Until the reform of the condominium association law on November 30, 2020, a quorum was required for owners to make valid decisions. A quorum was always required before each individual decision could be made. Since the reform, this has changed fundamentally.
What is theIs a quorum required at the owners’ meeting?Link to this section
The quorum of the owners' meeting is a fundamental prerequisite for the decisions made at that meeting to be legally binding. Simply put: Only if a meeting has a quorum can valid resolutions be passed.
Before the WEG reform – These quorum rules are no longer validLink to this section
Before the reform, a meeting of owners was only quorate if the required number of voting owners was present at the beginning of the meeting. The exact number varied depending on the number of co-ownership shares deemed necessary for the resolution to be passed.
As a general rule, at least half of the co-ownership shares had to be present or represented for a quorum to be valid at an owners' meeting. Owners who were unable to attend could still cast their votes by proxy or by proxy. This allowed them to form a quorum even without being present in person.
Before the WEG reform – No vote if there is no quorumLink to this section
The quorum had 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 in essence, “The welcome and confirmation of the proper convening”, before the property management next carried out the “determination of the quorum”.
For this purpose, the co-ownership shares of the owners present or represented by proxy were calculated. 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 in the repeat meetingLink to this section
The quorum requirements for the repeat meeting were generally the same as for the first owners' meeting. This particularly concerned the extraordinary notice period for convening the condominium association and the three-week notice period for the regular owners' meeting.
The difference: The quorum at the repeat meeting existed regardless of the number of co-ownership shares represented. The invitation to the repeat meeting had to explicitly state this fact.
After the WEG reform – The quorum of the owners’ meeting changesLink to this section
Today, the following applies: For an owners’ meeting, a quorum is always present, regardless of how many owners are present or represented. This results from the WEG reform dated November 30, 2020. The new paragraph 25 of the Condominium Act (WEG) now forms the legal basis for decisions made at the condominium owners' meeting.
It is therefore sufficient for at least one owner to attend the meeting or be represented there. Any contingency meetings and repeat meetings that were previously necessary if the initial meeting lacked a quorum are no longer required.
Rules of the repeat meeting no longer relevant for owners
If a condominium association meeting did not have a quorum because not enough owners attended, a repeat meeting had to be called. The same rules generally applied to this repeat meeting as to the first meeting, meaning it had to be followed exactly as required.
However, there was one important difference: At a repeat meeting, it didn't 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 have a quorum in any case.
Different quorum in the owners’ meeting is possibleLink to this section
Although the German Condominium Act (DG) has generally stipulated since 2020 that an owners' meeting always has a quorum, regardless of the number of owners present, owners have the option to deviate from this rule. 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 condominium association meeting for it to have a quorum. Or you can stipulate that a certain percentage of the total co-ownership shares must be represented by the owners present. If such provisions have been made in the declaration of division, the management must check at the beginning of each owners' meeting whether these conditions are met to determine whether the meeting has a quorum.
In short:Even though the law generally provides for a simple quorum, the condominium owners can set higher hurdles for the decision-making process in their declaration of division.
Owners’ meeting: Quorum for structural changes is an exceptionLink to this section
When it comes to structural changes that must be approved by all owners, special rules apply to the quorum of the owners' meeting. Not only does a simple majority of the condominium owners need to approve them, but at least half of the co-owners must also be present or represented. Furthermore, a so-called qualified majority of more than two-thirds of the votes cast is required.
Each owner generally has one vote, regardless of how many apartments they own. If several people own an apartment jointly, they can only vote together. If an apartment owner wishes to be represented by another apartment owner, they must provide a written proxy. The chairperson of the meeting will verify these proxy authorizations before conducting the vote.
Lack of quorum of the owners' association: How to proceedLink to this section
If you discover that a resolution was 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 to challenge this resolution. You can file a so-called legal challenge with the responsible district court. This court will then examine whether the resolution was actually unlawful because the owners' meeting lacked a quorum.
Since the legal requirements for such a lawsuit can be somewhat complex, it is advisable to consult with an attorney who specializes in condominium law. Experienced attorneys can assist you in drafting the lawsuit and represent your interests in court.
Further changes to the Condominium Act for the owners' meetingLink to this section
The reform of the German Condominium Act has brought numerous innovations to owners' meetings, designed to simplify coexistence within your condominium association. 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.Convocation:The convening of an owners' meeting can be done informally, for example, by email. It is important that the entire condominium association receives the notice.Notice period:The deadline 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 email.Online participation:Owners can also participate in a meeting online if this has been decided beforehand.Protocol:Minutes of the resolutions must be drawn up immediately.Circular resolutions:Circular resolutions are still possible, but with certain restrictions.
The new regulations have made processes in homeowners' associations more flexible and efficient. Owners have more opportunities to participate, and the hurdles for decision-making have been lowered.
Don't miss any more WEG changes - switch to Ralph nowLink to this section
As property management, we are responsible for implementing the decisions of the condominium association. However, if your current property management fails to fulfill this task at all or satisfactorily, and fails to implement resolutions (in a timely manner), this may necessitate termination of the property management contract. to change property management has become very simple and practically works on autopilot with Ralph. Feel free to request a non-binding quote in advance – we look forward to hearing from you!
