The Concept of Maintenance Fees: Obligation to Contribute to Common Expenses (Article 20 of the Condominium Ownership Law)

The most fundamental financial obligation of living in a condominium property is the “obligation to contribute to common expenses.” This payment, commonly known as a “maintenance fee” (aidat), finds its legal basis in Article 20 of the Condominium Ownership Law. This provision establishes not only a payment obligation but also a financial reflection of property owners’ commitment to the building as a whole. A unit owner’s contribution to expenses arising from the maintenance, cleaning, security, and operation of the building’s common areas constitutes a legal obligation.

Scope of Common Expenses

Maintenance fees do not consist solely of the janitor’s salary or the electricity consumed by the elevator. Pursuant to Article 20 of the Condominium Ownership Law, the following expenses fall within the scope of common expenses: the costs of janitors, boiler operators, gardeners, and security personnel, including their salaries, severance payments, and social benefits; building insurance premiums; maintenance, repair, reinforcement, and operational expenses of common areas; the manager’s remuneration and other common expenses. Condominium owners are obligated to contribute to these expenses in proportion to their land shares attached to their independent units (unless otherwise provided in the management plan).

Prohibition on Avoiding Maintenance Fee Obligations

A frequently encountered argument in practice is: “I do not benefit from this service, therefore I will not pay maintenance fees.” Legally, this defense is entirely invalid. For example, a property owner living on the ground floor has no right to claim, “I do not use the elevator, so I will not pay elevator expenses.” The elevator is a common area, and preserving the value of the building serves the common interest of all owners. Even if an owner does not use their independent unit or keeps it vacant, they are not exempt from contributing to the common expenses allocated to that unit.

A Critical Detail for Investors and Foreign Owners

For foreign nationals who purchase real estate in Türkiye as an investment, maintenance fee debt is a frequently overlooked but serious risk that may eventually result in an attachment being placed on the property. Even if a foreign owner does not reside in Türkiye or has not leased the property, they remain responsible for any maintenance fees assessed in their name. The management is authorized to initiate enforcement proceedings against owners who fail to pay maintenance fees. As a result, a foreign investor may unexpectedly face an enforcement annotation on their property, which can obstruct future sale transactions.

The Importance of the Operating Budget

Maintenance fee amounts are determined through an “operating budget” prepared by the manager. This budget must be served on the condominium owners. Once duly notified and not objected to (or objected to and subsequently upheld), the operating budget becomes final and serves as the legal basis for maintenance fee obligations. Based on this budget, the manager may initiate enforcement proceedings against owners who fail to make payments.

Maintenance fees are the lifeblood of a building. When that lifeline is disrupted, the security and comfort of the building suffer. Managing these processes through professional administration and a transparent operating budget protects the rights of condominium owners while ensuring the long-term sustainability of the building’s value—and, for foreign investors, the security of their investment.

Unpaid Maintenance Fees: Delay Compensation and Enforcement Proceedings

The regular payment of maintenance fees is essential for the operational continuity of condominium properties. However, when one or more condominium owners fail to make their payments, a domino effect may arise that destabilizes the building’s overall budget. The Condominium Ownership Law provides managers with a highly effective and efficient enforcement mechanism in such cases. This section examines the sanctions applied to defaulting owners and the legal operation of the enforcement process.

Delay Compensation: The Cost of Non-Payment

A condominium owner who fails to pay maintenance fees on time is obligated, pursuant to Article 20 of the Condominium Ownership Law, to pay delay compensation at a rate of 5% per month for each month of non-payment. This rate is significantly higher than other types of interest recognized under Turkish law, such as statutory interest or default interest. The 5% compensation serves as a powerful deterrent and is one of the strongest tools available to management in collecting debts. An owner’s argument that “interest cannot be charged” is not legally accepted, as this compensation is considered a contractual penalty.

Enforcement Proceedings: A Fast and Effective Method

The manager may directly initiate enforcement proceedings against a condominium owner who fails to pay maintenance fees under the provisions of the Enforcement and Bankruptcy Law.

Non-Judgment Enforcement Proceedings

Based on a finalized operating budget or a resolution of the Condominium Owners’ Assembly, the manager may initiate non-judgment enforcement proceedings through the enforcement office.

Payment Order

The debtor owner is served with a payment order requiring payment of the debt or the filing of an objection within seven days.

Action for Cancellation of Objection

If the debtor owner unjustifiably objects to the enforcement proceeding, the manager may file an action for cancellation of objection to continue the enforcement process. If the debtor fails to provide concrete evidence proving the non-existence of the debt, they may additionally be ordered to pay an “enforcement denial compensation” amounting to 20% of the disputed debt.

Limits of the Manager’s Authority

The manager is not required to obtain separate authorization from the Condominium Owners’ Assembly in order to file a lawsuit or initiate enforcement proceedings against a maintenance fee debtor. The manager exercises this authority directly under the law. However, any funds collected through enforcement proceedings must be recorded in the building’s operating account and properly reflected in the accounting records.

The Path Toward the Sale of the Property

Enforcement proceedings are not limited to wage garnishments or the freezing of bank accounts. If maintenance fee debts, delay compensation, and legal expenses accumulate and the owner continues to refuse payment, the management may request the attachment and judicial sale of the property. This is the most severe sanction provided by the Condominium Ownership Law. The property may be sold through enforcement proceedings to the extent necessary to satisfy the outstanding debt.

Warning for Investors: Purchasing Property with Maintenance Fee Debt

Foreign investors purchasing real estate in Türkiye should obtain written confirmation from the management regarding any outstanding maintenance fee debts associated with the property. Under the Condominium Ownership Law, the new owner and the previous owner may be jointly and severally liable for accumulated maintenance fee debts relating to the period during which ownership was transferred. Therefore, obtaining a debt clearance certificate before the title transfer is essential to avoid unexpected enforcement liabilities.

Maintenance fee debts directly affect the quality of communal living within a building. The management’s ability to handle these matters promptly, lawfully, and decisively protects the rights of owners who fulfill their obligations while preserving the institutional discipline of the condominium.

Service of Notices on Foreign Condominium Owners and Challenges in Debt Collection

The collection of maintenance fee debts becomes a more complex and sensitive legal process when the debtor condominium owner is a foreign national. While notification procedures are generally straightforward and efficient for owners residing in Türkiye, special international service procedures apply when the owner resides abroad or their address in Türkiye cannot be accurately determined. This issue constitutes one of the greatest obstacles faced by management bodies in collecting maintenance fee debts.

Notification Law and Foreign Owners

For enforcement proceedings or lawsuits to be legally valid, notice must be served upon the debtor. Under the Notification Law, service upon persons residing abroad may be carried out through diplomatic channels or direct postal service. However:

Length of the Process

Depending on the recipient’s country of residence, international service procedures may take several months, delaying the finalization of enforcement proceedings.

Translation Requirement

Service documents may need to be translated into the official language of the foreign owner’s country or into English as a common diplomatic language. These expenses are generally borne by the building management budget.

The MERNIS and Residence Address Problem

Foreign owners generally declare an address in Türkiye when purchasing property. However, for investors who return to their home countries after acquiring the property, this address often becomes invalid. If a foreign owner does not provide a valid notification address—or the address of a representative located in Türkiye—while leasing or leaving the property vacant, management faces a significant disadvantage. If the owner’s address is unknown, management may be forced to resort to service by publication, making the legal process considerably more costly.

Solution for Foreign Owners: A Legal Representative

To avoid these difficulties, foreign investors should appoint a representative or engage a property management office or law firm in Türkiye when acquiring property. The inclusion of a notification address or the name of a legal representative in the title records enables management to serve notices directly to that address. Consequently, in the event of a maintenance fee debt, notices can be delivered promptly and enforcement proceedings can continue without delay.

The Information Deficiency Problem Faced by Management

When initiating enforcement proceedings against foreign owners, management often experiences difficulties obtaining passport information or current contact details. At this stage, lawyers may expedite the process by conducting address inquiries through records maintained by the Land Registry Directorate and the Directorate General of Migration Management.

Communication Strategy During the Collection Process

In maintenance fee disputes involving foreign owners, the first step should always be an attempt at direct communication. Before initiating legal proceedings, an informational email sent in English or in the owner’s native language may facilitate payment of the debt. Many foreign owners fail to pay maintenance fees simply because they are unaware of the legal consequences or of the 5% monthly delay compensation rule applicable in Türkiye. A professional management approach prioritizes transparency and communication, helping avoid litigation and enforcement costs.

The risk of attachment on the properties of foreign owners directly threatens the value of real estate investments in Türkiye. Therefore, it is indispensable for foreign investors to work with a “Turkish legal partner” (an attorney or financial advisor) to ensure the security of their property rights.

Mediation and Litigation Processes in Maintenance Fee Disputes

Tensions arising between condominium owners and managers due to maintenance fee debts frequently lead to court proceedings. Following recent reforms in the Turkish legal system, mediation has become a central institution in many legal disputes, including those involving maintenance fees. This section examines the resolution of maintenance fee disputes through litigation and the advantages offered by mediation.

Mandatory Mediation Before Litigation

Under Law No. 6325 on Mediation in Civil Disputes, disputes arising from maintenance fee claims may not necessarily be subject to mandatory mediation as a prerequisite to litigation unless they are considered commercial in nature. However, disputes arising under the Condominium Ownership Law fall within the jurisdiction of the Civil Court of Peace. If a debtor objects to an enforcement proceeding for maintenance fee collection, an action for cancellation of objection becomes necessary to resolve the dispute before the court.

Action for Cancellation of Objection (Article 20/2 of the Condominium Ownership Law)

If the debtor condominium owner objects to the enforcement proceeding within seven days by claiming either “I do not owe this debt” or “the maintenance fee amount is excessive,” the enforcement proceeding is suspended. To reactivate the process, the manager must file an Action for Cancellation of Objection before the Civil Court of Peace. The purpose of this lawsuit is to establish before the court that the maintenance fee debt exists and that the amount is consistent with the management plan and operating budget.

Matters Examined by the Court

During the proceedings, the court may request the following documents from the manager:

• The Operating Budget: Demonstrating how the maintenance fee amount was determined.
• Notification Records: Evidence showing that the operating budget was properly served upon the condominium owner.
• Decision Book: Minutes of Condominium Owners’ Assembly meetings and election records.
• Accounting Records: Evidence that maintenance fee payments have been properly and transparently recorded.

If the court determines that the maintenance fee was properly assessed and that the owner failed to fulfill their payment obligation, it will order the cancellation of the objection and allow enforcement proceedings to continue.

Advantages of Mediation

While court proceedings may last months or even years, mediation can resolve disputes within days. Particularly in disputes involving foreign owners, mediation allows the parties to negotiate and establish payment arrangements.

Payment Flexibility

Parties may agree on installment payments or partial reductions of delay compensation.

Cost Savings

Court fees, expert witness fees, and attorney fees can make litigation expensive. Mediation helps parties avoid these costs.

Suspension of Enforcement

A settlement agreement reached through mediation has the force of a court judgment. If the agreement is breached, collection may be pursued directly through enforcement proceedings.

Tip for Foreign Investors

If you encounter a maintenance fee dispute as a foreign investor, mediation should be viewed as an opportunity for negotiation rather than immediately becoming involved in litigation. A mediation request submitted through your law firm demonstrates good faith and helps minimize legal expenses.

Maintenance fee disputes are generally subject to simplified proceedings before Turkish courts. Although this contributes to a relatively efficient process, obtaining professional legal assistance at every stage remains essential in order to avoid the risk of losing property through enforcement proceedings.

The Path to Property Sale Under the Enforcement and Bankruptcy Law

The Condominium Ownership Law grants managers powerful authority against owners who fail to pay maintenance fees. If maintenance fee debts, delay compensation, and legal expenses continue to accumulate despite all warnings and enforcement efforts, Turkish law provides for a compulsory enforcement process that may ultimately result in the sale of the property. This represents the most severe measure designed to protect the common interests of the building when they conflict with an individual owner’s property rights.

Compulsory Enforcement Process: From Attachment to Sale

Once the enforcement proceeding initiated by the manager becomes final, enforcement measures are directed against the debtor owner’s assets. Initially, wages, bank accounts, and other movable assets may be attached. However, if these measures prove insufficient, or if the debtor has no active assets in Türkiye, the management may obtain an attachment on the debtor’s independent unit (home or office).

Once the attachment is registered in the land registry, the owner’s power to dispose of the property is restricted. If the debt remains unpaid, the process advances to the judicial sale stage through the enforcement office.

Valuation

The market value of the property is determined by expert appraisers.

Sale Announcement

The enforcement office announces the date and time of the public auction.

Auction

The property is sold through public auction, generally beginning with bids corresponding to a specified percentage of the appraised value.

Distribution of Sale Proceeds

Funds obtained through the sale are first allocated to enforcement costs, accumulated maintenance fee debts, and any preferential creditors. Any remaining balance is returned to the debtor owner. This process is the final and most severe consequence for the owner, as failure to pay maintenance fees may ultimately result in the loss of the property.

Foreign Owners and the Risk of Sale

Foreign owners who purchase property in Türkiye and subsequently relocate abroad or neglect their property face particular risks during this process. Difficulties in delivering notices may delay awareness of enforcement proceedings. If a foreign owner only becomes aware of the process upon seeing the auction announcement, the situation may already have reached a largely irreversible stage.

To manage this risk:

Regular Debt Verification

Foreign owners should periodically confirm their debt status with the management.

Legal Representative

Maintaining a representative in Türkiye ensures prompt notification of enforcement and legal proceedings.

Objection Rights

If procedural irregularities occur during the sale process—such as improper service of notices—the owner may file actions seeking the annulment of the auction. However, such actions are subject to strict statutory deadlines.

Final Note

Although maintenance fee debts may appear to be ordinary financial obligations, the special protections provided by the Condominium Ownership Law make them serious matters that can ultimately lead to the loss of ownership rights. The only effective way to protect the security of your real estate investment in Türkiye is to comply with the management plan, pay maintenance fees on time, and manage the process transparently with professional legal assistance. The management’s enforcement authority exists to preserve the peace and financial stability of the building; therefore, resolving disputes through mediation or direct payment before reaching the final stage of judicial sale remains the most rational and protective course of action.