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NewsTHE TERMINATION OF THE LEASE AGREEMENT OF DWELLING HOUSE AND ROOFED WORKING PLACE WITHIN THE CONTEXT OF THE NEW CODE OF OBLIGATIONS

February 1, 20120

The provisions regarding the termination of lease agreement embodied in the context of the Law on Real Estate Leases numbered 6570 dated 1955 are regulated between the articles 347 and 356 of the New Turkish Code of Obligations numbered 6098 as of the date of 01.07.2012. The institution of the termination of the lease agreement of dwelling house and roofed working place within the context of The new Law has been gathered under the headings of a termination with notice and a termination of a contract through litigation.

1- Termination with notice (Article 347)

According to the clause 1 of article 347 of the New Code of Obligations, unless the lease holder give notice with a written declaration 15 days before the termination of the fixed term contracts, the contracts shall be accepted to be extended one year more under the same conditions. This provision has the characteristics of the repetition of article 11 of the Law numbered 6570.

On the other hand, in accordance with the clause 2 of the same article, it is stated the lease agreement exceeding 10 years can be terminated by the lessor without showing any reason by giving notice. In this situation, the lessor can terminate the lease agreement without showing any reason after the termination of the duration set forth in the lease agreement and for ten-year lease renewal provided that the notice has been given in three months before the termination of the new rental year following this ten year.

However, in accordance with the temporary article 2 of the New Code of Obligations; the law shall be applied five years after its effective date to the lease agreements of which the ten-year extension period is not expired and the rest of the duration is less than five years and two years after to the lease agreements of which the ten-year extension period is expired.

The termination process of lease agreement drawn up for family dwelling is regulated under the article of 349 of the new Code of Obligations. According to this, if the leased premises used for the purpose of family dwelling, the lease holder shall not terminate the contract without an express consent of his partner.

According to clause 2 of the same article, if it is imposible to obtain this consent or the partner avoids giving consent without justifiable reason, the lease holder can demand a judge to decide on this subject. On the other hand, it is stated under the clause 3 of article 349 that the partner who is not the lease holder can also gain the capacity to be a party to the lease agreement by giving notice to the lessor. Thus, the lessor shall give the notice of termination with payment period depending on the warning of termination to both the lease holder and his partner separately.

2- Termination through litigation

Termination through litigation has been regulated under two headings in the context of the new Law as the reasons arising from the lessor and the lease holder.

a-The termination of the lease agreement through litigation due to the reasons arising from the lessor

a.a. Necessity, restoration or reconstruction of premise (Article 350)

The provisions of the termination of the lease agreement through litigation in the content of the new Turkish Code of Obligations are constituted by combining the provisions of article 266 of the previous Code of Obligations numbered 818 and article 7 of the Law numbered 6570.

a.a.a. Necessity (Article 350/1)

According to the clauese 1 of article 350 of the new Law, if the Lessor is under the necessity of using the premise as an dwelling house or a working place for himself, his partner, decendants, linear ancestors or other poeople who he is obliged to look after by law, the Lessor can terminate the fixed term agreement at the end of rental period and the agreement of indefinite duration in one month starting from the date determined in accordance with the terms set forth for dissolution period or notice of termination as per general provisions regarding leasing by filing a suit.

The new Law, different from the Law numbered 6570, has also counted people of whom are the lessor’s decendants, linear ancestors or other poeople who he is obliged to look after by law among people in need. Therefore, in the event that the lessor’s grandchildren or even his grandchildren’s children is under the necessity of using the premise, it is possible that the lessor can demand the eviction of premise.

On the other hand, the rule of not to lease the premise for a defined period which is accepted as the measurement of the lessor’s sincerity has embraced under the article 355 of the new Code of Obligations. According to the clause 1 of mentioned article, the Lessor cannot lease the premise of which has been vanished for neccessetiy to anyone without justifiable reasons in three years. Otherwise, in accordiance with the clause 3 of article 355, the lessor shall be obliged to compensate the former lease holder not less than at an amount of the rent of last lease year. Thus, it is stated that the sanction of compansation will be implemented if the lessor is not sincere on the evacuation demand due to necessity.

b.b.b. Restoration or reconstruction (Article 350/2)

If the premise requires major repairs, widening and changing with the purpose of reconstruction and restoration and it is imposible to use the premise during these works, it is posibble that the lessor can demand the evacuation. This article is the same as the arrangment in the subclause ç of the article 7 of the Law numbered 6570, the provision of the article has been just translated into up-to-date Turkish language.

Besides, as the evocation for necessity, a separate arrangement for evocation demand due to restoration and reconstruction has been also brought by the article of 355 of the new Code of Obligations. According to this, the lessor cannot lease the premise in the old state to others without justifiable reasons in three years providing the premise to be evacuated for restoration and reconstruction. The previous lease holder has a priority right on the subject of leasing the restored and reconstructed premise with its new state and new rent. However, the previous lease holder needs to use this right in one month following the written notice to the lessor. If the lessor violates these provisions, he shall be obliged to compensate the former lease holder not less than at an amount of the rent of last lease year.

b.b. The necessity of new owner (Article 351)

If the person accruing the premise afterward is under the necessity of using the premise as a dwelling house or a working place for himself, his partner, descendants, linear ancestors or other people who he is obliged to look after by law, he can terminate the lease agreement by lawsuit opened after six months provided that he shall inform the Lease holder in a written form in one month starting from the date of acquisition.

The person accruing the premise afterward can also use the right to terminate the agreement, if necessary, by filing a suit in one month starting from the termination of rental period. Therefore, it is also stated in this provision of article that the new owner can also evacuate the premise for his decendants, linear ancestors or other poeople who he is obliged to look after by law. Except this condition, the all other terms are the same as the subclause d of article 7 of the Law numbered 6570.

b-Termination through litigation due to the reasons arising from the lease holder (Article 352)

It is stated under the article 352 of the new Law as it was expressed under the subclause a of article 7 of the Law numbered 6570 that if the lease holder did not vacant the premise despite of the fact that he undertakes the obligation to vacant the premise on a proper date in a written form against the lessor after the delivery of the premise, the lessor can terminate the lease agreement by applying for execution or filing a suit in one month starting from this date.

Besides it is stated under the clause 2 of article 352 that “If the Lease holder caused to be given two justifiable notices due to non-payment of the rent in the rental period for less than one-year contract or in one lease year or in the time exceeding one lease year for one year or longer time lease agreement, the lessor can terminate the lease agreement thought litigation in one month starting from the termination of lease period and the termination of lease year given notice for leases of more than one year”. As follows;

With this new article which is different from the current practice, it is possible to file an eviction action with two justifiable notices for less than one-year lease agreement. Besides, once again contrary to the current practices, it will also be possible for more than one-year lease agreement of which the rest of the duration after a year is less than one year (for example 18-month lease agreement) to file an eviction action on the bases of two justifiable notices in the rest of the duration.

Another change has been also brought for long term lease agreements. According to this, if two justifiable notices have been given to the lease holder in the first rental year for more than one-year (for example three year) lease agreements, in this situation, an eviction action could be filed against the lease holder in one month after completing the first rental year.

In accordance with the clause 2 of article 352, if the lease holder or his partner living together has an inhabitable dwelling house in the same boundary of county, city or municipality, and the lease holder did not know this situation at the moment of drawing up the agreement, he can terminate the agreement in one month from starting the termination of agreement.

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