Attorney-in-Fact Sells Foreign Owner’s Property Below Market Value in Turkey: Legal Remedies (2026 Updated Guide)

A foreign property owner discovers that an attorney-in-fact sold Turkish real estate below market value. Learn about abuse of power of attorney, title cancellation, compensation, injunctions, evidence and criminal complaints.

Foreign property owners frequently use powers of attorney to purchase, manage or sell real estate in Turkey while they are abroad. Serious disputes can arise when the attorney-in-fact uses that authority against the owner’s interests—for example, by selling valuable property for a suspiciously low price, transferring it to a relative or business associate, concealing the real purchase price or keeping the sale proceeds. A sale below market value does not automatically mean that the title deed transaction will be cancelled. However, where the transaction results from abuse of the power of attorney, collusion with the buyer, fraud or conduct contrary to the principal’s interests, the foreign owner may have significant civil and, depending on the facts, criminal remedies.

What Is an Attorney-in-Fact in a Turkish Property Transaction?

A property owner may authorize another person through a power of attorney to carry out specified transactions on their behalf. Depending on its wording, this authority may include selling real estate and completing procedures before the land registry.

The existence of authority to sell, however, does not necessarily give the representative unrestricted freedom to sacrifice the principal’s economic interests.

Is a Sale Below Market Value Automatically Invalid?

No. A difference between the sale price and market value does not by itself automatically invalidate a property transfer.

The circumstances surrounding the transaction must be examined. A substantial price difference can nevertheless become powerful evidence when combined with factors indicating abuse, bad faith or cooperation between the attorney-in-fact and purchaser.

Abuse of Power of Attorney Is the Central Issue

An attorney-in-fact is expected to exercise granted authority consistently with the principal’s interests and instructions. A representative who formally possesses authority but deliberately uses it to benefit themselves or another person may expose the transaction to legal challenge.

The distinction between lack of authority and abuse of existing authority is important.

Example: Property Worth Millions Is Sold for a Fraction of Its Value

Suppose a foreign owner authorizes a representative to sell an apartment. The representative transfers the property to a close relative for a fraction of its actual market value and the owner never receives a commercially reasonable sale price.

The unusually low value, relationship between buyer and representative, payment history and subsequent conduct can all become relevant evidence.

The Power of Attorney Must Be Examined First

Obtain the complete power-of-attorney document and determine precisely what authority was granted. Important questions include whether the representative had authority to sell, receive the purchase price, transfer to particular persons, delegate authority or undertake other relevant transactions.

The wording of the instrument should be compared with what actually occurred.

Was a Minimum Sale Price Specified?

If the principal expressly instructed the representative not to sell below a particular price, evidence of that instruction can be extremely important.

Written correspondence, emails and messages concerning the expected price should therefore be preserved.

Even Broad Authority Does Not Necessarily Eliminate Abuse

A broadly drafted authorization to sell property should not automatically be understood as permission to deliberately harm the principal.

The representative’s formal authority and the manner in which that authority was exercised are separate questions.

Buyer’s Good Faith Can Become Critical

Where the attorney-in-fact abuses authority, the buyer’s knowledge of that abuse can become central to a title dispute.

If the buyer knew or should clearly have understood that the representative was acting against the foreign owner’s interests, the owner’s position may be substantially stronger.

How Can the Buyer’s Bad Faith Be Proven?

There is rarely a single decisive document. Courts may need to evaluate the transaction as a whole.

Relevant circumstances can include a very substantial difference from market value, close relationship between the purchaser and attorney-in-fact, unusual payment arrangements, absence of genuine payment, rapid subsequent transfers, possession remaining unchanged, communications between the parties and other suspicious circumstances.

Relationship Between the Buyer and Attorney-in-Fact Matters

If the property was sold to the representative’s spouse, child, sibling, business partner or another closely connected person, that relationship should be investigated.

The relationship alone does not automatically prove collusion, but it can become significant when combined with other evidence.

Was the Declared Sale Price Actually Paid?

This is one of the most important questions.

Obtain bank records showing whether the buyer actually paid the declared purchase price and, if so, where the money went.

A title deed stating a sale price does not necessarily establish that the principal ultimately received that amount.

Follow the Money

The financial trail may reveal whether the transaction was genuine.

Review transfers between the purchaser, attorney-in-fact and foreign owner. Determine whether money was withdrawn immediately, transferred to related parties or never reached the owner.

What If the Real Price Was Higher Than the Declared Price?

The dispute may become more complicated if the parties declared one figure at the land registry but a different amount was allegedly paid commercially.

Bank transfers, contracts, messages and other evidence should be examined carefully to reconstruct the real transaction.

Obtain the Land Registry Records Immediately

The foreign owner should obtain current and historical title information concerning the property.

The records can establish the transfer date, purchaser and subsequent transactions affecting the property.

Check Whether the Buyer Has Already Resold the Property

This can dramatically affect litigation strategy.

If the first purchaser has transferred the property to another person, the position of the subsequent transferee and the circumstances of the later transaction must also be examined.

Urgent Injunction May Be Necessary

If there is a risk that the property will be sold again, mortgaged or otherwise transferred, urgent interim protection should be considered.

Waiting until the merits of the case are decided can make recovery substantially more complicated.

Title Cancellation and Registration Lawsuit

Depending on the facts, a foreign owner may seek cancellation of the disputed title registration and restoration of ownership.

The precise legal basis must be determined from the power of attorney, representative’s conduct, purchaser’s position and chain of subsequent transactions.

The Buyer’s Knowledge Can Determine the Remedy

Where the purchaser participated in or knowingly benefited from the representative’s abuse, title-based remedies may become particularly important.

Where the property has reached a legally protected good-faith third party, recovering the property itself can become considerably more difficult and compensation claims may take on greater importance.

Compensation Against the Attorney-in-Fact

Even where restoration of title is impossible or impractical, the foreign owner may have a claim against the representative for losses caused by breach of their obligations.

The damages analysis can involve the property’s actual value, amount received, amount transferred to the principal and other proven losses.

Market Value Must Be Proven Properly

Online property advertisements alone are rarely the strongest evidence of historical market value.

Comparable sales, property characteristics, location, size, zoning status, building age, condition and expert valuation can become important.

The Relevant Value Date Matters

The question is usually not simply what the property is worth today. If the disputed sale occurred earlier, the property’s value around the transaction date may need to be established.

A dramatic subsequent increase in real estate prices should not automatically be treated as proof of the loss existing on the sale date.

Expert Examination May Be Necessary

Real estate valuation experts may be appointed during litigation to assess market value.

The foreign owner should preserve documents concerning the property’s condition and characteristics at the relevant time.

Communications With the Attorney-in-Fact Are Important Evidence

Preserve WhatsApp messages, emails and other communications showing the owner’s instructions concerning sale price, potential buyers, payment method or permission to sell.

Do not delete communications after discovering the transaction.

Evidence From Abroad Can Also Matter

A foreign owner may possess communications, banking records or agreements outside Turkey. These materials should be organized early so they can be used effectively in Turkish proceedings where appropriate.

Revoking the Power of Attorney May Be Urgent

If the representative still holds authority over other properties or assets, the foreign owner should immediately assess whether the power of attorney should be revoked.

Stopping further transactions can be as important as challenging the transaction already completed.

Review Every Transaction Performed Under the Same Authority

Discovery of one suspicious sale should trigger a broader review.

Check whether the representative sold other properties, created mortgages, collected rent, withdrew money or carried out additional transactions under the same authority.

Can the Owner Sue Both the Representative and Buyer?

Depending on the legal claims and circumstances, litigation may involve multiple parties whose conduct affected the disputed transfer.

The parties should be identified carefully from title records, financial evidence and the sequence of transactions.

Can the Foreign Owner File a Criminal Complaint?

Potentially. Where the evidence suggests fraud, misappropriation, forgery or another criminal act, criminal-law remedies may need to be evaluated separately.

However, a disagreement over sale price does not automatically constitute a criminal offence.

Civil and Criminal Proceedings Are Different

A criminal complaint should not be treated as a substitute for urgently protecting the property through civil proceedings.

If the property risks being transferred again, the foreign owner should consider the necessary property-law measures independently of any criminal investigation.

What If the Power of Attorney Was Forged?

This creates a substantially different and potentially more serious dispute.

The purported signature, notarial records, identity documentation and circumstances under which the power of attorney was created should be investigated immediately.

What If the Owner Never Authorized a Sale?

If the representative lacked authority to sell at all, the legal analysis differs from a case where the representative possessed sale authority but abused it.

The exact instrument must therefore be reviewed before choosing the legal claim.

Foreign Powers of Attorney Require Careful Review

Where the power of attorney was issued outside Turkey, its contents, authentication and Turkish use should be examined.

The decisive question remains what authority was legally granted and how it was exercised.

Do Not Wait After Discovering the Sale

Delay can increase the risk of subsequent transfers, mortgages and evidentiary difficulties.

The foreign owner should obtain title records, secure communications and payment evidence and evaluate interim protection immediately.

What If the Property Was Sold to a Relative of the Representative?

This does not automatically invalidate the transaction. However, a sale to a closely connected person at an unusually low price can strengthen allegations that the purchaser knew of or participated in the abuse.

Payment evidence becomes particularly important.

What If the Buyer Claims They Did Not Know the Owner?

That fact alone does not resolve the issue. The court may examine the buyer’s knowledge and the objective circumstances of the transaction.

The complete factual pattern matters.

What If the Attorney-in-Fact Says the Owner Agreed to the Low Price?

The representative should be asked to identify the evidence supporting that assertion.

Messages, written instructions, witness evidence and subsequent conduct may become relevant.

Can the Foreign Owner Recover Lost Sale Proceeds?

Potentially. If the representative received the purchase money but failed to transfer it to the owner, claims concerning the proceeds may arise independently of the validity of the title transfer.

Banking evidence is critical.

Can Property Be Frozen During the Lawsuit?

Depending on the facts and legal requirements, interim measures may be requested to prevent further disposition while the dispute is pending.

The request should explain concretely why protection is necessary.

Subsequent Transfers Should Be Investigated Immediately

If the original purchaser quickly resells the property, examine the date, price, purchaser relationship and payment trail.

A sequence of rapid transfers can materially change both the evidence and required parties.

Foreign Owners Should Audit Remaining Turkish Assets

Where trust has broken down with a representative, review all Turkish real estate, bank-related authorities and other powers previously granted to that person.

A single disputed transaction may reveal broader exposure.

Documents Foreign Owners Should Collect

The core file should generally include the power of attorney, title records, sale documentation, bank transfers, communications with the representative, evidence of instructions, valuation material, information concerning the buyer and documents relating to any subsequent transfer.

The stronger the documentary chronology, the easier it becomes to distinguish a genuine low-price sale from deliberate abuse.

Immediate Legal Strategy

A foreign owner who discovers that an attorney-in-fact sold Turkish property substantially below market value should immediately obtain the power of attorney and land registry records, identify the current registered owner, determine whether further transfer is threatened, preserve communications, trace the purchase price, establish the property’s historical market value, investigate the relationship between the representative and buyer, consider an urgent injunction, evaluate title cancellation and registration claims, assess compensation against the representative and determine whether the evidence also justifies criminal proceedings.

Frequently Asked Questions

Can an attorney-in-fact legally sell property below market value in Turkey?

The existence of authority to sell does not automatically resolve whether that authority was abused. The owner’s instructions, transaction circumstances, price difference and purchaser’s knowledge may all be important.

Does a low sale price automatically cancel the title deed?

No. Low price alone does not automatically result in cancellation. It can, however, be significant evidence when combined with abuse of authority and purchaser bad faith.

Can a foreign owner recover the property?

Potentially, depending on the legal basis, purchaser’s position, evidence and whether subsequent transfers have occurred.

What if the buyer is the attorney-in-fact’s relative?

The relationship can be relevant, particularly when combined with an unusually low price or suspicious payment arrangements.

Can the owner stop the property from being sold again?

Depending on the circumstances and legal requirements, urgent interim measures may potentially be requested.

What if the representative kept the sale money?

The foreign owner may have separate claims concerning the proceeds and losses caused by the representative’s conduct.

Should the power of attorney be revoked?

If authority remains active and there is a risk of additional unauthorized or abusive transactions, revocation should be considered immediately.

Can a criminal complaint be filed?

Potentially, where the facts indicate conduct amounting to a criminal offence. A mere disagreement over price, however, does not automatically create criminal liability.

What evidence is most important?

The power of attorney, land registry records, bank transactions, communications, historical valuation evidence and proof concerning the relationship between the buyer and representative are particularly important.

What should a foreign property owner do first?

Immediately determine who currently owns the property and whether another transfer is imminent. Preserving the property through timely interim measures can be more important than debating the sale price after the asset has already passed through several subsequent purchasers.

Client-Focused Legal Support for Power of Attorney and Property Fraud Disputes in Turkey

Property transactions carried out through powers of attorney can lead to complex disputes involving abuse of authority, suspicious undervalue sales, collusive purchasers, title cancellation, injunctions, compensation claims, concealed sale proceeds and potential criminal proceedings. Fırat Fesih Kaya Law Office assists foreign property owners whose Turkish real estate has been sold or transferred through allegedly abusive use of a power of attorney. Lawyer Fırat Fesih Kaya provides legal assistance in investigating title records and payment flows, seeking urgent protection against further transfers, pursuing title cancellation and registration claims, recovering financial losses and evaluating criminal remedies where the evidence supports them.

Phone:
+90 312 434 22 22

Mobile:
+90 532 769 22 22

Email:
info@firatfesihkaya.av.tr

Address:
Mevlana Boulevard No:221, Yıldırım Tower, Office No:148, 06520 Balgat, Çankaya, Ankara, Turkey