licenses of workplaces leased contrary to building management plans may be cancelled!

15 December 2023

Licenses of Workplaces Leased Contrary to Building Management Plans May Be Cancelled!

Building management plans, which play an important role in ensuring the quality of life and peace in apartment buildings, commercial properties, or complexes, are a contractual arrangement that governs how co-owners of independent units jointly manage and use this common area.

Building management plans are governed by Article 28 of the Turkish Condominium Act. According to this article, a management plan is a contractual arrangement that binds all co-owners and regulates the management style, purpose and form of use, the fees to be paid by the manager and auditors, and other matters related to management.

Management plans can be amended by the unanimous vote of the co-owners. However, management plan provisions that are contrary to the provisions of the last paragraph of Article 28 of the Turkish Condominium Act cannot be amended.

Renting Commercial Property in Violation of the Building Management Plan

Management plans may prohibit the operation of certain businesses in some commercial properties registered as commercial properties in the land registry. For example, a management plan for an apartment building may state that "it is prohibited to rent the commercial units in the building to businesses such as restaurants, cafes, and bars." In this case, the co-owner who rents the commercial units in the building to these businesses would be in violation of the management plan.

Since building management plans are shown in the declarations section of the land registry, it is not possible to hold the lessee liable on the grounds that he or she was unaware of this. Tenants who rent a property in violation of the building management plan they have reviewed will not be able to claim compensation from the property owner for damages in the event that they are unable to obtain a business license or the license they have obtained is revoked unless there is a written agreement between the parties on this matter. Therefore, it is of great importance to review building management plans in commercial rentals and to determine the necessary responsibilities in the lease agreement in the event of such a conflict.

In the event that an independent unit is rented in violation of the building management plan, the following administrative and criminal penalties may be imposed:

  • Warning fine: The condominium association may impose a warning fine on the co-owner who violates the management plan.
  • Implementation of the management plan provision through litigation: The condominium association may file a lawsuit against the co-owner who violates the management plan in order to enforce the provision of the management plan.
  • Annulment of administrative transaction: The license of the business operating in violation of the management plan may be revoked by filing a lawsuit requesting the annulment of the administrative transaction, in accordance with Article 32 of the Turkish Building Law No. 886.

Process of Objection and Correction to Building Management Plans

A co-owner who wishes to object to a building management plan must notify the condominium association in writing of his or her objection within six months of the date on which the management plan was served on him or her.

The objection of the co-owner who has objected to the building management plan is reviewed and decided by the condominium association. The condominium association may accept or reject the objection. If the objection is accepted, the management plan is amended. If the objection is rejected, the co-owner may apply to the district court for the annulment of the relevant management plan provision.

Conclusion

Building management plans play an important role in ensuring the quality of life and peace in apartment buildings, commercial properties, or complexes. Therefore, it is important to review the management plan before making a purchase transaction in order to avoid potential problems.

In the event that an independent unit is rented in violation of the building management plan, administrative and criminal penalties may be imposed. Therefore, co-owners who rent commercial businesses should carefully review the management plan and take the necessary precautions if there is a violation of the management plan. For those who will rent a property in this way, it is necessary to clearly regulate the matters they will demand from the owner of the property in the event that the business license cannot be obtained or is revoked in the lease agreement.

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