Description of the situation:
We were contacted by a client who made an advance payment as a deposit under a real estate purchase and sale agreement, but later decided to withdraw from the purchase.
Problem:
After the conclusion of the contract, circumstances came to light that significantly influenced the client’s decision to purchase. The key factor was the significant discrepancy between the declared and actual area of the property. As a result, the client decided to abandon the transaction and demand a refund of the deposit. The seller did not directly refuse, but began to delay the process and ultimately demanded that the client pay a penalty equal to 20% of the property's value of the apartment, referring to the corresponding clause in the contract.
Our actions:
The client contacted our law firm after unsuccessful attempts to resolve the issue directly with the seller. We conducted a thorough analysis of the purchase and sale agreement (not certified by a notary), as well as payment orders and other relevant documents. Considering the identified violations and terms of the agreement, our team decided to use the judicial mediation procedure as the first measure to resolve the conflict. This approach was chosen in order to minimize legal costs and reduce the time to resolve the dispute.
Result:
Our strategy was successful. During two meetings with the seller's representatives, we were able to convince them that in the event of litigation their position would be weak and they risked incurring significant costs and reputational damage. We argued that the client has every right to return the deposit in full, and that in the event of litigation, legal costs and penalties will be added to the refund amount.As a result, an agreement was reached and recorded in the mediation protocol, which, in accordance with Turkish law, has the force of a court decision. The entire return process took several weeks.
Alternative solutions:
Although in this case we were able to reach an agreement through judicial mediation, not all cases can be resolved this way. Depending on the circumstances, it is possible to use other methods, such as enforcement proceedings through bailiffs or the initiation of a full-scale trial with the possibility of collecting debt with interest.
Important warning:
Currently, there are many fraudulent offers promising quick refunds. We strongly recommend that you be vigilant and contact only licensed attorneys for assistance.
