A rent determination lawsuit is a lawsuit filed by the court to determine the rental price in accordance with market conditions in residential and workplace rentals that continue for five years or more. This type of lawsuit is a legal process used when the rental fee needs to be redetermined in accordance with legal regulations or when there is a disagreement between the parties regarding the determination of the rental fee.
General Information About Rent Determination Case
The rent determination case is only valid for residential and roofed workplace rents. This type of lawsuit cannot be filed for fields, vehicles or other immovable property. These cases are generally seen in cases where the court assumes the role of resolving disputes between the parties and determining a rental fee in accordance with legal regulations, in order to determine the rental fee fairly.
Purpose of the Case
The main purpose of the rent determination case is to determine the compliance of the current rent with market values. This lawsuit can be used by the tenant or lessor to determine through the judiciary whether the current rent is fair based on market conditions.
Scope and Limitations of the Case
The rent determination case is only for the determination of the rental fee and therefore does not include the collection of the rental fee. The decision taken in the case focuses on the exact determination of the rental price and this decision cannot be enforced through writ of execution. A separate legal process is required to collect the rental fee.
This information serves as a basic guide on what a rent determination lawsuit is, when it can be filed, and for what types of situations it can be used. In case of any dispute, this legal remedy can be used for a fair re-evaluation of the rental fee.
Rent Determination Case and Legal Basis
Rent determination cases are generally filed to resolve future uncertainties in existing lease agreements. The main purpose of such cases is to eliminate the uncertainties that may arise depending on the lease agreement and to ensure that the rental price is determined fairly, rather than determining whether a legal relationship exists.
Legal Basis
The legal basis of the rent determination case is Article 344 of the Turkish Code of Obligations (TBK). This article defines the legal procedures to be applied when the tenant or lessor's rights arising from the lease agreement need to be protected and the rental price must be redetermined fairly. The article includes the following points:
Article 344 of the Turkish Code of Obligations
“Regardless of whether an agreement has been made by the parties on this issue, in lease agreements with a term longer than five years or renewed after five years, and at the end of each five years thereafter, the rent to be applied in the new lease year is determined by the judge as to the rate of change in the consumer price index based on the twelve-month averages (CPI). ) is determined in an equitable manner, taking into account the condition of the leased property and comparable rental prices.”
Determination of Rental Price
If the lease has been in existence for five years or more and there is a dispute between the parties regarding a new rent, either party may request that the rent be determined by the court.
Opening a Declaration Case
The rent determination lawsuit is filed with the request of the parties to re-evaluate the suitability of the rental fee, determined according to the terms of the current lease agreement, to market conditions. This process is especially important when the rental price needs to adapt to changes in market conditions.
Role of the Court
The court ensures that the rental price is determined fairly by resolving the dispute between the parties and taking into account the current market conditions. In this process, the court aims to protect the rights of the parties by eliminating uncertainties regarding the lease agreement.
This regulation is of great importance in terms of ensuring justice in rental relations and adapting to changes brought about by economic conditions. The rent determination case is a critical legal mechanism that protects the rights of both tenants and lessors and allows the rental price to be determined fairly.
Rent Determination Case and Its Features
1. Purpose of Rent Determination Case and Re-evaluation Process
A rent determination lawsuit is filed for the purpose of re-evaluating the rental fee in accordance with market conditions in rental agreements that continue for five years or more. This process is based on the necessity that the rental price should not remain constant, especially when economic variables such as inflation are taken into account. The law gives lessors the right to file a lawsuit in this case, but certain conditions and rules must be met in order to file a lawsuit. Such cases are important for a fair redetermination of the rental price.
2. Legal Nature of the Rent Determination Case
A rent determination lawsuit can only be filed for the purpose of determining and fixing the rental fee, and as a result of these lawsuits, the collection of the rental fee cannot be directly requested. These lawsuits are carried out for the purpose of updating or making changes to the conditions of an existing legal relationship, rather than determining the existence of an existing legal relationship. Therefore, rent determination cases focus on the exact determination of the rent price, and these decisions cannot be enforced through writ of execution.
3. Results of the Rent Determination Case
Decisions taken in rent determination cases are only determinations and do not contain performance provisions. This means that no collection can be requested other than determining the rental price. The decisions of the General Assembly of the Supreme Court of Appeals on this issue emphasize that rent determination cases are only aimed at determining the rent price in a fair and equitable manner.
In light of this information, the rent determination case stands out as an important legal mechanism that protects the rights of both tenants and lessors and allows the rental price to be determined in accordance with market conditions.
Rent Determination Case Conditions and Process
1. Conditions of Rent Determination Case
A rent determination lawsuit can be filed by both tenants and lessors. This lawsuit is used to redetermine the rental price in accordance with current market conditions and can be filed at the end of five-year periods without any time limit. The applicability of this decision may vary depending on the duration of the lease agreement and the notice period given to the tenant.
2. Existence of Lease Agreement
The most basic requirement for filing a rent determination lawsuit is the existence of a valid rental agreement. The plaintiff must have a valid and valid lease agreement.
3. Legal Benefit
In accordance with Article 345 of the Turkish Code of Obligations, legal benefit must be present in order to file a rent determination lawsuit. The court will evaluate the existence of a legal benefit that requires filing a lawsuit and may reject the case if there is no benefit.
4. Expiration of the Five Year Period
In lease agreements, a lawsuit may be filed to re-determine the rental fee after five years have been completed. Article 344 of the Turkish Code of Obligations states this situation regardless of whether there is any agreement between the parties.
5. Written Notification (Warning)
In order for the lessor to file a rent determination lawsuit, he must give a written notice to the tenant at least thirty days before the end of the lease agreement. This notification may not be made in accordance with the provisions of the Notification Law or through a notary, but must be made in writing and on time.
6. Mandatory Mediation
As of 01.09.2023, it is mandatory to go through the mediation process before filing a lawsuit in rent determination cases. If an agreement cannot be reached during the mediation process, a lawsuit can be filed along with the mediation report.
7. Period for Filing a Rent Determination Case
If the lease agreement has been ongoing for five years or more, a rent determination lawsuit may be filed. In this case, the court determines a fair rental price by taking into account the CPI, the condition of the leased property and comparable rental prices. If the lease agreement has not yet expired for five years, the rental price can be increased in a way that does not exceed the change rates in the consumer price index.
This information is a general guide to the process and requirements for filing a rent determination lawsuit and can be a guide in resolving disputes in any lease agreement.
Retrospective Rent Determination Case and Conditions
1. Retrospective Rent Determination Case
Rent determination litigation often creates prospective effects; That is, the court's decision is valid from the date of the decision. However, certain conditions are required in order to file a retroactive rent determination lawsuit. If the tenant has been notified in advance in writing or if the conditions for a rent increase are specified in the lease agreement, it may be possible to apply the rent determined as a result of the lawsuit retroactively.
2. Presence of Increase Condition in the Contract
If there is a provision in the lease agreement that the rental fee will be increased for the new lease period and the lawsuit is filed until the end of the new lease period, the court's decision will be valid from the beginning of the new lease period. This covers situations where the lessor or tenant applies to the court to request an increase in the rent.
3. No Increase Condition in the Contract
If there is no specific increase requirement in the lease agreement, the lessor must file a retroactive rent determination lawsuit at least thirty days before the beginning of the new lease period. During this period, a written notice must be given to the tenant, and after this notice, a lawsuit can be filed until the end of the new term. When these conditions are met, the rent determined by the court is applied from the beginning of the new period.
4. Authority to File a Rent Determination Case
The rent determination lawsuit is usually filed by the lessor, but the tenant also has the right to file this lawsuit. A lawsuit can also be filed by the tenant, especially with the request to reduce the rental fee. Additionally, if the owner and the lessor are different persons, the owner can also file this lawsuit, according to the decisions of the Supreme Court. If there is more than one lessor, these people are considered compulsory co-defendants in the litigation process and must file the case together. This is because the consequences of the case will affect all lessors.
This information is a basic guide regarding the process and conditions of filing a retroactive rent determination lawsuit and may be a guide for interested parties.
Process of Determining the New Rental Price
Determining the new rent amount in rent determination cases is a process carried out meticulously by the court. In this process, the court evaluates expert reports, precedent rental prices and regional economic conditions. Here are the main criteria and methods used in this process:
1. CPI (Consumer Price Index) Rate of Change: The twelve-month average of the CPI is an important reference point in determining the rental price. Changes in the inflation rate are taken into account in adjusting the rental price fairly. This ensures that changes in economic conditions are reflected in the rental price, thus establishing a fair balance between the tenant and the lessor.
2. Condition of the Leased Property: Characteristics of the rented property such as its physical condition, location and intended use are important factors in determining the rental price. Well-maintained and strategically located properties can be valued at higher rental prices. The court determines the rental price by taking into account the maintenance status of the property and environmental factors.
3. Current Rental Price: The court also takes into consideration the rental prices of other immovable properties with similar characteristics in the area where the leased property is located. This is called the current rental rate and helps determine a rental rate appropriate to regional market conditions.
4. Equity: According to the Turkish Code of Obligations, the rental fee must be determined in an equitable manner. This may include a discount applied as a “old tenant discount,” especially for long-term tenants. Courts can generally reduce the rental fee charged by 15% to 20% if the property is vacant, giving the tenant an advantage arising from past rental periods in the property.
These processes aim to determine a fair and objective rent price in rent determination cases and aim to protect the interests of all parties. This information serves as an important guide for both tenants and lessors to understand the rent determination litigation process.
Processes Related to Price Increase and Improvement in Rent Determination Cases
1. Price Increase and Improvement in Rent Determination Case:
In rent determination cases, it is not possible to increase or improve the rent determined at the time of filing the lawsuit. According to the established decisions of the Supreme Court, changing the initially requested rent amount later is generally not accepted. In a decision made by the General Assembly of the Supreme Court of Appeals, it was ruled that price increase or improvement cannot be made in rent determination cases.
2. Rent Difference Enforcement Follow-up After Rent Determination Case:
Rent determination cases are aimed at finalizing the determined rent amount and include only the determination provision. For this reason, court decisions regarding rent determination cannot be enforced directly through writ of execution. A separate legal process is required to collect the rental fee. Finalized rent determination decisions can be put into enforcement proceedings and enforcement proceedings can be initiated without a judgment through general seizure.
3. Differences Between Rent Determination Case and Rent Adjustment Case:
There are important differences between the rent determination case and the rent adjustment case. A lease adaptation lawsuit requests a fair readjustment of the terms of the lease due to extraordinary and unforeseen circumstances. This may apply where the rental price is not fair to the parties due to current economic or environmental changes. For example, new infrastructure investments around a property may increase its value in unpredictable ways, which may require adaptation of the lease agreement.
4. Conditions of the Lease Adjustment Case:
The lease adaptation case is valid for all movable and immovable lease agreements and is not subject to any time limit. However, in order for this lawsuit to be filed, the conditions at the time the contract was made must have changed significantly and in an unforeseen way. These changes must have made the performance of the contract extremely difficult for one of the parties.
5. Competent Court in Rent Determination Cases:
The competent court in rent determination cases is the Civil Court of Peace of the place where the case is filed. The court is determined according to the place of execution of the contract or the residence of the defendant.
This information is important for a correct understanding of rent adjustment cases as well as rent determination cases and constitutes a useful guide for interested parties.
Frequently Asked Questions for Rent Determination Cases
1. Can a Rent Determination Case Be Filed Partially?
Since a clear and complete demand must be stated in a rent determination case, it is not possible to file such cases partially. The plaintiff's request must be clear and specific.
2. Can a Rent Determination Case Be Filed as an Uncertain Receivable Case?
A rent determination lawsuit cannot be filed as an indefinite debt lawsuit because the plaintiff's demand must be clear and definite.
3. Can Rent Determination and Eviction Cases Be Filed at the Same Time?
The rent determination case and the eviction case can be filed at the same time, or one can be filed while the other is ongoing. There is no legal obstacle to this situation.
4. Net Number Obligation and Reclamation Prohibition
In a rent determination case, the requested amount must be clear and specific; Therefore, it is not possible to increase the amount through breeding.
5. How to File a Rent Determination Case?
As of 01.09.2023, it is mandatory to apply to a mediator before filing rent determination cases. After the mediation process is completed, the lawsuit can be filed by the tenant or the lessor with a petition. When filing a lawsuit, litigation costs must be paid in full.
6. How Long Does a Rent Determination Case Take?
The duration of the rent determination case is not clearly determined, and it can generally take 1 to 1.5 years. This process may vary depending on the workload of the court and the referral of the file to an expert.
7. Determination of Reasonable Rental Price
When determining the rental price, the judge may make a fair reduction, taking into account the economic situations, professions and livelihoods of the parties. This is also known as an “equity discount” and may require further discounts if the tenant is a former tenant.
8. When Is the Determined Rental Fee Valid?
If the rent determination lawsuit is filed at least 30 days before the start of the new lease period, or if a written warning is given to the tenant within this period, or if there is an increase condition in the lease agreement, the new rent price will be valid from the beginning of the lease period in which the lawsuit is filed. Otherwise, the court's decision will be implemented in the next rental period.
9. Can the Rent Determination Case Be Enforced Before It Is Finalized?
The rent determination case cannot be enforced until it is finalized. It should be waited for the decision to be finalized.
10. Attorney Fees and Litigation Expenses in Rent Determination Cases
In rent determination cases, attorney fees are determined in accordance with the fee schedule determined by the Union of Turkish Bar Associations. Litigation costs include application fees, attorney fees, file expenses, expert fees and notification costs, and the total of these costs may vary from year to year.
This information is a general guide about rent determination cases.