VVE and Management Plan (Contract for the Homeowners Association)
Each apartment complex or housing complex has a contract for the Homeowners Association registered with the land registry. This contract can best be described as a management plan. In this management plan, rules can be established regarding the use of common areas, independent private spaces (such as residences or commercial properties), general expenses, rights and obligations of the owners and the management, supervisory roles, etc. These rules must not conflict with mandatory legislation. If certain matters are not included in the management plan, the “Condominium Law” (Kat Mülkiyeti Kanunu) applies.
A management plan is one of the legally required documents when obtaining the first construction servitude deed (kat irtifakı) or the first title deed of ownership (kat mülkiyeti). Many buyers are not aware of the existence of this document. Because the presence of this document is often unknown to new buyers, people sometimes attempt to establish their own written rules, create a new homeowners association, and register it with a notary in order to manage the complex.
However, this is not necessary and is also not legally valid. The owners of the apartments or houses in the relevant complex automatically and obligatorily become members of the homeowners association. From the moment you purchase an apartment, you are already a member of the association, and there is always an existing management plan that has already been registered with the land registry.
It is possible to amend the existing registered management plan, but a 4/5 majority of the owners is required. If this majority cannot be achieved, it is possible to initiate a legal procedure. The initial management plan must be signed by all owners.
The first owner is usually the landowner and/or the contractor. The homeowners association consists of the owners of all independent units in the housing complex or apartment building. The apartment building or housing complex is managed by this association. Each independent unit (every residence or commercial property) has voting rights. Owners with multiple houses cannot hold more than 1/3 of all votes. A representative may not represent more than 5% of all votes. If a complex consists of fewer than 40 residences/apartments, the representative may represent no more than 2 owners.
No notarial procedure is required for this authorization. The Homeowners Association must meet at least once per year. Complexes consisting of multiple buildings (large residential sites) must meet at least once every two years. These meetings may be held with a double majority (majority of owners and majority of their land shares).
If the required majority is not present, a second meeting must be held within a maximum of 15 days with the participants present. There must be at least 7 days between the first and second meeting dates. If the place, date, time, and agenda of the meeting are not communicated in writing to all owners at least 15 days in advance, the meeting may be declared invalid.
Decisions that can be taken with a double majority (majority of owners and majority of land shares):
- Useful changes and additions in the common areas: The costs will be covered by the owners who benefit from these useful changes or additions. Owners will divide these costs among themselves according to their usage percentage. If it concerns a luxury and significantly expensive change that the owners did not approve and from which they cannot or do not wish to benefit, these owners do not have to pay for these costs;
- Election of the Management and the Supervisor.
Decisions that must be taken unanimously:
- If an independent unit (private space) in the building complex is registered as a residence in the land registry but the owner wishes to use it as a bar, club, restaurant, shop, etc., all owners must unanimously approve this in advance;
- Changes and additions that affect the entire building complex. For example, if a large advertising board is to be installed on the building;
- If a new independent unit (for example an additional floor, residence, or shop) is to be constructed within the complex.
Decisions that may not be taken:
- If an independent unit in the building complex is registered in the land registry as a residence or commercial property, it may never be used for healthcare-related activities (such as a hospital, pharmacy, clinic, laboratory, etc.). Different legal requirements apply to this sector.
For a modification or major repair carried out in the common area by an owner for their own benefit, a 4/5 majority of the owners is required. However, if a repair is ordered by the civil court due to an emergency, this majority is not required.
If an owner did not attend the meeting or voted against a decision, that owner may file an objection against the relevant decision. Those who disagree with the decisions of the homeowners association may apply to the Civil Court of Peace in the location where the property is situated.
According to the new “Condominium Law”, if an owner suffers damage due to another user (tenant or owner) who fails to fulfill their obligations (such as failing to repair leaks), the affected owner may apply to the Civil Court of Peace.
Owners who fail to fulfill their financial obligations (regarding general expenses) must pay a monthly interest of 5% on the outstanding amount in addition to the debt. If one of the owners does not pay their debts, an enforcement procedure can be initiated through legal action. If an enforcement procedure is carried out three times within two years, the Civil Court of Peace may transfer the ownership rights of that owner to the other owners. You can also directly apply to the Civil Court of Peace for a payment judgment.
If the debtor continues to fail to pay for another year after the court decision, the Civil Court of Peace may transfer the ownership rights of that owner to the other owners.
An owner is not allowed to make changes to their own independent unit if this causes damage to the main building.
The legislation regarding building complexes is a comprehensive body of law. It contains several important provisions that are relevant for every resident, user, and/or owner.
I always advise new buyers to have the existing management plan translated and to review it carefully. For example, it may state whether pets are allowed, how general expenses are arranged, when meetings take place, and so on.
A large part of the mandatory legislation regarding building complexes is not included in the management plan. Therefore, make sure you are well informed and, if necessary, seek professional guidance when drafting a management plan.