The Court of Cassation Decides: Who Has the Right to the Property if it is Sold to Two People?

The Court of Cassation 6th Civil Chamber has made a landmark decision regarding the increasing number of real estate fraud cases. According to the decision, if the same property is sold to multiple people, the buyer who first purchases the property through a written contract and takes possession of it will have their rights protected. A consumer had purchased a house through a construction project based on a land share agreement and had moved into their new home. However, they later discovered that the same property had been sold to another person.The consumer applied to the Consumer Court, claiming that the contractor had continuously delayed the transfer of the title deed and that the transfer of the property to a real estate agent who had a business relationship with the contractor was done in bad faith. The plaintiff argued that the transfer of the property at a price much lower than its market value on the same date and the business relationship between the contractor and the real estate agent showed that the property was transferred with the intention of fraudulent conveyance.The plaintiff also claimed that the real estate agent was aware that they were living in the property at the time of the transfer. The plaintiff requested that the title deed of the property in the name of the defendant be cancelled and transferred to their own name.The defendant real estate agent claimed that they had purchased the property from the title owners and were not aware that the plaintiff had previously purchased the property. The defendant stated that they were also victimized by the contractors and had filed a criminal complaint.The Consumer Court found that the defendant's claim of 'I bought it without knowing' was not in line with the ordinary course of life. The court ruled in favor of the plaintiff, cancelling the title deed of the property in the name of the defendant real estate agent and transferring it to the plaintiff.The defendant's appeal was rejected by the Regional Court of Appeals. The Court of Cassation also upheld the decision of the local court after the file was appealed.The Court of Cassation ruled that the rights of the first buyer who purchases the property through a written contract and takes possession of it should be given priority. The decision stated that the title owner who knows or should know that the property is being used by someone else cannot be considered to be in good faith according to the Turkish Civil Code, and that the decision to cancel the title deed and transfer it was lawful.