Condominium Owners' Association

Condominium Owners' Association / Wohnungseigentümergemeinschaft (WEG)

February 09, 2023

What is a Condominium Owners' Association (Wohnungseigentümergemeischaft=WEG)?

The relevant regulations for the Condominium Owners' Association can be found in the German Condominium Owners' Act (also known as the WEG).

The condominium owners' association is made up of all the unit owners* in a condominium. Condominium ownership is the separate ownership of an apartment, partial ownership is the separate ownership of rooms or areas not used for residential purposes, both of which are linked to the co-ownership share of the common property (land/building) to which they belong. A sale or transfer of the residential or partial ownership without the share in the common property is excluded, see § 6 WEG.

The distinction between residential and partial ownership is based solely on the structural design of the rooms and the resulting purpose, not on the actual use.

Pursuant to § 9a (1) WEG, the condominium owners' association has legal capacity and is a party to legal proceedings; it can acquire rights, enter into obligations, sue and be sued.

The condominium owners' association is represented in legal transactions by its condominium manager, see § 9b WEG. The condominium owners' association shall be represented vis-à-vis the condominium manager by the chairman of the management advisory board or by a condominium owner authorised by resolution.

If there is no administrator, which may be the case in very small communities with only two or three owners or very well-connected owners, the community is represented by the owners collectively.

How is a condominium community formed?

Condominiums and part-ownership can be created either by contract (§ 3 WEG) or by division (§ 8 WEG) of the property into two or more (self-contained) units. Registration in the land register is required for condominium ownership. The condominium owners' association then comes into existence with the creation of the condominium land register, § 9a (1) sentence 2 WEG, from which time the provisions of the WEG apply.

Who bears the costs in a condominium owners' association?

In principle, each condominium owner must bear the costs incurred by the community - such as the manager, lighting of common areas, garden maintenance and street cleaning - in proportion to his or her share. However, the owners can also agree that certain costs will only be borne by certain owners, for example, if certain facilities are only used by them.

How does the community make decisions?

The decision-making body of the condominium owners' association is the owners' meeting, §§ 23 ff. WEG. This is where the owners exchange views, discuss the situation of the community and pass resolutions, e.g. on the maintenance of common property, garden/yard design, economic plan or maintenance reserve. According to § 24 WEG, the manager must convene the meeting at least once a year. If necessary, e.g. in the case of urgent maintenance work to prevent damage, an additional meeting must be convened. Notice of the meeting must be given in writing at least three weeks in advance. In urgent cases, a shorter notice may be allowed.

The meeting may only vote on and pass resolutions on matters which have already been sufficiently and clearly stated in the invitation.