Turkey passes law limiting third‑party bids in inheritance property auctions
On 31 July 2026 the Turkish Official Gazette published Law No. 7589, amending the Civil Code on the dissolution of co‑ownership of inherited real estate. The amendment introduces a special auction procedure: when a property inherited by heirs is to be sold, the first public auction may be attended only by the heirs themselves. If the property does not sell at that stage, a second auction can be opened to any qualified bidder under the existing execution‑sale rules.
The change applies only when the entire property belongs to the heirs; any share held by a non‑heir excludes the case from the heir‑only auction. The reform is intended to protect family homes and agricultural lands from being transferred to outside buyers in the first auction. In addition, the electronic auction portal was revised to require higher minimum bids, with thresholds tied to at least 50 % of the secured claim amount and 100 % for the heir‑only auction. New penalties were added for bidders who fail to pay the winning amount, including administrative fines and loss of the deposit. The legislation also halved penalties for participation in fraud‑related crimes, limited to the misuse of bank‑account or payment‑instrument information. Legal commentator Özge Özmen Korkut highlighted that the measure gives heirs a stronger chance to retain inherited property within the family.
Entities: Av. Özge Özmen Korkut · Istanbul · Law No. 7589 · Law No. 7589 (Turkey) · Official Gazette of Turkey · Turkey · Turkish Ministry of Justice · Turkish inheritance property market · heirs · Özge Özmen Korkut
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 3 SOURCES] The new rule requires that, for properties wholly owned by heirs, the first auction may only involve the heirs. (legal amendment)
- [○ 1 SOURCE] The electronic auction portal will require bids to exceed a minimum amount, at least 50 % of the secured claim, and 100 % for heir‑only auctions. (procedural requirement)
- [○ 1 SOURCE] The Treasury is no longer required to provide a guarantee in auctions under the new law. (legal amendment)
- [○ 1 SOURCE] Bidders who win an auction but fail to pay the bid amount face administrative fines and forfeit their deposit. (penalty provision)
- [● 2 SOURCES] If the first heir‑only auction fails, a second auction can be held under standard execution‑sale rules allowing other bidders. (legal amendment)
- [○ 1 SOURCE] The 12th Judicial Package amends the Administrative Litigation Procedure Law to expand the powers of regional administrative courts. (legislative amendment)
- [● 3 SOURCES] Law No. 7589 was published in the Official Gazette on 31 July 2026. (official publication date)
- [● 2 SOURCES] If a non‑heir holds a share in the property, the heir‑only auction procedure does not apply. (legal amendment)
- [○ 1 SOURCE] Penalties for participation in fraud crimes were reduced by half, limited to misuse of bank‑account or payment‑instrument information. (fraud penalty reduction)
- [○ 1 SOURCE] The electronic auction portal now requires higher minimum bids, set at at least 50 % of the secured claim amount, and 100 % for heir‑only auctions. (portal change)
- [● 2 SOURCES] Law No. 7589 was published in the Turkish Official Gazette on 31 July 2026. (law publication)
- [● 2 SOURCES] The reform aims to protect family homes and agricultural land from being transferred to third parties in the first auction. (policy purpose)