Even seemingly harmonious condominium associations can occasionally experience major friction. Troublemakers, in particular, who are quick to criticize and like to hold the reins, can place a severe strain on a community's cohesion. Constantly new discussions, exhausting owners' meetings, and a high turnover of administrators are often the result. This article will explain how you, as a condominium association, can deal with such difficult owners and what legal options are available to you.
What is a troublemaker?Link to this section
Troublemaker, complainer, black sheep, troublemaker. There are various terms for a person who almost systematically stirs up conflicts in the condominium association. A troublemaker often and happily challenges the decisions of the AWAY and hampers the community's work by constantly questioning decisions and submitting (often unnecessary) motions. This behavior often leads to delays in important decisions and can significantly strain peaceful coexistence within a community.
Typical characteristics of a troublemaker:
Tendency to frequent and unfounded conflictsObstruction of the WEG’s joint decision-making processesRegular challenges to decisions without valid reasonsTendency towards numerous, often not very constructive complaints and requests
Especially when it comes to urgently needed repairs, renovations, and maintenance work around a condominium complex, troublemakers can hinder condominium association decisions to such an extent that the value of the property is jeopardized. Ultimately, troublemakers are simply expensive, and by obstructing decisions, they not only waste time and stress, but also a lot of money.
Troublemaker vs. co-ownersLink to this section
The Federal Court of Justice has made it clear: The behavior of troublemakers undermines the foundation of communal coexistence. The result: constant disputes, difficult decision-making, and a restless, disharmonious community. To ensure the proper management of shared property and safeguard cohesion, the homeowners' association must take action. While patience and communication are often the first step in resolving conflicts within a homeowners' association, legal action is unfortunately unavoidable in some cases.
Communication is key
Keeping calm and engaging in dialogue is the first step toward conflict resolution. Open and honest communication often leads to clearing up misunderstandings and finding common ground.
The key to conflict resolution often lies in identifying the root cause. Before taking action, it's important to understand the reasons for the discord. Does the co-owner feel disadvantaged, misunderstood, or unheard? Often, the roots of the problem lie in past decisions or a different understanding of community rules.
A thorough analysis of the situation might help. By trying to understand the complainant's perspective and taking their concerns seriously, you might be able to reach a mutually acceptable solution.
Legal action
If discussions and negotiations fail, your condominium association has no choice but to take legal action. Conflicts with owners that place a strain on the community for personal reasons are particularly challenging. Whether due to bullying, mental illness, or simply an unforgiving personality, such situations often require professional help.
First of all, professional support from mediators or arbitrators could help find an amicable solution and ease the burden on the community. Working with neutral individuals has the advantage of being faster and more cost-effective than legal action, and it places less strain on relationships within the condominium association. If this isn't possible or doesn't lead to any improvement, legal action must be considered. Warning letters and lawsuits may be necessary in such cases.
The warning: When a warning makes senseLink to this section
A cease and desist letter serves as a formal warning and is often the first step toward legal action. It should be issued when the behavior of co-owners is causing significant disruption to the community and threatens further escalation. Such a step requires a resolution by the owners' meeting and a precise formulation of the behavior being criticized.
Our tip:An effective warning must be specific and unambiguous. It should precisely describe the behavior in question and make clear to the person affected what consequences will arise if the behavior continues.
Requirements:State the requirements for an effective warning (e.g. resolution of your homeowners association, specific description of the misconduct).Contents:Provide examples of the content of a warning (e.g. description of the facts, legal basis, request to cease and desist, setting of a deadline).Consequences:Explain the possible consequences of an unfounded warning or failure to comply with the warning.
The confiscation procedure as the next stepLink to this section
The initiation of forfeiture proceedings requires a prior, effective warning. Therefore, before a condominium association initiates forfeiture proceedings against a recalcitrant co-owner, an effective warning is essential. This should generally be issued by a resolution of the condominium association. Only then will the warning acquire the necessary significance to serve as a precursor to forfeiture proceedings.
Exceptions to the resolution requirement exist only in cases of particularly serious violations such as the use of violence, significant property damage, or serious insults. In these cases, a warning may be waived.
Confiscation of property: When all other means fail
According to Section 17 Paragraph 1 WEG Act An owner can be excluded from the condominium association if they make peaceful coexistence impossible through serious violations of their obligations. If warnings, lawsuits, and other measures fail, the only remaining option is confiscation of property.
The WEG Act states: If a condominium owner seriously violates his or her obligations towards the other owners, the community can oblige him or her to sell the condominium if the continuation of the community is unreasonable.
ImportantThe deprivation of condominium ownership represents a serious infringement of property rights and therefore requires comprehensive justification from the condominium association. The fact that a co-owner frequently votes against resolutions is not, in itself, sufficient grounds to initiate this legal action. Serious breaches of duty must be present.
Examples of serious breaches of duty
According to Section 17 (2) of the Condominium Act (WEG), a serious breach of duty occurs if a condominium owner, despite a warning, repeatedly and grossly violates their obligations, such as non-payment of common expenses. Even continuous, albeit incomplete, fulfillment of payment obligations can, under certain circumstances, justify the withdrawal of condominium ownership if this seriously disrupts the proper management of the community. The Federal Court of Justice clarified this in a ruling dated January 19, 2007 (Case No. V ZR 26/06).
In addition, the following actions are considered serious breaches of duty that may justify the deprivation of ownership of the property:
physical assaults or insults towards other owners or the administrationpersistent and abusive obstruction of administrative activityrepeated damage to property or contaminationan unreasonable disturbance to the community caused by hoarding syndrome
The decision to confiscate property
The basis for a property expropriation lawsuit is a resolution of the homeowners' association, which must be passed by a simple majority. This resolution initiates legal proceedings aimed at disposing of the property in question. A legally binding judgment also enables enforcement, including a possible forced sale.
Compulsory auction after confiscation of property: When unreasonable circumstances lead to auctionLink to this section
Homeowners who grossly neglect their obligations risk not only losing their ownership rights but also having their property foreclosed upon. Reasons for this may include:
Violation of the obligation to repair and maintain special propertysignificant disturbances to other co-owners due to noise or dirtCrimes within the home and the use of the property as a brothel
Late payment of housing benefits: When is there a risk of losing your property?
If a homeowner falls behind on their housing benefit payments for more than three months, they can have their property confiscated under certain circumstances. The decisive factor is that the outstanding amount exceeds a certain percentage of the assessed value of the apartment. The assessed value is determined by the tax office upon application by the homeowners' association.
Alternatives to foreclosureLink to this section
Foreclosure is not the only option for a homeowners' association to take action against co-owners who are unwilling to pay. Alternatively, the association can court order the defaulting owner to pay and then pursue foreclosure proceedings.
There are various ways and options available:
Attachment of movable assetsRegistration of a compulsory mortgage in the land registerfor rented apartments: order for compulsory administration.
Which of these measures makes the most sense depends on the specific situation and the goals of the condominium association.
Foreclosure: A risky instrument
The foreclosure of condominiums is an instrument that must be carefully considered. Foreclosure is a complex process that carries significant risks. Especially with highly indebted properties, the likelihood that the proceeds will fully repay creditors is slim.
This would pose a difficult dilemma for your condominium association: On the one hand, an insolvent co-owner burdens the condominium association, while on the other, foreclosure carries its own risks. The chances of a quick sale of the apartment through foreclosure are extremely slim due to the high existing mortgages. Many prospective buyers are often put off by this additional financial burden.
Before considering a foreclosure auction, you should therefore exhaust all mitigating measures, such as attachments or compulsory administration.
Conclusion: Dealing with troublemakers in the homeowners associationLink to this section
Dealing with troublemakers in a condominium association is often challenging and requires individualized solutions. As affected owners, you should be aware that dealing with troublemakers can be a significant emotional burden and, if necessary, seek professional support.
It's important to act early to prevent the situation from escalating. The goal of ensuring peaceful coexistence within the community should always be kept in mind. While an amicable solution is desirable, it's not always realistic. Legal action should be carefully considered and only considered in cases of truly serious violations.
Do you already know Ralph?
We're more than just a service provider for your condominium association. We're your partner in challenging situations. Are you constantly faced with the challenges of troublemakers in your condominium association? We know how to handle them.
With our experience and expertise, we support you in conflict resolution and ensure harmonious cooperation. From drafting resolutions to communicating with difficult owners – we are at your side. Trust in our expertise and Change your property management now to Ralph.