Movable Sale And Procedure In Execution Law
Movable Sale
The third stage of the enforcement proceedings is the foreclosure of the seized goods. The movables and immovables seized by the enforcement directorate are converted into money by sale upon the creditor’s request for seizure.
As a rule, the right to request a sale belongs to the creditor with a final attachment. The creditor who has a provisional attachment does not have the right to request a sale in accordance with the provision of Article 108 of the EBL. It is also possible for the creditor or the debtor to request a sale. In addition, according to the second paragraph of Article 113 of the EBL, the executive director may always decide to sell the goods whose value decreases rapidly or the cost of preservation is high. In such a case, it does not matter whether the attachment is a temporary or precautionary attachment (Article 108, II of the BEC).
The creditor’s right to request a sale is limited to a certain period of time. The creditor must request a sale within 6 months for movables and 1 year for immovables. The period for requesting a sale starts from the date of final attachment. The request for sale may be made in writing or orally (Art. 106 of the EBL). If the sale of a property is not requested within the legal period, or if the necessary expense is not deposited within fifteen days in accordance with the decision to be made by the executive director, or if the request is withdrawn and not renewed within the legal period, the attachment on that property is removed. The request for the sale of the seized property may be withdrawn once. In the event that it is determined that the seizure of the seized goods registered in the official registry is lifted as a result of the correspondence to be made with the enforcement office, the seizure annotation shall be canceled by the administration keeping the registry and the transaction shall be notified to the relevant enforcement office. The creditor who causes the attachment to be lifted is responsible for all expenses related to that property, such as the placement and preservation of the attachment (Article 110 of the BEC).
In the sale of movables, the sale is made within two months from the request for sale, by auction or by bargaining in cases specified in Article 119 of the BEC.
The execution manager gives a sales decision upon the sale request. This decision determines the day, place and manner of the sale. In movable sales, it is not obligatory to notify the debtor of the sale announcement. Again, the enforcement directorate makes a decision on whether the sale will be announced in a newspaper or whether the announcement will be made in a national or local newspaper, taking into account the interests of the parties. If it is decided to announce the sale in a national newspaper, the circulation of the newspaper must be over 50.000 as of the date of the sale request (Art. 114 of the BEC). The sale announcement will also be made electronically as of January 6, 2013.
Along with the sale decision, the executive director shall also issue a specification for the sale.
The auction starts with electronic bidding. Electronic bidding starts ten days before the date of the first auction and ends at the end of the day before the day on which the auction will be completed; in the second auction, electronic bidding starts on the fifth day after the first auction and ends at the end of the day before the day on which the second auction, which will be determined at least ten days later, will be completed. The bids to be submitted electronically cannot be less than fifty percent of the estimated value of the seized property; before bidding, it is obligatory to show a guarantee of twenty percent of the estimated value of the seized property. If the receivable of the creditor who has a right on the sold movable is at the rate written in the paragraph above, no additional bid and collateral are required in case of participation in the auction (Article 114 of the BEC).
The first and second auction shall be initiated by the bailiff at the place, day and time specified in the announcement, over the highest bid submitted electronically. After the goods put up for sale are shouted three times, the highest bid submitted electronically is also evaluated and tendered to the highest bidder. However, the auction price must reach fifty percent of the estimated price of the goods and if other receivables that have a priority to the receivables of the person requesting the sale are secured by that property, it must be more than the sum of the receivables that have a priority in this way, and furthermore, it must exceed the costs of conversion and distribution of the money. If there is no buyer in the first tender or the amount required for the tender is not reached, the sale is postponed by the bailiff. If there is no buyer at the second auction or if the conditions stipulated in this article are not met, the sale request shall be dismissed (Article 115 of the BEC).
In both auctions, sales and allocation expenses must be met.