The Procedure of Sale by Auction and The Legal Aspect of New Regulations Brought by the 9th Judicial Package 22 November 2024

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.