The sale of real estate in Turkey, particularly when conducted through intermediaries or under a power of attorney, frequently results in a situation where the seller transfers the property and completes all formalities, yet never receives the full purchase price. This risk is especially high when the price is denominated in euros and payments are handled by representatives.
Detailed facts of the case
The sale of real estate in Turkey, particularly when conducted through intermediaries or under a power of attorney, frequently results in a situation where the seller transfers the property and completes all formalities, yet never receives the full purchase price. This risk is especially high when the price is denominated in euros and payments are handled by representatives.
The client owned an apartment in one of the districts of Mersin. At the end of 2024 an agreement was reached for the sale of the property. The purchase price was fixed in euros and amounted to €51,000.
For the purpose of completing the transaction the client issued a power of attorney to representatives. On 25 December 2024 a real-estate sale agreement was signed. Under the terms of the agreement payment was to be made in two stages:
- a relatively small instalment at the beginning of January;
- the principal amount of €46,000 in February.
In practice the following sequence of events occurred:
- At the beginning of January only the first instalment of €5,000 was credited to the account.
- After this payment the buyer’s representatives obtained de facto control over the apartment.
- The principal sum of €46,000 was never paid.
- The client was left without the bulk of the purchase price while no longer having control over the property.
Several companies and individuals were involved in the transaction: real-estate agencies, their directors, and persons acting under power of attorney. This immediately created a complex structure of liability and required the inclusion of a wide circle of defendants.
Main difficulties of the case
1. Large number of parties involved in the transaction
It was necessary to hold liable not only the formal buyers but also the companies through which the deal was conducted, their managers, and the individuals who received the money and acted under power of attorney. Courts require a clear demonstration of joint and several liability of each of them.
2. Demand for a security deposit from foreign claimants
The defendants applied for an order requiring the foreign claimants to provide security under the rules of private international law. For non-Turkish nationals this is a serious procedural obstacle. Failure to respond properly and in time may result in the action being dismissed on procedural grounds.
3. Challenges to standing
Because the title to the apartment was registered in the name of only one of the spouses, the defendants sought to exclude the other spouse from the proceedings. A precise legal position based on family-law and law-of-obligations principles was required to defeat this objection.
4. Parallel criminal investigation
A complaint was filed with the public prosecutor’s office concerning the non-payment. It was essential to coordinate the civil claim and the criminal investigation so that one reinforced the other rather than undermined it.
5. Risk of dissipation of assets
While the civil proceedings were pending the defendants could attempt to transfer assets to third parties. The timely application for interim measures was therefore of critical importance.
What the lawyers did for the client
Initial stage
Once it became clear that the principal sum would not be paid, the client sought legal assistance. The sale agreement, powers of attorney, payment documents and correspondence were examined without delay. A dual strategy was adopted: a civil claim for recovery of the debt combined with parallel criminal pressure.
Preparation and filing of the claim
- A detailed statement of claim was prepared seeking recovery of the principal debt, interest and damages.
- The circle of defendants was expanded beyond the formal buyers to include the companies involved in the transaction, their directors and the persons who had acted under power of attorney, thereby establishing joint and several liability.
- An application for interim measures was filed simultaneously in order to reduce the risk of asset dissipation.
Response to procedural objections
The defendants raised two serious objections: the requirement of a security deposit from foreign claimants and a challenge to the standing of one of the spouses. Detailed written responses were prepared. As a result both claimants remained parties to the proceedings and the action was not dismissed for failure to provide security.
Criminal aspect
A complaint was lodged with the public prosecutor’s office. The existence of a criminal investigation created additional pressure on the defendants and strengthened the position in the civil proceedings.
Results achieved for the client
- The claim was accepted for examination on the merits.
- Early procedural attempts to have the case dismissed were successfully resisted.
- A broad circle of defendants was established.
- A legal foundation was created for recovery not only of the principal sum of €46,000 but also of exchange-rate differences, interest, lost profit and actual expenses.
- The client retains a realistic prospect of recovering a substantial amount (when all losses are taken into account the total claim may exceed €60,000–70,000).
Conclusion
Even where the property has already been transferred and only a partial payment has been received, Turkish law provides effective means of protecting the seller’s interests. Success depends on rapid reaction and high-quality legal work at the earliest stages.
RT-Union lawyers have experience handling such disputes before the courts of Mersin, Antalya and Alanya — from the preparation of formal notices and applications for interim measures through to actual recovery.
