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Eviction Commitment With Renewed Lease Term

Eviction Commitment With Renewed Lease Term

“The agreements of the parties regarding the rental price to be applied in the renewed lease periods are valid, provided that they do not exceed the rate of increase in the producer price index in the previous lease year. This rule also applies to lease agreements with a term longer than one year. If the parties have not made an agreement on this matter, the rental price shall be determined by the judge according to equity, taking into account the condition of the leased property, provided that it does not exceed the rate of increase in the producer price index of the previous lease year. Regardless of whether an agreement has been made by the parties or not, in lease agreements with a term longer than five years or renewed after five years and at the end of each subsequent five years, the rental price to be applied in the new lease year shall be determined by the judge in accordance with equity, taking into account the rate of increase in the producer price index, the condition of the leased property and comparable rental prices. The rent determined in this manner in the lease year after every five years may be changed according to the principles in the previous paragraphs…”

If the rent is agreed in foreign currency, the rent cannot be changed until five years have passed.

“In residential and roofed workplace leases, if the contract imposes an obligation to provide security to the lessee, this security cannot exceed three months’ rent. If it is agreed to give money or negotiable instruments as security, the lessee deposits the money in a time deposit account and deposits the negotiable instruments in a bank, not to be withdrawn without the consent of the lessor. The bank may return the security deposits only with the consent of both parties or upon the finalisation of the enforcement proceedings or on the basis of a finalised court decision. If the lessor has not notified the bank in writing within three months following the termination of the lease agreement that he has filed a lawsuit against the lessee related to the lease agreement or has initiated proceedings through execution or bankruptcy, the bank is obliged to return the security upon the request of the lessee.”

“The lessee may not be obliged to pay anything other than the rent and ancillary expenses. In particular, agreements stipulating that a penalty clause will be paid in case of failure to pay the rent on time or that the subsequent rents will be due and payable are invalid.”

“In residential and roofed workplace leases, unless the lessee notifies at least fifteen days before the end of the term of the fixed-term contracts, the contract is deemed to be extended for one year with the same conditions. The lessor cannot terminate the contract based on the expiry of the contract period. However, at the end of the ten-year extension period, the lessor may terminate the contract without giving any reason, provided that the lessor notifies at least three months before the end of each extension year following this period. In indefinite-term lease agreements, the lessee may terminate the agreement at any time, and the lessor may terminate the agreement with a notice of termination according to the general provisions after ten years from the beginning of the lease. In cases where the right of termination can be exercised according to general provisions, the lessor or the lessee may terminate the contract.”

The lessor cannot terminate the contract based on the expiry of the contract period. However, at the end of the ten-year extension period, it may terminate without giving any reason, provided that it is notified at least three months in advance.

 

 

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