TÜRKIYE Law and Practice Contributed by: Serkan Gül, Nazım O Kurt and Türkay Avanaş, Hergüner Bilgen Üçer Attorney Partnership
to the corporate law requirements stated under the Turkish Commercial Code. REICs and REIFs are also subject to capital markets regulations as they make use of funds provided by investors. 5.6 Annual Entity Maintenance and Accounting Compliance The cost of annual entity maintenance and accounting compliance depends on the type and size of the investment. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time Lease A lease is the basic type of arrangement that allows a person, company or other organisation to occupy and use real estate for a limited period of time without buying it outright. Right of Construction A right of construction may also be established as a type of right in rem in order to protect the owner’s right against third parties. In practice, a right of construction is preferable to other types of real estate use because it gives property rights to the holder of the right of construction for a period. A mortgage may also be established over a right of construction as it is independently registered in the title deed registry with separate ownership rights. Usufruct Another type of right in rem is the usufruct right, which entitles the right-holder to use and ben - efit from real property fully. The usufruct right is a right granted to a specific person and may not be transferred. It is a right that is limited in time; usufruct rights granted to legal persons are
limited to 100 years, and usufruct rights granted to natural persons are limited to the grantee’s lifetime. 6.2 Types of Commercial Leases There are no different types of commercial leases. All lease agreements are governed by the same regulation. However, leases may be classified as a ground lease or a building lease according to the rental conditions. Currently, there are also ongoing discussions to amend the legislation regulating home leases and com - mercial leases, though there are no drafts avail - able yet. 6.3 Regulation of Rents or Lease Terms Rentals are freely negotiable under lease agree - ments. However, certain lease terms, such as eviction, rent increase, etc, are specifically regu - lated under the Turkish Code of Obligations as mandatory terms. Turkish Code of Obligations The application of some of these mandatory terms was postponed for eight years when the Turkish Code of Obligations came into force on 1 July 2012 for merchants and private and public legal entities. As the eight-year period expired on 1 July 2020, these provisions became applicable to merchants and private and public legal enti - ties as well. Such provisions are mostly consid - ered to protect tenants against landlords, and provide certain limitations with regard to the lease agreement. For instance, the most promi - nent ones stipulate that obligations regarding additional payments other than rent and ancil - lary costs cannot be imposed on tenants, and penalty clauses for failure to pay and accelera - tion clauses will be deemed invalid. A piece of legislation enacted in 2018 prohib - its denominating rental fees in foreign currency
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