What applies to home ownership? This is why rights and responsibilities for homeowners associations are so important.Link to this section
Anyone who buys a condominium in a building automatically becomes a member of a homeowners' association. This association makes joint decisions about the building, such as repairs, modernizations, and cost allocation.
The condominium association is based, among other things, on an interplay of rights and responsibilities. For example, each owner has the right to use their apartment according to their own wishes. At the same time, they are obligated to respect the rights of other owners and adhere to the community rules.
The German Condominium Act (WEG) regulates the complex legal relationships between owners and defines fundamental rights and obligations. We've summarized the most important points for you.
What rights do you have as a homeowner?Link to this section
As an owner, you enjoy a variety of rights that ensure your interest and participation in the homeowners' association and your condominium. These rights include:
Right to design and use your condominium:Every condominium owner has the right to use, rent, or otherwise dispose of their condominium or unit, provided they comply with the community regulations and the rights of other owners.Voting rights in the owners’ meeting:Your opinion counts. As an owner, you have the right to participate in owners' meetings and to vote on decisions concerning the shared property.Right to information:You are entitled to comprehensive information about the finances and administration of the homeowners association.Right to have a say in modernizations:In certain cases, you have the right to have a say before major structural changes or modernization measures are carried out.Right to an administrative advisory board:You have the right to elect an administrative board to represent your interests to the property management.
What are your responsibilities as a homeowner?Link to this section
Your rights as a condominium owner and member of the condominium association go hand in hand with certain responsibilities. These serve to protect the rights of other condominium owners and facilitate peaceful coexistence. Your responsibilities include:
Contribute to preservation:As an owner, you are obliged to participate in the maintenance and repair of the common property.Obligation to pay maintenance fees:The costs are shared proportionally among all apartment owners. According to Section 16, Paragraphs 2 and 3 of the German Condominium Act (WEG), each apartment owner is obligated to pay a monthly maintenance fee. This fee is used to cover all costs incurred for the maintenance, administration, and use of the common property. The obligation to pay maintenance fees applies even if the apartment is vacant.Taking care of vacancies:If a residential property is temporarily unrented and remains vacant, the owner is obligated to maintain the property in impeccable condition. This includes, for example, regularly flushing the water pipes to prevent Legionella. The obligation to pay maintenance fees also applies if the property is vacant.Special case special levy:According to the German Condominium Act, a homeowners' association may, if necessary, impose a special levy to cover extraordinary costs. The amount of the special levy depends on the total cost of the project and the available reserves. Such a resolution must meet certain legal requirements.Compliance with community regulations:All owners must comply with the rules and resolutions of the condominium owners’ meeting set out in the community regulations.Note resolutions:If the owners' association makes majority decisions, all owners are obliged to accept them and implement them accordingly.Hold tenants accountable:By incorporating the house and community rules into the rental agreement, the tenant is obligated to comply with all of the rules contained therein. As the owner, you must also immediately inform your property manager of the new tenant's move-in.
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The owners’ meeting: The heart of the owners’ associationLink to this section
The owners' meeting is the central decision-making body of the owners' association. It meets at least once a year and allows all owners to actively participate in important decisions. From facade renovations to the installation of new windows – all key decisions relating to the residential complex are made here.
The community of owners decides on a variety of aspects at the meeting, including:
Determination of house rulesCreation of maintenance reservesRegulations for the use of common propertyApproval of renovations and repairsElection of the property management and the administrative advisory boardTaking out insurance for the homeowners association
This is how apartment owners make decisions in the apartment owners’ meeting
There are three ways the homeowners association makes decisions for your property:
Ordinary Owners' Meeting:Annual Standards MeetingVoting on submitted proposalsResolutions are binding for all ownersExtraordinary Owners' Meeting:For urgent decisionsConvening by the chairperson or administratorsAlso possible upon request of at least 25% of the ownersCirculating resolution:For urgent mattersWritten voting by circularRequires consent of all owners
The owners’ meeting thus ensures that all important decisions are made democratically and taking into account all owners’ interests.
WEG law is inCondominium Act regulatedLink to this section
The German Condominium Act (WHO) serves as the legal basis for your homeowners' association. It sets out the rights and responsibilities of the owners. Furthermore, the WEF law stipulates that the division of the property distinguishes between separate property and common property.
According to the Condominium Act (WEG), the ownership of a residential complex can be determined through a contractual agreement and a declaration of division. The declaration of division regulates what belongs to you as the owner (your private property) and what you use jointly with the other owners (common property).
Right to use private and common propertyLink to this section
In the case of condominium ownership, the right to use the property is limited to residential use and generally excludes the practice of a business. However, the use of a condominium for the practice of liberal professions such as medicine or law is permitted, as long as it does not cause any disadvantages compared to the permitted use.
When renting out a residential property, care must be taken to ensure that the rental purpose is consistent with the intended use and that the use fits in with the character and intended purpose of the property. The local and structural conditions, as well as the type and extent of use, must be taken into account.
Example
The use of a condominium as a doctor's office or physiotherapy practice is permissible as long as visitor traffic does not cause undue disruption. However, the use of the condominium complex as a paid daycare center for five children is not permitted (Federal Court of Justice, NZM 2012, 687).
As part of the declaration of division, the dividing owners also adopt community regulations pursuant to Section 10, Paragraph 1, Sentence 2. These regulations supplement and specify the general provisions of the law and the division plan. The designation of rooms in the division plan is not binding, and in cases of doubt, the architect's specifications in the approval plan are secondary. The community regulations can also be referred to as the "community's statutes," similar to those in association law.
Examples of limitations of use include:
The term "business or commercial premises" in the community regulations or declaration of division also includes use as a restaurant.A restaurant, a dry cleaner, an ice cream parlor or a sex shop are not compatible with the narrower purpose of a retail store.Operating a medical practice under the designation "office for shared ownership" is not permitted.It is the responsibility of the property manager to determine the limits of use in each individual case and enforce compliance. The order of review is as follows: resolution, house rules, community rules, and declaration of division. The statutory provisions of Sections 13 and 14 are applied in addition. Limits of use exist where they infringe on the exercise of the rights of other co-owners.
Liability: When is the apartment owner liable and when is the community liable?Link to this section
When it comes to liability in a condominium association, there are various scenarios to consider. As an owner of an apartment, you are primarily responsible for damage you cause to the shared property or for damage caused to third parties through your negligence.
This liability is limited to your personal property. A classic example would be a broken pipe in your own apartment that causes water damage in the apartment below.
In addition, however, all condominium owners are jointly liable to the creditors of the condominium association. If, for example, the property manager fails to pay an outstanding invoice for tradesmen's services, the entire condominium association is responsible for settling this debt. The individual liability share is determined by the respective share of the common property. In such cases, the entire association is always liable, not an individual owner alone.
However, a condominium owner's potential liability doesn't automatically end with the sale of the property. One can be held liable for damages or liabilities incurred while a member of the condominium association for up to five years after the sale. This provision underscores the long-term responsibility that comes with owning a condominium and should be considered when selling a property.
The property management is responsible for the joint obligations of apartment ownersLink to this section
The property management company is generally responsible for ensuring compliance with the obligations relating to shared property. This company assumes the following tasks for you and your condominium association, among others:
Compliance with the house rulesProper maintenance and repair of common propertyConvening and chairing the owners' meetingImplementation of the decisions takenDraw up a business planCreate annual statementsCare and overview of the finances of the WEG
Do you already know Ralph?Link to this section
Ralph combines software with experience. We automate many of the repetitive processes of property management with our proprietary software. This frees up our experienced managers to focus on what matters most and has more time for our clients. Our strength lies in proactively advancing various issues simultaneously and managing even complex renovations.
In addition, managing your condominium through Ralph has some unique advantages:
On-time billing or money back: With Ralph You will receive your annual condominium statement by the end of June at the latest, or we will discontinue our ongoing invoices. You will also have continuous, live insight into all your finances.Fast response with a 24-hour response guarantee: We are available from 9 a.m. to 7 p.m., whether by phone, email, or WhatsApp, etc. We guarantee responses within 24 hours. Of course, each property has a dedicated contact person.Digital ETV and dashboard option: Ralph has his own team of developers and his own software. As an owner, you can not only view all important documents via a dashboard, but also track the progress of the tasks we're working on in real time. Of course, you can also participate in the ETV digitally and even conveniently vote digitally in advance.Free switching, cancelable at any time: We don't want to work for our clients because they're tied to contracts, but because they rely on Ralph. If you're not satisfied, you, as the client, can cancel our contract at any time – no questions asked. Furthermore, switching to Ralph is free of charge, and if desired, we'll support you in organizing the ETV.
The advantage of Ralph is that, compared to traditional administration, money can be saved thanks to automation in the background, despite the better and faster service.
Would you like to know more about Ralph Want to learn more? Request your free quote now. Do you have any further questions? Contact us anytime. We look forward to hearing from you and will answer every inquiry personally!
