ENTRANCE
A lease adaptation lawsuit is a process that allows one party to request a judge to adapt the contract to the new conditions when the balance of an existing lease is disrupted due to unforeseen, extraordinary changes in economic and/or practical conditions. This mechanism aims to ensure the sustainability and fairness of contract performance.
DEVELOPMENT
1-) Legal Basis: TCC Article 138 and Related Provisions
Rent adaptation requests are generally evaluated in accordance with Article 138 of the Turkish Code of Obligations, titled “excessive hardship,” rather than a specific rent adaptation clause. Article 138 of the TCC stipulates that if extraordinary events unforeseen by the parties disrupt the balance of the contract, the judge may adapt the contract or, if adaptation is impossible, permit termination. The scope of application of Article 138 of the TCC, specifically regarding rent, is of particular importance due to the ongoing nature of the lease.
2-) Difference between Rent Adjustment and Rent Determination Cases
-Rent determination case (TBK art. 344/III): It generally comes to the fore within the framework of the provisions regarding the determination of the rental price according to the market/current rate and especially for 5-year periods; the procedure and results of the determination lawsuit are different.
-Rent adaptation case (within the framework of TCC article 138):In case the conditions under which the contract is established change unpredictably and excessively, it is opened to balance the contract; the aim is to ensure a “fair balance”.
This distinction is important from a legal, procedural and evidentiary perspective: In an adaptation case, the judge may remove the existing rental fee and assign a new one, or allow the termination of the contract, considering the balance of the contract; whereas a determination case rather issues a determination judgment determined by market/precedent research.
3-) Conditions of the Adaptation Case
-The existence of an extraordinary and unforeseen event:There must be an external and unexpected development that the parties could not reasonably have expected when the contract was formed.
-Extreme difficulty in performance / disruption of performance balance:The event must make the debtor’s performance extremely difficult or the balance between obligations severely disrupted. This is required in accordance with Article 138 of the TCC.
-The contract must be in continuous performance:Since lease agreements are permanent, adaptation provisions apply particularly to such agreements.
-Evaluation of the concrete event / proportionality:The request for adaptation is decided by the judge within the framework of proportionality, taking into account the concrete circumstances (economic situation of the parties, the nature of the real estate subject to the lease, market conditions, etc.).
4-) Which is the competent court?
The competent court in lease adaptation cases is the Civil Court of Peace. The competent court is the court of the defendant’s residence or the court of the location of the leased property.
5-) How Long Does the Trial Take? What is the Case Value? What is the Appeal Limit?
–In rent-fixing cases, the appeal threshold is determined by the annual rent. The claim value is the difference between the requested monthly rent and the current monthly rent. In rent adjustment cases, the claim value is the difference between the requested annual rent and the current annual rent. The claim value of a rent-fixing case and the claim value of a rent adjustment case are often confused. The procedure is as described above.
-The average trial period is between 6 months and 2 years. This period can be shortened if all evidence is presented completely.
–In a rent adaptation case, the appeal limit is determined based on the annual rental amount.
CONCLUSION
Rent adjustment litigation is an important institution that serves to maintain the balance between legal security and freedom of contract. Under Article 138 of the Turkish Code of Obligations, in the event of unforeseen extraordinary circumstances that render performance extremely difficult, a fair balance is achieved by redetermining the rent or terminating the contract.
Court of Cassation precedents demonstrate that requests for adaptation are not limited to long-term contracts, but that circumstances of extraordinary circumstances and unpredictability must be carefully evaluated in the context of the specific case. In this context, while the judge’s discretion is broad, economic data and expert reports are an integral part of the objective evaluation process.
In practice, adaptation cases are frequently filed based on macroeconomic factors such as economic crises, exchange rate fluctuations, or global pandemics. However, not every economic fluctuation is considered “extraordinary,” and this characterization is limited to exceptional circumstances. Therefore, establishing more concrete criteria for the concept of “extraordinary” through both legal doctrine and judicial decisions would increase predictability in practice.
MOST WONDERED QUESTIONS ABOUT THE RENT ADJUSTMENT CASE
1-) What is a rent adaptation case?
A rent adaptation lawsuit is a type of lawsuit filed to request the re-arrangement of the rent in accordance with current conditions or to allow termination in case the balance of the contract is disrupted due to extraordinary reasons that arise after the lease agreement is concluded and that the parties cannot foresee.
2-) Under what conditions can a rent adaptation lawsuit be filed?
-The occurrence of an extraordinary event that was not foreseen or expected during the contract;
-This situation is not caused by the plaintiff;
-The continuation of the contract becomes excessively difficult for the party;
-Reservation of rights due to the debt not yet being fulfilled or difficulty in fulfilling the obligation.
3-) Who can file an adaptation lawsuit?
Both the lessor and the tenant may file a lawsuit for rent adaptation.
4-) Which is the competent and authorized court?
The competent court is the Civil Court of Peace. The competent court is the Civil Court of Peace where the immovable property is located.
5-) Can it be opened at any time?
Yes, it can be filed at any time, regardless of the five-year requirement. However, the Supreme Court of Appeals’ decisions do not consider high inflation a ground for adjustment. Therefore, when filing a lawsuit, substantial evidence must be presented demonstrating that the contract terms have changed unforeseen, and the lawsuit must be filed accordingly. For example, if a metro station is located within 200 meters of the leased property, this could be considered grounds for rent adjustment. However, due to Türkiye being a country prone to inflation, the Supreme Court does not accept high inflation as a ground for rent adjustment cases. Therefore, extreme caution should be exercised when filing a lawsuit and the case must be filed with substantial evidence.
6-) What is the difference from the rent determination case?
Adaptation cases are without the 5-year requirement and grant the judge wide discretionary power; determination cases are limited to criteria such as CPI and comparable rent.
7-) Who can open it?
Both the tenant and the landlord may bring an adaptation action—as the case may be, if the injustice in the balance of performance clearly prejudices one of the parties.
😎 Is mediation necessary?
Yes, mandatory mediation has been introduced as of September 1, 2023.
9-) Is the outcome of the case retroactive?
The decision is generally effective from the date of the lawsuit; however, if previous leases have been “reserved”, a retroactive claim may be possible.
10-) Are there any special conditions for contracts shorter than one year?
The general practice is that the contract for an adaptation case must be for at least 1 year; however, there are also different opinions.
11-) In which types of leases is the adaptation case valid?
It can be filed for any type of rent (movable or immovable); rent determination lawsuit is limited to residences and roofed workplaces only.
12-) When should an adaptation case be filed?
It can be filed at any time; there’s no requirement to send a notice beforehand. A rent adjustment lawsuit requires a rent adjustment from the date of the lawsuit. In this respect, it differs from a rent-fixing lawsuit.
13-) May an expert be required?
Yes, an expert report is often necessary to gather evidence and evaluate concrete economic data.
14-) Can benefits be obtained for past rents?
Only if the debt has not yet been fulfilled or has been paid with reservation; otherwise, it is void.
15-) How long does the trial take? What is the value of the case?
-The average trial period is between 6 months and 2 years. This period can be shortened if all evidence is presented completely.
–In rent-fixing cases, the appeal threshold is determined by the annual rent. The claim value is the difference between the requested monthly rent and the current monthly rent. In rent adjustment cases, the claim value is the difference between the requested annual rent and the current annual rent. The claim value of a rent-fixing case and the claim value of a rent adjustment case are often confused. The procedure is as described above.
16-) If the parties agree, is it necessary to file a lawsuit?
If there is an agreement, a solution is possible by signing a protocol instead of filing a lawsuit; otherwise, litigation is required.
COURT OF APPEALS-BAM DECISIONS REGARDING THE RENT ADJUSTMENT CASE
1-) Regional Court of Justice Decision – Istanbul BAM, 53rd HD., E. 2022/1202 K. 2025/501 T. 4.6.2025:
| “..According to Article 11 of the contract, the payment of progress payments after approximately 852 days, despite the contract being set at 300 days, has plunged the client company into a serious economic crisis. Furthermore, the company officials were forced to lay off all their employees. The company was not even liquidated due to financial difficulties. The local court, despite ignoring the principle of adaptation, ruled against the client on the grounds that the contract was turnkey and had an unchangeable fixed unit price, and that the plaintiff could not claim a price difference in addition to the existing contract unit prices. It is unjust that an adaptation should be made in favor of the client company in the unlimited-term fixed price contract that victimizes and indebted one party. |
2-) Supreme Court Decision – 13th HD., E. 2002/9911 K. 2002/14153 T. 27.12.2002:
| “…The lease agreement between the parties was dated August 1, 1998, for a period of 5 years and 4 months, and this adaptation lawsuit was filed on September 5, 2001. After the lease agreement was issued, the US dollar overvalued against the Turkish Lira due to the economic crisis of February 21, 2001. Despite this, the plaintiff did not file an adaptation lawsuit and continued to comply with the agreement until September of that year. Since the plaintiff is thus deemed to have accepted the agreement after the economic crisis and acknowledged that the basis of the transaction had not collapsed, it must be accepted that he has lost his right to file an adaptation lawsuit. Therefore, the court should have dismissed the lawsuit, but issuing a written judgment is contrary to procedure and law and grounds for reversal. |
3-) Supreme Court Decision – 3rd HD., E. 2023/2580 K. 2024/792 T. 27.2.2024
| “…According to this new regulation (the provisions of the TCC), there is no longer any difference in rent determination whether the lease term is short-term, long-term, or indefinite. Article 344 of the TCC stipulates that positive or negative changes in economic factors after the contract is established, market rent increases, and positive or negative changes in the condition of the leased property will be considered in any lawsuit requesting rent determination. This provision is a special adaptation provision and encompasses inflation due to price increases in the new period, price index increases, and changes in the purchasing power of money. Therefore, in the event of these factors, Article 344 of the TCC, which is a more specific regulation, should be applied in determining the rent, rather than the general adaptation provision of Article 138. |
4-) Supreme Court Decision – 3rd HD., E. 2017/8219 K. 2019/5397 T. 13.6.2019
| “…According to the article, if all the conditions for adaptation are met, the debtor may request the judge to adapt the contract to the new conditions. If this is not possible, the debtor may rescind the contract; in contracts with continuous performance, as a rule, the debtor exercises the right of termination. This article states that the adaptation case, which is accepted in practice, has been formalized into law. In our case, considering the rules and methods explained above regarding the adaptation of the contract and the fact that the legal qualification of the subject of the case belongs to the judge, the plaintiff’s request is related to the determination of the rent rather than the adaptation of the rent. In this case, the court should have made an examination according to the principles and procedures regarding the rent determination and given a decision regarding the determination of the rent as of 11.07.2014, taking into account the regulations regarding the period for filing a lawsuit in Article 345 of the TCC No. 6098, it was deemed incorrect that the case was considered a rent adaptation case and the decision was given in writing, based on the incorrect qualification and insufficient expert report, and this required reversal. |
5-) Supreme Court Decision – 3rd HD., E. 2019/5339 K. 2019/8462 T. 30.10.2019
| “…A lawsuit to determine the rental amount may be filed by the parties who signed the lease, or by the owner or any of the co-owners of the property. If the leased property is jointly owned, all heirs may file a lawsuit together, participate in the lawsuit, provide a permit, or have a representative appointed to the estate company. If the property is jointly owned, each co-owner may request a rental amount be determined in proportion to their share. |
The Importance of Legal Support
Tenancy law, eviction cases, and contractual disputes require technical knowledge, legislative expertise, and in-depth expertise in judicial practices. While the legal provisions are clear, each case has its own unique circumstances, and even a small mistake can lead to loss of rights. Therefore, working with an experienced attorney from the beginning of the process is crucial to determining the right strategy, protecting your rights, and achieving the swiftest resolution.
It’s important to remember that every step taken during the litigation process has legal and financial implications. A professional lawyer will guide you not only in preparing the petition but also in gathering evidence, representing the court, negotiating, and pursuing potential alternative solutions.
In order not to risk your rights and to manage the process safely, it is recommended that you consult a specialist lawyer.