Newsletter-21

279 LAW OF OBLIGATIONS The Obligation of Lessee to Return or to Purchase the Leased Property under the Financial Lease Agreements* Att. Kerem Tayhac Sagocak The purchase right of the lessee under the financial leasing agree- ments is regulated under Article 23 of the Financial Leasing, Factoring and Financing Companies Law (“FFFL”). As per such provision, the parties may agree that the lessee will have right to purchase the leased property at the end of the term of the lease. The second part of the Article further stipulates an important provision, as follows: “If the right of the lessee to purchase the movable which is subject to registration is not used by the lessee within thirty days after such right arises and if the leased property is not returned to the lessor pursuant to the article 32 of this Law, the lessor can carry out all necessary transactions in order to transfer the title of the leased property to the lessee provided that the parties agree on the same under the financial leasing agreement and a notification has been made or could not been made to the lessee as the lessee could not been found in his/her address. Any such request regard- ing the transfer of the title of the leased property to the lessee made by the lessor shall be carried out by the relevant registry in respect of such property.” It is commonly agreed that if the lessee remains silent during the 30 day period as indicated under Article 23 of the FFFL, such silence is considered to be an implicit declaration of lessee to use its right to purchase the leased property under the financial leasing agreement. It is further accepted that once the conditions set forth under Article 23 of the FFFL is realized, it will be deemed as a sale agreement between the lessee and the lessor as executed and, thereafter, the lessee will * Article of February 2016