31.10.2026 11:40
The decisions rendered by the 3rd Civil Chamber of the Court of Cassation in 2025 and 2026 established that landlords’ retention of the deposit on grounds such as painting, whitewashing, and renovation is not lawful in every case. According to the decisions, a genuine and concrete receivable arising from the tenant is required in order to make a deduction from the deposit. If the house is sold, the former owner who cannot prove that the deposit was transferred to the new owner may remain under an obligation to return it.
Deposit refunds are among the leading disputes between tenants and landlords. The Court of Cassation's recent decisions have set important criteria regarding the conditions under which the security deposit must be refunded and who will be liable if the property changes hands.
WHY DO DEPOSIT DISPUTES ARISE?
After the lease ends and the property is vacated, some tenants have difficulty getting back the security deposit they paid. Painting and whitewashing costs, alleged damage to the property, unpaid bills, or the sale of the property are among the most common reasons for deposit disputes.
However, the landlord cannot use the deposit as they wish or retain it without giving a reason. The Turkish Code of Obligations clearly regulates the tenant's obligations and the conditions for refunding the security deposit.
WHAT IS A DEPOSIT, AND IN WHICH CASES MUST THE LANDLORD REFUND IT?
The deposit, referred to as a security amount in the Turkish Code of Obligations, is taken against the possibility that the tenant fails to fulfill contractual obligations or damages the property through faulty use. However, this amount does not give the landlord the right to keep the money indefinitely.
Legal experts state that when the contract ends, after the property is vacated and the keys are handed over, the deposit must be refunded if there is no debt or damage for which the tenant is liable. For the landlord to make deductions, they must have a genuine claim and establish its legal basis. Retaining all or part of the deposit based solely on their own assessment is not considered legally sufficient.
IMPORTANT COURT OF CASSATION DECISION ON DEPOSIT REFUND
In its decision dated 23 September 2025, with case number 2024/3882 and decision number 2025/4233, the 3rd Civil Chamber of the Court of Cassation assessed the conditions under which the security deposit may not be refunded. According to the decision, for the landlord not to refund the deposit, there must be a genuine claim arising from the tenant that must be offset. A general allegation that the tenant breached the contract is not considered sufficient on its own.
Accordingly, a landlord who claims that the tenant damaged the property or failed to pay a debt must substantiate the claim concretely. Whether the damage actually occurred and its amount are also assessed separately. The decision once again showed that the deposit is not money left to the landlord's personal discretion.
CAN THE LANDLORD DEDUCT PAINTING AND WHITEWASHING COSTS FROM THE DEPOSIT?
One of the most common problems tenants face when moving out is the attempt to deduct painting and whitewashing costs from the deposit. Under Article 334 of the Turkish Code of Obligations, a tenant cannot be held liable for ordinary wear and tear resulting from use of the property in accordance with the contract.
In a home occupied for a long time, fading wall paint, wear on the floor caused by normal use, or furniture becoming worn over time do not by themselves require a deduction from the deposit. Situations caused by the tenant's fault, such as a broken door, damaged cupboard, or wall damage exceeding ordinary use, are assessed differently. In such cases too, the claimed cost must be based on actual damage and be attributable to the tenant.
WHAT SHOULD BE DONE IF THE LANDLORD DOES NOT RETURN THE DEPOSIT, CLAIMING THERE IS DAMAGE?
Legal experts state that when a damage claim arises, it must first be determined whether the damage actually exists, whether it is the tenant's responsibility, and what the repair cost is.
Article 335 of the Turkish Code of Obligations is also important at this point. Under the regulation, when taking back the property, the landlord must carry out the necessary inspection and notify the tenant in writing without delay of deficiencies for which the tenant is responsible. Failure to notify in time deficiencies that could be noticed by an ordinary inspection may eliminate the tenant's liability. Therefore, not every damage claim raised by the landlord months later is automatically accepted.
To avoid losing their rights, it is important for tenants to take photos and videos when moving out and to record the electricity, water, and natural gas meters. It is also recommended that they hand over the keys with a written record, keep correspondence with the landlord, and retain bank receipts for the deposit payment.
DOES THE TENANT HAVE TO WAIT THREE MONTHS TO GET THE DEPOSIT?
Under Article 342 of the Turkish Code of Obligations, a security deposit given in cash must be deposited in a term savings account that cannot be withdrawn without the lessor's consent. If the landlord does not notify the bank in writing within 3 months of the end of the contract that they have filed a lawsuit against the tenant or initiated enforcement or bankruptcy proceedings, the bank is obliged to refund the amount upon the tenant's request.
In practice, however, the deposit is mostly given to the landlord in hand or by bank transfer. In this case, the 3-month bank mechanism does not apply directly, and the tenant may claim the receivable from the landlord under general provisions. Therefore, there is no general rule that every tenant who cannot get their deposit back must wait 3 months.
IF THE PROPERTY IS SOLD, WILL THE OLD LANDLORD OR THE NEW LANDLORD PAY THE DEPOSIT?
The decision of the 3rd Civil Chamber of the Court of Cassation dated 12 May 2026, with case number 2026/3664 and decision number 2026/2960, contains a noteworthy assessment on this issue. In the case file, the tenant paid a 300-dollar deposit to the previous owner when renting the property. The property was later sold, but the security deposit was not refunded to the tenant.
The first-instance court dismissed the case against the previous owner on the ground that the new owner had become a party to the lease contract. The Court of Cassation, however, pointed out that it must be proven that the deposit was transferred to the new owner. It was stated that if the previous owner cannot prove that they transferred the amount to the new owner, the refund obligation may continue.
The decision is important in that it shows that a landlord who sells their property cannot automatically escape deposit liability. However, it is also stated that the decision is in the nature of an annulment for the benefit of the law and, under Article 363/2 of the Code of Civil Procedure, does not change the outcome between the parties to the specific case.
WHAT REMEDIES CAN A TENANT WHO CANNOT GET THE DEPOSIT BACK PURSUE?
Tenants who have vacated the property but cannot get their deposit back should first gather the lease contract, payment receipt, key handover record, documents showing the evacuation date, photos of the property's final condition, and correspondence.
The tenant can first request the refund of the deposit in writing. If the landlord does not pay, depending on the nature of the dispute, enforcement proceedings or a receivable lawsuit may be pursued. In disputes arising from a lease relationship, as a rule, the mandatory mediation process must be completed before filing a lawsuit. The currency in which the deposit was paid, the contract terms, the handover date, and any debts to be offset are also decisive in the assessment.
CAN THE LANDLORD DEDUCT THE ENTIRE DEPOSIT?
For the entire deposit to remain with the landlord, there must be a debt or damage for which the tenant is genuinely responsible and that can be legally claimed. Unpaid rent, bills proven to belong to the tenant, and actual damages arising from faulty use can be among the items that may be offset. However, withholding the entire deposit without making any calculation or showing a concrete justification is not legally accepted.
While experts emphasize that the deposit is not money the landlord can use as they wish, they pointed out that documenting payments from the outset, making the handover in writing upon eviction, and presenting possible damages concretely will prevent disputes.
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