REAL ESTATE, CONSTRUCTION AND RENTAL LAW in Istanbul, Turkey

The cost of living in our country, especially for those living in cities such as Istanbul, Mugla, Antalya, Ankara and Izmir is among the topics that have not fallen off the public agenda lately. We are in a period where we have witnessed that the average rent has increased by eighty four percent in the last year throughout Istanbul, the rents have increased three to four times in some districts, and the average rent in Istanbul has exceeded 6.000 TL as of May 2022. This situation has brought the tenants and property owners, who are struggling with their livelihoods, against each other and caused them to start legal procedures against one another. Especially in recent months, we have observed a great increase in the number of landlords who applied to our law office in order to obtain information on how to evict the tenants and in the number of tenants who are forced for an evacuation through lawsuit or enforcement proceedings. As real estate lawyers in Turkey, we will speak of action for evacuation under this article based on frequently asked questions we receive in order to provide our clients a preliminary information regarding the matter.

ser 1 1 0001 REAL ESTATE CONSTRUCTION AND RENTAL LAW min

A fixed-term rental agreement agreement is a contract in which the expiry date of the tenancy is determined explicitly or implicitly within the contract. It is a requirement of freedom of contract that the parties can specify a certain period in the rental agreement. As a rule, a fixed-term rental contract automatically expires upon the expiration of the period specified in the contract. However, the most important point to be considered at this point is that only the tenant has the right to terminate the contract ‘based on the expiry of the period’ at the end of the period determined in the fixed-term residence and roofed workplace rental contracts. According to Turkish Obligations Code, unless the tenant gives a written notice 15 days before the end of the contract, the rental contract will be extended under the same conditions. But this term should not be understood as the landlord can’t make an increase on the rentage. On the other hand, the landlord will not be able to freely determine the rate of increase in rentage upon extension of the rental agreement. In accordance with the temporary article brought to the 6098 numbered Turkish Code of Obligations, with the 4th Article of the 08.06.2022 dated Law on the Amendment to be Made on the Turkish Code of Obligations and the Attorneyship Law, regardless of the CPI rate in the rent agreements renewed between 11.06.2022 and 01.07.2023 a rent increase of more than 25% will not be applied. It should be noted that this rule is only applicable for residential rentals with a rental period of between 1 and 5 years. In rental agreements with a duration of more than 5 years, the landlord has the right to file a determination lawsuit to re-determine the rentage. In terms of workplaces, it should be known that business owners cannot decide on a rent increase rate above the CPI increase rate.

As we have mentioned above, at the end of a fixed term rental agreement, it is not possible to force the tenant for evacuation based on expiration of the rental period. In the event of expiration of the fixed term rental agreement, the landlord has three main options to evict the tenant: by taking a written eviction notice from the tenant; by sending a written notice of termination to the tenant at least 3 months before the end of the 10 year extension period if the tenant has used the real estate property for over 10 years; or by filing an action for evacuation lawsuit if the landlord or his relatives listed under Article 350 of the Turkish Obligations Code need the leased property and this need is genuine and sincere. In order to accurately determine the date range ‘for issuance of termination notice’, ‘of the period of prescription for filing of the eviction case’ or ‘for the date the tenant shall evacuate’, a real estate lawyer in Istanbul Turkey shall be consulted since many legal periods and prescribed term is regulated in our law system and omitting or miscalculating one of these elements can lead to major loss of rights.

By law, the landlord cannot demand eviction of a good tenant for 10 years. Article 347 of our Turkish Code of Obligations clearly states that in residence and roofed work place rents, unless the tenant notifies the landlord within 15 days before the end of the contract of limited duration, the rental contract is assumed to be extended for one year under the same conditions. The landlord cannot terminate the agreement with regard tto the end of contract duration. Nonetheless, he may terminate the agreement without having to indicate any reason on the condition that he notifies the tenant within three months before the end of each extended year following the end of ten-years overrun. In rental agreements of unlimited time period on the other hand, the tenant may at any time terminate the contract by a termination notice and the landlord after 10 years beginning from the lease agreement in accordance with general terms.

As per Article 350/1 of the 6098 numbered Turkish Obligations Code, the landlord may terminate the lease contract, if he necessitates to use the leasehold as residence or work place for him, his spouse, descendants, lineal ancestors, or legal dependents, in the contracts of limited duration, at the end of the duration; in the contracts of unlimited duration, with a suit that shall be brought within a month beginning from the date to be determined according to the durations provided for termination notice of termination period according to the general terms related to rent. In order for the rental agreement to be terminated due to necessity, the reason for the eviction brought forward by the property owner must actually exist and the situation of need must be sincere and compulsory. In workplace lease agreements, the landlord may be a legal entity, in this case, the legal entity landlord will only be able to file a lawsuit for his own workplace needs. In eviction lawsuits filed due to both residence and workplace needs, the court shall examine detailly whether if the plaintiffs claim of need actually nexists or not. While examining sincerity of the workplace need by the landlord, whether the plaintiff owns more than one immovable property or not; whether the landlord is on rent or not; whether there is another usable or equivalent immovable as a workplace in the same or nearby area owned by the landlord or not; whether the immovable, that the plaintiff who owns more than one immovable, has requested to be evicted has features superior to the immovable currently used will need to be examined.

mesci slide 2 min

Due to high increase on real estate property values, the landlord, who cannot evict the tenant at the end of the period determined by the fixed-term rental agreement, does not want to deal with the eviction lawsuit that will take more than a year, and cannot increase the rentage above the CPI rate since the time spent in the real estate property by the tenant has not yet reached 5 years, is in the tendency to sell the leased property. In case the immovable is sold, the new owner becomes a party to the lease agreement. Pursuant to Article 351 of our Turkish Code of Obligations, the new owner of the leashold may terminate the lease agreement with a lawsuit that shall be brought after six months from the time he notified the lessee within a month beginning from his ownership provided that he necessitates to use the leasehold as residence or work place for him/herself his/her spouse, descendants, lineal ancestors, legal dependents. The new owner may use his termination right due to necessity with a lawsuit that may be brought within a month beginning from the end of contract duration. In other words, if the new owner does not notify the tenant within 1 month after acquiring the ownership of the leased property, the lease agreement will be undertaken under the same conditions. On the other hand, if there is less than 6 months for the expiry of the rent, there is no need to wait for 6 months following the written notification, and an action of eviction can be filed by the new landlord by expiry of the lease contract period. Apart from this, legislative has introduced another method of termination -due to necessity- to the new landlord. As per Turkish Obligations Code, Article 351/2, if the owner wishes he/she may use this right with an eviction lawsuit to be filed within 1 month following the expiry of the lease contract period.

When an action for eviction is filed by the landlord against the tenant due to need, it is unclear at what rate the rent should be increased until the eviction lawsuit is concluded. In our opinion, if the rentage cannot be determined fairly by the parties, taking into account the interests of the parties, and if a rental increase rate has not been determined through the rental agreement, it would be beneficial to file a lawsuit for determination of the rentage. It should be emphasized that if the rent term has not yet completed the five years and the rent increase rate has not been determined in the lease agreement, in this case, filing a rent determination lawsuit in order to determine the rent increase rate fairly is based on the Turkish Obligations Code Article 344/2. In this case, the judge will decide on a certain rent increase rate, provided that it does not exceed the CPI rate of the previous rental year. If there is no rentage increase clause in the contract, a lawsuit must be filed at the latest 30 days before the start of the new rental period. However, if you have sent a warning letter within this period, it is also possible to file a lawsuit until the end of the new lease period.
Real estate, construction and rental law is a legal discipline that defines types of rights that can be possessed related to immovables and aims to resolve disputes in which immovables are brought as subject. MESCI Law Firm, with its team consisting of real estate lawyers in Istanbul Turkey, provides cost-effective legal consultancy and services to property owners, tenants, investors, contractors, architects, engineers and construction companies from all around the World, in all matters related to real estate law in Turkey along with construction law and rental law. Real estate law is a field that requires deep legal knowledge, experience and strategic legal protection planning due to its complex nature and changing regulations of the field. In order for real persons or legal entities not to face any loss of rights, they certainly should take consultancy from a lawyer specialized in sub-branches of real estate law in Turkey before any transaction to be performed related to the field. MESCI Law Firm, provides legal consultancy and services about almost all sub-branches of real estate law in Turkey such as purchase and sale of a real estate property, registration and deletion of rights in rem such as usufruct, right of easement and mortgage, urban transformation, expropriation, confiscation without expropriating, construction agreements in return for land share, remittal and release of leased property.

Please contact our law firm in Turkey if you require further information related to the matter.

Contact US

Location

19 Mayis Mahallesi Inonu Caddesi Mercan Sokak No: 15/7 1st Floor Kadikoy Istanbul TURKEY

Email

info@mescilaw.com

Phone

+ 90 553 909 1335

OUR RANGE OF SERVICES AS REAL ESTATE LAWYERS IN TURKEY

  • Obtaining Turkish citizenship through buying a property.
  • Real estate property purchase and sale transactions.
  • Preparing due diligence report regarding the real estate property to be sold. Drafting and preparing sales contract.
  • Registration of mortgage and following up the process of foreclosure of mortgage.
  • Registration and deletion of real and personal rights and preparing contracts related.
  • Filing and following up elimination of joint ownership lawsuits.
  • Filing and following up lawsuit for correction or cancellation of the title deed.
  • Providing legal consultancy regarding zoning amnesty construction certificate of enrollment application method, filing and following up lawsuit upon rejection of construction certificate of enrollment regarding cancellation of the decision.
  • Providing legal consultancy regarding urban transformation, filing and following up lawsuit against the risk assessment report.
  • Filing and following up cancellation lawsuit upon rejection of construction permit application.
  • Filing and following up cancellation lawsuit upon rejection of occupancy permit.
  • Filing and following up confiscating without expropriating lawsuits and adequate pay lawsuits.
  • Filing and following up cancellation lawsuit regarding decision of expropriation.
  • Filing and following up expropriation – error in fact correction lawsuits.
  • Filing and following up lawsuit regarding recovery of of expropriated property.
  • In case of partial expropriation, conducting application to the administration with the justification indicating remaining part of the property which is excluded to expropriation is not suitable for use, obtaining price determination and filing lawsuit in order to enable remaining part to be expropriated.
  • Filing price determination and registration lawsuits for detection of expropriated property.
  • Action for annulment of unlicensed construction penalties.
  • Action for annulment of decision of demolish.
  • Action of annulment of decisions of preservation board.
  • Filing and following up title deed registration and deletion lawsuits
  • Handling of disputes arising due to inheritance on immovables.
  • Drafting and reviewing construction agreements in return for land share and profit sharing.
  • Drafting and reviewing preliminary sales contract.
  • Drafting and reviewing pre-sale contracts, lease contracts and rental agreements.
  • Handling terminations of rental agreements.
  • Filing action for evacuation regarding the leased property.
  • Collection of rentage.
  • Filing lawsuit for determination, calculation and renewal of the rentage.

Our Approach

We Always Listen

We always listen our client and act according to their interests.

Confidentiality

We are attentive to client-attorney confidentiality rules.

Right Approach

We provide qualified services by using strategic and unique defense techniques allocated to your case.

Collaboration Network

We cooperate with financial advisors and academicians.

Respect And Care

We value to our clients and aim to close your case with success.

Expertly Guide

We are here to provide you qualified legal services throughout Turkey.

Call UsWhatsapp