Can you get a deposit back if you change your mind?

What is a deposit when buying real estate in Turkey

In Turkish real estate practice, a deposit is known as “kapora”. This is a sum of money that the buyer gives to the seller at the preliminary agreement stage — before signing the main sales contract and registering the TAPU (title deed). Kapora serves two functions: it confirms the seriousness of the buyer’s intentions and reserves the property, taking it off the market for an agreed period.

The amount of the deposit is not strictly regulated by Turkish law and is determined by the parties themselves. In practice, it ranges from 5% to 10% of the property value, although in the off-plan segment developers often set a fixed sum — for example, $2,000–5,000 when reserving an apartment in a new building.

Two types of deposit: why it’s important to distinguish them

The key factor that determines the fate of your money if you withdraw from the deal is the legal nature of the kapora. Turkish law and contractual practice distinguish two fundamentally different concepts:

1. Pey Akçesi — earnest money

Pey Akçesi is a classic deposit under Turkish law of obligations (Article 177 of the Turkish Code of Obligations — Türk Borçlar Kanunu). It serves solely as evidence of the conclusion of a contract and does not have a penalty function. This means: if the deal falls through due to the buyer’s initiative, legally they have the right to demand a refund of the amount paid. The seller is not entitled to withhold such money — no proof of fault is needed for its return. In practice, however, sellers often resist, and then the matter goes to court.

2. Cayma Tazminatı — compensation for withdrawal

Cayma Tazminatı is a penalty amount that stays irrevocably with the seller if the buyer changes their mind. And conversely: if the seller withdraws from the deal, they must return double the amount. This structure is directly provided for by Turkish legislation and functions similarly to a Russian deposit under Article 381 of the Civil Code of the Russian Federation. It is this mechanism that Turkish developers and private sellers most often include in contracts to discipline the buyer.

Can you get a deposit back? Four typical scenarios

The answer depends on how exactly the contract terms are worded and on whose initiative the deal is terminated. Let’s look at the main situations:

1. The buyer changes their mind, and the contract clearly states “Cayma Tazminatı”. The money is not refunded. The seller has the right to retain the entire deposit as compensation for taking the property off the market and lost profit.
2. The buyer changes their mind, but the contract says “Pey Akçesi” or the wording is vague. Theoretically the money should be refunded. In practice, the seller may resist, and then a written claim, negotiations with a lawyer, and if no agreement is reached, a lawsuit for unjust enrichment (Articles 77–82 of the Turkish Code of Obligations) will be needed.
3. The seller changes their mind about selling the property. Under any contract structure, the seller must return the deposit. If it’s “Cayma Tazminatı” — double the amount. If “Pey Akçesi” — a single amount, but the buyer can also recover proven losses (flight costs, accommodation, interpreter fees, etc.).
4. The deal falls through for independent reasons. For example, the bank refused a mortgage, encumbrances on the property were discovered, or the foreign buyer did not obtain clearance from the military authority (mandatory check for some regions of Turkey). In such cases, the deposit is generally refundable — unless the contract stipulates otherwise.

Deposit and advance payment: don’t confuse the terms

Many buyers mistakenly use these terms interchangeably, but the legal difference is huge. An advance payment is a preliminary partial payment that is always returned to the buyer if the deal falls through, regardless of who initiated the termination. An advance is not a penalty and does not secure the performance of obligations. A deposit (kapora) is a security, and its fate depends directly on the contract wording.

If you are uncertain about your decision to buy, insist on the term “advance payment” in the contract. If the seller strictly demands a deposit — at least ensure that “Pey Akçesi” is clearly stated in order to retain the possibility of a refund through court.

How to properly document the deposit payment: a step-by-step guide

A well-drafted contract is the only real protection for your money. Follow these rules:

• A written form is mandatory. A verbal agreement and cash handed over “on one’s word of honour” is an almost guaranteed loss of money if a dispute arises. The contract must be drafted in Turkish and, preferably, in Russian or English.
• Clearly specify the type of payment. State directly: whether the amount is a deposit (kapora), an advance payment (avans) or compensation for withdrawal (cayma tazminatı).
• Record all essential terms. Full details of the parties (for the seller — T.C. kimlik number, for a foreigner — passport), the exact address and cadastral characteristics of the property, the total cost of the real estate, the deadline for signing the main contract, and the conditions for return and retention of funds.
• Confirm the transfer in writing. The ideal option is a bank transfer with the payment purpose “kapora”. If you pay in cash, be sure to get a receipt signed by the seller and witnesses.
• Engage a licensed real estate agent or lawyer. Since 2022, all real estate activities in Turkey are subject to mandatory licensing. Working with an official agency reduces the risk of fraud and improves the chances of getting your money back in a dispute.

What to do if the seller refuses to return the deposit

If you find yourself in a situation where the money is being withheld unlawfully, here is the course of action:

1. A formal written notice (ihtarname). An official notification through a notary demanding the return of the amount within a specified period (usually 7–15 days) and stating the intention to go to court. The notarial form gives the document procedural weight and often encourages the seller to negotiate.
2. Negotiations with the assistance of a lawyer. In many cases, the problem can be resolved at this stage: a professional Turkish lawyer clearly explains to the seller the risks and legal prospects.
3. Mediation. For commercial and consumer disputes in Turkey, pre-trial mediation is mandatory. Only after receiving the mediator’s conclusion can a lawsuit be filed.
4. Court proceedings. A lawsuit for the recovery of unjust enrichment or debt is filed in the court at the location of the property. The duration of the proceedings ranges from 6 months to 1.5 years. If the claim amount is below a certain threshold, the case is heard under the simplified procedure.

Practical conclusions

Getting a deposit back when buying real estate in Turkey is not a hopeless task, but it is not a simple one either. Everything depends on what exactly is written in your contract and how prepared you are for a legal battle. Key recommendations:

• Before handing over the money, decide for yourself whether you are willing to lose this amount if you change your mind.
• Insist on the term “advance payment” or “Pey Akçesi” if you are not 100% sure about the deal.
• Never hand over money without a written contract containing the seller’s passport details and clear refund conditions.
• Work only with licensed professionals: saving on the services of a lawyer or agent can result in the loss of the entire deposit.

Remember: the Turkish real estate market is foreigner-friendly, but the legal culture here is formalistic. A piece of paper with the right wording is your only reliable shield.