As a homeowner and member of a homeowners' association (WEG), you have not only acquired a condominium but also a right to have a say in decisions concerning the shared property. This right to have a say—your right to vote—is an essential component of the German Condominium Act (WEG Act) and gives you the opportunity to actively participate in the design and management of your WEG.
In this article, you'll learn everything you need to know about voting rights in a homeowners' association: What rights and responsibilities do you have as an owner? How do you vote? What majorities are required for certain decisions? And what has changed as a result of the 2020 WEG reform?
Basics of voting rights under the WEG ActLink to this section
Voting rights are one of the fundamental rights you have as a condominium owner. They allow you to vote on resolutions at the owners' meeting and thus influence decisions affecting the shared property.
In principle, every condominium owner has a right to vote in the owners' meeting. The right to vote is tied to the property, not to the individual. This means:
If an apartment belongs to several people (e.g. spouses), they have only one vote together and must agree on a uniform voting behavior.If a person owns multiple residential units in the complex, he or she has a separate vote for each unit.Communities of heirs must also vote unanimously.
How is the right to vote exercised?
Voting rights can be exercised in various ways:
Personal participation: You personally attend the owners’ meeting and vote there.RepresentationIf you are unable to attend, you can authorize a representative to vote on your behalf. You will need a written authorization for this.Online participation: Since the WEG reform in 2020, owners’ meetings can also take place in a hybrid or completely virtual format, provided that this is permitted in the Community regulations was decided.
The voting rights principles: head vs. value principleLink to this section
When voting in the homeowners association, there are two basic principles for the distribution of votes:
The head principle
With the head principle, each owner has exactly one vote, regardless of the size of the housing unit or the share of co-ownership. This principle follows the democratic principle of "one person, one vote" and ensures that all owners have equal rights.
The value principle
With the value principle, voting weights are based on the co-ownership shares. This means: the larger the share of the shared property, the more votes the owner has. Co-ownership shares are recorded in the land register and are generally based on the living space.
Which principle applies when?
The WEG Act generally provides for the head principle, unless otherwise stipulated in the declaration of division or community regulations. In practice, however, many community regulations have agreed on the value principle.
It is also possible that different principles apply to certain decisions. For example, the value principle could apply to structural changes, while the head principle applies to everyday administrative decisions.
Quorum of the owners' meetingLink to this section
So that in a Owners' meeting For effective resolutions to be passed, the meeting must have a quorum. The requirements for this were significantly simplified by the 2020 WEG reform.
Following the reform of the German condominium association (WEG), owners' meetings generally always have a quorum, regardless of the number of owners or co-ownership shares present or represented. This new regulation is intended to prevent meetings from being unable to act due to insufficient attendance.
However, the community regulations may contain different provisions regarding quorum. For example, it is often stipulated that at least 50% of the co-ownership shares must be represented. Such regulations will remain in effect even after the reform of the condominium association.
Majority requirements for votingLink to this section
Not all decisions in a homeowners' association require the same majority. Depending on the significance of the decision, the Homeowners' Association Act distinguishes between different majority requirements.
Simple majority
Most resolutions at the owners' meeting are passed by a simple majority. This means that more yes votes than no votes are required. Abstentions and invalid votes are not taken into account.
Examples of decisions with a simple majority:
Approval of the Annual statement Resolution on the economic plan Appointment of an administrationProper maintenance and repair
Qualified majority
For some more important decisions, a qualified majority is required. Depending on the regulation, this can be a two-thirds majority or a three-quarters majority.
Examples of qualified majority decisions:
Structural changes that go beyond proper maintenanceChanges to the Community regulationsDeprivation of home ownership in the event of serious breaches of duty
Universality (unanimity)
In certain cases, the consent of all owners is even required. This applies particularly to decisions that affect fundamental rights of individual owners.
Examples of resolutions requiring unanimity:
Change in the distribution key for costs and burdensChange to the declaration of division concerning special use rightsDissolution of the community
Structural changes and voting rights: Simplified decision-making since 2020Link to this section
A particularly important area that was newly regulated by the 2020 WEG reform is structural changes to common property.
Before the reform, any structural change generally required the consent of all affected owners, which often made modernization difficult. Since the reform, the following applies:
Structural changes can generally be decided by a simple majority.Every owner is entitled to certain privileged measures, such as the installation of a charging facility for electric vehicles, barrier-free access or burglary protection.In principle, the costs for structural changes are borne only by those owners who have voted for them.Only if the measure serves to modernize the property or if the costs are amortized within a reasonable period of time can the costs be passed on to all owners.
Example: Decision on a photovoltaic system
If the community of owners wishes to Photovoltaic system Since the 2020 reform of the condominium association (WEG), a majority vote is sufficient to install a system on the roof. However, the costs are borne only by those who voted for the measure – unless it is an energy-saving upgrade, where the costs are amortized within a reasonable period of time. In this case, the costs can be passed on to all owners.
Challenge of resolution and nullityLink to this section
What can you do if you disagree with a resolution or if it violates applicable law? A resolution that was passed properly but is flawed in its content (e.g., violates the law or community regulations) can be challenged through legal action. Important to know:
The period for contesting the decision is one month from the date of adoption.Any apartment owner who was outvoted or absent during the decision-making process is entitled to challenge the decision.The lawsuit is directed against the remaining apartment owners.
A resolution may also be void if it suffers from serious defects. In this case, it is ineffective from the outset, without the need for challenge. Resolutions are void, for example, if:
the owners’ meeting was not properly convenedthe decision violates mandatory lawthe subject of the resolution was not announced in the invitation
The invalidity of a resolution can be asserted at any time; there is no time limit as with a challenge.
The voting ban according to Section 25 para. 5 WEGLink to this section
In certain cases, owners are not allowed to vote to avoid conflicts of interest. Section 25, Paragraph 5 of the Condominium Act (WEG) regulates this voting ban. A voting ban applies when decisions are made on the following matters:
A legal transaction or legal dispute with yourselfThe initiation or settlement of legal proceedings against the administratorThe appointment or dismissal of the administrator if you are the administrator yourselfThe discharge of the administrator if you are the administrator yourself
Example of a voting ban
For example, if a vote is held on whether an owner should receive a special use permit for part of the common property, this owner may not participate in the vote because it is a legal transaction with him or herself.
Powers of attorney and representation rules for apartment ownersLink to this section
Not all condominium owners can always attend the owners' meeting in person. Therefore, the Condominium Act allows for representation by an authorized representative.
For the representation to be legally effective, the following requirements must be met:
The power of attorney must be given in writing (email or fax is usually not sufficient).The name of the authorized representative(s) must be clearly identifiable.The power of attorney should refer specifically to the respective owners’ meeting.A signature of the principal is required.
The community regulations may provide for restrictions on representation, for example:
Only certain persons may act as authorized representatives (e.g. only other owners or family members).One person may only represent a limited number of owners.
Such restrictions are permissible provided they are not disproportionate and do not fundamentally exclude the right of representation.
Voting rights in online meetings and digital votingLink to this section
The 2020 WEG reform has advanced digitalization in homeowners' associations and created new opportunities for holding meetings and voting.
Virtual and hybrid owners' meetings
According to Section 23 (1) of the German Condominium Act (WEG), condominium owners may decide that the owners' meeting can also be held virtually or in a hybrid format (partly in person, partly online). A simple majority is sufficient for such a resolution.
Advantages of virtual meetings:
Higher participation rate as no physical presence is requiredTime savings due to elimination of travel routesFlexibility for homeowners who live far away
Circulating resolutions in text form
Another innovation of the WEG reform concerns the Circulating resolution Before the reform, these decisions could only be made unanimously, which was often impossible in larger communities. Now, the following applies:
Resolutions by circular may be made in text form (e.g. by email).A unanimous decision is no longer required; the majority required in a meeting is sufficient.The prerequisite is that the owners' meeting has passed a corresponding resolution providing for the possibility of circular resolutions in text form.
Special cases and special voting rights regulationsLink to this section
There are several special cases in which special voting rights regulations may apply:
Voting rights in the event of insolvency or compulsory administration
If insolvency proceedings are initiated against an owner's assets or the residential unit is placed under receivership, the voting rights are transferred to the insolvency administrator or receiver, who then exercises the rights at the owners' meeting.
Voting rights in communities of heirs
If a property owner dies, ownership passes to the heirs. If there are multiple heirs, they form a community of heirs who must exercise voting rights jointly. The heirs must agree on a uniform voting pattern and appoint a joint representative.
Voting rights for spouses and civil partnerships
If a residential unit belongs to both spouses or life partners, they have only one vote together. They must agree on a consistent voting pattern. If they cannot reach an agreement, their vote is invalid.
Practical tips for ownersLink to this section
As a homeowner, you should exercise your voting rights consciously and responsibly. Here are some practical tips:
Preparation for the owners' meeting
Study the agenda thoroughly and prepare questions.If necessary, obtain additional information from the administrator.For complex issues: Talk to other owners in advance.Check the proposed resolutions for their impact on you personally and the condominium association.
Active participation in the discussion
Present your arguments objectively and constructively.Also listen to the arguments of other owners.Don’t be afraid to ask questions for clarification.Make your own proposals for resolutions if necessary.
Power of attorney in case of impediment
If you are unable to attend in person, please provide a Power of attorney .Instruct your proxy exactly how to vote on your behalf.Choose someone you trust who will represent your interests.
Conclusion: Voting rights as a central element of self-governmentLink to this section
Voting rights are a central element of self-management in condominium associations. They allow you, as an owner, to actively influence the design and management of your residential complex. The 2020 condominium association reform simplified and modernized many processes, strengthening the effectiveness of condominium associations.
Use your voting rights consciously and responsibly – in the interest of your personal interests, but also in the interest of a functioning homeowners' association. Because a homeowners' association can only be managed successfully through constructive cooperation and joint decision-making.
If you have any further questions regarding your individual voting rights and the specifics of your community regulations, we as property management are happy to advise you. Please do not hesitate to contact us if you have any questions.
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