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LAW OF OBLIGATIONS
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the parties in relation to a rent increase rate depends on the increase’s
not exceeding the “producer price index”. The 2nd sub-paragraph of the
article states that in the absence of any agreement with respect to a rent
increase, the judge will determine the rent for the new lease period taking
into consideration the condition of the leased property complying with
equity, and “the producer price index” will be accepted as the maximum
increase allowed. On the other hand, the third sub-paragraph of the
article states that the judge will determine the rent, whether there is an
agreement between the parties or not, by taking into consideration the
producer price index, the condition of the leased property, comparable
rentals, and equity principles if the lease period is more than five years
or the lease agreement is renewed after five years in every fifth year.
However, the producer price index is not accepted as the maximum limit
for a rent increase. Additionally, the rent determined for every five-year
period in this manner may be amended pursuant to sub- paragraphs one
and two in the following years.
If the rent is fixed in a foreign currency by the parties, article 344/4
of the TCO regulates that there is a limitation on any increase in rent.
Accordingly, no amendment may be made as to the rent before five years.
The rent will be determined pursuant to sub-paragraph 3 of the article
taking into consideration the monetary value of the foreign currency after
five years have passed.
In article 345 of the TCO, the limitation period and the impact of any
award via a lawsuit initiated for determining the rent are regulated. It is
accepted that the lawsuit for determining the rent may be initiated at any
time. However, the new rent determined by the court will bind the lessee
beginning from the new lease period provided that the lawsuit is initiated
at least 30 days before the new lease period, or if the lessor has given
notice with regard to an increase in rent in writing to the lessee within
such period, it may be initiated until the end of the new lease period. If
there is an article in the lease agreement stipulating a rent increase for the
new lease period, the rent determined by the court in a lawsuit initiated
before the end of the new lease period will also be valid beginning with
the new lease period.