Law No. 7445 on the Amendment of the Enforcement and Bankruptcy Law and Certain Laws was published in the Official Gazette dated 5 April 2023, and numbered 32154.

Law No. 7445, also known as the 7th Judicial Package, has brought about significant changes to Law No. 6326 on Mediation in Civil Disputes. According to the amendments the range of disputes subject to mandatory as well as voluntary mediation will be broadened. These amendments to the mediation rules will come into effect on 1 September 2023.

Amendments to the mandatory mediation

Mediation is now mandatory for certain types of disputes that have been introduced by Article 18/B of Law No. 6325 on Mediation in Civil Disputes.

The following items now also fall under the newly added article:

• Disputes arising from lease relationships, excluding provisions related to evictions from leased immovable properties through non-declaratory execution according to Law No. 2004.
• Disputes related to the allocation of movable and immovable properties and the elimination of joint ownership.
• Disputes arising from Law No. 634 on Condominium Ownership.
• Disputes arising from neighbors’ rights regulated under Turkish Civil Code No. 4721.
• A mandatory requirement to apply for mediation before filing a lawsuit in the aforementioned disputes.

Apart from the aforementioned disputes, parties, according to the previous amendments to Law No. 7155 which came into force on 1 January 2019, have an obligation to apply for mediation before commencing litigation regarding the certain commercial disputes. You may find here our newsletter providing comprehensive information concerning the introduction of mandatory mediation for commercial disputes. Moreover, since 1 January 2018, pursuant to the Labour Courts Law published in Official Gazette number 30221 of 25 October 2017, parties are under an obligation to apply for mediation before filing a lawsuit with labour courts for most employment disputes.

Amendments to voluntary mediation

After the introduction of Article 17/B of Law No. 6325 on Mediation in Civil Disputes, disputes related to the transfer of immovable property or the establishment of limited real rights on an immovable property can now be subject to voluntary mediation.

If the parties reach an agreement and the mediator records the settlement agreement, it is mandatory to obtain a certificate of enforcement from the civil court of first instance in the jurisdiction where the property is located in order to ensure the agreement's enforceability. 

Moreover, in these disputes, it is now also possible to make a notation on the land registry indicating that the power to dispose of the property is restricted. This restriction is applicable for a specific period which is limited to the duration of the mediation process and cannot exceed three months. For its implementation, the parties involved must agree to this restriction in writing, and the mediator must document this decision in the minutes.

Conclusion

The aim of expanding the scope of mandatory mediation is essentially to reduce the courts' workload by bringing certain disputes under its scope. Some of these disputes, especially those arising from lease agreements, are nowadays keeping the civil courts very busy. The introduction of voluntary mediation for the aforementioned disputes may be regarded as marking end to debates on the suitability of such disputes for mediation.