Legal Liability of the Apartment Manager

The apartment manager has broad powers, from the day-to-day running of the building to its financial management. So what is their liability in return? Questions such as "what happens if the manager misuses the money", "must they give account" and "must they compensate for damage" are among the most common concerns of unit owners. In this article we explain the manager's legal liability.

The manager is like an agent

Article 38 of the KMK provides that the manager is liable to the unit owners like an agent. This means the manager must carry out their duty with care, honesty and in the interests of the unit owners. Agent liability is the fundamental principle that shapes both the manager's powers and their obligations.

Duty to give account

One of the manager's most important obligations is giving account. The manager must regularly give account to the unit owners of the dues collected, the expenditure made and the financial situation of the building. For this purpose, they keep the operating book, preserve income-expense documents and present a report of activities at the general assembly. A manager who refuses to give account or is not transparent falls under liability.

• The operating book must be kept in order.
• Income and expense documents must be preserved.
• Regular information must be given to the unit owners.
• Account and activity reports must be presented at the general assembly.

Liability for fault

If the manager, while carrying out the duty, causes damage to the unit owners through fault, they are liable for that damage. For example, misuse of common money for other purposes, neglecting necessary maintenance and causing damage to the building, or causing financial loss through carelessness may all give rise to compensation liability. Unit owners may resort to legal remedies to seek compensation for damage caused by the manager's fault.

Supervision of the manager

The manager's transactions are supervised by the supervisory board (auditor). The auditor reviews the manager's accounts and presents a report to the unit owners. The assembly of unit owners can also evaluate the manager's activities at any time. A manager who abuses or neglects the duty can be removed by a decision of the assembly and legal proceedings may be initiated against them if necessary.

Unit owners have responsibilities too

Liability does not lie only with the manager. Unit owners are also obliged to contribute to common expenses, comply with decisions and contribute to the maintenance of the building. An owner who does not fulfil these obligations is liable both to the management and to the other owners. In short, sound management is possible only when both the manager and the owners fulfil their responsibilities.

Summary: The manager is liable to the unit owners like an agent (KMK Art. 38); they must carry out their duty with care, give regular account and be transparent. If they cause damage through fault they are liable to compensate for it and they are supervised by the auditor. Unit owners also have a responsibility to contribute to common expenses and comply with the rules. For management and supervisory processes, see our blog guides, and run your building management transparently with our digital tools.

Frequently Asked Questions

Must the manager give account?
Yes. The manager must regularly give account to the unit owners of the dues collected and the expenditure made, keep the operating book and present a report at the general assembly.

Will the manager compensate for damage they cause?
Yes. If the manager, while carrying out the duty, causes damage through fault (unauthorised expenditure, neglect, etc.), they are liable for that damage and may be held to compensate.

Who supervises the manager?
The manager's accounts are supervised by the supervisory board (auditor); the assembly of unit owners can also evaluate their activities and, if necessary, remove the manager.

Related content

In connection with this topic, our articles on how mortgage and attachment on a unit work, what the preemption right (şufa) is and how it is used and competent court in condominium actions cover the subject in more detail.

This content is for general information only and does not constitute legal advice. For your specific situation, please consult a lawyer.