0 “TURKISH PROPERTY Dispute resolution and litigation” by Ayse Ozcan Founding Partner Acacia International

1 TURKISH PROPERTY Dispute resolution and litigation  Introduction  Alternative dispute resolution:  Overview of the litigation process  Cost involved  Legal expertise

2 Alternative Dispute Resolution (ADR)  Not very known concept in Turkey (only a few examples).Usually contracts refer to the judicial system and some to arbitration.  ADR: negotiation, mediation, dispute resolution boards etc  There is a genuine need for quicker, simpler and more cost-efficient methods of dispute resolution.  Planned reforms for use of mediation; Draft mediation law.

3 Overview of the litigation process  Notification  Seller’s inaction  Filing a law suit  An official notification letter issued by the Notary Public Office notifying the seller about the cancellation of the contract  Requesting refund with it legal interest  Providing bank details for the refund  Providing a reasonable time for Seller to act on the notification requirements  If no action is taken no option but pursuing legal case  An official notification letter issued by the Notary Public Office notifying the seller about the cancellation of the contract  Requesting refund with it legal interest  Providing bank details for the refund  Providing a reasonable time for Seller to act on the notification requirements  If no action is taken no option but pursuing legal case  The ideal outcome following this notification letter, the seller makes the payment in the bank account given.  if the seller does not make any payments within the declared period, the next step will be to apply to the courts  The ideal outcome following this notification letter, the seller makes the payment in the bank account given.  if the seller does not make any payments within the declared period, the next step will be to apply to the courts  The authorized courts are generally the ones where the property is located.  However the contract may stipulate a court located in a different place.  Court dues are paid at the time filing the petition  The authorized courts are generally the ones where the property is located.  However the contract may stipulate a court located in a different place.  Court dues are paid at the time filing the petition 3 3

4 Overview of the litigation process continued  Court proceedings  Execution stage  Appeal  Evidence is evaluated  Expert reports might be sought by the court  the court may give an interim decision to freeze the transfer of the property to the third parties.  s are considered as secondary level evidence  Evidence is evaluated  Expert reports might be sought by the court  the court may give an interim decision to freeze the transfer of the property to the third parties.  s are considered as secondary level evidence  This is the implementation stage.  If the case is upheld the execution section of the court will go after the defendant’s assets in order to realise the amount due.  This is the implementation stage.  If the case is upheld the execution section of the court will go after the defendant’s assets in order to realise the amount due.  The losing party (defendant or plaintiff) would be entitled to appeal to the Supreme Court which will analyze and examine the case and consider the claims of the party which made the appeal.  At the end of this process, the Supreme Court will decide to affirm or to annul the judgement of the first degree court.  The losing party (defendant or plaintiff) would be entitled to appeal to the Supreme Court which will analyze and examine the case and consider the claims of the party which made the appeal.  At the end of this process, the Supreme Court will decide to affirm or to annul the judgement of the first degree court. 1 1

5 Overview of the cost involved Ongoing expenses Execution proceeding Legal representation Court dues General expenses CostNotification Power of attorney

6 Legal expertise  Before coming to the litigation level Well written contract by your lawyers summarising all elements of the deal, including clear responsibilities of both parties and termination events  At the litigation level: Choosing the appropriate legal support who has –core expertise in Turkish legal system. –Integrated legal teams in Turkey and the UK. –Ability to undertake the case without use of subcontracting.  Professional Insurance (PI)

7 For more information contact Ayse Ozcan Advocate MBA Director Acacia international Legal Services + 44 (0) (tell) + 44 (0) (fax)