TÜRKİYE Law and Practice Contributed by: Serkan Gül, Nazım O Kurt and Türkay Avanaş, Hergüner Bilgen Üçer Attorney Partnership
6.6 Determination of New Rent If the parties fail to mutually agree on a new rent - al amount, either of the parties can apply to the court to render a new rental amount according to the market price at the end of each five-year lease term. 6.7 Payment of VAT If the lease property is part of a commercial enterprise or is owned by a limited liability com - pany/corporation, VAT is applicable at 20% of the rent. Withholding tax is applicable to com - mercial entities for leases of natural person- owned real estate. 6.8 Costs Payable by a Tenant at the Start of a Lease A commission to the real estate agency and a deposit to the real estate owner are generally paid by the tenant at the start of a lease as per current market practice. 6.9 Payment of Maintenance and Repair The areas used by several tenants, such as car parks, gardens or swimming pools, are classified as common areas, and expenses arising out of the use of these areas are divided among ten - ants according to certain criteria (eg, land share, If the building housing the premises has been converted to condominium use, then each tenant is able to obtain an individual utilities account for their own use. Expenses incurred for common areas are generally allocated among tenants on the basis of the square metres of the property. Managers of such properties usually reserve for themselves, by contract, the authority to take into account other factors such as the tenant’s location within the premises, the extent to which square metre-size of property). 6.10 Payment of Utilities and Telecommunications
the presence of the tenant generates business for the facility as a whole, the tenant’s business volume, etc. The allocation of common expenses among tenants in shopping centres is governed by the Regulation on Shopping Centres ( Alışveriş Merkezleri Hakkında Yönetmelik ). The regulation specifies mandatory rules to be used when allo - cating common expense contribution amounts to tenants in shopping centres. The common expenses are, in principle, allocated according to the square metres of the respective stores, restaurants, etc. 6.11 Insurance Issues Generally speaking, landlords insure the prop - erty against structural risks, and tenants insure the property against operational risks. Land - lords also insure the common areas of shared- use properties and can increase the cost of this insurance depending on the parties’ bargaining positions. The law imposes the cost of manda - tory insurance on landlords by default but per - mits reassignment of these costs. Landlords typically insure properties against fire, hurricanes, explosion, water damage, flooding, landslides, snow damage, aircraft impact, and earthquakes. Terrorism insurance is also some - times taken out. A lessee typically takes out a renter’s all-risk insurance as well as third-party liability insurance. 6.12 Restrictions on the Use of Real Estate The use of land is regulated under the zoning plan for the locality. These restrictions operate in the background and supersede any conflicting provisions of any lease agreement that is signed between a landlord and a tenant. Furthermore, under the Code on Condominiums, the opera -
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