Turkish Constitutional Court Considers Lessors' Ability To Terminate Fixed Term Leases

Turkish legislation protects lessees by imposing comparatively higher thresholds on lessors to terminate fixed term leases. A first instance court recently applied to the Turkish Constitutional Court, claiming a legislative provision enabling lessors to terminate fixed term leases without providing any reason at the end of ten years extension period violates constitutional property rights, as well as freedom or labour and contract. The Turkish Constitutional Court held that the provision is not unconstitutional.

The Turkish Code of Obligations states that on expiry of fixed term lease agreement, leases will be automatically extended for a further year unless the lessee gives 15 days prior notice of termination (Article 347). However, lessors are not entitled to terminate the lease agreement based upon the agreement expiring.