Legal regulations and practices in Turkey
Mediation is becoming an increasingly popular method of dispute resolution, offering a faster, cost-effective, and flexible alternative to litigation. This method, which offers both legal and financial advantages, often raises questions. Here are 15 key questions and answers about mediation:
What Is the New Regulation for Law Graduates with 20 Years of Seniority?
Law graduates with 20 years of seniority are granted the right to be directly registered in the mediation registry. These individuals are not required to take the written exam but must complete 84 hours of basic mediation training.
How Is the 20-Year Seniority Calculated?
The period since graduation from law school is taken into account. If an individual has 20 years of work experience in other professions after law school graduation, they can still benefit from this regulation if the total experience adds up to 20 years or more. For example, someone who worked as a doctor for 25 years and then earned a law degree can also benefit from this provision.
What Does the Regulation Cover for Those with 5 to 20 Years of Seniority?
For this group, taking the written exam is still mandatory. They are also required to complete 84 hours of basic mediation training.
How Was the Regulation Annulled by the Constitutional Court Reconsidered?
The Constitutional Court annulled the regulation that stipulated that a party who fails to attend the first mediation session without a valid excuse would be responsible for all court expenses and unable to recover attorney fees. Under the new regulation, even if this party wins the case, they will only be responsible for half of the litigation costs and receive only half of the attorney’s fee.
Is There Criticism from Attorneys Regarding the New Regulation?
Yes. Reducing the attorney’s fee by half if their client does not attend the session is criticized, as the attorney may have no role in the client’s decision not to attend.
What Is the Change Regarding the Transfer of Immovable Property?
With a mediation agreement, the transfer of immovable property or the establishment of limited real rights is now possible. The registration can be completed directly at the land registry office. There is no need to draft an official deed, but the mediation agreement must have a court-approved enforceability annotation.
How Does the New Regulation Differ from Previous Provisions on Immovable Property?
Although similar provisions existed before, the new regulation clarifies and simplifies the process. Mediation agreements can now directly facilitate transactions at the land registry office.
What Does a Mediation Agreement Provide Legally?
A mediation agreement has the legal force of a court judgment. This means that the agreement is directly enforceable and that no new lawsuit can be filed on the same issue.
Why Is a Mediation Agreement Considered the Most Reliable Document in Turkey?
A mediation agreement prepared with the free will of the parties within Turkish borders provides legal assurance and solidifies the terms agreed upon by the parties.
Is Stamp Duty Payable on a Mediation Agreement?
No, mediation agreements are not subject to proportional stamp duty. Only a fixed stamp duty is paid, which is a relatively small amount.
What Is the Fee Advantage of Enforced Execution (Ilamli Icra) Following a Mediation Agreement?
A mediation agreement allows for enforced execution proceedings. In this case, a fixed fee is paid instead of a proportional fee, offering significant cost savings.
Is There a Fee Advantage When a Mediation Agreement Is Reached During an Ongoing Case?
Yes. If an agreement is reached during the case, the court decision fee is also paid as a fixed fee. This spares the parties from paying high court fees.
Can Mediation Agreements Provide Tax Advantages?
Yes. Payments made under a mediation agreement can be shown as expenses, providing advantages in terms of income tax, corporate tax, and VAT. Additionally, no tax payment is required for waived receivables.
What Tax Benefits Do Mediation Agreements Offer in Employee-Employer Disputes?
In employee-employer mediation agreements, payments up to the amount of severance pay are exempt from income tax. Furthermore, lower VAT rates may apply to attorney fees.
In What Other Situations Does a Mediation Agreement Provide Advantages?
Mediation agreements provide not only dispute resolution but also legal and financial advantages for drafting new contracts or revising existing ones.
