Termination of the Lease Agreement for the Purpose of Reconstruction or Development of the Leased

Article 350 of the Turkish Code of Obligations regulates how the lessor will terminate the contract for the purpose of rebuilding or zoning the leased property. The important thing here is that it is a fundamental repair and it is impossible to use the leased property during this period. In this case, if there is a fixed-term rental contract, at the end of the term, if the contract is for an indefinite period, it can be terminated with a lawsuit to be filed within one month, starting from the date to be determined in accordance with the termination period and the periods stipulated for the termination notification according to the general provisions regarding the lease.

In this case, priority has been given to the former tenant in terms of leasing after the construction of the leased property. According to Article 355, if the leased property is evacuated for the purpose of reconstruction or zoning, the former tenant has the right of priority in the new condition of the leased property, whose reconstruction and development has been carried out, and with the new rental price. However, in order for this right to be exercised, the lessor must make a written notification and then the former tenant must use this notification within one month. It should also be noted that unless this right of priority is terminated, the leased property cannot be leased to someone else for a period of three years. Otherwise, the lessor will be obliged to pay compensation to the former tenant, not less than one year’s rent paid in the last rental year.

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