An overview of the management plan in developments, how service charges are set, the use of common areas and frequently debated issues such as holiday lets.
Living in a development with a pool, gardens and security, particularly on the coast, is an attractive option for Turkish and foreign owners alike. Shared living, however, also means shared rules and shared costs. In this article we look in general terms at matters that frequently arise in residential developments under the Condominium Law No. 634.
The management plan: the development’s constitution
The management plan is a contract that governs relations between unit owners and binds all owners, their successors and tenants. It is shown in the declarations section of the land register. How service charges are shared, the rules for using common areas, the election of the manager and auditor, and the procedure for meetings are all found in the plan.
In large developments consisting of several parcels and buildings, there is a collective management plan and a corresponding structure of boards. Whether a decision has been validly taken therefore depends on which board has authority over the matter.
How service charges are set, and what happens if they are not paid
Common expenses are, as a rule, shared in proportion to land shares, unless the management plan provides otherwise. An annual operating budget is adopted by the owners’ board, and service charges are calculated on that basis. Non-payment may lead to late-payment compensation and enforcement; accumulated arrears also matter to a buyer at the time of sale.
Owners commonly challenge the following:
- An operating budget not adopted at a properly convened meeting
- Expenses allocated contrary to land shares or the management plan
- Extraordinary expenditure incurred without a decision
- Accounts not made available for audit and inspection by owners
Use of common areas
Common areas such as the pool, gardens, car park, shelter and roof are, unless otherwise agreed, for the shared use of all owners. An owner who sets aside part of a common area for personal use, adds a permanent structure to the garden or encloses the roof will in most cases need the consent of the other owners. Unauthorised alterations to common areas may lead to disputes with both the management and other owners.
Short-term letting
One of the most debated issues in recent years is the short-term letting of units for tourism purposes. Such letting may be subject to separate administrative permission procedures, and in some cases the consent of the other owners may be required. The provisions of the management plan may also be decisive. An owner considering letting would therefore do well to review both the legislation and the development’s own rules in advance.
When a dispute arises
In disputes within developments, the first step is often a written request to the management and placing the matter on the agenda of the owners’ board. Board decisions may be challenged within certain time limits; as these can be short, it is important to keep a record of the date on which a decision became known. Depending on the nature of the dispute, mediation and court proceedings may also be considered.
In short
The rules of life in a development are largely found in the management plan and the decisions of the owners’ board. Knowing one’s rights and obligations on service charges, common areas and short-term letting helps prevent disputes. Where a dispute does arise, time limits and procedural rules may be decisive, and each case should be assessed on its own documents.
This content is for general information only and does not constitute legal advice.