MANDATORY MEDIATION AS OF 1 SEPTEMBER 2023 REGARDING LEASE DISPUTES AND CERTAIN IMMOVABLE LAW DISPUTES

The Law numbered 7445 on Amending Code of Enforcement and Bankrupcy and Certain Laws (in Turkish “İcra ve İflas Kanunu ile Bazı Kanunlarda Değişiklik Yapılmasına Dair Kanun”) has made important amendments by introducing Article 18/B to the Law numbered 6325 on Mediation in Legal Disputes (in Turkish “Hukuk Uyuşmazlıklarında Arabuluculuk Kanunu”, hereinafter referred to as the “Mediation Law”) and it has been published in the Offical Gazette dated 5 April 2023 and numbered 32154.

Accordingly, 18/B of the Mediation Law anvisages that in the following certain disputes, applying to a mediator before filing a lawsuit is mandatory as a lawsuit condition (in Turkish, “dava şartı”):

• disputes arising from lease relationships – except for the provisions regarding the eviction of leased immovables through enforcement proceedings without judgment stated in the Code of Enforcement and Bankrupcy numbered 2004 (“2004 Sayılı İcra ve İflas Kanunu”);
• disputes arising from the division of movables and immovable, and the elimination of joint ownership;
• disputes arising from the Condominium Law numbered 634 (“634 Sayılı Kat Mülkiyeti Kanunu”);
• disputes arising from the neighboring rights regulated in the Turkish Civil Code numbered 4721 (“4721 Sayılı Türk Medeni Kanunu”).

If the parties reach an agreement at the end of the mediation process, the settlement document shall be prepared through considering the limitations, procedures and principles contained in the laws related with the immovable.

It will be required to obtain an annotation regarding the enforceability of the settlement document issued, and such annotation will be obtained from the court of peace (“sulh mahkemesi”) at the place where the real estate is located in terms of settlement documents related to the immovable, and the place where the mediator works for other settlement documents.

The amendments shall enter into force on 1 September 2023.