The Ministry of Treasury and Finance (“Ministry”) announced that a new service (“Service”) will be introduced for the execution of lease agreements via e-Government and the Service is planned in two phases.
The first phase was introduced via e-Government as of 04.11.2024 and the second phase is expected to be introduced at the end of the year.
What Does the Regulation Aim to Achieve?
According to the new regulation, lessees and lessors will be able to execute lease agreements through the e-government system. The ability to conclude lease agreements through e-government offers various benefits as part of the digitalization process. This practice not only ensures lease agreements more secure, official and accessible, but also creates legal security to prevent disputes between the parties. The automatic registration of agreements made through e-government also facilitates tax declarations and income tax follow-up. It also saves time and reduces costs by eliminating notary fees and the need for physical transactions, while accelerating the process ensures the efficient management of lease relationships. The regulation is a significant step forward in simplifying bureaucratic procedures.
What Does the Regulation Bring?
First Phase:
In the first phase, only e-Government users aged 18 (eighteen) and over will be able to benefit from this Service.
At this stage, as a first step, an agreement will be drafted by the owner of the immovable property from the “
Ministry of Treasury and Finance/Lease Agreement Transactions” section of the e-Government portal. While entering the information in the lease agreement into the system, the lessor will specify all information such as the identity information of the lessee, the rental fee, payment terms and deposit.
After the completion of the information, the agreement will be approved by the lessee and the guarantor, if any,
within 3 (three) days. With the approval of the agreement, a barcoded document is formed and the document verification process can be performed through the e-Government gate.
It is required to obtain the approval of
(i) all shareholders for immovable properties where there is co-ownership
(ii) the majority of the shareholders in case of joint ownership. In addition, the Service cannot be provided for immovable properties where the number of shareholders is 10 (ten) or more.
Within the scope of this regulation, lease agreements created through e-Government will fall within the scope of the definition of lease agreement (*) regulated by Article 299 of the Turkish Code of Obligations and will have all the legal consequences of a lease agreement.
(*): A lease agreement is an agreement in which the lessor undertakes to leave the use of a thing or the use and enjoyment of it to the lessee, and the lessee undertakes to pay the agreed rental price in return.
Second Phase:
In the second phase of the practice, it is planned that real estate consultants and persons authorized by the parties may also be involved in the process of drafting the agreement. However, the fact that real estate consultants, in addition to lawyers, will also be authorized in this second phase raises some concerns
In this context, as stated in the letter dated 04.11.2024 and titled “Regarding the Studies for the Execution of Lease Agreements via E-Government” sent by the Union of Turkish Bar Associations (“TBA”) to the Ministry of Treasury and Finance;
The authority to draft and submit the agreement for the approval of the owner and lessee, which is foreseen for the second phase of the planned application, should only be granted to lawyers in accordance with the provisions of the Attorneyship Law. Preventive legal regulations in this area will help to prevent the loss of rights for the parties and contribute to the resolution of disputes before they turn into legal disputes.
The views and demands of the TBA have been communicated in writing to the Ministry of Treasury and Finance, the Presidency of the Republic of Turkey Digital Transformation Office and the Ministry of Environment, Urbanization and Climate Change, which are conducting the study; the Ministry of Justice has also been informed about the issue and has clearly stated that the TBA is ready to contribute to the studies and regulations to be carried out. At present, no additional information has been provided regarding the details of the second phase.
Conclusion:
With the introduction and implementation of this Service, the lease agreement process between the parties will be significantly streamlined. At the same time, official transactions have been expedited and made more efficient by digitally transmitting the agreements to the relevant institutions.
In addition, the possibility of continuous access to lease agreements through e-Government makes it possible for the parties to access agreements based on official records at any time. With the introduction of the second phase, the parties will achieve significant savings in terms of both time and labor.
You can access the relevant information text from the “Ministry of Treasury and Finance - Lease Agreement Transactions” section via e-government.
Cerensu Çetin Yenigün, Senior Associate
Kayra Menekşe, Associate
Eylül Uslu, Trainee Lawyer