VIOLATION OF THE LEASE CONTRACT SOLELY SHALL NOT BESTOW LESSOR RIGHT OF TERMINATION

Turkish Code of Obligations numbered 6098 (hereinafter the “TCO”) (In Turkish, “Türk Borçlar Kanunu”) that came into force on 1 July 2012 envisages provisions in relation to the lease agreement under the Turkish law system.

In principle, the violation of the clauses stipulated in the lease agreement by the Lessee shall not directly bestow to the Lessor the right to terminate the lease agreement. In other words, a clause stipulating that in the event of violation of any provisions of the lease agreement by the Lessee shall entitle the Lessor to terminate the lease contract shall be construed as invalid. That being said, the following two situations provided in articles 315 and 316 of the TCO will enable the Lessor to terminate the lease agreement provided that the envisaged legal obligations such as duly notifying the Lessee or providing the Lessee with the curing period in accordance with the law is performed.

• By virtue of Article 315 of the TCO, if the Lessee defaults in payment obligation, i.e. the Lessee pays the rent or the expense late or partially late or who does not pay it at all, may provide a termination right to the Lessor. Although this may clearly be a violation under the lease contract, the Lessor must provide a curing period of at least thirty (30) days and notify the Lessee that if the payment is not made within the curing period, the lease agreement shall be terminated and that eviction proceedings would be followed.
• As per Article 316 of TCO, the Lessor’s violation of the careful use of the leased premises may provide a termination right to the Lessor in accordance with the Lessee’s obligation of careful use and respectful behavior towards the neighbors. However, in such a situation, the Lessor shall provide a curing period of at least thirty (30) days and notify the Lessee in accordance with Article 316 paragraph 2 of the TCO following such notification, if the lessee continues to violate its obligations, the lessor would give a written notice that the lease agreement will be terminated.

By way of an example, sub-leasing of the leased premises without obtaining the permission of the Lessor could be construed as a violation of obligation to careful usage by the Lessee under Article 316 of the TCO provided that thirty (30) day curing period is granted to the Lessee. If the Lessee does not comply with the obligation of use the premises with careful usage the Lessor shall be bestowed with the right of termination.

Besides, it should be noted that, according to Article 332 of TCO, if the Lessee becomes bankrupt after handing over the leased property, the Lessor is entitled to request a written guarantee to be provided within a reasonable period. The Lessor shall give reasonable time to the Lessee and the bankrupt’s estate for getting the guarantee. If such a guarantee is not given to the Lessor in due time, the Lessor may immediately terminate the lease agreement without following a new termination notification period.

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