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Payment of Rent to a Third Party

REAL ESTATE AND TENANCY LAW
11 Jun 2025
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PAYMENT OF RENT TO A THIRD PARTY

Lease agreements establish a legal bond between the tenant and the landlord, clearly defining the rights and obligations of both parties. These agreements explicitly state fundamental aspects like when, how, and where the rent should be paid. However, in daily life, it's common for property owners, for various reasons, to request that rent payments be made to a third party's bank account, not their own. So, what happens if the tenant pays the rent to a third party instead of the landlord? This situation can have significant legal consequences for both the tenant and the landlord.

1. Can Rent Be Paid to a Third Party?

As a general principle, rent must be paid to the bank account specified in the lease agreement and opened in the landlord's name. This signifies that the debt has been fulfilled and the tenant has been discharged from their obligation. According to the Turkish Code of Obligations, a debt is fulfilled when payment is made to the creditor or a person authorized by them.

If the landlord requests that the rent be paid to another account (a third party), for this payment to be legally valid, the landlord's explicit and written consent is required. This written consent can be called a "letter of consent" and indicates their acceptance of the payment being made to the third party. Otherwise, without written consent, paying the rent to a third party does not discharge the tenant from their rent obligation.

Example Scenario: Suppose your landlord verbally instructs you, "My account is under garnishment; deposit the rent into my father's account." If you rely on this verbal statement and deposit the rent into your landlord's father's account, you will legally be considered as not having paid your rent. This is because verbal statements are not legally binding in such situations and are insufficient for proof. In this case, the landlord can claim the rent hasn't been paid and initiate enforcement proceedings.

2. Is Rent Payment Required to Be Made to the Landlord's Account?

Yes, according to laws and the established jurisprudence of the Court of Cassation, rent must be deposited into the bank account specified in the lease agreement. A rent debt is only extinguished when paid to the creditor (landlord) or a person authorized by them. As mentioned above, this authorization must be in writing.

If the lease agreement contains the clause "the rent shall be paid to the landlord's account number [Account No]," this condition is binding. Payments made to another person's account are considered invalid unless there is the landlord's written consent.

Burden of Proof: The tenant must always be ready to prove that they have paid the rent. Bank receipts and payment slips are of great importance for this. However, even these documents must prove that the payment was made directly to the landlord's account or to a third-party account with the landlord's written consent. Writing detailed information like the rental period and the specific month in the payment description will strengthen the tenant's position in potential disputes.

3. Rent Payment Not Made to the Property Owner

Rent must only be paid to the bank account specified in the lease agreement or to an account explicitly approved in writing by the landlord. Payments made to a third party without the property owner's knowledge and consent are not legally valid, and in such cases, rent payments not made to the property owner do not discharge the tenant from their rent obligation.

The risks this situation can pose for the tenant include:

  • Obligation to Pay Again: Even if the tenant has paid a third party, if the landlord deems this payment invalid, the tenant may be forced to pay the rent to the landlord again. This means the tenant might end up paying twice.
  • Enforcement Proceedings and Eviction: The property owner can initiate enforcement proceedings against the tenant, claiming that the rent has not been paid. If the tenant cannot prove that they paid the debt to a third party with written consent, it may be deemed that the rent debt has not been paid, and an eviction order may be issued against the tenant. This means the lease agreement could be terminated, and the tenant could be forced to vacate the property.
  • Legal Process and Costs: A lawsuit or enforcement proceeding initiated on the grounds of unpaid rent can lead to a lengthy and costly legal process for the tenant. Litigation costs, attorney fees, and potential damages could fall on the tenant.

4. Is Paying Rent to the Landlord's Child or Relative Valid?

If the tenant pays the rent to the landlord's child, spouse, or another relative, the landlord's written consent is again essential for the tenant to be discharged from their rent obligation. Payments made without this written consent do not release the tenant from their debt and can lead to the risk of eviction.

A significant example in this regard is the judgment of the 8th Civil Chamber of the Court of Cassation, numbered 2017/1881 E., 2017/4519 K. In this decision:

  • Case: The tenant argued that they had paid their rent by depositing the rent amount into the landlord's mother's account with the description "2 years' residential rent for [Landlord's Name], son of [Landlord's Mother's Name]," and thus had fulfilled their debt. The tenant submitted payment receipts to the court.
  • Local Court's Initial Decision: The local court accepted that the payment made to the third party was related to the rent debt under collection, ruled that a portion of the tenant's debt had been paid, and ordered the collection of the remaining debt and eviction.
  • Court of Cassation's Assessment and Decision: The Court of Cassation overturned this decision. The Court of Cassation stated, "Unless otherwise agreed, rent is one of the debts that must be paid to the landlord, and payment made to a third party does not discharge the tenant from their debt. Therefore, payments made in the name of a third party, which are not accepted as rent payments by the plaintiff creditor, do not discharge the defendant tenant company from the debt." This ruling clearly indicates that payments made to third parties without the landlord's written and explicit consent are invalid and do not discharge the tenant from their obligation.

This Court of Cassation decision is one of the clearest indicators that third-party payments made without the landlord's written and explicit consent will have serious consequences for the tenant.

5. Important Considerations and Recommendations

  • Requirement of Written Consent: If you are asked to pay rent to someone other than your landlord, this request must be in writing and appended to the lease agreement. This written consent should clearly state the name, surname, bank account details of the third party, and the specific periods to which the payment relates.
  • Do Not Rely on Verbal Statements: Avoid making payments to a third party based solely on your landlord's verbal assurances like "We'll handle it verbally," "I trust you," or "There won't be a problem." Proving verbal agreements in legal proceedings is extremely difficult.
  • Keep Receipts: Make all your rent payments through a bank and keep bank receipts regularly. In the description section of the receipt, write clear statements such as "April 2025 Rent Payment" to specify the purpose of the payment.
  • Seek Legal Advice in Case of Doubt: If there is any ambiguity or dispute regarding rent payments, seeking legal advice from an attorney is the most appropriate approach.

Remember, diligence in rent payments is crucial for both protecting the tenant's rights and preventing future legal problems. The only way to ensure that you have paid your rent is to act in accordance with the law and document all payments.

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