According to the Article 347 of the Turkish Code of Obligations (“TCO“), the lessor may not terminate the fixed term lease agreement based on the expiration of the term of the agreement.
Scope of Relevant Article
As per Article 347 of TCO:
- A lease agreement on residential premises and roofed workplaces will be deemed to be extended for 1 (one) more year with the same conditions unless the tenant serves a termination notice at least fifteen days before the expiration of the contractual term.
- However, the landlord is not entitled to terminate the lease agreement due to the end of the contractual term.
- The landlord may terminate the lease agreement without giving any reason at the end of the ten-year extension period, provided that the lessor gives notice at least three months before the end of any extension year.
Certain scholars argued that the term of the lease agreement should be included in calculating the ten-year extension period. However, Turkish Court of Cassation’s interpretation of the Article is in line with the wording of the Article.
Turkish Court of Cassation’s Opinion
Relevant award of the Turkish Court of Cassation is as follows:
- Turkish Court Of Cassation, 3rd Chamber Of Civil Law No. 2018/1108 K. 2018/6817 Date 20.6.2018
- “The case should be rejected on the grounds that the evacuation of the immovable cannot be requested by notification (by landlord) before 31.03.2024, the expiration date of the statutory ten years of extension period, that stipulated in the Article 347 of the Turkish Code of Obligations. Such extension period shall commence from 31.03.2014 which is the expiration date of the ten years lease agreement.“
Conclusion
The landlord may only terminate the lease agreement on residential premises and roofed workplaces without giving any reason at the end of ten-year extension period.
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