An extraordinary owners' meeting is a meeting of all condominium owners that takes place outside of the regular annual owners' meeting. It is called to make important decisions or discuss urgent issues that cannot wait until the next regular owners' meeting.
What requirements must be met for convening an extraordinary owners' meeting?Link to this section
An extraordinary owners' meeting can be held at any time according to Section 24 Paragraph 2 of the German Condominium Act (WEG). However, certain requirements must be met to convene an extraordinary owners' meeting: First and foremost, there must be a compelling reason that requires a quick decision and cannot wait until the next regular owners' meeting. Examples of such compelling reasons could include:
Acute damage to the building:Sudden and significant damage, such as damage caused by water, fire or storm, often requires immediate repair measures and therefore quick decisions by the ownersFinancial needs:Unexpected costs, such as major repairs or the purchase of new common facilities, often require an extraordinary owners' meeting to decide on financing.Changes in property management:A change of administrators or other organizational changes usually require a quick decision by the owners.New legal provisions:New laws or changes to the community regulations may require an extraordinary owners' meeting to decide on the necessary adjustments within the framework of the condominium association meeting.Conflicts and disputes:In the event of serious conflicts within the community of owners or with third parties, extraordinary owners' meetings can help to find an amicable solution.Other unexpected events:Natural disasters or other unforeseen events that require immediate action may also justify an extraordinary owners' meeting.
These reasons must be stated in the invitation to the extraordinary owners' meeting. For the extraordinary owners' meeting to take place, at least a quarter of the condominium owners must also request the meeting. Decisions will be made based on the number of members present, not on the ownership share.
When can an extraordinary owners' meeting be called?Link to this section
An extraordinary owners' meeting can be called at any time, but especially whenever the above-mentioned conditions are met. Since there are no fixed dates for the extraordinary meeting, the condominium association's ability to act is ensured at all times.
In order to make it possible to convene the WEG meeting, the extraordinary owners' meeting must always be announced in writing at least seven days in advance. WEG Act In some cases, the deadline can be shortened to just a few days. However, a valid reason for deviating from the standard must be provided.
Important formalities for the invitation to the extraordinary owners' meetingLink to this section
As with the regular owners' meeting, all owners must be informed of the upcoming meeting. The invitation to the extraordinary owners' meeting must include the following points:
The planned agenda:The invitation must include a comprehensive agenda listing all items to be discussed and resolutions to be adopted. Changes to the agenda are only possible under certain conditions.Place, date and time:In order to convene the extraordinary owners' meeting, the place, date and time of the meeting must be listed.Reason: The invitation must explain why an extraordinary owners' meeting is necessary and what urgent matters need to be addressed.
If the formalities are correct, nothing stands in the way of an extraordinary owners' meeting.
The invitation to the extraordinary owners' meeting
The invitation to the extraordinary owners' meeting can be sent in various ways: traditionally by mail, modernly by email, or via the property management company's digital customer portal, if available. Personal delivery or posting in the hallway is also conceivable, but usually serves only as a supplement. It is crucial that every owner receives the invitation in a timely manner and with proof of receipt to ensure the validity of the resolutions.
Who can call an extraordinary owners' meeting? The owners or the property management?Link to this section
An extraordinary owners' meeting can be called by various parties. This can be done either by the condominium association administrators if they have an interest in clarifying certain matters. Alternatively, the administrative board or its representative can request the meeting and thus initiate an extraordinary owners' meeting.
The Condominium Act also grants owners the right to request an extraordinary owners' meeting. If at least 25% of the owners submit a written request, it must be considered if there is an urgent reason.
The procedure for an extraordinary owners’ meetingLink to this section
The process of an extraordinary owners' meeting is similar to that of a regular meeting – topics are discussed, and resolutions are voted on. As with a regular meeting, the necessary decisions can be made by a simple majority. A unanimous vote is not required. This allows the condominium association to quickly initiate important decisions.
The meeting is chaired by the property management. In cases where the property management refuses to hold an extraordinary owners' meeting, the meeting can also be chaired by the management board or an owner.
As with the ordinary owners' meeting, minutes must also be kept, which must be signed at the end by an authorized member and included in the record of resolutions.
The difference between an ordinary and extraordinary owners' meetingLink to this section
The main difference between an ordinary and extraordinary owners' meeting is the convening, the notice period and the topics discussed by the participants.
The convocation
An ordinary owners' meeting usually takes place at least once a year and deals with the usual property-related matters. An extraordinary owners' meeting, on the other hand, is called outside of the schedule to discuss urgent matters or decisions that cannot wait until the next ordinary owners' meeting.
The topics
The topics discussed at the meetings can vary significantly: At regular WEG meetings, the following topics are usually on the agenda:
General topics such as business plan and annual accounts,Choosing the new property managementThe election of the administrative advisory boardsGeneral matters relating to the WEG
During the extraordinary WEG meeting, however, topics of increased urgency are discussed, such as mold infestation, burst pipes or breaches of duty by the property management.
The deadline
The deadline for convening the regular owners' meeting is three weeks before the meeting date. The deadline for an extraordinary condominium association meeting, however, is only one week.
Special case: dismissal of the property managementLink to this section
If you, as a condominium association, wish to dismiss your current property management, this is done in accordance with the provisions of the Condominium Act. Dismissal of the manager is necessary if the cooperation between the manager and the homeowners' association is no longer functioning, or if the manager is no longer properly fulfilling their duties. The goal of the dismissal is to appoint a new condominium management team that better represents the interests of the homeowners' association.
The condominium management company is then obligated to hand over all documents relevant to the management of the condominium association to the successor company. This is important to ensure a seamless handover and the smooth operation of the condominium. However, dismissal can sometimes lead to legal disputes, especially if the dismissed manager does not accept the decision.
When can the administrator be removed from office?
At the request of the owners’ association:If a certain percentage of owners (usually a majority is required) request a dismissal, this must generally be carried out. Subsequently, an extraordinary owners' meeting is convened.At the request of the administrator:The property manager can also resign. This is often the case when the working relationship with the homeowners' association is severely strained.
The reasons for dismissalcan be diverse:
Gross breaches of duty:If the condominium manager fails to properly perform his/her duties, such as managing funds or organizing repairs.Inability to manage business properly:If the WEG administrator can no longer manage his/her duties due to a lack of communication or organizational skills.Loss of trust:If the relationship between the property manager and the condominium association is so damaged that a trusting collaboration is no longer possible.
Extraordinary owners' meeting without the property management
An extraordinary owners' meeting without the presence of the property manager is an exception, but it is legally permissible and may be necessary under certain circumstances. Reasons for this could include, for example, the dismissal of the property manager, a vacant property manager position, or an urgent matter.
Holding such an owners' meeting requires greater initiative from the condominium owners' association and clear organizational procedures. To ensure legally sound decision-making, it is advisable for owners to familiarize themselves thoroughly with the relevant legal provisions in advance.
How much does an extraordinary homeowners meeting cost?Link to this section
The costs for an extraordinary owners' meeting depend on various factors, such as the size of the condominium association, the complexity of the agenda, and the agreed-upon services of the condominium management. We cannot provide a blanket statement regarding the costs of such a condominium meeting. The amount generally covers the preparatory work, conducting the meeting, and preparing the minutes. Additional costs, such as rental of a meeting room, are not included.
The exact costs can be found in the management contract. This contract not only stipulates the general remuneration for the condominium management, but also contains specific provisions for special services such as holding extraordinary owners' meetings. We advise you to read the management contract carefully to avoid any surprises regarding the costs involved.
Why dubious property management companies do not like extraordinary owners’ meetingsLink to this section
Naturally, an extraordinary owners' meeting involves additional work, which is why some dubious property management companies naturally find such a meeting a thorn in the side. This is primarily because an extraordinary owners' meeting tends to bring up unpleasant topics that lie outside of day-to-day business. Once a resolution has been passed, the property management company must then react and take appropriate action, including repairing damage or having it repaired.
The property management company must also prepare the usual minutes and compile the resolutions, all of which represent additional work beyond the usual scope. Another reason: If the property management company is to be dismissed and terminated due to breaches of duty, this also occurs during an extraordinary homeowners' association meeting. Therefore, dubious property managers almost always try to avoid or at least delay convening an extraordinary homeowners' meeting.
Tip: If your property management regularly refuses to hold an extraordinary owners’ meeting, this could be a reason to to change property management .
Extraordinary WEG meeting with RalphLink to this section
As a modern property management company, Ralph offers you several advantages over other property management companies, especially when it comes to organizing and conducting extraordinary owners' meetings.
Professional organization:As a modern property management company, Ralph has a professional work structure and experience in organizing extraordinary owners' meetings. This allows us to plan the process efficiently and ensure that all necessary items on the agenda are addressed appropriately.Legal expertise and transparency:We understand the legal requirements and ensure that every owners' meeting is conducted properly – whether regular or extraordinary. We ensure that all necessary documents are provided to ensure complete transparency so you can make informed decisions.Efficient communication:A modern property management company like Ralph has efficient communication channels in place to inform all owners about the upcoming condominium association meeting and give them the opportunity to clarify their concerns and questions in advance. Invitations to extraordinary meetings are always sent out on time.Proper logging:We ensure proper minutes are taken during the extraordinary owners' meeting. This ensures that all resolutions and discussions are documented, which is crucial for the transparency and traceability of the meeting's results.Conflict management:As a reputable property management company, Ralph has extensive experience in dealing with conflicts within the property ownership community. We can mediate disagreements and ensure constructive resolution to safeguard the common interests of all owners.
Switch to Ralph nowLink to this section
These and many other advantages help ensure that extraordinary owners' meetings are held efficiently and fairly, and that your interests as owners are adequately considered. Are you looking for a new property management company, would you like to change your current property management company and work with us? Then please visit our information page to learn more. Property management costs about our offer! We look forward to your inquiry.