Law No. 7579, published in the Official Gazette dated 22 May 2026, amended Articles 35, 37 and 70 of Condominium Law No. 634. The change that matters most to property managers concerns the operating budget in Article 37.

What changed?

Under the previous regime, the operating budget was prepared by the manager, notified to the unit owners, and if no objection was raised within seven days of the notification, the budget became final. With the new regulation, this seven-day objection clause has been repealed.

Under the new clause:

  • The operating budget is approved at the general assembly of unit owners.
  • If there is no operating budget accepted by the owners' assembly, the manager shall, without delay, prepare a temporary operating budget until it is approved by the assembly within three months at the latest.
  • The budget is notified to unit owners, or to those who actually occupy a unit, against their signature or by registered letter, and a general assembly decision to accept it as is or with amendments must be taken within three months at the latest.

Amount cap in the temporary budget

The most practical consequence of the change is here. If an existing operating budget is in place, the amount envisaged for a temporary operating budget is set at no more than the revaluation rate determined and announced for the previous year under Article 298 (repeated) of Tax Procedure Law No. 213, effective from the start of the calendar year, applied each year.

In other words, a manager cannot raise the monthly maintenance fee as they please with a temporary budget and without general assembly approval; the cap on increases is the revaluation rate.

The wording on collecting advances has also changed

The same Law also updated the wording on collecting advances in Article 35, which lists the manager's duties. The manager now carries out the collection of advances until the operating budget is approved.

What should property managers do?

  1. Determine the status of your current budget. Do you have an operating budget approved at the general assembly, or are you working only from a draft prepared by the manager?
  2. Plan the general assembly for approval. Under the new rules, assembly approval is what counts; a temporary budget is a stopgap.
  3. Document the notification. Delivery against signature or registered mail — proof of notification still matters.
  4. Watch the increase cap. Limit the amount you set in the temporary budget to the revaluation rate.
  5. Record it in the decision book. The approval decision must be written in the book and signed.

What does a finalised budget do for you?

This is critical for collections: finalised operating budgets or owners' association resolutions on operating expenses count among the documents listed in Article 68(1) of the Enforcement and Bankruptcy Law. In practice, this means you hold strong documentary evidence during the process of having the debtor's objection lifted. For details, see our article on service-charge debt collection.

This article is for general information only and is based on the legislation in force at the date of publication. For specific disputes, rely on current legislation and legal advice.