What is a Management Plan? Board of Apartment Owners, Quorum Requirements for Decision-Making, and Annulment Lawsuits

What is a Management Plan? Binding Nature and Amendments

In a building subject to condominium ownership, the main document that determines how the apartment building or complex will be managed, and what the rights and obligations of the condominium owners are towards each other and towards common areas, the "Management Plan" . This document, regulated in Article 28 of the Condominium Law, is not merely a "list of rules" but a legal contract binding all condominium owners and their successors (tenants, heirs), and is an integral part of the land registry.

Legal Nature of the Management Plan

The management plan is the "constitution" of a building. It is submitted to the land registry office and registered during the establishment of condominium ownership. A person purchasing a property is deemed to have accepted the provisions of that management plan in advance. For example, if the management plan contains a provision such as "independent units cannot be used as offices" or "pets are not allowed," compliance with this rule is mandatory. Therefore, examining the management plan of a building before acquiring a property is the most fundamental step in understanding the limits of property rights.

What topics does the Management Plan regulate?

Management plans are generally quite comprehensive and include the following topics:

• General Management Rules: How the manager is selected, supervision procedures.
• Use of Common Areas: Specifically, the hours and conditions under which common areas such as gardens, parking lots, pools, or terraces can be used.
• Contribution to Expenses: How dues will be calculated and the late payment penalty rates to be applied to unpaid debts.
• Prohibitions: Restrictions on the use of independent sections.

Amendment of the Management Plan: Four-fifths Majority

The management plan is not a static document, but it is quite difficult to change. According to Article 28 of the Condominium Law, of four-fifths (4/5) of all co-owners is required to change the management plan. This high vote ratio is a "guarantee" mechanism introduced to prevent arbitrary changes to the management plan and to protect the rights of minority co-owners.

If your building's management plan is outdated or fails to respond to changing needs (e.g., digital management processes or next-generation security systems), securing a majority at the homeowners' association meeting requires both technical and legal skill.

Violation of the Management Plan and its Consequences

Other co-owners or the manager may file a lawsuit under the Condominium Law (KMK) for "injunction against interference" or demand the rectification of the violation against a co-owner who acts contrary to the rules of the management plan. For example, it is possible to file a lawsuit for restoration to the original state against a co-owner who has constructed an unauthorized structure in a common area, based on the general provisions of the management plan.

The management plan transforms the relationship between apartment owners from a "personal conflict" into a "legal debt-credit relationship." Therefore, the first place to turn to in any dispute is the building's management plan.

 Apartment Owners' Association: Quorum Requirements for Decision-Making and Annulment Lawsuits

In condominium buildings, the most authoritative body representing the will of the owners the Board of Condominium Owners. Many decisions concerning the future of the building or complex, from major expenditures to the election of managers, from changes to the management plan to the initiation of legal proceedings, are made by this board. However, the decisions made by the board may not always comply with the law or may have been made without a sufficient majority. At this point, knowing the quorum requirements for decision-making stipulated in the Condominium Ownership Law and the legal remedies available against these decisions is of vital importance to prevent loss of rights.

Meeting and Quorum Requirements

The general rule in the Condominium Law is that the board convenes and makes decisions with a majority based on both the number of members and the land share . However, for some important decisions, the law requires a "qualified majority"

• General Assembly: Normally, it convenes with the participation of more than half of the property owners (both in terms of number and land share).
• Important Decisions: For example, a change to a common area or an upgrade to the building's exterior may require the unanimous consent of all homeowners.
• Balance Between Number and Land Share: For a decision to be legally valid, not only a majority of the participants but also a majority of the total land share must be achieved. This rule aims to protect the rights of owners of large independent units (e.g., commercial spaces).

Annulment of Decision Cases: Article 33 of the Condominium Law

If you believe a decision made by the homeowners' association is contrary to the law or the management plan, a lawsuit for annulment . However, there are two very important points to consider during this process:

1. Time Limit for Meeting Attendees: Property owners who attended the meeting where the decision was made and voted against it (registered a dissenting opinion) have one month.
2. Time Limit for Those Who Did Not Attend the Meeting: For property owners who did not attend the meeting, six-month forfeiture period starting from the date they learned of the decision.

After these periods have elapsed, it is no longer possible to file a lawsuit for the annulment of the decision, no matter how unlawful it may be.

Reasons for Annulment of Decisions

Board decisions may be annulled for the following reasons:

• Irregular Meeting Notice: This refers to the meeting notice not being served to all property owners by the building manager within the legally prescribed time limits.
• Lack of Quorum: The inability to meet the required quorum for the meeting or decision.
• Violation of Law or Management Plan: The Board making a decision that contradicts the mandatory provisions of the Condominium Law (for example, violating the legal principles regarding the distribution of common expenses).

Foreign Owners and the Issue of Representation

The representation of foreign property owners in board meetings can sometimes be hampered by the power of attorney process. If a foreign property owner does not have a representative in Türkiye, proper notification of the meeting is mandatory. Decisions made at a meeting where the owner is not represented or where notification is improperly served are subject to annulment with respect to that property owner.

The homeowners' association is the democratic governing body of the building. However, this democracy does not mean that "the majority can do whatever it wants." Any decision that does not remain within the boundaries of the law is subject to judicial review. Following the decisions of the association, having your dissenting opinion recorded in the minutes, and adhering to the statute of limitations are your greatest safeguards against the management's erroneous practices.

 Manager Selection and Manager Responsibilities

In condominium buildings, manager handles many operational tasks, from the daily running of the building to maintenance and repair processes and the collection of dues. The manager is the executive body that implements the will of the condominium owners' assembly. However, this role carries a significant burden of responsibility, both legally and financially. The selection of the manager and their subsequent area of ​​responsibility are regulated in detail in Articles 34 and subsequent articles of the Condominium Ownership Law.

Manager Selection: Professional or one of the apartment owners?

Property owners can either elect a manager from among themselves, or they can contract with an external professional manager or a management company.

• Election Procedure: The manager is elected by a majority of the apartment owners in terms of both the number of owners and their land shares. If an election cannot be held, the civil court may appoint a manager upon the application of any of the apartment owners.
• Term of Office: The director is generally elected for one year; however, unless the management plan provides otherwise, their term extends until the next general meeting.

Legal and Financial Responsibilities of the Manager

The manager acts as an agent and is liable according to the agency provisions of the Turkish Code of Obligations. Their most basic duties are as follows:

1. Preparing an Operating Proposal: Preparing an operating proposal showing the building's estimated annual income and expenses and communicating it to the owners.
2. Dues Collection: Taking necessary administrative and legal steps to ensure timely collection of common expenses.
3. Maintenance and Repair: Taking measures to protect, maintain, and, when necessary, repair the common areas of the building.
4. Bookkeeping: Maintaining and storing the minutes book, income and expense records, and related documents in an organized manner.

Compensation Lawsuit Against the Manager

If the building manager neglects their duties, causes damage to the building, or acts contrary to the decisions of the homeowners' association, they can be removed from office by the homeowners. Furthermore, if the building suffers damage as a result of the manager's negligent actions, compensation can be claimed. For example, if the building is damaged by a fire due to lack of insurance, the manager can be held liable for their negligence.

Disputes with Professional Management Companies

Professional management companies are common in large residential complexes today. In contracts with these companies, issues such as "scope of service," "limits of authority of the manager," and "termination of the contract" are of great importance. If the management company transfers the fees to its own personal account instead of the manager's account, or fails to present a transparent income and expense statement, the homeowners' association can immediately terminate the contract.

The building manager is the "captain" of the building. However, when the captain deviates from the course set by the owners or causes the ship to sink through negligence, they face legal consequences. The right of apartment owners to supervise the manager is one of the strongest rights under the Condominium Law. Every expenditure and decision of the manager must be transparent, with auditor reports and an annual review by the owners' assembly.

 Foreign Property Owners' Rights to Participate in the General Assembly and the Representation Process

For foreign investors who own real estate in Türkiye, the meetings of the Condominium Owners' Association are the most fundamental platform where they can have a say in the management of their properties. However, obstacles such as language barriers, inability to be physically present in Türkiye, or power of attorney procedures can make it difficult for foreign owners to exercise these democratic rights. The Condominium Law guarantees that foreign owners have equal rights just like local owners; therefore, managing the process correctly demonstrates that ownership is not merely about the title deed, but also requires administrative participation.

The Right of Foreigners to Participate in the General Assembly

The provision in the Condominium Law stating that "every condominium owner has the right to attend and vote at the condominium owners' assembly meeting" also applies to foreign nationals. A foreigner's ownership of property makes them a direct participant in the building's decision-making processes. This right includes voting on matters that will change the building's fate, such as determining the amount of dues, approving renovations, or electing a manager.

Appointment of a Representative and Power of Attorney Requirement

Since foreign property owners generally do not reside permanently in Türkiye, it is not always possible for them to attend meetings in person. At this point, two options emerge:

1. Appointment of Representative: A foreign property owner may grant a "special power of attorney" to a trusted person or lawyer in Turkey to handle transactions at the land registry office and attend general assembly meetings. This power of attorney must be drawn up before a notary and (if issued in a foreign country) must have an apostille certification.
2. Written Representation: If a property owner cannot attend the meeting, they may appoint another property owner or a third party as their proxy. However, unless otherwise stipulated in the management plan, a single person may be limited to representing more than 33% of the total votes. It is essential to verify this detail in the management plan.

Language Barrier and Service of process Guarantee

The biggest grievance for foreign property owners is that meeting notices are made in Turkish and do not reach them. According to the Condominium Law, meeting notices must be sent to property owners either "against signature" or "by registered mail with return receipt." If the administrator knows the foreign property owner's address but fails to serve the notice, all decisions made at that meeting can be challenged.

Foreign investors, especially in large properties, should inquire whether professional management companies offer translation or information services for foreign owners. If the property is managed by or through a law firm, summarizing meeting minutes in a foreign language for the foreign owner is a critical "communication bridge" for engaging the investor in the process.

Protection of Voting Rights

If a foreign property owner objects to a decision made at the meeting, they must have this objection recorded in the minutes with a dissenting opinion. If they cannot attend in person, their representative must add this dissenting opinion. A foreign property owner who does not attend the meeting or objects through their representative will have a "time" advantage in a lawsuit to have the decision overturned (1 month from the date the decision was made). Otherwise, they will be subject to a 6-month period from the date they learned of the decision.

When a foreign investor buys property in Türkiye, they don't just acquire a title deed; they also become a partner in a community. This partnership gains value through active participation in management. A foreign owner who knows their rights and structures representation processes in accordance with the law protects not only their own property but also the overall value of the complex.

 Legal Remedies for Disputes with Site Management

In condominium buildings, peace and harmony depend on adherence to common rules and transparent management by the administrators. However, in practice, disputes frequently arise between site managements and condominium owners, particularly regarding the use of dues, the management of common areas, or the implementation of administrative decisions. If you believe your rights as a condominium owner have been violated, the legal avenues you can pursue are clearly defined by the Condominium Ownership Law (KMK).

1. Annulment of the Homeowners' Association Decision

If the management implements a board decision illegally, or if an irregular decision is made at a board meeting, the first course of action is to file a "Decision Annulment Lawsuit" in the Civil Court of Peace. This lawsuit is the most powerful weapon to stop the arbitrary actions of the management. However, it should be noted that filing an annulment lawsuit does not automatically stop the execution of the decision; a separate "interim injunction" may need to be requested from the court for this.

2. Requesting the Intervention of the Judge (Article 33 of the Civil Code)

One of the most practical ways to resolve issues in condominium law is through the right to "request judicial intervention" under Article 33 of the Condominium Law. If the manager is not fulfilling their duties, if a problem concerning common areas remains unresolved, or if a dispute has arisen between the management and the owners, you can request a court of peace to order the management to perform a specific task or to cease a particular behavior. This is a procedure that can yield results much faster.

3. Discharge of the Manager and Audit Rights

Every homeowner has the right to examine the books and documents kept by the manager. If the site management is not transparent, if there are suspicions of irregularities in income and expenditure items, or if expenditures are made contrary to the management plan, you can object to the "discharge" (acquittal) of the management at the homeowners' assembly meeting. A manager who is not discharged may be forced to resign in the future and may face a compensation lawsuit as their legal and financial responsibility will continue.

4. Mediation and Notices

Nowadays, many disputes are subject to a "mediation" process before resorting to litigation. In problems you experience with site management, sending a formal notice to the management through a lawyer before filing a lawsuit can resolve the issue outside of court by reminding the management of their legal responsibilities. Communication problems, especially those experienced by foreign property owners, can be overcome by formally informing the management through a legal notice.

5. Removal of the Administration and Appointment by the Court

If the site management is completely deadlocked, if a manager cannot be elected, or if the current management is maliciously damaging the building, the apartment owners can apply to the civil court to request the dismissal of the current manager and the appointment of a new one by the court. This is the ultimate and most radical legal way to ensure a complete change of management.

In conclusion, disputes with site management are resolved by asserting one's rights, not by remaining passive. For foreign property owners, following these processes is a critical responsibility, particularly in terms of securing their properties in Turkey and protecting their investment value. With the support of expert law firms like MG Law, overcoming administrative obstacles and managing your site on a legal basis will safeguard both your peace of mind and your property rights.