What Is a Management Plan? Why Is It Important?

What Is a Management Plan?

A management plan is a written document that regulates how a main property (anagayrimenkul) will be managed, how the common areas will be used, and the mutual rights and obligations of the owners. It functions like a constitution for the building: when a dispute arises, the management plan is consulted first. Provided it does not conflict with the mandatory provisions of the law, the plan can regulate many matters in a manner specific to the building.

Whom Does the Management Plan Bind?

The management plan binds not only the signatories but also all subsequent owners — including those who later purchase an apartment — and their successors. That is, when you purchase an apartment, you are deemed to have accepted the management plan of that building. For this reason, reading the management plan before purchasing an apartment is very important; it may contain provisions binding on you — from dues sharing to pet rules.

What Does the Management Plan Regulate?

A well-drafted management plan includes the following:

• How the manager is elected and the manager's powers
• The method of sharing common expenses (land-share ratio or equal share)
• The timing of board meetings and the procedure for notice
• Rules for using common areas
• Whether late-payment interest will be applied

When the plan clarifies these matters, many questions arising in daily management are answered naturally, and unnecessary disputes are prevented.

How Is the Management Plan Amended?

The management plan cannot be amended easily. As a rule, amendment requires the vote of four-fifths of all unit owners. This heavy majority exists to preserve the plan's stability; it prevents fundamental rules from being changed at the whim of a few. Once the amendment is registered in the title deed record, it becomes binding on everyone.

What If a Board Decision Conflicts with the Management Plan?

If the board of unit owners takes a decision contrary to the management plan, that decision is generally void. This is because the plan is a higher-level regulation, and changing it requires a special majority. If the board genuinely wishes to change a rule, the correct route is to amend the management plan through the proper procedure — not to circumvent it with an ordinary decision.

Common Mistakes

• Buying an apartment without reading the plan: Rules discovered later can be surprising.
• Making decisions contrary to the plan: Board decisions that conflict with the management plan may be void.
• Failing to register the amendment with the title office: An unregistered amendment does not bind third parties.

Related Topics

We covered the annulment of decisions contrary to the management plan in our decision annulment article, the definition of common areas in our what is a common area article, and the limits of the manager's authority in our manager's powers article.

This content is for informational purposes. For amendment and interpretation of the management plan, refer to your title deed record and a legal counsel's opinion.