Rental Law and Mandatory Mediation: Regulation After Law No. 7445

While the Turkish Code of Obligations (TBK) regulates the mutual rights and obligations of the parties in lease agreements, the institution of mandatory mediation introduced by Law No. 7445 has fundamentally changed the way disputes are resolved.

Contract Terms and Written Form

It is not mandatory for lease agreements to be made in writing. Verbal (unwritten) agreements are also subject to the same legal protection. However, a written contract should always be preferred for ease of proof.

Tenant's Rights

• Right to use the property in accordance with the contract
• To request the removal of defects other than wear and tear (dampness, main load-bearing system failures)
• To request a receipt / written payment document
• Termination of the contract for just cause (such as the property becoming unusable)

Landlord's Rights

• To file an eviction lawsuit with a written warning if the tenant misuses the property or acts contrary to the purpose of the contract
• To issue a warning by giving 30 days' notice in case of non-payment of rent, followed by execution/eviction
• Request to show the property at reasonable times

Deposit Guarantee (TBK art. 342)

The deposit amount can be agreed upon for a maximum of 3 months' rent; agreements exceeding this limit are invalid. The deposit must be deposited in a joint fixed-term savings account in such a way that it cannot be withdrawn without the tenant's consent.

If the landlord does not notify the bank in writing within 3 months after the tenant has vacated the property that he has filed a lawsuit or initiated enforcement proceedings, the bank is obliged to directly refund the deposit upon the tenant's request.

Right to Show the Property

The landlord may request that the property be shown at reasonable times for the purpose of selling or re-renting the property. If an agreement cannot be reached on the days and times, the Civil Court of Peace determines a visitation schedule appropriate to the circumstances, taking into account the working hours of the parties.

Continuation of the Contract in Case of Sale

In the event of the sale of the property, the existing lease agreement continues as is with the new owner. If the new owner requests eviction on the grounds of housing need:

• Must send a written warning to the tenant within 1 month of the deed transfer
• Must file an eviction lawsuit after 6 months
• The need for housing must be real and continuous

Mandatory Mediation: September 1, 2023

According to Article 18/B added to the Law on Mediation in Legal Disputes (HUAK) No. 6325 by Law No. 7445, as of September 1, 2023, it is a condition of the lawsuit to apply to a mediator before applying directly to the court in the following disputes:

• Rental disputes (excluding eviction through summary execution)
• Site/apartment dues and management disputes arising from the Condominium Law
• Neighboring rights disputes

Lawsuits filed without applying to a mediator are directly rejected on procedural grounds by the court due to the lack of a condition of the lawsuit.

Mediation Process

1. Application: Application is made through the mediation offices at the courthouses or via UYAP.
2. Appointment of a Mediator: One of the mediators on the list is assigned to the system.
3. Meetings: The mediator completes the process by meeting with the parties within 4 weeks at the latest.
4. Fees: The first 2 hours are free. The parts exceeding the time are shared equally according to the minimum wage tariff.
5. Agreement: The "Agreement Document" issued gains the nature of a court order with the enforceability order to be obtained from the Civil Court of Peace. Enforcement proceedings can be initiated against the non-complying party.

Consequence of Non-Attendance Without Excuse

The party who does not attend the process without excuse, even if he is completely right at the end of the lawsuit:

• Is sentenced to pay all of the litigation costs
• Cannot be awarded attorney's fees in his favor

Time Advantage

Mediation has reduced the workload on the judicial system to a great extent by ensuring that rental disputes are resolved in an average of 18 days, and has also provided the parties with the advantage of reducing time and cost.

Practical Tips

• Make a distance lease agreement: Written, complete party information, net deposit amount.
• Deposit to the correct account: Do not forget the joint account obligation at the bank.
• Document the rent increase: Over the CPI (the increase ceiling is determined by law).
• Mediator is required before eviction lawsuit: Choose the right channel to avoid loss of time.
• Keep all correspondence: Eviction/default notices must be made through PTT notary.

Details are based on the Mediation Department of the Ministry of Justice and the Turkish Code of Obligations No. 6098. It is recommended to consult a lawyer in case of a dispute.