Power of attorney for owners’ meetings: Why is it important?Link to this section
The owners’ meeting is the central decision-making body in the Homeowners association (WEG) This is where important decisions are made that affect all owners and the joint property To ensure that absent owners can also exercise their interests and voting rights, the power of attorney serves as a representation instrument for the owners' meeting. While participation in the owners' meeting is not mandatory for owners, it is recommended due to the important decisions that are made.
If a property owner is unable to attend, a power of attorney allows them to appoint another person to represent their interests. The person granting the power of attorney can specify whether the authorized person should receive specific voting instructions or whether they have complete discretionary power to make their own decisions.
Two types of owners' meetings
Basically, a distinction is made between ordinary owners’ meetings and extraordinary owners’ meetings:
Ordinary Owners’ Meeting:The ordinary owners’ meeting takes place at least once a year and is convened by the administrator.Extraordinary Owners’ Meeting:The extraordinary owners' meeting can be called at any time if necessary to clarify urgent matters and ensure the ability of the condominium association to act.
The topics and points of the owners' meeting
The topics discussed and decided at an owners' meeting are diverse and range from administrative and financial matters to structural changes and the establishment of rules for the use of common property.
Administrative matters
Appointment and dismissal of the WEG administrationThe owners choose a Property management for the management of the common property.The management contract, which regulates duties and remuneration, is also negotiated and decided here.In case of dissatisfaction or misconduct, they can also recall the administration in the assembly.Administrative measuresAt the owners' meeting, decisions are made regarding technical (e.g. repairs) and commercial (e.g. insurance) administrative tasks.Contracts with service providers for cleaning, gardening or winter services are also discussed and concluded by the property management.Election of the Administrative BoardThe owners’ meeting elects an advisory board from its ranks to support and monitor the administration.
Financial matters
Annual statement (housekeeping fee statement)The administration presents an accounting of the income and expenditure of the previous year.The owners’ meeting examines and approves this statement.economic planFor the coming year, a economic plan which contains the expected costs and revenues.The owners decide on this plan and thereby determine the amount of House money firmly.Special leviesIn the case of unexpected or major expenses, such as renovations, special levies can be decided.These are used to cover costs that are not included in the regular budget.Financing of measuresThe owners’ meeting decides on the financing of maintenance and modernization measures.This can be done through reserves, special levies or loans.
Construction matters:
Maintenance and repair measuresNecessary repairs and maintenance work by the Maintenance reserve on the common property are decided here.This ensures that the value of the property is maintained.Modernization measuresModernization measures, such as energy-efficient renovations, are also discussed and decided upon at the meeting.Structural changesStructural changes to the common property that go beyond maintenance require the approval of the owners' meeting.
Other matters:
House rulesResolutions on changes or additions to the house rules.Rules for the use of common propertyEstablishment of rules for the use of common property (e.g. garden, laundry room).
Who may attend the owners’ meeting?Link to this section
Participation in the owners' meeting is limited to certain individuals, as these meetings are not public. Those authorized to attend are primarily the owners themselves, the property manager, and authorized representatives of the owners.
In special cases, receivers, insolvency administrators, and guardians may also participate. The attendance of external experts such as lawyers or architects may be permitted by resolution of the meeting if necessary for individual agenda items.
The owners' voting rights are inextricably linked to their property and cannot be transferred separately to third parties. However, the owners' meeting may decide on the participation of additional persons, such as legal counsel or experts. If an owner is represented by several authorized representatives, they must vote as one if present at the meeting. The authorization must be in writing and clearly verify the identity of the representative.
Who may attend the owners’ meeting by proxy?Link to this section
Since owners' meetings are not public, the community regulations usually stipulate that the representatives of condominium owners must belong to a specific group of people. This group usually includes:
Co-owners:These could, for example, be spouses who also own an apartment in the condominium.The administrator of the condominium association:In some cases, the administrator himself/herself may act as an authorized person.Members of the Administrative Board:Advisory board members can also be authorized to represent the company.
The exact terms of the power of attorney for an owners' meeting can vary from condominium association to condominium association. Therefore, you should consult the individual provisions in the declaration of division and the community regulations to ensure that the power of attorney for the owners' meeting is valid.
For representation in the owners’ meeting, it is important to Declaration of division and the Community regulations The WEG should be carefully reviewed before granting a power of attorney. These documents often contain specific provisions regarding voting rights and may impose restrictions on the authorization.
Voting power in the event of dismissal of the administration
If the removal of a property manager due to misconduct is being discussed at a meeting, it is advisable to grant a proxy vote to a co-owner, not the affected property manager. The Cologne Regional Court clarified in a ruling (case no. 29 S 180/15) that a property manager may not vote on his or her own removal without specific instructions.
Representation of owners by a lawyer
Representing property owners by a lawyer at the owners' meeting can lead to problems, especially if the person simultaneously acts against the interests of other property owners in the homeowners' association.
The Schöneberg District Court ruled in a ruling (case no. 771 C 64/15) that in such a case, the affected apartment owner has the right to be represented by a lawyer as well, in order to compensate for the inequality created by the one-sided legal representation. Furthermore, such a "power imbalance" would contradict the principle of collective consideration.
The owner should generally only authorise persons of trust, especially in the case of far-reaching powers that may have a significant impact on the condominium association
What form is required for a power of attorney for the owners' meeting?Link to this section
In principle, there is no specific form required for a power of attorney under the German Civil Code (BGB). However, there is a special requirement for owners' meetings: According to the German Condominium Act (WEG), the power of attorney must be in written form.
Text form means that the power of attorney must be recorded in writing, but does not require a handwritten signature. This makes it easy to prove the power of attorney to the administrator and avoids potential evidentiary problems. Alternatively, owners can also issue the power of attorney in writing, i.e., with a handwritten signature.
The difference between text and written form is that the written form requires a handwritten signature, whereas the text form does not. Therefore, electronic transmission methods such as email are also permitted in the text form.
Content: This information should contain the power of attorney for the owners’ meetingLink to this section
The power of attorney for an owners’ meeting should contain the following key information:
The full names of the owner(s) and the authorized representative.The exact name and address of the homeowners association (WEG).All relevant details about the condominium meeting, including location, date, and time.The indication of whether the power of attorney is valid for a one-time or permanent period.
Although a signature is not required for the power of attorney according to Section 25 (3) of the German Condominium Act (WEG), it can help provide clarity. To ensure that the owner's interests are accurately represented, it is recommended to include detailed voting instructions with the power of attorney. Since the agenda is announced in advance, the owner can use it to prepare.
Power of attorney for the owners' meeting: your sample templateLink to this section
To ensure that your power of attorney includes all the necessary information and is legally effective, we recommend using a template. This simplifies the process for both the principal and the authorized person and minimizes the risk of formal errors.
{Download sample power of attorney now}
Who can represent an owner at the owners’ meeting?Link to this section
Since owners' meetings are generally not open to the public, the community regulations often regulate who is permitted to act as a representative. Typically, the following individuals are eligible:
Co-ownersAdministratorsMembers of the Administrative BoardSpousesDirect relatives
Typical scenarios for choosing a representative:
You would like to have your partner represented, but are not married: Check the regulations of your condominium association carefully.You are the owner of a GmbH and would like to send an employee: There may also be restrictions here.You would like to grant a lawyer power of attorney: In most cases, this is not permitted.Unless the community regulations stipulate restrictions, owners are free to choose whom they appoint as their representative. However, it is advisable to appoint a trusted representative, as important financial and organizational decisions are made at these community association meetings.
Our recommendations:
Read the declaration of division and community regulations carefully.Clarify any ambiguities with the condominium administrator in a timely manner.Grant powers of attorney in writing and clearly.
When can a power of attorney be refused?Link to this section
The power of attorney for an owners’ meeting may be refused in the following cases:
If the authorized representative or owner does not present the power of attorney to the administrator or meeting chair before the start of the meeting.If the power of attorney cannot be properly proven.If the authorized person is not authorized to represent the community according to the community regulations.
The administrator or chairperson of the meeting must review and document the power of attorney. Permanent powers of attorney must be marked separately.
Power of attorney for virtual participation in the owners' meetingLink to this section
The 2020 reform of the German condominium association (WEG) has made it possible for owners' meetings to be held virtually. This offers the advantage that owners who cannot attend in person can still participate. This eliminates the need for a power of attorney in many cases.
These types of meetings are referred to as hybrid owners' meetings (Section 23 (1) of the German Condominium Act). However, purely online meetings are not permitted.
The Condominium Act (WEG) stipulates that owners may decide that participation and the exercise of rights may be conducted partially or entirely electronically. Even if all owners wish to participate digitally, the chairperson of the meeting must provide a room for those who wish to attend in person. Furthermore, the option of hybrid or digital participation must be incorporated into the community regulations by resolution.
When are owners excluded from their voting rights?Link to this section
Under certain circumstances, owners' voting rights may be suspended. This means they may neither vote themselves nor transfer their voting rights, as they cannot transfer rights they do not possess. Such situations typically arise when a legal transaction is pending with the owners themselves, when a resolution is passed in connection with a legal dispute against them, or when they have been legally deprived of their home ownership.
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