Termination of contracts of sale and return of funds through executive bodies in Turkey

In Turkey, purchase and sale transactions that are not notarized or officially registered often lead to legal disputes. However, even in such cases, the law provides mechanisms to protect the rights of the aggrieved party. If the transaction was not properly registered but the money has already been transferred, the funds can be recovered through enforcement authorities or a judicial process. Let us examine in detail the procedure, timelines, and possible methods of dispute resolution.

Termination of an unofficial Purchase and Sale agreement

Unofficial purchase and sale transactions, especially those involving the transfer of real estate, vehicles, or large sums of money for goods and services, may be deemed invalid if:

• the transaction was not executed in accordance with the law (for example, the sale of real estate without notarization or through the land registry office),
• one of the parties failed to fulfill their obligations,
• the transaction violates consumer rights.

If the buyer has transferred the money but did not receive the goods or services, they may demand a refund, citing unjust enrichment (haksız zenginleşme) and contractual obligations.

Recovery of funds through enforcement authorities

If the seller refuses to return the money, the buyer may apply to the enforcement office (İcra Müdürlüğü) and initiate enforcement proceedings. To do this, it is necessary to:

1. Submit an application to the enforcement office at the place of residence of the respondent.
2. Provide evidence and grounds for the transfer of money (contract, receipt, bank transfers, etc.).
3. Obtain an enforcement order (*ödeme emri*), obliging the debtor to return the amount within 7 days. The debtor will also have 7 days to challenge the existence of the debt. If such an appeal is filed, the case will proceed to the stage of judicial mediation.
4. If the debtor does not file an appeal or files it incorrectly, the decision to recover the debt becomes enforceable. In case of the debtor's refusal to pay voluntarily, the enforcement authorities may seize their property or bank accounts.

Enforcement proceedings in Turkey typically take between 1 and 3 months, depending on the debtor's assets and their attempts to challenge the debt.

Judicial mediation in disputes over money recovery

Before filing a lawsuit, mandatory judicial mediation (arabuluculuk) has been in effect in Turkey since 2019 for financial disputes. This means that the parties must attempt to resolve the conflict through a mediator.

The procedure for mediation is as follows:

1. Filing an application with the mediation bureau.
2. Appointment of a mediator and conducting negotiations (on average, 2–4 weeks).
3. If the parties reach an agreement, a legally binding protocol is signed, which is equivalent to a court decision. In case of violation of the terms of the protocol, it is directly transferred to the enforcement office.
4. If mediation fails, the mediator issues a conclusion allowing the filing of a lawsuit in court.
   

If mediation does not yield results, the aggrieved party may file a lawsuit.

Judicial process for money recovery

In the case of unofficial transactions, the primary means of protecting rights is filing a civil lawsuit. The lawsuit can be filed in:

• The Civil Court of Peace (Sulh Hukuk Mahkemesi) – if the amount in dispute does not exceed 66,000 TL (as of 2025).
• The General Civil Court (Asliye Hukuk Mahkemesi)– for larger amounts.

The procedure for filing a lawsuit is as follows:

1. Drafting a statement of claim specifying the demand for the recovery of funds.
2. Attaching evidence (contract, payment receipts, bank transfers, correspondence, witnesses).
3. Paying the court fee (*dava harcı*).
4. Review of the case by the court (from 6 months to 2 years, depending on the complexity; on average, the process takes 6–8 months).
5. Issuance of a decision and, if necessary, filing an appeal.

After obtaining a court decision in favor of the plaintiff, it can be transferred to the enforcement office for the compulsory recovery of funds.

Conclusion

Even in the absence of an official purchase and sale agreement, the law in Turkey protects the rights of bona fide parties to the transaction. The main avenues for recovering funds are applying to enforcement authorities, judicial mediation, and filing a civil lawsuit. It is important to collect evidence of the transaction (correspondence, receipts, bank transfers, and specifying the purpose of payment) in advance to ensure a faster and more successful recovery process.