A New Era in Enforcement Sales: What Changed in 2026?

Enforcement and sales law aims to preserve the delicate balance between debtor and creditor and to establish public security in the conversion of assets into money through compulsory enforcement. Law No. 7343, which entered into force in Türkiye in 2021, abolished physical auctions and introduced the transition to the UYAP e-Sale portal, which brought digitalization to the sales process. However, problems encountered in electronic public auctions, such as speculative bids, shortcomings in the exemptions from the security deposit and violations of co-owners’ property rights, made a new legal intervention necessary.

Law No. 7589 Amending Certain Laws for the Effective and Efficient Functioning of the Judiciary, prepared to remedy these shortcomings and known to the public as the 12th Judicial Package, made fundamental changes to Article 114 of the Enforcement and Bankruptcy Law No. 2004 (İİK).

Legislative Process and Timing of the Entry into Force of Law No. 7589

Law No. 7589 was adopted by the General Assembly of the Grand National Assembly of Türkiye on July 16, 2026. The Law entered into force upon its publication in Official Gazette No. 33326 of July 31, 2026.

Under the Law’s provisions on entry into force, the implementation of the amendments has been divided into two main stages:

General Date of Entry into Force (July 31, 2026): The substantive law provisions introduced in Article 114 of the Enforcement and Bankruptcy Law (exemption from the security deposit, conditions for submitting bids, punitive sanctions where the auction price is not paid) entered into force immediately as of the date of publication.

Technical Preparation Period for the E-Sale Portal (October 31, 2026): A 3-month transition period has been provided for the procedural provisions that require technical infrastructure integration and software updates on the UYAP e-Sale portal, and these provisions will begin to apply as of October 31, 2026. In public auctions announced before this date, however, the former provisions will continue to apply in order to protect acquired rights.

Sales conducted through enforcement closely concern not only debtors and creditors, but also persons wishing to take part in enforcement auctions, heirs, co-owners whose immovable property is put up for sale due to the dissolution of co-ownership, and those concerned with the assets of persons under guardianship. The provisions adopted in 2026 brought significant changes to enforcement sales. In particular, the Law Amending Certain Laws for the Effective and Efficient Functioning of the Judiciary No. 7589 amended the provisions of the Enforcement and Bankruptcy Law on electronic public auctions and introduced new rules on the sale of inherited immovable property, the security deposit for participation in auctions, the consequences of failing to pay the auction price, and sales for the dissolution of co-ownership. Under the same amendments, the electronic sales system has also been adopted for the sale of the property of persons under guardianship. In addition, the monetary limits for enforcement sale announcements were also updated during 2026. So what do these changes mean for citizens?

1. FOR INHERITED IMMOVABLE PROPERTY, THE FIRST AUCTION WILL FIRST BE HELD AMONG THE HEIRS

One of the most notable innovations introduced in 2026 concerns the sale of inherited immovable property through the dissolution of co-ownership. According to the new provision, where all the owners of the immovable property acquired it through inheritance and no third party other than the heirs holds a right of ownership in the property, if the dissolution of co-ownership by sale is ordered, the first public auction will be held only among the heirs who are owners. For example, let us imagine that a house has been left to three siblings by their mother or father. If the siblings cannot agree on the division of the property and the sale of the house is ordered as a result of the dissolution of co-ownership, then, provided the necessary conditions are met, outsiders will not be able to take part in the first bidding round; the bidding will first be conducted among the heirs who own the property. In this way, rather than an inherited immovable property passing to third parties outside the family as early as the first auction, the other heirs are given a priority opportunity to purchase the property. However, this special bidding procedure will apply only once.

2. THE FIRST BIDDING ROUND AMONG HEIRS WILL BE BASED ON 100%, NOT 50%

Another important difference in this special bidding round among the heirs is the level that bids must reach. In general enforcement sales, bids submitted on the electronic sales portal must, in addition to the other statutory conditions, exceed fifty percent of the estimated value of the attached property.

However, in the dissolution of co-ownership by sale, where the first bidding round is held only among the heirs who are owners, one hundred percent of the estimated value will be taken as the basis.

For example, if the estimated value of an inherited immovable property has been set at 4,000,000 TL, the first bidding round held only among the heirs will be based not on the 50% level of 2,000,000 TL in the general system, but on the estimated value of 4,000,000 TL. For the sale to take place, any receivables secured by that property that rank ahead of the receivable of the party requesting the sale, as well as the costs of conversion into money and distribution, will also be taken into account. If no sale takes place in the first bidding round among the heirs and the process moves on to the second bidding round, the general rule of fifty percent of the estimated value will apply again.

3. THE SECURITY DEPOSIT OBLIGATION OF THE CREDITOR REQUESTING THE SALE HAS BEEN CHANGED

A certain security deposit must be provided in order to take part in enforcement auctions. Its main purpose is to ensure that participants in the auction submit serious bids and to prevent the sale process from being unnecessarily prolonged because the price is not paid after the auction has been won. The new provision introduces special relief for the creditor requesting the sale. If the creditor who requested the sale also wishes to take part in the bidding and applies to the enforcement office conducting the sale no later than the end of working hours on the business day before the bidding period ends, no separate security deposit will be required from that creditor to the extent that the creditor’s receivable covers the security deposit. For example, if the receivable in the file covers the entire security deposit to be paid, the creditor will not need to provide the same amount separately in cash as a security deposit, provided that the necessary application is made in time. This provision makes it easier for a person who is already a creditor in the enforcement file to take part in the auction in the same file.

4. THE TREASURY HAS BEEN EXEMPTED FROM THE SECURITY DEPOSIT IN PUBLIC AUCTIONS

Another clear provision introduced regarding the security deposit concerns the Treasury. Under the new provision, the Treasury has been exempted from providing a security deposit in public auctions. Consequently, in enforcement public auctions in which the Treasury takes part, the obligation to provide a security deposit that applies to the other participants will not apply to the Treasury.

5. A PERSON WHO WINS THE AUCTION BUT DOES NOT PAY THE PRICE WILL LOSE THE SECURITY DEPOSIT

One of the most important consequences of the new provision for citizens who will take part in enforcement auctions concerns persons who, after submitting the highest bid, do not pay the auction price within the time limit. If the person who wins the auction by submitting the highest bid does not pay the auction price within the time limit, the security deposit paid will no longer be returned to that person. The security deposit will first be set off against the sale expenses incurred. The remaining amount will then be paid to the entitled parties in the enforcement files, to be credited against their receivables.

Therefore, before submitting a high bid in an electronic auction, it is very important for a person to assess whether they can actually cover the auction price. The consequence of winning the auction and then not paying is no longer merely being unable to acquire the immovable property or the asset.

6. A PERSON WHO DOES NOT PAY THE PRICE WILL RECEIVE AN ADMINISTRATIVE FINE OF 5% OF THE BID

If the auction price is not paid, the sanction is not limited to the loss of the security deposit. An auction buyer who, despite having submitted the highest bid, fails to pay the auction price within the time limit will be given an administrative fine of five percent of the amount bid. This fine will be imposed by the enforcement office or the sales officer conducting the sale. The administrative fine imposed will be notified to the relevant collection office to be collected in accordance with the provisions of Law No. 6183. For example, if a person wins an electronic auction with a bid of 5,000,000 TL but does not pay the price on time, they may face an administrative fine of 250,000 TL. Moreover, this fine is a sanction separate from the non-return of the security deposit. Consequently, under the new system, submitting high bids without thinking may lead to quite serious economic consequences.

7. A SPECIAL SANCTION WILL APPLY IF THE PERSON WHO DOES NOT PAY IS THE CREDITOR REQUESTING THE SALE

The Law also separately regulates the possibility that the creditor requesting the sale takes part in the auction and submits the highest bid but nevertheless fails to pay the auction price within the time limit. In this case, ten percent of the estimated value will be deducted from the creditor’s own receivable. In addition, the expenses incurred due to that sale will remain with the creditor and will not be charged to the debtor. The aim is thus to prevent creditors, too, from submitting high bids they do not intend to pay for merely on the grounds that they have a receivable in the file.

8. IN CO-OWNERSHIP DISSOLUTION SALES, IF THE PRICE IS NOT PAID, THE SECURITY DEPOSIT WILL BE DISTRIBUTED TO THE CO-OWNERS

The new provision separately addresses the case where the price is not paid in auctions held in the dissolution of co-ownership by sale. If, in a sale for the dissolution of co-ownership, the person who submitted the highest bid does not pay the auction price within the time limit, the security deposit taken from that person will not be returned. The expenses incurred due to the sale will first be deducted from this security deposit, and the remaining amount will be paid to the co-owners in proportion to their shares. For example, if an immovable property jointly owned by three persons has been put up for sale and a third party who won the auction has not paid the price, the part of the security deposit remaining after the sale expenses will be distributed to the co-owners, taking into account their share ratios in the property.

9. IF THE PERSON WHO WINS THE AUCTION BUT DOES NOT PAY IS ALSO A CO-OWNER, THE ENTIRE SECURITY DEPOSIT WILL PASS TO THE OTHER CO-OWNERS

An even more specific possibility has also been regulated for sales for the dissolution of co-ownership. If the person who submits the highest bid in the auction and fails to pay the auction price within the time limit is one of the co-owners of the immovable property, the entire security deposit taken will be paid to the other co-owners in proportion to their shares.

This provision is particularly important in view of the possibility that, in auctions for the dissolution of co-ownership, a co-owner prevents others from buying the property by submitting a high bid and then disrupts the sale process by not paying the auction price. Under the new system, such conduct by a co-owner has a direct economic consequence.

10. THE PROPERTY OF PERSONS UNDER GUARDIANSHIP WILL ALSO BE SOLD ON THE ELECTRONIC SALES PORTAL

The 2026 amendments were not limited to the Enforcement and Bankruptcy Law; amendments were also made to the provisions of the Turkish Civil Code on the sale of the assets of persons under guardianship. According to the new provision, sales by public auction of property belonging to persons under guardianship will be carried out through the electronic sales portal integrated with UYAP.

Thus, where movable or immovable property belonging to a person under guardianship is sold by public auction, the electronic sales system will be used. This provision is important in that sales transactions will be carried out electronically and open to a wider pool of participants.

11. IN GUARDIANSHIP SALES, THE AUCTION ALONE WILL NOT BE SUFFICIENT

The fact that the property of persons under guardianship will be sold electronically does not mean that the sale transaction will be fully completed once the highest bid has been submitted. According to the new provision, the sale will be conducted by public auction on the electronic sales portal, but the auction will be completed with the approval of the guardianship authority. The guardianship authority must give its decision on approval within ten days starting from the auction date. Consequently, a person who acquires property belonging to a person under guardianship by submitting the highest bid in an electronic auction must also take into account the guardianship authority’s approval process as regards the completion of the auction result.

12. THE NEW RULES WILL NOT APPLY TO ALL PREVIOUSLY ANNOUNCED AUCTIONS

One of the points of the new provision that require the most attention in practice concerns the transitional provisions. The amendments made to Article 114 of the Enforcement and Bankruptcy Law will not apply to public auctions announced before the date on which the provision entered into force. The former provisions will continue to apply to these auctions. Consequently, in order to determine which rules will apply to an enforcement auction, it is not sufficient to look only at the date on which the auction is held. The date on which the public auction was announced is also important. The same principle has also been adopted for the new electronic sales provision on the sale of the property of persons under guardianship. In public auctions announced before the amendment entered into force, the previous provisions will continue to apply.

13. THE ENTRY INTO FORCE DATE OF THE NEW SYSTEM FOR GUARDIANSHIP SALES IS ALSO DIFFERENT

There is an important detail regarding dates here. While the provisions of Law No. 7589 amending Article 114 of the Enforcement and Bankruptcy Law entered into force on the date the Law was published, the amendments made to Articles 440 and 444 of the Turkish Civil Code on guardianship sales were set to enter into force three months after the publication of the Law. Therefore, the entry into force dates of the amendments to enforcement sales and of the amendments on the electronic sale of the property of persons under guardianship must be distinguished from each other. In practice, when assessing which provision applies, both the entry into force date of the provision and the date of the sale announcement must be taken into account together.

14. THE MONETARY LIMITS FOR ENFORCEMENT SALE ANNOUNCEMENTS WERE ALSO UPDATED IN 2026

Another development in 2026 affecting enforcement sales is the update of the monetary limits for sale announcements. An important distinction must be made here: This change was not introduced by Law No. 7589. The monetary limits for sale announcements were updated by a separate Communiqué. The Communiqué on the Update of the Monetary Limits for Announcements of Sales to Be Conducted under the Enforcement and Bankruptcy Law was published in Official Gazette No. 33150 of January 27, 2026. These monetary thresholds are important for determining in which media and in what manner sale announcements will be published. Consequently, when examining whether the announcement in an enforcement sale was made properly, the current monetary limits in force at the time the sale was conducted, rather than the monetary thresholds of previous years, must be taken as the basis.

CONCLUSION: A STRICTER PERIOD REQUIRING GREATER RESPONSIBILITY IN ENFORCEMENT SALES

When the amendments made in 2026 are assessed together, it can be seen that a new period has begun in enforcement sales, aiming both to protect right holders and to ensure that electronic auctions operate more soundly. In particular, the fact that, in the sale of inherited immovable property, the first bidding round is held, subject to certain conditions, only among the heirs who are owners is an important innovation that enables the heirs to purchase the property left by the family among themselves before it passes to third parties. On the other hand, taking one hundred percent of the estimated value as the basis in this special first bidding round constitutes an important safeguard aimed at preventing the property from passing into the hands of one of the heirs at a low price.

For persons taking part in auctions, on the other hand, responsibility has become markedly heavier. A person who fails to pay the auction price within the time limit after submitting the highest bid no longer merely loses the auction. Serious financial consequences may arise, such as the non-return of the security deposit and the imposition of an administrative fine of five percent of the bid amount. Special sanctions have also been provided separately for creditors requesting the sale and for co-owners in sales for the dissolution of co-ownership. The move of public auction sales of the property of persons under guardianship to the electronic sales portal integrated with UYAP also widens the scope of the transformation toward conducting sales electronically.

In conclusion, taking part in an enforcement auction is no longer simply a matter of finding a reasonably priced immovable property or vehicle and submitting a bid. Before taking part in the auction, the estimated value, the minimum bid requirements, the security deposit obligation, the payment period and, in particular, the consequences of failing to pay the auction price on time must be carefully assessed.

While electronic enforcement sales have become more systematic with the 2026 amendments, the legal and financial responsibilities of persons taking part in auctions have also increased significantly.

In all these processes, it will be in the parties’ interest to obtain legal support from a lawyer in order to avoid any loss of rights.

Att. Taha Hüseyin Çebi

Att. Elif Çelik

This article is a general assessment prepared in accordance with the legislation in force on its date of publication; it does not constitute a legal opinion. This English text is a translation of the Turkish original; in case of any discrepancy, the Turkish version prevails.

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