Did You Transfer Your Property to a Trusted Relative? The Power of Bank Receipts in Proving a Fiduciary Transaction

In times of economic hardship, people under the threat of enforcement proceedings or attachment frequently resort to transferring their real property temporarily to a trusted family member or relative in order to protect it. The purpose of the arrangement is that the property will be returned once the debts are settled. But if no written contract has been made, proving this fiduciary transaction can turn into a major problem. In this article, we examine the legal nature of fiduciary transactions, the conditions of proof, and the critical role of bank receipts in this process, in light of Yargıtay (Court of Cassation) rulings.

Summary of the Situation

In the typical scenario, a person under an enforcement threat transfers their property to a family member on the condition that it will be returned once the debts are settled. However, this agreement is not documented in a written contract. When, in time, the transferor asks for the property back, all they hold are bank receipts for the payments made during this process. The question is: without a written contract, can this fiduciary transaction be proven with receipts alone?

The Legal Issue

In Turkish law, proof of fiduciary transactions is subject to strict rules, and as a rule written evidence is required. Two fundamental questions therefore arise:

• If there is no written contract, can bank receipts satisfy this burden of proof?
• How does the fact that the property's original owner (for example, the transferor) is still alive affect the heirs' right to sue?

What Does the Yargıtay Say?

What Is a Fiduciary Transaction?

Fiduciary transactions are obligation-creating transactions in which a person (the fiduciant) transfers a right in their assets to the other party (the fiduciary) in order to achieve a purpose (such as providing security or having the asset managed), and the fiduciary undertakes to return the right in question once that purpose is achieved (Yargıtay 14th Civil Chamber, E. 2020/4427, K. 2021/1512, T. 2021). The transfer of real property to a family member under an enforcement threat, for the purpose of settling debts, with an agreement that it will be returned once the debts are paid off, is characterized in court decisions as a typical fiduciary transaction (Yargıtay 1st Civil Chamber, E. 2021/1472, K. 2021/2552, T. 2021).

The Rule of Proof: Written Evidence — But Receipts Can Come to the Rescue

Under the Unification of Case Law Decision No. 20/6 dated 05.02.1947, claims of a fiduciary transaction must, as a rule, be proven by written evidence (Yargıtay 1st Civil Chamber, E. 2023/1422, K. 2024/1883, T. 2024). However, even in the absence of a written contract, the bank receipts in your possession may be accepted as "prima facie written evidence" (yazılı delil başlangıcı).

• Prima facie written evidence: Receipts for payments made through a bank constitute a strong presumption of the existence of a fiduciary transaction, and in that case it becomes possible to prove the claim by every kind of evidence, including witnesses (Yargıtay 1st Civil Chamber, E. 2018/2378, K. 2019/2993, T. 2019).
• The nature of the receipts matters: For the receipts to count as prima facie written evidence, they must contain a transaction description, or it must be established that the payments were connected with the transfer of the property (Yargıtay 7th Civil Chamber, E. 2024/3522, K. 2024/4969, T. 2024). In addition, there is a factual presumption that the person holding the original of a receipt or voucher is the person who made that payment (Yargıtay 3rd Civil Chamber, E. 2023/5774, K. 2024/1585, T. 2024).

While the Transferor Is Alive, the Heirs Cannot Sue

The fact that the property's original owner is alive raises the issue of standing (active standing to sue) in any action to be filed.

• As long as the property's original owner is alive, the heirs have no authority to seek annulment of the sale on the basis of their inheritance rights. The authority to sue on a subjective right belongs, as a rule, to the holder of that right (Yargıtay 7th Civil Chamber, E. 2021/8464, K. 2023/944, T. 2023).
• Actions based on a decedent's collusion (muris muvazaası) can be filed only after the decedent's death. While the original owner is alive, it is legally impossible for the heirs to bring a collusion action claiming they have been deprived of their inheritance rights (İzmir Regional Court of Appeal 1st Civil Chamber, E. 2017/1412, K. 2017/1414, T. 2017).

In this situation, it is the transferor personally who must file an action for annulment of the title deed and registration based on the fiduciary transaction — not an action based on inheritance law.

Recommended Legal Routes

• Action for annulment of the title deed and registration based on the fiduciary transaction: For this action to succeed, the transferor may need to prove that they performed their own obligations, if any (debt payments, etc.), and, where necessary, deposit any remaining debt with the court cashier (Yargıtay 1st Civil Chamber, E. 2015/16784, K. 2018/14156, T. 2018).
• Claim for compensation: If return of the property is not possible, or the property has been transferred to a third party acting in good faith, compensation may be claimed in the second instance (Yargıtay 1st Civil Chamber, E. 2016/3089, K. 2019/3179, T. 2019).
• Limitation period: A 10-year limitation period applies to actions arising from a fiduciary transaction. This period starts to run from the date the fiduciary clearly declares that they will not return the property (Yargıtay 1st Civil Chamber, E. 2024/460, K. 2025/4892, T. 2025).

Points to Watch

• Keep and organize your receipts. Descriptions showing that the payments were connected with the transfer of the property significantly increase the evidentiary value of bank receipts.
• Track statements amounting to an admission. The other party's acknowledging the fiduciary transaction in statements given to authorities such as the public prosecutor's office or the police can form a fundamental basis for resolving the dispute (Yargıtay 3rd Civil Chamber, E. 2023/399, K. 2023/2857, T. 2023).
• Document that you performed your own obligations. For the action to succeed, you may need to prove that you carried out any debt payments you undertook.
• Watch the limitation period. The 10-year period starts to run from the moment the fiduciary clearly refuses the demand for return; pinpointing that date is important for the course of the case.

Conclusion: What Should You Do?

Even without a written contract, the bank receipts in your possession can constitute strong "prima facie written evidence" of the fiduciary transaction, in which case you can support your claim with every kind of evidence, including witnesses. Bear in mind, however, that while the property's original owner is alive, the action for annulment of the title deed and registration based on the fiduciary transaction must be filed by the right-holder personally, not in the capacity of heir.

Actions of this kind are technical processes that require the burden of proof to be managed correctly. Obtaining support from a real estate lawyer for a proper assessment of the evidentiary value of your receipts and other documents is of great importance to avoid a loss of rights.