Lease Disputes

Scope

This area covers disputes arising from leases of residential and roofed business premises. Claims between landlord and tenant concerning rent, eviction, payment and the use of the leased property are the principal subjects. Disputes concerning condominium ownership, neighbour law and the partition of co-owned property that fall under the same provision are also considered under this heading. A disagreement between tenant and landlord may not be limited to the amount of rent alone; interrelated matters such as payment, use of the property, handover and the deposit are addressed under separate headings.

Common issues

• Determination of rent and claims for an increase for the renewed lease period
• Receivables and consequences of default arising from non-payment of rent
• Eviction claims and disputes concerning the termination of the lease agreement
• Return of the deposit and handover of the leased property in a damaged condition
• Alterations made by the tenant and use of the leased property for purposes other than those intended
• Disputes between condominium owners over common expenses and use
• Claims under neighbour law concerning the overstepping of ownership rights and unlawful interference
• Division of immovable property held in co-ownership (partition of co-owned property)

How does mediation work in this type of dispute?

In lease disputes, mediation is a precondition for bringing an action. Under Art. 18/B of Law No. 6325 on Mediation in Civil Disputes, applying to a mediator before filing an action is compulsory in the lease, partition of co-owned property, condominium ownership and neighbour law disputes listed in the law.

• The application is made to the mediation office at the competent courthouse; the mediator is appointed by the office.
• The mediator concludes the process within three weeks; in compelling circumstances, this period may be extended by a maximum of one week (Art. 18/A of Law No. 6325).
• If no agreement is reached, final minutes are drawn up and attached to the statement of claim; an action filed without fulfilling the precondition is dismissed on procedural grounds.
• The provisions on the eviction of leased immovable property through enforcement without a court judgment are an exception to this rule. The nature of the specific claim and of the route of application is assessed separately; not all eviction proceedings are subject to the same procedure.
• As regards steps taken by way of enforcement proceedings, the scope of the precondition is assessed separately; the exceptions provided by law are reserved. Since the current version of the provision and the relevant court decisions may change, the text in force should be taken as the basis in each matter.

The mediator is not the representative of either party; the mediator does not act as a judge determining the rent or as an authority deciding on eviction. The sessions are confidential and the process rests on the will of the parties. The settlement agreement becomes a document having the force of a court judgment under the conditions laid down in Law No. 6325; the specific conditions relating to enforceability and to agreements concerning immovable property are also taken into account.

Matters that may be discussed in the sessions

• Rent and rental periods: which payment covers which period
• Payment plan
• Handover and keys: the date on which the property is to be vacated
• Deposit and expenses: conditions for its return and the current condition of the leased property

There is a difference between an allegation that no payment was made and a payment made being allocated to a different period. Identifying the agreement, the property and the periods under discussion at the outset of the sessions prevents related but separate claims from becoming confused.

Process and points to note

The lease agreement, payment receipts, formal notices and notarial correspondence, the undertaking to vacate, handover reports, records relating to the deposit and documents showing the condition of the leased property are the principal documents to be reviewed. The notice and filing periods provided by law in relation to the termination and renewal of the lease agreement must be monitored carefully, as they may lead to a loss of rights.

If an agreement is reached, which payment covers which period, when the handover will take place and the mutual obligations are clearly recorded. A partial agreement and the headings that could not be resolved are kept separate from each other.

Our office’s approach

The office reviews the lease agreement and payment records and determines the legal basis of the claim and the applicable time limits. Preparation for the mediation process, the legal review of the settlement text and, in matters where no agreement is reached, representation at the litigation and enforcement stages fall within the scope of this work. Where the role of mediator has been assumed in a dispute, the office does not act as counsel for any of the parties to that dispute.