties is ensured by judicial control and transparent procedures , especially in forced auctions .

7. Transfer of Ownership and Land Registry in Real Estate

In real estate sales , the transfer of ownership is the final stage that takes place after the auction process is completed. This transfer is officially completed with the registration process in the land registry and the buyer becomes the legal owner of the real estate. According to the Turkish Civil Code, registration is mandatory for the transfer of real estate ownership .

7. 1. Legal Basis for Transfer of Property

Transfer of ownership is possible by registration in the land registry in accordance with Article 705 of the Turkish Civil Code :

Registration Condition : The ownership right on the real estate is transferred to the buyer through the official registration process carried out at the land registry office.
Auction and Registration Relationship : The buyer who wins the tender in the auction gains the right to claim ownership of the real estate as soon as he pays the tender price.

7.2. Conditions Required for Title Deed Registration

For the transfer of real estate ownership and title deed registration, the following conditions must be met:

Finalization of the Tender :
- The real estate is sold to the person who wins the tender by submitting the highest bid during the auction process. However, the objection period must be over and the price must be paid for the tender to be finalized.
Payment of the Price :
- The buyer must pay the tender price within the specified period. Ownership cannot be transferred until payment is made.
Title Deed Registration Request :
- After the completion of the sale, the buyer or his/her authorized person applies to the land registry office and requests registration.
Submission of Required Documents :
- Tender report or sales contract,
- The recipient's identity document,
- Documents showing that the title deed fees and other official expenses have been paid.

The title deed registration process becomes official once these conditions are met.

7.3. Importance of Land Registry

The land registry is the public registry where all rights regarding real estate ownership are officially recorded and made assertable against anyone.

Assurance of Ownership Rights : Registration secures the buyer's ownership right over the real estate.
Principle of Publicity : The land registry is open to everyone. In this way, the ownership status of the real estate can be seen by third parties.
Effect of Registration : When the registration process is completed, the buyer becomes the legal owner of the real estate and begins to use all rights regarding the real estate.

7. 4. Legal Consequences in Case of Non-Payment of the Price

If the buyer who wins the auction does not pay the tender price on time, the following legal consequences arise:

Burning of the Provisional Security : The provisional security deposited by the buyer is recorded as revenue by the sales authority (enforcement office or auction house).
Cancellation of the Tender : The sales process is cancelled and the real estate is put up for sale again in a new auction process.
Compensation for Damages : The buyer is obliged to compensate the real estate owner or the relevant creditor for the damage caused by not paying the price.

7.5. Title Deed Registration and Buyer's Rights

With the title deed registration process, the buyer becomes the legal owner of the rights on the real estate. The rights acquired by the buyer are as follows:

Right of Use : The right to use and rent the real estate as desired,
Right of Disposition : The authority to sell, mortgage or transfer the real estate,
Right of Protection : The authority to prevent unjust interventions of third parties on the real estate.

registration at the land registry office after the completion of the auction process . Registration formalizes the ownership right on the real estate and secures the rights of the buyer. The registration process, which is carried out at the land registry office together with the payment of the tender price and the submission of the necessary documents, completes the transfer of the real estate to the new owner. This process provides legal security for both the buyer and the seller .

8. Payment of the Tender Price and Legal Consequences in Case of Non-Payment

In the process of selling real estate through auction, payment of the tender price is a mandatory condition for the completion of the sale . If the buyer does not pay the tender price, various legal consequences arise according to legal regulations. This process emphasizes the responsibility of the buyer while also protecting the rights of the seller or creditor.

8.1. Tender Price Payment Process

Once the tender is finalized, the buyer who submitted the highest bid is obliged to pay the tender price . This process consists of the following stages:

Payment Term :

In case of forced auction, the buyer must generally pay the tender price within 10 days , according to the Execution and Bankruptcy Law .
Payment terms during the discretionary auction process depend on the contract provisions determined between the parties.

Payment method :

Payments are generally made in cash and must be made to the enforcement office, auctioneer or owner.
Official authorities such as enforcement offices ensure that the payment is recorded.

Condition for Transfer of Title Deed :

the full tender price is paid .

8.2. Legal Consequences in Case of Non-Payment

If the buyer does not pay the tender price within the specified time, the following legal consequences arise:

a) Burning of Provisional Security

The temporary guarantee deposited to participate in the auction will be recorded as revenue if the tender price is not paid.
This deposit is recorded as income by the selling authority (enforcement office or auction house) and is not returned to the buyer.

b) Termination of the Tender

If the buyer does not pay the tender price, the tender will be cancelled .
The property is put up for sale again and a new auction is held.
If the price of the real estate in the new auction is lower than the previous sale price, the difference will be collected from the previous buyer . This may cause the buyer to suffer additional damages.

c) Liability for Damages

is obliged to compensate for the damage .
In a forced auction, this loss difference is collected from the former buyer by the enforcement office.

8.3. Renewal of Sale

After the sale is terminated due to non-payment of the tender price, the real estate is put up for auction again:

New Sales Process : The conditions of the first tender remain valid, but the announcement and valuation process is repeated.
Buyer Obligations : The former buyer is responsible for any damage incurred during the sales process.

These regulations ensure that the tender process is conducted in a fair and transparent manner.

8.4. Rights of the Creditor and Seller

Creditor Rights : During the forced auction process, the creditor has the right to demand a resale if the real estate is not sold or the price is not paid .
Protection of the Seller : In case of a voluntary auction, the owner may terminate the contract and re-offer the property if the sales price is not paid.

8.5 Summary of Buyer's Liability

A buyer who does not pay the tender price will face the following consequences:

He loses his temporary guarantee.
Pays the difference in loss arising from the cancellation of the tender .
He loses his right to purchase the real estate.

These results are designed to ensure that buyers participating in the auction act responsibly .

the completion of the auction process and the transfer of real estate ownership. If the buyer does not pay the price, legal consequences such as loss of collateral , termination of the tender and compensation for damages arise. These regulations are critical to ensuring that real estate sales are carried out under legal security and fair conditions.

9. Termination of Tender: Reasons and Procedure

cancelling a real estate sold through auction due to certain legal reasons . Tender termination is a legal mechanism designed to ensure the protection of the rights of the buyer, seller or relevant third parties in both forced and voluntary auction processes. Within the framework of the Execution and Bankruptcy Law (EBL), the provisions for termination, especially in forced auction transactions, are clearly regulated.

9.1. Reasons for Termination of Tender

The termination of the tender may be requested in cases such as illegalities or violations of rights regarding the real estate subject to the tender . The main reasons for termination are as follows:

a) Procedural and Form Errors

The tender announcement was not made within the time limit and in accordance with the procedure ,
Incomplete or incorrect valuation of the real estate,
The tender is not held at the specified place and time ,
Violation of the conditions of participation in the tender.

b) Unfairness of the Price

the real estate well below its market value ,
Preventing competition conditions or the buyer gaining an unfair advantage during the bidding process .

c) Fraud or Deception

Persons participating in the tender distorting competition through fraudulent behavior ,
Lack of information or use of false statements during the sales process .

d) Barriers to Participation

Intentionally preventing the debtor or third parties from participating in the auction ,
Situations such as failure to inform rights holders.

e) Payment of Debt

If the debtor pays the debt before the real estate is put up for sale, the sale becomes unlawful and its termination may be requested.

9.2. Procedure for Termination of Tender

a) Termination Request Period
Termination of the tender must be requested within a certain period of time from the finalization of the tender:

In Forced Bidding : According to the Execution and Bankruptcy Law, the termination request must be made within 7 days from the finalization of the tender .
In Optional Increase : The termination request period may vary depending on the contract between the parties.

b) Competent Authority

Forced Increase : Termination requests are made to the enforcement court .
Optional Increase : Termination requests may be brought to court or arbitration, depending on the relevant contract.

c) Form of Termination Application
The termination request is made in writing and must include the following elements:

Date and place of the tender,
Information about the real estate subject to tender,
Reasons for termination and evidence,
Documents showing the legitimacy of the applicant party.

d) Court Review

The court shall promptly examine and decide on termination requests.
If it is determined that the tender was conducted in accordance with the law, the termination request is rejected; if there are any unlawful violations, the tender is terminated.

9.3. Consequences of the Tender Termination Decision

Invalidity of the Tender : With the termination decision, the tender is deemed invalid and the sale becomes null and void.
Resale of the Real Estate : After the cancellation of the tender, the real estate is put up for auction again.
Buyer's Guarantee : If there is no fault in the termination decision, the deposit paid by the buyer is returned. However, if the buyer is at fault, the deposit is recorded as revenue.
Debtor's Status : The debtor gains additional time during the resale process of the real estate and may have the opportunity to pay his debt.

9.4. Persons Who May Request Termination

The parties that may request the termination of the tender are as follows:

Debtor : He may request termination because he has lost his property rights.
Creditor : If the creditor suffers from failure to collect the debt or due to irregular sales, he/she may request termination.
Tender Participants : Participants who think that the tender was not conducted under fair conditions.
Third Parties : Persons who have a claim on the real estate or who believe that the sale affects them.

legal guarantee that ensures that the illegalities in the auction process are eliminated . The process is carried out quickly and fairly under judicial control . While procedural errors , fraudulent behaviors and rights violations are prominent among the reasons for termination, the invalidity of the tender is ensured with the termination decision and the way is opened for the resale of the real estate. This regulation protects the rights of the parties and guarantees that the auction is carried out in a fair and transparent manner.

10. Economic and Legal Importance of Selling Real Estate by Auction

The sale of real estate through auction represents an important process in both economic and legal terms. This method ensures that real estates change hands at fair market value and provides legal guarantees for the protection of debtor and creditor rights . In addition, the transparent and competitive nature of real estate sales also contributes to the economy.

10.1. Economic Importance

a) Fair Market Value is Provided
Auction ensures that the real estate is sold to the highest bidder. This situation:

The real estate changes hands in accordance with its market value ,
The seller does not suffer economic loss,
It contributes to the reliability of valuation processes in the economy.

b) Provides Economic Vitality
Real estate sales made through auction:

increases liquidity in the real estate market and contributes to economic activity.
It facilitates access to real estate for buyers and increases investment opportunities.
It enables the payment of debts by converting the assets of the debtors into cash and creates a collection opportunity for creditors.

c) Offers Investment Opportunities
Auctions offer real estate:

Reaching a wider investor base,
It ensures that economic values are evaluated in the best way in a competitive environment.

Particularly attractive prices and transparent sales conditions increase investors' interest in the real estate market.

10.2. Legal Importance

a) Legal Guarantee and Judicial Supervision
The auction process, especially in forced sales, takes place under judicial supervision. In this way:

The debtor's property rights are protected,
The creditor's right is collected,
Mechanisms are created to monitor the legality of sales.

b) Protection of Rights In real estate sales, it is essential to establish a
balance of rights for both the debtor and the creditor :

Debtors : Gain the opportunity to pay off their debts,
Creditors : Can collect their debts from the sales price of the real estate.
Third Parties : They can legally protect their rights over the real estate through auction.

c) Transparency and Competition Principle
The auction process is carried out within the framework of legal regulations:

It is announced to the public through an announcement,
A fair competition environment is created among buyers ,
The results of the sale are made official with the title deed registration.

This transparent structure increases confidence in real estate sales and provides legal stability in the market.

10.3. Efficiency in Debt Collection

Forced auctions allow creditors to collect debts quickly and efficiently :

The income obtained from the sale of the debtor's real estate satisfies the creditor's rights.
Enforcement proceedings are strengthened by the legal basis of the sales mechanism.

This situation creates important economic security for creditors.

10.4. Contribution to the Public Interest

Auctions can also be used to finance public projects :

Public resources are created by selling real estate belonging to the state or municipalities,
New financing opportunities are provided for public projects,
Economic values are prevented from remaining idle.

The sale of real estate through auction is an important mechanism that provides economic vitality and legal security . Sales carried out in a transparent, fair and competitive environment ensure that real estates change hands at their real market value . While creditors collect their debts, new opportunities are created for investors. This process, secured by legal regulations, contributes to the real estate market achieving a stable and reliable structure.

The sale of real estate by auction is a process that is carried out under legal guarantee and contributes to the creation of economic value. Whether it is through forced auction or voluntary auction, the sale of real estate at market value and the transfer of ownership protect the interests of the rightful owners and produce a fair result. While auctions provide debtors with the opportunity to pay their debts, they also enable creditors to obtain their receivables. In addition, the competitive and transparent structure in the real estate market creates a reliable environment for investors. In this respect, auctions serve an important function in terms of both individual and public benefit as a fair resolution mechanism provided by real estate law.