The Legal Nature of Site Fees, "Exorbitant Increases," and Consequences of Non-Payment

Summary

Apartment/building maintenance fees are a periodic and predictable obligation collected from apartment owners (and, if necessary, from tenants through contractual allocation) to cover management, maintenance, repair, insurance, energy, and personnel expenses related to common areas and facilities. The primary debtor is the apartment owner. Fees are determined by an annual "operating budget"; this budget is communicated to apartment owners and becomes final if no objections are raised within a specified period. A monthly late payment penalty (usually 5% per month) applies to unpaid fees as mandated by law; the management may initiate enforcement proceedings without a court order. Claims of "excessive increases" arise when the budget is not based on objective data, when luxury/novelty items are improperly included in the fees, or when the land share-equality balance is not adhered to; the solution is to object to the operating budget within the prescribed time and request its cancellation/adjustment in the Civil Court. Maintenance fees are a periodic obligation; a 5-year statute of limitations accepted in practice.

1) What is a Membership Fee? Legal Basis and Source of Obligation

Dues are a share of common expenses collected regularly to cover the necessary/useful expenses and management costs for the common areas and facilities of the main property. Its legal basis rests on three pillars:

Law: The obligation of apartment owners to contribute to common expenses and advance payments arises from the law. As a rule, the land share ratio applies; however, the law may stipulate equal payment for certain items (e.g., expenses for doorman/heating/gardener/security guard).
Management Plan: This is the main document, registered in the land registry, that binds all apartment owners and serves as a contract. It defines distribution principles, rules for the use of social facilities, and the structure of the manager/supervisor.
Apartment Owners' Board Decisions & Operating Project: The manager prepares the annual budget (operating project); it shows the itemized expense forecast and the share per person. The project is submitted; if no objections are raised within the legal period, it becomes final and is implemented.

Membership fee = (Common Expenses + Advance Payment) – (External income, if any) . Advance payments are a prepayment for expenses incurred during the year; offsetting them at the end of the year is essential.

Characteristics of the Membership Fee

Periodic and predictable: Accruals occur regularly, such as monthly or quarterly.
Personal debt: As a rule, the owner of the independent unit is the debtor; the debt is not directly attached to the immovable property, unlike "property debt".
Community interest : If payments are delayed, vital services such as security, cleaning, energy, and maintenance of the site will be disrupted; therefore, the law establishes a deterrent with high late payment penalties

2) Which Expenses Are Included in the Membership Fee? (Scope and Limits)

Essential and useful expenses are taken into account. In practice, the main items are:

Staff: Management salary, reception/security, cleaning, garden maintenance, technical staff, supervisor.
Energy: Common area electricity, lighting, elevator, water pump, boiler, circulation pumps, generator.
Maintenance/Repair: Elevator periodic maintenance, fire extinguishing systems, camera systems, roof, exterior facade, doors/turnstiles, children's playgrounds, landscaping.
Insurance and Subscriptions: Mandatory earthquake insurance (DASK policies cover common risks, although not on a site-by-site basis), liability insurance, software/automation licenses.
Administrative expenses: Accounting, legal/consulting services (at a reasonable level), notifications/stationery, banking commissions.
Social Facilities: Additional operating expenses for private facilities such as swimming pools and gyms (according to the rules in the management plan).

classified as capital/renovation (fixtures, etc.) (complete elevator renovation, roof and facade insulation, construction of new social facilities, etc.) are not considered "operating" expenses. These require a special decision and a majority vote (see below for the discussion on exorbitant price increases and transactions requiring a 4/5 majority).

3) How and by Whom the Dues Are Determined: Business Project

The manager prepares an operating report at the beginning of each fiscal year . The report includes:

Expense items and estimated amounts are shown compared to the previous year .
The distribution basis (is it land share or equal distribution?) is clearly stated.
The monthly share per person is calculated.
The project is announced to the property owners (notice board + email/official notification are used together in practice).

Objection period: An appeal for cancellation/correction can be filed with the Civil Court of Peace within 7 days of notification . If no objection is filed within the deadline, the project becomes final and binding. This mechanism is the most fundamental safeguard against "arbitrary determination of dues".

4) What is an "Exorbitant Price Increase"? What Criteria are Used to Monitor It?

Not every increase is "exorbitant." An exorbitant increase is one that is not based on objective data , lacks transparent explanation , conceals luxury/novelty expenses within the fee without requiring a legal majority , or applies the distribution principle (land share-equality-usage) in an unlawful manner. The following criteria are used in audits:

Procedure: Has the business plan been prepared? Was it submitted on time? Are the minutes book, attendance list, and quorum correct?
Transparency: Are the number of personnel/salaries, contracted service fees (security, cleaning, elevator maintenance), energy consumption tables, maintenance contracts, and tender/bid records publicly available?
Comparison: Is there a reasonable correlation between last year's expenses, current CPI/PPI , minimum wage , electricity and natural gas unit prices , and minimum service level ?
Distinguishing Factor: Are renovation/modernization (fixed asset) items included in "operating expenses"? Such items usually require a qualified majority
Distributive Justice: Has the distribution been unequal according to the principle of land share, or vice versa? Is there arbitrary distribution despite the clear rule in the management plan?
Service-fee balance: Were fees charged for services not actually provided? Are there any irregularities, such as collecting operating expenses while the indoor pool is not operational?

luxury/novelty projects and facilities (e.g., construction of non-existent social facilities, decorative/aesthetic renovations, installation of smart automation systems), a qualified majority required. Without a proper decision, these items cannot be "forced" onto the membership fees.

Strategy to Combat Exorbitant Price Increases

Don't miss the deadline: File a lawsuit for cancellation/correction in the Civil Court of Peace within 7 days of receiving notification of the business project
Request a preliminary injunction : It may be possible to halt the enforcement of excessive/inappropriate items until the end of the trial (according to Article 389 and subsequent articles of the Code of Civil Procedure)
Prepare a set of evidence: previous year's expenses, texts of new contracts and alternative offers, energy bills, payrolls, cash/bank statements, minutes and business ledger, attendance records.
Pressure for compromise and revision: Many administrations rationalize budgets when presented with transparent figures and market prices.

5) Who is the Debtor? The Landlord-Tenant-Usufruct Triangle

**The primary debtor is the apartment owner (property holder).** The obligation to pay dues arises from the law and is the responsibility of the owner.
It is possible for expenses to be passed on to the tenant through the lease agreement between the tenant and the landlord ; this does not create a direct debt relationship between the management and the tenant .
The tenantmay offset/recover from the landlord the operating expenses paid in accordance with the contract.
a usufructuary and they are the one actually benefiting from the property, it is considered reasonable in practice to burden them with the operating expenses; however, the management directly demands enforcement proceedings .
Unoccupied/vacant apartment: The fact that it is not in use does not eliminate the obligation to pay maintenance fees; common expenses are aimed at maintaining the asset.

In practice, managements prefer not to approve sales/transfers without a "no outstanding debt" certificate ; legally, the personal nature of outstanding dues is preserved, but in practice, debt clearance at the sales stage acts as a natural safety valve.

6) What Happens If Payment Is Not Made? (Default, Late Payment Penalty, Enforcement Proceedings)

a) Default and Late Payment Compensation

If the dues are not paid on time, the homeowner is considered in default . The law stipulates a monthly late payment penalty (in practice, a rate of 5% per month is established). This penalty is legally binding; it generally cannot be reduced. The late payment penalty is calculated proportionally to the number of days elapsed and is applied using a simplified method , not a compound method .

b) Warning-Enforcement-Litigation Chain

Notice: The written notice must clearly state the items of debt and their due date.
Execution proceedings without a court order (general attachment procedure): The management initiates proceedings based on the operating plan/minutes book/account statement
Objection: If the debtor objects, the proceedings are suspended. The administration to annul the objection or, if the conditions are met, may seek to have the objection dismissed.
Execution denial compensation: If the debtor has made an unjustified objection, the court may award execution denial compensation of no less than 20% at the end of the trial.
Seizure and Sale: If the enforcement proceedings are finalized, a seizure may be placed on the debtor's movable or immovable assets, accounts, or real estate. While the inviolability of the home is a separate issue, the debtor-creditor relationship operates within the framework of the Enforcement and Bankruptcy Law.

Cutting off essential services: Unilaterally cutting off access to vital shared services such as electricity, water, and heating for indebted landlords/tenants creates serious legal disputes. Cut-offs made without considering proportionality, clear provisions in the management plan, and the distinction between essential and social facilities may be deemed unlawful. Conversely, restricting access to social facilities (swimming pool, gym, etc.) may be considered a proportionate sanction, provided it is based on clear and reasonable regulations.

7) Statute of Limitations, Transfer, and Past Period Debts

Statute of limitations: Since membership fees are periodic , a 5-year statute of limitations is generally accepted. Administrations must pursue collection within this period.
Transfer of ownership: As a rule , the new owner is not responsible for outstanding dues from the period prior to the transfer ; these debts remain with the previous owner . In practice, requesting a certificate of no outstanding debts during the sale process secures the management's receivables.
Interest/late payment penalties are also tied to the membership fee; the statute of limitations runs concurrently with the principal debt.

8) Common Mistakes Made by Management (Risk Map)

to prepare a business plan or provide proof of notification.
Concealing asset replacements (such as complete elevator replacements) under the "operating expenses" category without seeking majority approval or proper procedure
the distribution principle in a way that contradicts the management plan (e.g., equal land share instead of equal share, or vice versa).
Non-transparent contracts and non-market fees.
The confusion regarding refunds and receivables arising from the offsetting/advance payment system
Attempting to collect debts by cutting off essential services (risk of dispute and compensation)
notification and evidence procedures; lack of supporting documents in enforcement proceedings.

9) Strategy in Practice: From the Perspective of the Creditor (Management) and the Debtor (Owner)

A) Practical Roadmap for Management

Annual calendar: Prepare the business plan at the beginning of the year; include expenses incurred in the previous year
Evidence set: Decision/business ledger, contracts, offers, invoices, payrolls, energy tables, attendance records and notification documents.
Transparency: Provide a detailed explanation via web dashboard/email; publish a table answering the question "why did it increase?".
Collection policy: the due date, late payment penalty , and "procedure in case of default" text.
Enforcement procedure: First, issue a warning, then proceed with summary enforcement; if an objection is raised, quickly initiate a lawsuit to overturn the objection and claim compensation for denial of liability
Social facility rules: prohibitions and restrictions in the management plan ; apply them sparingly.

B) Defense and Protection for the Landlord/Tenant

Review the budget: Compare the items and allocation basis in the business plan; mark any doubtful items.
The 7-day rule: Don't miss the 7-day deadline from the date of notification ; file an annulment/adaptation lawsuit in the Civil Court and request an injunction
Evidence: Market price research, alternative offers, social facilities not actually used, records of malfunctions/closed areas.
Rental agreement: If you are a tenant, check your contract; if the "ancillary expenses/dues" clause applies to you, make the payment and reserve your right to recourse against the landlord
Previous debts: If the new owners are held liable for debts from the period prior to the sale, raise legal objections regarding their status as debtors .

Conclusion

Site maintenance fees are a mandatory obligation stemming from the law, essential for maintaining community life . When determined with a proper operating plan and transparent budget, their collection is legally strong. Otherwise, the debate over "exorbitant price increases" becomes inevitable. In the landlord-tenant distinction, the primary debtor is the landlord ; the burden on the tenant is on a contractual basis. Monthly late payment penalties apply to unpaid fees ; collection through summary enforcement proceedings , or a lawsuit challenging the objection , can be initiated. Due to the periodic nature of the fees, a five-year statute of limitations generally applies. The essential element is a fee policy that does not violate the principles of transparency, procedural compliance, and proportionality

Dues, apartment fee rules, exorbitant increases, legal advice, Istanbul lawyer, rental disputes, Supreme Court decisions

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