Earnest Money and Withdrawal Money

A deposit paid at the start of a contract does not always have the same legal consequences. It may evidence conclusion of the contract or be linked to an expressly agreed withdrawal right. The whole agreement and parties' intent must be examined rather than one word on the transfer receipt.

What Does Earnest Money Mean?

Article 177 of the Turkish Code of Obligations provides the general rule for money paid when a contract is concluded. Unless agreed otherwise, it is not withdrawal money and is deducted from the main performance subject to the conditions. A party later changing their mind does not automatically mean the payment is always retained or returned double. Whether a valid contract exists also matters.

Where a Withdrawal Right Was Expressly Agreed

Under Article 178 of the Turkish Code of Obligations, consequences may differ for payer and recipient. First, the existence of such an agreement must be established. Withdrawal for breach, termination, contractual breach, and a free withdrawal right differ. Special rules may also apply to consumer transactions or form-bound property contracts.

How Is a Refund Claim Prepared?

The contract's conclusion, amount paid, withdrawal reason, and notices must be documented. The recipient account and whose instructions prompted payment must be explained. We examine the payment's legal nature and the grounds for refund, deduction, or damages together.

Documents That May Be Prepared for the Initial Review

• The deposit or advance-payment agreement
• The bank transfer receipt
• Negotiation and withdrawal correspondence
• The main contract

Submit Your Matter

File review and representation are paid services. Scope and fees are agreed in writing before work begins.