What Is a Lease Agreement? How Many Types of Lease Agreements Are There? (2026 Guide)
Lease agreement is a legal contract that enables the lessor to grant the right of use of a property to the lessee, and in return, the lessee pays a rental fee. Firstly, this agreement clarifies the rights and obligations of the parties. Therefore, it prevents potential disputes from the outset.
What is a Lease Agreement?
The lease agreement is regulated under the Turkish Code of Obligations. For this reason, the parties adhere to the rules set forth in the law.
The lessor makes the property available for use. The lessee pays regular rent. Thus, the parties enter into mutual obligations.
For example, residential, workplace, or vehicle rentals are established through this agreement.
Which Law Governs Lease Agreements?
The Turkish Code of Obligations regulates the lease relationship in detail. Furthermore, the law covers both movable and immovable property.
Houses, workplaces, vehicles, and equipment fall within this scope. Therefore, the lease agreement finds a wide area of application.
What Are the Types of Lease Agreements?
Lease agreements are divided into two basic types. Firstly, they are classified according to duration.
- Fixed-term lease agreement
- Indefinite-term lease agreement
This distinction yields significant consequences regarding termination and duration.
Fixed-Term Lease Agreement
The parties specify an explicit duration in the contract. For example, a duration of one or two years is agreed upon.
When the term expires, the contract ends. However, the parties may extend the contract if they wish.
For this reason, the duration element plays a decisive role in this agreement.
Indefinite-Term Lease Agreement
The parties do not set any specific duration. Therefore, the contract continues.
One of the parties issues a termination notice. Subsequently, the contract ends.
Generally, the parties notify termination in writing.
Must a Lease Agreement Be in Writing?
The law does not require a written form. Therefore, the parties may also enter into an oral agreement.
However, a written contract is preferred in practice. Because, a written document provides ease of proof.
Does a Lease Agreement End Upon Sale?
The sale of the immovable property does not terminate the agreement. On the contrary, the new owner becomes a party to the existing agreement.
The lessee continues their right of use. However, the new owner may request eviction under certain conditions.
Elements That Must Be Included in a Lease Agreement
For a healthy lease relationship, certain information is always included. In particular, the following elements are important:
- Identity information of the lessor
- Identity information of the lessee
- Address of the leased property
- Rental fee
- Lease term
- Start date
- Purpose of use
This information makes the agreement clear and robust.
How Is the Rent Increase Determined?
The parties determine the rent increase rate. However, the legal limit cannot be exceeded.
In current practice, the CPI (Consumer Price Index) rate is taken as the basis. For this reason, the increase rate stays within a certain framework.
Authorized Court in Lease Disputes
The Civil Court of Peace resolves lease disputes.
For example, eviction lawsuits and rent determination lawsuits are heard here.
Conclusion
In conclusion, a lease agreement protects the rights of the parties. For this reason, the parties prepare the agreement carefully. Furthermore, a properly established contract largely prevents future disputes.
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