Mediation requirement for real estate lawsuits

As of September 1, 2023, it will be required to apply to a mediator before filing a lawsuit in disputes arising from the rental relationship, disputes regarding the allocation of movable and immovable properties and dissolution of partnership, disputes arising from the Property Ownership Law, and disputes arising from the right of neighbors.

Making evaluations on the subject, Altın Emlak General Manager Mustafa Hakan Özelmacıklı said, “The number of lawsuits in tenant-owner disputes has increased especially in recent years due to the limitation on rent increases and increasing real estate values. Only in 2022, lawsuits for dissolution of partnership, filed in civil courts, amounted to 42 thousand, eviction of the leased property amounted to 32 thousand 364, and rental lawsuits amounted to approximately 21 thousand. With the new regulation, many disputes such as rent determination lawsuits, rental eviction lawsuits, disputes arising from the Condominium Ownership Law will be resolved much more easily.

“CPI REGULATION COULD CONTINUE”

Özelmacıklı said, “The agreements regarding the rental price to be applied in the renewed rental periods between 11 June 2022 and 1 July 2023 were arranged in such a way that they cannot exceed 25 percent of the rental price of the previous rental year. However, this regulation remained at a very low level due to increasing value and inflation rates. Due to the low rental prices, landlord and tenant disputes rose to the top. Instead of this regulation, it would be much better if the increases were again based on the last twelve-month averages in the consumer price index. Because this regulation could not be implemented in the market and there was no response between the parties.

“MEDIATION ORIGIN CAN BE OINTAGE”

Özelmacıklı stated that he thinks that an agreement can be reached at a rate of close to 50 percent in real estate disputes when we look at the mediation statistics, and said, “Mediation is the most widely known and applied dispute resolution method among the dispute resolution methods through amicable means. The mediator is not the decision maker in this process. The parties can attend the meetings in person or through their lawyers, if any. There is no fee for applying to the mediation office. If the parties cannot reach an agreement in the mediation negotiations, the 2-hour fee is covered by the Ministry of Justice budget. In the event of an agreement, the fee is paid equally by the parties, unless otherwise agreed. If the parties cannot reach an agreement, they can also file a lawsuit by applying to the court,” he said.