Real Estate Law

Common expenses in condominium ownership

Av. Burak Halit Kuru
7 min read
Common expenses in condominium ownership

Common expenses in condominium ownership are expenses arising from the use, maintenance, and operation of common areas of the principal property, which unit owners are legally obliged to contribute to. This article examines, within the scope of Article 20 of the Condominium Law, the legal nature of common expenses, their allocation, the collection process, and the relevant case law of the Court of Cassation (Yargıtay).

Common Expenses in Condominium Ownership and Their Legal Character

Condominium ownership constitutes a specific form of property ownership regulating both the individual ownership of independent units and the rights and obligations arising from common areas. The proper functioning of this system depends on the timely and complete fulfillment of unit owners’ obligations to contribute to common expenses.

Legal Basis of Common Expenses (Article 20 of the Condominium Law No. 634)

Pursuant to Article 20 of the Condominium Law No. 634, each unit owner is obliged to contribute to:

  • General expenses of the main immovable property
  • Insurance premiums
  • Property management fees
  • Personnel expenses such as janitor, gardener, and security staff
  • Maintenance, repair, and renovation of common areas

These expenses are apportioned either according to land share or based on the nature of the independent unit.

Legal Nature of Common Expense Debt

The obligation to pay common expenses:

  • Arises directly from statutory provisions
  • Constitutes a personal obligation
  • Is inherently linked to the status of being a unit owner

Accordingly, circumstances such as:

  • Leasing the property
  • The independent unit being vacant
  • Non-use of the unit

do not eliminate the obligation to pay common expenses.

This principle has been explicitly affirmed in the decision of the Constitutional Court dated 18.09.2014, which states that unit owners cannot refrain from paying expense contributions by alleging non-use of common areas. The jurisprudence of the Court of Cassation (18th Civil Chamber, 2010/7150 E.) also supports this approach.

Allocation of Common Expenses

The Condominium Law establishes two primary systems for the allocation of common expenses:

Equal Distribution

Expenses related to:

  • Janitor
  • Heating staff
  • Gardener
  • Security personnel

are shared equally among unit owners.

Proportional Distribution (Based on Land Share)

Expenses related to:

  • Insurance premiums
  • Maintenance and repair
  • Management fees
  • Common facilities

are apportioned according to land share, unless otherwise agreed unanimously or regulated by the management plan.

Determination and Collection of Common Expenses

Common expenses are determined in accordance with the operating budget approved by the general assembly of unit owners and duly notified to them.

Collection Procedure

  1. Notification
  2. The manager notifies unit owners of expense schedules and payment deadlines.
  3. Maturity (Due Date)
  4. Pursuant to Article 20, the debt becomes due automatically on the specified date.
  5. Enforcement Proceedings
  6. In case of non-payment, enforcement proceedings without judgment may be initiated by the manager or any unit owner. The manager’s authority derives directly from the law.
  7. Interest and Delay Compensation
  8. A monthly delay compensation of 5% is applied to unpaid debts.

Recovery of Common Expense Receivables

The most common methods for recovery include:

  • Initiation of enforcement proceedings
  • Filing an action for annulment of objection in case of dispute

Authorized Persons

The following are authorized to initiate legal proceedings:

  • The property manager
  • Any unit owner

Authority of the Manager

The manager is entitled, without requiring additional authorization from the general assembly, to:

  • Initiate enforcement proceedings
  • File lawsuits

This authority arises directly from Article 35 of the Condominium Law.

Consequences of Non-Payment

In the event of failure to pay common expenses:

  1. Delay Compensation
  2. A monthly delay compensation of 5% shall be imposed.
  3. Enforcement Proceedings
  4. Direct enforcement proceedings may be initiated.
  5. Statutory Lien
  6. A statutory mortgage (lien) may be established over the independent unit.

Competent Court

In disputes arising from condominium ownership:

  • The competent court is the Civil Court of Peace
  • Jurisdiction lies with the court where the immovable property is located

Binding Nature of General Assembly Resolutions

The general assembly of unit owners determines:

  • The annual operating budget
  • Expense allocations
  • The appointment of manager and auditor

These resolutions are binding upon all unit owners, including those who did not attend the meeting. Accordingly, non-participation does not exempt a unit owner from the obligation to pay common expenses.

Evaluation in Light of Case Law

Judicial precedents establish the following principles:

  • The obligation to pay common expenses is unavoidable
  • Non-use of the property does not eliminate the debt
  • The manager may initiate enforcement proceedings without additional authorization
  • Delay compensation and statutory lien secure the receivable

Conclusion

Common expenses in condominium ownership constitute an unavoidable obligation arising from property rights. Law No. 634 on Condominium Ownership provides clear and binding provisions regarding the allocation, collection, and enforcement of such expenses.

Therefore, it is of utmost importance that unit owners:

  • Pay common expenses on time
  • Act in accordance with the management plan
  • Comply with general assembly decisions

in order to prevent legal disputes.

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