Paid a deposit for a vessel in Turkey but the sale failed? Learn how foreign buyers can recover advance payments, challenge deposit forfeiture, pursue sellers, obtain security and claim compensation under Turkish law.

A foreign buyer who pays a substantial deposit for the purchase of a vessel in Turkey may face serious financial risk if the seller later refuses to complete the transaction. The buyer may transfer hundreds of thousands or even millions of dollars as a deposit, advance payment or first instalment after signing a Memorandum of Agreement, only to discover that the seller cannot deliver clear title, the vessel is subject to an arrest or mortgage, required documents are missing, inspection results reveal major defects, or the seller simply attempts to sell the vessel to another purchaser at a higher price.

When the transaction collapses, the seller may refuse to return the money and argue that the payment was a non-refundable deposit.

That description alone does not necessarily determine the legal result.

Under Turkish law, the legal nature of money transferred at the beginning of a transaction depends on the agreement and circumstances. In particular, Turkish law distinguishes money evidencing the conclusion of a contract from money expressly agreed as consideration for a right to withdraw. This distinction can fundamentally change whether the foreign buyer can recover the payment.

For foreign shipowners, shipping companies and maritime investors, a deposit dispute should therefore be analyzed through five questions: What was the legal character of the payment? Why did the vessel sale fail? Which party breached the agreement? What does the sale contract say about refund and forfeiture? What assets can be secured before the seller moves the money or vessel?

Why Do Ship Sale Deposit Disputes Arise in Turkey?

Second-hand vessel transactions often move quickly.

A buyer may identify a suitable tanker, bulk carrier, tug, yacht, passenger vessel or commercial ship and negotiate through brokers.

Once the principal commercial terms are agreed, the buyer may be required to transfer a percentage of the purchase price within several banking days.

Problems frequently emerge only afterward.

What Is a Vessel Sale Deposit?

A deposit is normally an amount transferred before payment of the entire vessel purchase price.

In international ship sale transactions, it can perform several functions.

It may demonstrate the buyer’s commitment, constitute part-payment of the purchase price, secure contractual performance or operate according to a specifically negotiated withdrawal mechanism.

The terminology used by the parties matters, but the substance of the agreement is even more important.

Deposit, Advance Payment and Withdrawal Money Are Not Necessarily the Same

This distinction is particularly important under Turkish law.

A payment described commercially as a “deposit” does not automatically mean the buyer loses it whenever the transaction fails.

The contract, correspondence, payment instructions and circumstances surrounding the transfer must be analyzed together.

Turkish Code of Obligations Article 177

Under Article 177 of the Turkish Code of Obligations, money given when a contract is concluded is, as a general principle, regarded as evidence that the contract was concluded rather than automatically being treated as withdrawal money.

Unless otherwise agreed or established by relevant custom, that amount is deducted from the principal obligation.

This distinction can be crucial in a vessel sale dispute.

Turkish Code of Obligations Article 178

A different result applies where the parties have actually agreed upon withdrawal money.

In such circumstances, the parties are treated as having a right to withdraw under the agreed arrangement.

If the party who paid the withdrawal money withdraws, that party leaves the payment behind; if the recipient withdraws, the statutory framework provides for repayment at twice the amount.

Accordingly, determining whether the payment was genuinely intended as withdrawal money can fundamentally alter the claim.

Calling the Payment “Non-Refundable” Is Important

A contract may expressly state that the deposit is non-refundable in specified circumstances.

That wording must be taken seriously.

However, the complete provision should be examined rather than extracting two words from the agreement.

The contract may provide that the deposit is forfeited only if the buyer defaults after all conditions for closing have been satisfied.

That is very different from saying that the seller can keep the money regardless of why the transaction fails.

When Can a Foreign Buyer Demand the Deposit Back?

The answer depends primarily on why the sale did not complete.

Where the seller cannot perform its contractual obligations, the buyer’s position may be significantly stronger.

Seller Refuses to Deliver the Vessel

Suppose the buyer has paid a USD 500,000 deposit.

The seller subsequently receives a better offer and refuses to complete the original transaction.

The buyer may potentially pursue repayment and other contractual remedies.

The seller should not assume that describing the original payment as a deposit automatically permits it to abandon the sale and keep the buyer’s money.

Seller Sells the Vessel to Someone Else

This is one of the clearest warning signs of seller default.

The buyer should immediately preserve evidence of the original transaction.

The signed sale agreement, broker correspondence, payment confirmation and evidence of the subsequent sale can become important.

Seller Cannot Transfer Ownership

A fundamental obligation in a vessel sale is the ability to transfer the vessel in accordance with the contract.

If the purported seller does not own the vessel or lacks authority to sell it, the buyer may have strong grounds to demand repayment.

The circumstances may also raise issues beyond an ordinary contractual dispute.

Vessel Is Subject to a Mortgage

A foreign buyer may agree to purchase a vessel on the basis that it will be delivered free of mortgages and other agreed encumbrances.

Before closing, the buyer discovers a registered mortgage.

The existence of a mortgage does not automatically mean the transaction cannot close.

The seller may arrange discharge at closing.

But if the seller cannot provide the contractually required clean title, the buyer’s termination and refund rights should be examined.

Vessel Is Under Arrest

A vessel may become subject to judicial arrest before closing.

The sale contract should determine the consequences.

If the seller cannot secure release and deliver the vessel within the contractual timeframe, the buyer may obtain termination or refund rights depending on the agreement.

Maritime Liens and Other Claims

Foreign buyers should also investigate outstanding claims that may affect the vessel.

Crew claims, collision liabilities, salvage claims and other maritime liabilities can create significant risks.

The contractual warranties concerning encumbrances should therefore be examined carefully.

Seller Cannot Provide Required Documents

Closing normally requires delivery of specific documentation.

Depending on the transaction, this may include a bill of sale, corporate authorities, registry documentation, deletion documents and other contractual closing materials.

Failure to provide essential documents can prevent completion.

Seller Refuses Inspection

Some vessel sale agreements make the transaction subject to inspection.

The buyer may have negotiated a right to inspect particular documents or technical aspects before final acceptance.

If the seller wrongfully prevents an agreed inspection, the buyer should review whether this constitutes contractual default.

Deposit Disputes After Vessel Inspection

Technical inspection is a major source of disputes.

A buyer may transfer money and subsequently discover that the vessel’s condition is substantially different from what was represented.

Whether the buyer can withdraw depends heavily on the sale agreement.

Sale Subject to Inspection

If the contract expressly makes the purchase conditional upon satisfactory inspection, the buyer may have a contractual route to terminate if the condition is not satisfied.

The exact wording is critical.

The buyer should comply with any inspection and rejection deadlines.

Sale on an “As Is” Basis

Second-hand vessel contracts frequently allocate significant condition risk to the buyer.

If the buyer inspected and accepted the vessel on an “as is” basis, withdrawing merely because it later dislikes the condition can be difficult.

However, fraud, deliberate concealment or breach of an express contractual warranty can require a different analysis.

Undisclosed Main Engine Problems

Suppose the seller represents that the vessel is operational.

Inspection reveals serious main-engine damage that existed before negotiations.

The buyer should determine exactly what representations and warranties were made.

A general expectation about vessel condition is weaker than an express contractual representation.

Hidden Structural Damage

Undisclosed structural damage can materially affect the vessel’s value.

Survey reports, photographs, class records and repair history should be preserved.

If the seller knew about the problem and concealed it, the dispute may extend beyond ordinary contractual non-performance.

Classification Problems

The buyer may discover that the vessel has outstanding class conditions or significant survey requirements.

Whether this permits withdrawal depends on what the seller promised concerning class status at delivery.

The contract should be compared with the actual classification records.

What If the Buyer Changes Its Mind?

This creates a very different situation.

A foreign buyer cannot necessarily demand return of a deposit simply because the market changed or the vessel is no longer commercially attractive.

The consequences depend on the contract and the legal nature of the payment.

Freight Market Falls

Suppose the buyer agrees to purchase a vessel for USD 12 million.

Before closing, market value falls to USD 9 million.

The buyer wants to abandon the acquisition.

Commercial regret alone does not necessarily create a legal right to recover the deposit.

Financing Falls Through

A buyer may expect financing from a bank but fail to obtain approval.

Whether this permits withdrawal depends on whether financing was expressly made a condition of the transaction.

Without such a condition, financing failure may remain the buyer’s risk.

Investor Withdraws Funding

The buyer’s investor may unexpectedly refuse to provide capital.

Again, internal financing problems do not automatically transfer the risk to the seller.

The contract must be reviewed.

Buyer Fails to Pay the Balance

If the seller is ready and able to perform but the buyer fails to pay the remaining purchase price, the seller may assert contractual rights concerning the deposit and additional losses.

This is why a buyer should not send a termination notice before determining whether it actually has contractual grounds to terminate.

Memorandum of Agreement in Vessel Sales

International second-hand vessel transactions frequently use a Memorandum of Agreement, commonly referred to as an MOA.

The MOA can determine almost every major issue in a deposit dispute.

Deposit Clause

The clause should identify:

Deposit Amount → Payment Deadline → Deposit Holder → Conditions for Release → Buyer Default → Seller Default → Refund Mechanism → Interest → Dispute Resolution.

These provisions should be analyzed before any recovery action begins.

Who Holds the Deposit?

This can dramatically affect recovery.

The money may be held by the seller, a broker, lawyer, escrow agent or another stakeholder.

A buyer’s practical recovery position is often much stronger where the funds remain in neutral escrow.

Escrow Account

Using a properly structured escrow arrangement can substantially reduce risk.

The deposit should be released only when agreed contractual conditions are satisfied.

The escrow agreement itself should specify what happens if the parties dispute entitlement to the funds.

Deposit Paid Directly to Seller

The risk increases where the entire deposit is transferred directly into the seller’s ordinary operating account.

The seller may spend or transfer the money before the dispute develops.

Asset preservation may therefore become urgent.

Broker Holds the Deposit

A broker may act as stakeholder.

The buyer should identify whether the broker is contractually entitled to release the deposit unilaterally.

If a dispute has arisen, immediate written notice may be necessary to prevent release.

Seller Demands Payment to a Different Company

This is a major due-diligence issue.

Suppose the vessel is owned by Company A but the buyer is instructed to transfer the deposit to Company B.

The buyer should establish why.

The relationship between the vessel owner, contractual seller and payment recipient must be documented.

Deposit Paid to a Personal Account

A request to transfer a substantial vessel deposit to an individual’s personal bank account should trigger enhanced verification.

The buyer should confirm the seller’s identity, authority and payment instructions before transferring funds.

Fraudulent Ship Sale Deposits

Some disputes are not genuine contract disputes at all.

The alleged seller may never have had authority to sell the vessel.

Fake Vessel Seller

A fraudster may advertise a real vessel and impersonate the owner or broker.

The foreign buyer transfers a deposit and later discovers that the actual owner knew nothing about the transaction.

Immediate asset tracing and criminal-law analysis may then become necessary.

Fake Broker

A fraudulent intermediary may create false documents and email correspondence.

The buyer should verify the broker independently rather than relying solely on contact information contained in an unsolicited email.

Changed Bank Instructions

Payment diversion fraud is particularly dangerous in international transactions.

A genuine email chain may be compromised and false bank instructions inserted shortly before payment.

If this occurs, the buyer should contact the sending and receiving banks immediately.

Speed can determine whether the funds can still be frozen.

Forged Power of Attorney

A person may claim authority to sell the vessel using a false power of attorney.

The buyer should verify authority before transferring substantial funds.

If the authority document is forged, criminal remedies may accompany the civil recovery claim.

Forged Corporate Documents

Fake board resolutions and signature documents may also be used.

Corporate authority should be independently verified where transaction values are significant.

Recovering Advance Payments From a Turkish Seller

Once the seller refuses repayment, the buyer should move from informal negotiation to a structured recovery strategy.

Formal Demand for Repayment

The first step will often be a formal demand identifying:

the contract, payment, reason the sale failed, contractual termination basis, amount due and repayment deadline.

The buyer should reserve all additional rights.

Do Not Terminate Carelessly

The wording of the notice matters.

If the buyer purports to terminate without having a valid right, the seller may argue that the buyer itself repudiated the transaction.

The termination basis should therefore be established before notice is served.

Claim for Return of the Deposit

Where the contract has been validly terminated or another legal basis for repayment exists, the buyer may pursue recovery of the amount paid.

The precise cause of action depends on the contractual circumstances.

Interest

The buyer may also potentially claim applicable interest once repayment becomes due.

The rate and commencement date depend on the contractual and legal framework.

For large deposits, interest can become commercially significant.

Compensation Beyond the Deposit

Returning the deposit may not fully compensate the buyer.

The buyer may have incurred survey fees, financing expenses, legal costs, management costs or replacement-vessel expenses.

Whether these amounts are recoverable depends on the contract, causation and applicable damages rules.

Replacement Vessel Costs

Suppose the seller defaults after vessel prices have risen sharply.

The buyer purchases a comparable vessel for substantially more.

Depending on the applicable legal framework and contractual limitations, the price difference may become relevant to the damages claim.

Turkish Law and Seller Default

Under Turkish sales-law principles, seller default can give rise to damages remedies.

In commercial sales with a fixed delivery period, the statutory framework also contains specific rules concerning failure to deliver and damages, subject to the contract and circumstances.

For a vessel transaction, these rules should be considered together with the maritime character of the dispute and the specific MOA.

Precautionary Attachment in Deposit Recovery Cases

Recovering a judgment years later is meaningless if the seller has no assets remaining.

Foreign buyers should therefore consider asset security at the beginning of the dispute.

What Is Precautionary Attachment?

Precautionary attachment is a provisional debt-security mechanism.

Where statutory requirements are satisfied, a creditor may seek to secure assets before completing the underlying debt litigation or enforcement process.

For a foreign buyer seeking repayment of a substantial vessel deposit, this can be strategically important.

Seller Is Moving Money Abroad

Suppose the buyer transferred USD 1 million.

The transaction collapses and the seller immediately begins moving funds between companies.

Waiting months before considering security may significantly reduce recovery prospects.

Evidence of the receivable and urgency should be assembled quickly.

Can Bank Accounts Be Secured?

Depending on the procedural mechanism and court order obtained, bank assets can become relevant to enforcement and security measures.

The buyer should identify the correct legal debtor first.

Attaching the assets of an unrelated group company merely because it shares shareholders with the seller can create serious problems.

Seller Owns Another Vessel

The seller may own additional vessels.

Whether another vessel can be targeted requires specialized maritime analysis.

The rules concerning maritime claims, vessel arrest and general monetary claims should not be confused.

Ship Sale Disputes and Maritime Claims

Under the Turkish Commercial Code, disputes arising from a contract concerning the sale of a ship fall within the maritime-claim framework.

This can be important for jurisdiction and maritime security analysis.

However, whether a particular vessel can be arrested for a particular deposit-repayment claim requires a separate assessment of the statutory conditions.

Precautionary Attachment Versus Ship Arrest

These mechanisms should not be treated as interchangeable.

Ship arrest is a specialized maritime provisional remedy.

Precautionary attachment is a broader enforcement-security mechanism.

The correct procedure depends on the nature of the claim and asset being targeted.

Asset Tracing Against the Seller

Before commencing proceedings, the buyer should identify realistically recoverable assets.

A judgment against an empty company has limited commercial value.

Company Bank Accounts

Available information concerning the seller’s banking activity may become relevant during enforcement proceedings.

The buyer should preserve the original transfer information because it identifies at least one account used by the seller.

Other Vessels

Ownership interests in other vessels can be commercially important assets.

The applicable registry and maritime security rules must be analyzed before action is taken.

Company Shares

Where the debtor owns corporate interests, these may potentially become relevant during enforcement depending on the circumstances.

Receivables From Third Parties

The seller may itself be owed money by charterers, customers or other companies.

Third-party receivables can become important enforcement targets where legally identifiable.

Real Estate and Other Assets

A Turkish debtor may own real estate, vehicles or other attachable assets.

A comprehensive recovery strategy should not focus solely on the original deposit bank account.

Seller Transfers Assets After the Dispute Begins

Asset transfers to shareholders, relatives or related companies can create additional legal issues.

The buyer should document suspicious transfers rather than relying on assumptions.

Transfer to Related Company

A seller may move assets into another company controlled by the same individuals.

Separate corporate personality remains important.

However, particular transfers may potentially be challenged where statutory conditions for avoidance or other remedies are established.

Sham Transactions

An alleged sale of assets may not reflect a genuine commercial transaction.

Evidence concerning price, payment, timing and relationship between the parties can become important.

Asset Transfers to Prevent Collection

Turkish enforcement law provides mechanisms that may become relevant where a debtor disposes of assets in circumstances designed to prejudice creditors.

These remedies have specific statutory requirements and should not be confused with automatic cancellation of every pre-litigation transfer.

Evidence Foreign Buyers Should Collect

A deposit recovery claim should be documentary wherever possible.

The buyer should preserve the entire transaction file.

Signed MOA

The signed sale agreement is usually the central document.

All schedules and amendments should also be preserved.

Bank Transfer Record

The payment record should identify the sender, recipient, date, amount and payment reference.

SWIFT documentation can be particularly useful for international transfers.

Deposit Invoice or Receipt

Any document acknowledging receipt should be preserved.

The wording may help establish the intended nature of the payment.

Broker Correspondence

Brokers often conduct much of the negotiation.

Emails and messages can establish agreed conditions, inspection rights, payment arrangements and reasons the transaction collapsed.

Seller Representations

Any statements concerning ownership, mortgages, class, vessel condition or authority should be retained.

Representations made before signing may become relevant depending on the contract.

Registry Records

Evidence concerning vessel ownership and registered encumbrances should be secured.

If the seller lacked title, contemporaneous registry information can become particularly important.

Inspection Reports

Where the buyer withdrew because of vessel condition, the technical basis should be documented.

A general statement that the vessel was “bad” is much weaker than a professional survey report identifying specific defects.

Jurisdiction in Turkish Ship Sale Deposit Disputes

The correct forum must be determined before proceedings begin.

Ship sale disputes have a maritime character under Turkish commercial law.

The contract may also contain a jurisdiction or arbitration clause.

Turkish Court Jurisdiction

Where Turkish courts have jurisdiction, specialized commercial and maritime jurisdiction may become relevant.

The correct court should be identified according to the particular dispute and contractual arrangement.

Arbitration Clause

International vessel MOAs frequently contain arbitration provisions.

If arbitration was agreed, the merits of the deposit dispute may need to be resolved in arbitration.

The buyer should identify the seat, rules, governing law and notice procedure immediately.

Foreign Arbitration Does Not Mean Turkish Assets Are Irrelevant

Even where the merits are determined abroad, assets located in Turkey may still create questions concerning provisional protection or eventual enforcement.

The dispute strategy should therefore coordinate arbitration with Turkish asset-security considerations.

Governing Law

A contract for the sale of a vessel located in Turkey does not necessarily mean Turkish law governs every issue.

International MOAs frequently contain express governing-law clauses.

The buyer should therefore determine the applicable substantive law before sending a termination notice.

Foreign Buyer Versus Turkish Seller

The buyer’s foreign nationality does not prevent it from pursuing contractual rights in Turkey.

However, international litigation creates additional practical issues involving corporate documentation, powers of attorney, translations, service and enforcement strategy.

These should be prepared early.

Seller Is Also a Foreign Company

A vessel may be located in Turkey even though both buyer and seller are foreign entities.

In that situation, the relationship between Turkish jurisdiction, the vessel’s location, contractual forum clauses and available provisional measures requires careful analysis.

Currency of the Deposit

Vessel deposits are frequently paid in USD or EUR.

The currency of the claim can materially affect recovery.

The contract and applicable rules should be reviewed to determine whether repayment should be demanded in the original currency and what interest consequences apply.

Can the Buyer Demand Double the Deposit?

Not automatically.

This is one of the most important misconceptions.

Under Turkish law, the consequence of returning twice the amount is associated with an agreed withdrawal-money arrangement under Article 178.

An ordinary advance payment or contract-confirming payment should not automatically be treated as producing the same consequence.

The legal character of the payment must first be established.

Can the Seller Automatically Keep the Deposit?

Again, not automatically.

The seller’s right to retain the money depends on the contract, reason the transaction failed, applicable law and legal nature of the payment.

If the seller itself committed the relevant breach, simply writing “deposit” on the transfer receipt does not necessarily resolve the dispute in its favor.

What If There Is No Signed Contract?

This makes the dispute more difficult but does not necessarily make recovery impossible.

The buyer should collect offers, emails, broker messages, invoices, bank transfers and other evidence showing why the payment was made.

The legal basis for recovery can then be assessed from the entire transaction.

What If the Seller Never Owned the Vessel?

This should be treated as a high-risk situation.

The buyer should investigate where the money went, who controlled the receiving account and whether the transaction involved fraudulent representations.

Civil recovery, provisional asset protection and criminal proceedings may need to be considered together.

Criminal Complaint or Commercial Lawsuit?

Not every broken vessel sale is fraud.

A genuine contractual disagreement should not automatically be converted into a criminal accusation.

However, if evidence indicates that the alleged seller never intended or had the ability to sell the vessel and obtained the deposit through deliberate deception, criminal-law remedies may become relevant.

First 24 Hours After the Seller Refuses Refund

The buyer should preserve the MOA, payment records and entire communication history.

The current location and ownership status of the vessel should be established.

The buyer should determine who actually received the money and whether the funds remain with an escrow holder.

No important communication should be deleted.

First 48 Hours

The contractual termination and refund provisions should be analyzed.

The buyer should identify the governing law, jurisdiction or arbitration clause and any notice requirements.

Potential assets of the seller should also be investigated.

First 72 Hours

The buyer should decide whether urgent security is required.

If there is evidence that assets may disappear, waiting for the merits proceedings to conclude can undermine recovery.

A coordinated claim and asset-preservation strategy should therefore be considered.

Example: Seller Receives Deposit and Refuses Delivery

A foreign shipping company agrees to buy a Turkish-owned vessel for USD 8 million and transfers a USD 800,000 deposit.

The seller subsequently receives a higher offer and refuses to deliver.

The buyer should preserve evidence of the concluded transaction, formally establish seller default, demand repayment and assess any additional contractual damages and available asset-security measures.

Example: Vessel Has an Undisclosed Mortgage

The buyer pays a USD 500,000 advance.

Due diligence reveals a mortgage that the seller cannot discharge by closing.

If clean title was contractually required, the buyer should review its termination and repayment rights and avoid transferring the remaining purchase price until the title issue is resolved.

Example: Buyer Discovers Major Defects

The transaction is expressly conditional upon satisfactory technical inspection.

An independent survey reveals extensive structural damage.

The buyer rejects the vessel within the contractual inspection period.

The deposit-holder nevertheless refuses repayment.

The inspection clause, rejection notice and escrow conditions become central to the recovery claim.

Example: Buyer Simply Changes Its Mind

A buyer pays a 10% deposit but later finds another vessel at a better price.

The original seller remains ready to complete the sale.

The buyer cannot assume that its deposit will be returned.

Buyer-default and deposit-forfeiture provisions should be analyzed before abandoning the transaction.

Example: Fake Seller Takes USD 1 Million

A foreign investor transfers USD 1 million after receiving documents from a supposed vessel owner.

The real registered owner later confirms that it never offered the vessel for sale.

The matter should immediately be treated as a potential fraud and asset-recovery case.

Banking records, communications, corporate identities and the receiving account should be preserved immediately.

2026 Legal Strategy for Foreign Buyers Seeking Recovery of a Ship Sale Deposit in Turkey

A foreign buyer seeking recovery of a vessel deposit in Turkey should approach the dispute as a combination of contract interpretation, maritime law, asset preservation and debt recovery.

The first step is to determine exactly what the payment represented. An ordinary advance payment, contract-confirming payment and expressly agreed withdrawal money can have different consequences. The MOA must then be examined to determine which party caused the transaction to fail and whether contractual conditions for refund, forfeiture or termination have been satisfied.

The buyer should next identify who physically holds the money. Funds remaining with an escrow agent create a different recovery situation from money already transferred into the seller’s operating account. If the seller possesses the funds, asset tracing becomes important. Where there is a credible risk of dissipation, provisional security should be considered before lengthy merits proceedings eliminate the practical possibility of recovery.

The practical roadmap is therefore: secure the MOA → identify the legal nature of the deposit → preserve the SWIFT payment record → identify the payment recipient → check whether funds remain in escrow → verify vessel ownership → investigate mortgages and encumbrances → review inspection conditions → identify seller representations → determine which party breached → calculate the refund amount → review termination provisions → comply with contractual notice requirements → determine governing law → identify court or arbitration jurisdiction → formally demand repayment → calculate interest → quantify additional damages → identify Turkish assets → assess provisional security → investigate suspicious asset transfers → consider fraud remedies only where evidence supports them → commence the appropriate proceedings → enforce against available assets → recover the advance payment and other legally recoverable amounts.

Frequently Asked Questions

1. Can a foreign buyer recover a vessel deposit paid to a Turkish seller?

Yes, potentially. Recovery depends on the ship sale agreement, legal nature of the payment, reason the transaction failed and applicable law.

2. Does the word “deposit” mean the money is automatically non-refundable?

No. The legal effect of the payment depends on the agreement and circumstances. Under Turkish law, different rules apply to ordinary contract-confirming money and expressly agreed withdrawal money.

3. Can the seller keep the deposit if the seller refuses to deliver the vessel?

The seller cannot assume that it may retain the money simply because it was described as a deposit. Seller default, the MOA and applicable law must be examined.

4. Can the buyer receive twice the deposit back?

Not automatically. The double-return mechanism under Turkish law is associated with an agreed withdrawal-money arrangement. The payment must first be legally characterized.

5. Can the buyer recover the deposit if the vessel has an undisclosed mortgage?

Potentially, particularly where the contract requires delivery free from the relevant mortgage and the seller cannot satisfy that obligation by closing.

6. What happens if the buyer changes its mind?

The buyer may risk forfeiture of the deposit or other liability where the seller remains ready to perform and the buyer has no contractual termination right.

7. Can the buyer freeze the seller’s assets in Turkey?

Potentially, where the requirements for an appropriate provisional measure are satisfied. This should be considered particularly where there is a credible risk that assets will disappear before recovery.

8. Is a dispute over a contract for the sale of a vessel a maritime dispute in Turkey?

Ship-sale contract claims are recognized within the maritime-claim framework of the Turkish Commercial Code. The particular consequences for jurisdiction and provisional remedies should be analyzed case by case.

9. Should a criminal complaint be filed if the seller refuses to refund the deposit?

Not merely because repayment is disputed. Contractual non-performance and fraud are different. Criminal proceedings become relevant where there is evidence of intentional deception or other criminal conduct.

10. What should a foreign buyer do immediately after a ship sale collapses?

Preserve the contract and payment records, determine why the transaction failed, identify who holds the deposit, verify the vessel’s ownership and encumbrances, review termination provisions and assess whether urgent asset-security measures are required.

Legal Support for Foreign Buyers in Ship Sale Deposit Disputes in Turkey

Foreign shipowners, shipping companies, maritime investors and international vessel buyers facing unreturned ship deposits, advance-payment disputes, seller default, failed vessel purchases, undisclosed mortgages, escrow disputes, fraudulent vessel sales or asset-recovery problems in Turkey should act before funds or other recoverable assets are transferred.

Firat Fesih Kaya Law Office assists foreign buyers and international maritime companies in vessel sale and deposit recovery disputes involving Turkey. Firat Fesih Kaya can assist with reviewing vessel sale agreements, determining refund and termination rights, pursuing advance-payment claims, seeking appropriate asset-security measures and conducting litigation, arbitration and enforcement proceedings arising from failed ship sale transactions.

Phone: +90 312 434 22 22
Mobile Phone: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No: 221, Yildirim Tower, Balgat, Cankaya / Ankara, Turkey