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Until the WEG reform on 30.11.2020, the quorum of the owners' meeting was a prerequisite for the owners to pass effective resolutions. A quorum was always required before each individual resolution could be passed. This has changed fundamentally since the reform.
What is the quorum requirement for the owners' meeting?
A quorum at the owners' meeting is a fundamental prerequisite for the decisions made at this meeting to be legally binding. Put simply, valid resolutions can only be passed if a meeting has a quorum.
Before the WEG reform - these quorum rules are no longer valid
Before the reform, an owners' meeting only had a quorum if the required number of owners with voting rights were present at the start of the meeting. The exact number varied depending on the number of co-ownership shares required to pass a resolution.
As a rule, at least half of the co-ownership shares had to be present or represented in order for an owners' meeting to have a quorum. Owners who were unable to attend could still cast their vote through a proxy or by proxy. This enables them to form a quorum even if they are not present in person.
Before the WEG reform - No vote if there is no quorum
The quorum was to be checked by the property management immediately after the owners had been welcomed. For this reason, the first item on the agenda in the WEG invitation to the ordinary or extraordinary owners' meeting was, mutatis mutandis, "The welcome and determination of the proper convening of the meeting", before the property management next carried out the "determination of the quorum".
The co-ownership shares of the owners present or represented by proxy were calculated for this purpose. If not enough owners were present or represented, no binding resolutions could be passed and the meeting had to be reconvened at a later date.
Before the WEG reform - The quorum at the recapitulation meeting
In principle, the usual rules for the first owners' meeting applied to the quorum for the repeat meeting. In particular, this concerned the extraordinary deadline for convening the owners' meeting and the three-week notice period for the ordinary owners' meeting.
The difference: The quorum at the repeat meeting existed irrespective of the number of co-ownership shares represented. The invitation to the repeat meeting had to expressly refer to this fact.
After the WEG reform - The quorum at owners' meetings is changing
Today, the following applies: a quorum is always required for an owners' meeting, regardless of how many owners are present or represented. This is a result of the WEG reform of 30.11.2020. The new Section 25 of the German Condominium Act (WEG) now forms the legal basis for decisions in the owners' meeting.
It is therefore sufficient for at least one owner to attend or be represented at the meeting. Any contingency meetings and repeat meetings that were previously necessary if the first meeting was unable to pass a resolution are not required.
Regulations of the repeat meeting no longer relevant for owners
If a condominium owners' meeting did not have a quorum because not enough owners attended the meeting, a so-called repeat meeting had to be convened. In principle, the same rules applied to this repeat meeting as to the first meeting. In other words, it had to be held in exactly the same way.
However, there was one important difference: at a repeat meeting, it did not matter how many owners attended. This meeting always had a quorum, regardless of whether one or all owners were present. The invitation to the community had to explicitly state that the meeting would always have a quorum.
Different quorum in the owners' meeting is possible
Although the German Condominium Act has generally stipulated since 2020 that an owners' meeting always has a quorum, regardless of the number of owners present, they have the option of deviating from this. They can stipulate in their declaration of division that certain conditions must be met for a valid resolution to be passed.
For example, you can stipulate that more than one owner must attend the WEG meeting for it to have a quorum. Or you can stipulate that a certain proportion of the total co-ownership shares must be represented by the owners present. If such regulations have been made in the declaration of division, the administration must check at the beginning of each owners' meeting whether these conditions are met in order to determine whether the meeting has a quorum.
In short: even if the law generally provides for a simple quorum, the condominium owners can set higher hurdles for passing resolutions in their declaration of division.
Owners' meeting: Quorum for structural changes is an exception
When it comes to structural changes that must be supported by all owners, special rules apply for the quorum of the owners' meeting. Not only must a simple majority of the condominium owners agree, but at least half of the co-owners must also be present or represented. In addition, a qualified majority of more than two thirds of the votes cast is required.
As a rule, each owner has one vote, regardless of how many apartments he or she owns. If several people own an apartment together, they can only vote together. If a condominium owner is to be represented by another condominium owner, he or she must issue a written power of attorney. The chairperson of the meeting checks these authorizations before conducting the vote.
The change to Ralph is uncomplicated.
Lack of a quorum in the community of owners: how to proceed
If you discover that a resolution has been passed at an owners' meeting even though the necessary requirements, such as the required number of owners present, were not met, you as the owner have the option of taking action against this resolution. You can file an action for annulment with the competent local court. This court will then examine whether the resolution was actually unlawful because the owners' meeting did not have a quorum.
As the legal requirements for such a claim can be somewhat complex, it is advisable to seek advice from a lawyer who specializes in condominium law. Experienced lawyers can support you in drawing up the claim and represent your interests in court.
Further changes to the Condominium Act for the owners' meeting
The reform of the Condominium Act has brought numerous innovations for owners' meetings that are intended to simplify coexistence in your community of owners. The most important changes include
- Quorum: As already described, an owners' meeting now always has a quorum, regardless of the number of owners present. Even if only one owner attends, valid resolutions can be passed at the meeting.
- Convening: A meeting of owners can be convened informally, for example by email. It is important that the entire homeowners' association receives the convening notice.
- Convening period: The period for convening an owners' meeting has been extended from two to three weeks.
- Powers of attorney: Powers of attorney can also be granted informally, for example by e-mail.
- Online participation: Owners can also participate in a meeting online if this has been decided beforehand.
- Minutes: Minutes must be taken of the resolutions without delay.
- Circular resolutions: Circular resolutions are still possible, but with certain restrictions.
The new regulations have made the processes in owners' associations more flexible and efficient. Owners have more opportunities to participate and the hurdles for passing resolutions have been lowered.
Don't miss any more WEG changes - switch to Ralph now
As property managers, we have the task of implementing the resolutions of the WEG. However, if your current property management company does not fulfill this task at all or not satisfactorily and does not implement resolutions (on time), this may make it necessary to terminate the property management company. Changing the property management company has become very easy and works practically on autopilot with Ralph. You are welcome to request a non-binding offer in advance - we look forward to hearing from you!
