WHAT IS A RENT DETERMINATION LAWSUIT?

HOW TO FILE A RENT DETERMINATION LAWSUIT?

To briefly summarize the process of how to file a rental determination case:

1. Application to Mediation: From September 1, 2023 onwards, it is mandatory to apply to mediation before starting rent assessment process. The parties enter into mediation and attempt to resolve their disputes.
2. Completion of Mediation Stage: After the mediation process is completed, if the parties cannot resolve their disputes, they can file the rent determination lawsuit.
3. Filing the Lawsuit with a Petition: The landlord or the tenant applies to the peace civil court with a lawsuit petition if they did not reach a conclusion through mediation.
4. Payment of Lawsuit Expenses: When filing the rent adjustment lawsuit, it is necessary to pay the lawsuit expenses in full. Payment of these expenses is crucial for the continuation of the lawsuit process.

This way, the lawsuit process continues in the peace civil court after going through the mediation stage. If the parties fail to reach an agreement through mediation for rent assessment, the court process begins, and the lawsuit is heard in the relevant court.

MANDATORY MEDIATION FOR RENT ASSESSMENT PROCESS

From September 1, 2023 onwards, it is a prerequisite to apply to mediation before filing a rental determination case. Therefore, initially applying to mediation is mandatory for starting the process of rent determination in Turkey. Otherwise, the court considers the lawsuit as not filed due to lack of this requirement.

During the mediation process, if the parties cannot resolve the dispute or if mediation fails, the right to file a lawsuit arises with the final mediation report. In other words, the right to file a lawsuit is obtained after the mediation process is completed and the final report is issued.

Therefore, it is important to complete the mediation process before proceeding to the lawsuit process for a determination of rent price. The mediation process aims to achieve a settlement between the parties and is a legal requirement. If the mediation process fails, only then does the right to file a lawsuit arise.

WHEN IS A RENT DETERMINATION LAWSUIT FILED?

A rent determination lawsuit can be filed at different times depending on the duration and conditions of the lease agreement. Different filing periods and procedures apply to lease agreements lasting longer than five years and those lasting less than five years.

When is a rent determination lawsuit filed?

1. Lease Agreements Lasting Five Years or Longer: If the lease agreement has been in effect for five years or more, a lawsuit can be filed. The judge will determine the rent amount based on the consumer price index (CPI) twelve-month change rate, the condition of the leased property, and comparable rental prices, in comparison to the market value.
2. Lease Agreements Lasting Less Than Five Years: If the lease agreement has not yet reached five years and the rate of rent increase has not been specified in the agreement, a lawsuit can still be filed to determining rental price. However, in this case, the judge cannot make a decision solely based on comparable rental prices. The judge may decide on a rent determination, provided that it does not exceed the twelve-month change rate of the consumer price index.

In both cases, the lawsuit can be filed by either the tenant or the landlord depending on the duration and conditions of the lease agreement. Before filing the lawsuit, both the tenant and the landlord must act in accordance with existing legal regulations and verify the presence of the conditions for a rent determination in Turkey.

CAN A RENT ADJUSTMENT LAWSUIT BE FILED BEFORE FIVE YEARS?

If there is no provision in the lease agreements for increasing the rent at certain intervals, a rent determination lawsuit can be filed before five years. In process of rent determination in Turkey, the court is determining  rental price based on the annual change rate of the consumer price index (CPI). However, the court does not investigate the market value of the property and only makes an increase based on the CPI.

However, under certain conditions, extraordinary circumstances that make the continuation of the lease agreement difficult may arise. For example, economic crises, natural disasters, or similar situations may affect the tenant’s ability to pay or adversely affect their livelihood. In such cases, a rent adjustment case can be filed based on Article 138 of the Turkish Code of Obligations. The rent adjustment case is different from rental determination lawsuits and has specific conditions and consequences.

A rent adjustment case requests the reorganization of the lease agreement based on the existence of specific conditions. These conditions usually include the presence of extraordinary circumstances and that the tenant’s situation is not caused by the plaintiff. The court evaluates these circumstances and may change the rent or terminate the agreement if deemed appropriate.

In conclusion, rent determination lawsuits and rent adjustment lawsuits are legal tools used to resolve uncertainties in lease agreements between tenants and landlords. However, both lawsuits have specific conditions and consequences that defendants must consider. To protect tenant rights in Turkey, it is important to seek legal advice from rental lawyer in Turkey and fully understand their legal rights during these processes.

HOW LONG DOES A RENT DETERMINATION LAWSUIT TAKE?

It’s not possible to provide a definitive answer to how long a process of rent determination in Turkey will take. The duration of these lawsuits is not governed by a strict rule and can vary depending on various factors. However, generally, it can be said that such lawsuits may take an average of 1 to 1.5 years to complete. Factors affecting the duration include:

1. Court Workload: The current workload of the court can affect the duration of the case. During busy periods, cases may take longer to process.
2. Expert Assessment Process: Depending on the complexity of the case, the court may send the file to an expert for rent assessment. The preparation and submission of the expert’s report can also prolong the process.
3. Evidence Collection: The gathering of evidence required by the case can also affect the duration.
4. Appeal Process: Rental determination cases are not finalized until a judgment is made. If one party appeals the decision, the process may be extended until the higher court completes its review.

Therefore, the resolution period of rent determination in Turkey is uncertain, and in addition to the factors mentioned above, other variables can also affect the process.

DOES A RENTAL DETERMINATION LAWSUIT REQUIRE A NOTICE?

A rent determination lawsuit does not require a notice. If the conditions for start the process of rent determination in Turkey are met, the lawsuit can be filed without sending a notice. However, sending a notice can be advantageous for the landlord if done in accordance with the procedure specified in Article 345/2 of the Turkish Code of Obligations.

Sending a written notice to the tenant when filing a rent determination lawsuit provides an advantage to the landlord. According to the second paragraph of Article 345 of the Turkish Code of Obligations, if the landlord sends a written notice to the tenant at least thirty (30) days before the end of the lease agreement, they can file their lawsuit for the new lease period. This notice must be in writing and is a requirement for validity.

However, it’s not mandatory for this notice to be sent through a notary or in accordance with the provisions of the Notification Law; the landlord can deliver the written notice to the tenant in an appropriate manner, but it must be in writing and timely. Therefore, even though there is no requirement for a notice in a rental determination case, if a written notice is sent in accordance with the relevant legal regulations, the lawsuit can be filed until the end of the new lease period.

DOES A RENTAL DETERMINATION LAWSUIT NEED TO BE FILED AFTER 5 YEARS IN EVERY RENTAL CONTRACTS?

If the increase rate specified in the contract has been agreed upon and determined by the parties, and they are satisfied with this rate, they are not required to file a rental determination case after 5 years. As long as the increase rate specified in the rental contract remains valid and the contract is not terminated by the parties, it is considered automatically extended for another year, and the specified increase rate is applied.

In this case, the increase in the rent will be subject to the terms of the contract according to legal process of rent determination in Turkey. If the parties have agreed upon this increase rate, it may not be necessary to file a rent determination lawsuit after 5 years. However, if there is a dispute between the parties or issues arise regarding the determining rental price, then a lawsuit can be filed to determining rental price.

In summary, the filing of a rental determination lawsuit after 5 years should be evaluated in accordance with the increase rate specified in the contract and the mutual agreement of the parties.

HOW IS THE 5-YEAR PERIOD CALCULATED IN RENT DETERMINATION IN TURKEY?

In rent determination in Turkey, the 5-year period is calculated from the start date of the rental contract. For example, if the start date of the rental contract is January 1, 2020, the five-year period is calculated from this date, and the 5-year period expires on January 1, 2025.

If the rental contract is renewed every year and a new rental contract is made in writing, the situation can become somewhat more complex.

How is the 5-year period calculated in process of rent determination in Turkey?

1. Calculation Based on the First Rental Contract: If there is no provision in the rental contracts signed between the parties indicating that the first contract has been completely invalidated and terminated, the 5-year period will be calculated based on the date of the first rental contract signed between the parties.
2. Calculation Based on Subsequently Signed Contracts: However, if there is a provision in the subsequently signed rental contract indicating that the first contract has been completely terminated, the five-year period will be calculated based on the date of the subsequently signed rental contract.

These considerations are important factors to be taken into account in calculating the 5-year period in process of rent determination in Turkey. Examining the details of the rental contracts and documents related to termination ensures accurate calculations and helps protect the rights of the parties in the lawsuit.

HOW IS DETERMINING RENTAL PRICE IN A RENTAL DETERMINATION CASE?

Determining rental price in rental determination cases is based on various criteria considered by the judge.

• CPI (Consumer Price Index) Change Rate: The twelve-month average CPI from the previous year is used as an important reference in determining rental price. The annual change in CPI is considered a fundamental indicator in determining the increase or decrease in the rental amount.
• Condition of the Rental Property: Factors such as the location, physical condition, intended use, features, and maintenance needs of the property play a crucial role in determining rental price. Well-maintained, modern, and functional properties are generally evaluated with higher rental amounts.
• Market Rental Value: The court also evaluates the rental amounts of other properties with similar characteristics in the area where the property is located. The market rental values ​​in the same area serve as an important reference in determining the rental amount.
• Equity: The principle of equity specified in Article 344 of the Turkish Code of Obligations plays a significant role in determining the rental amount. The court may apply discounts, such as discounts for previous tenants, taking equity into account when determining the rental amount.

The judge also considers factors such as the parties’ economic conditions, occupations, and sources of livelihood in determining rental price and strives to make a fair and equitable decision.

HOW IS AN EQUITY DISCOUNT APPLIED IN A PROCESS OF RENT DETERMINATION IN TURKEY?

In rent determination in Turkey, judges may apply a discount considering the principle of equity. This discount is often referred to as “equity discount” or “discount for previous tenants.”

The discount for previous tenants may be applied to individuals who have previously been tenants in the same property. This discount implies a reduction in the rental amount that new tenants would have to pay due to the long-term use of the property by previous tenants.

When determining rental price, the judge may decide on an equity discount by considering factors such as the condition of the property, market conditions, the general level of rental amounts, and other important factors. This discount is typically reflected as a decrease in the rental amount and is determined in accordance with the principle of equity by the judge in the rent determination lawsuit.

However, the amount of the equity discount and the conditions under which it is applied may vary in each case. Generally, an equity discount of between 10% and 20% is determined in rental determination lawsuits.

This rate is applied by the court based on the principle of equity during the process of determining rental price. Therefore, the conditions of each process of rental determination in Turkey are different, and judges evaluate each situation individually.

CAN A RETROSPECTIVE RENTAL DETERMINATION CASE BE FILED?

The rent determination lawsuit generally affects the rent prospectively. However, under certain conditions, a retrospective rental determination case can be filed. According to the legislation of rent determination in Turkey, these conditions are as follows:

• If there is a Provision Regarding Increase in the Contract

  If there is a provision in the lease agreement stating that the rent will be increased in the new lease term, if a retrospective rental determination case is filed in due time, the ruling by the court will be effective from the beginning of this new period.

• If There is No Provision Regarding Increase in the Contract

  If there is no provision in the lease agreement regarding an increase in rent, the lessor must file a rent determination lawsuit within thirty days of the start of the new lease term, or send a written notice to the tenant at least 30 days before this date, and must file the case by the end of the new term. When these conditions are met, the rent determined by the court will be effective from the beginning of the new term.

Therefore, before filing a retrospective rent determination case, it is important to carefully examine the terms of the contract and the legislation. These steps should be taken to protect the rights of both the lessor and the tenant and to act in accordance with the appropriate procedures.

WHEN DOES A RENT DETERMINATION LAWSUIT BECOME EFFECTIVE?

The answer to the question of when a rent determination lawsuit becomes effective is regulated in the Turkish Civil Code. If the lawsuit is filed within 30 days of the start of the new lease term, or if the tenant is sent a notice 30 days before the new lease term begins, or if there is a provision for an increase in the lease agreement, the new rent amount will be effective from the start of the lease period in which the case was filed. In this case, the court’s decision will be effective immediately for that period.

However, if these conditions are not met, if a notice is not sent to the tenant at the time of filing the lawsuit or within the 30-day period, and if there is no provision for an increase in the lease agreement, the court’s decision will be effective from the next lease period.

These explanations are important for understanding the procedures and decisions to be applied during the rent determination lawsuit process. By considering these rules, lessors and tenants can protect their rights and act in accordance with legal procedures.

HOW MUCH ARE LAWYER FEES AND LITIGATION COSTS IN A RENTAL DETERMINATION CASE?

Rental determination cases are subject to proportional fees. Proportional fees are calculated based on the annual value of the rent. In other words, the annual amount of the rent is used in the calculation of the court fee for the case. Proportional fees can vary depending on the value of the case and are usually calculated based on a certain percentage.

Additionally, fees determined by the court for procedures such as expert examination must be paid. These costs can vary depending on the process and requirements of the case. The parties to the case are responsible for paying the fees for the implementation of legal procedures such as discovery and expert examination.

If a lawyer is retained at any stage of the case, the lawyer fees for the rent determination lawsuit are subject to the minimum lawyer fee schedule. Attorney fees for a rent determination case may vary depending on the services provided by the attorney and the complexity of the case, and cannot be less than the minimum attorney fee schedule. The attorney fees for a rent determination case are determined based on the agreement between the attorney and the client and in accordance with legal regulations.

In this way, various expenses and fees may be incurred during the process of rent determination in Turkey. It is important for the parties to consider these expenses and plan the financial aspect of the case together with a real estate attorney.

CAN A COMMERCIAL RENTAL DETERMINATION CASE BE FILED?

In cases of commercial leasing, a lawsuit for rent determination can also be filed. A rent determination lawsuit is a legal process initiated to determine the rent for immovable properties such as commercial or residential premises between the tenant and the lessor. There is no separate regulation for commercial leases in the law, and the rent determination lawsuit is applicable to commercial premises as well.

The process of filing a lawsuit is generally carried out to ensure that the rent is determined fairly and in accordance with equity. In cases of commercial leasing, a rent determination lawsuit can be filed when there is a dispute between the tenant and the lessor regarding the rent or when the existing rent needs to be reassessed.

Tenants and lessors may resort to this option to protect their legal rights and ensure the determination of a fair rent during the process of determining rental price.

CAN A RENT DETERMINATION LAWSUIT BE FILED WHILE AN EVICTION CASE IS ONGOING?

A rent determination case and an eviction case can be filed simultaneously. According to decisions of the Court of Supreme, a rent determination case can be initiated while an eviction case is ongoing, and filing a rent determination case alongside an eviction case does not pose any obstacle or cause a conflict of interest.

In this scenario, while the tenant files a lawsuit to determine the rent amount, the landlord can also file an eviction case to remove the tenant. Both parties have the opportunity to defend their rights and seek legal recourse in both cases.

In conclusion, it is legally permissible to file a rent determination case while an eviction case is ongoing, and it is a method that the parties involved can use to protect their rights.

WHAT ARE THE RESULTS OF A RENT DETERMINATION IN TURKEY?

The results of a rent determination in Turkey case may vary depending on the court’s decision and the procedures applied. However, generally, the outcomes of a rent determination in Turkey can include:

• Determination of a New Rent Amount: As a result of a rent determination lawsuit, the court establishes a fair rent amount, which affects the rent payable by the tenant.
• Retrospective Effect: If the conditions for a rental determination case are met and the court determines a new rent amount, this amount typically applies retroactively from the beginning of the rental period in which the case was filed.
• Litigation Costs: The distribution of litigation costs among the parties is determined by the court. These costs usually vary depending on the length and complexity of the legal proceedings.
• Binding Nature of the Judicial Decision: The court’s decision is binding on the parties involved. Non-compliance with the decision may result in legal consequences.
• Resolution of Disputes: The court may resolve disputes between the tenant and the landlord regarding the rent amount. A clear determination of the rent amount by the court can prevent further disagreements between the parties.

The results of a rental determination case may vary based on the specifics of the case and the parties’ requests. However, the primary goals typically include establishing a fair rent amount and resolving disputes between the parties involved.

CAN A NEW LANDLORD FILE A RENTAL DETERMINATION CASE?

Purchasing a property with tenants in place means becoming a party to the landlord-tenant relationship. In this case, it’s important to consider the existing lease agreement and the continuation of the landlord-tenant relationship. When it comes to filing a rent determination case, the procedures and timelines to be followed depend on the terms of the existing lease agreement. Therefore, a new landlord is free to file a case for rent determination in Turkey.

When a new landlord files a rent determination case, they should take into account the provisions and timelines specified in the existing lease agreement. If specific procedures and timelines are outlined in the existing lease agreement, it’s important to adhere to these timelines and follow the procedures accordingly.

CAN A VERBAL LEASE AGREEMENT BE THE BASIS FOR A RENTAL DETERMINATION CASE?

There may be uncertainties for many people regarding the validity of verbal lease agreements in the process of filing a rent determination lawsuit. However, lease agreements are not subject to formal requirements. In other words, a lease agreement can be either written or verbal. Therefore, if the existence of a verbal lease agreement is acknowledged by both parties, it is possible to file a case for rent determination in Turkey.

However, there may be some difficulties in proving the existence and validity of verbal agreements. It is important to have evidence of the existence of verbal lease agreements and for both parties to acknowledge this agreement during the rental determination case process. Proving the existence of verbal lease agreements may be more challenging compared to written lease agreements.

In conclusion, if there is a verbal lease agreement in place, it is important for the parties to document this agreement and gather necessary evidence. This way, during the process of filing a rent determination case, the validity of verbal lease agreements can be evaluated, and a fair decision can be made.