Since June 1, 2024, a new Condominium Act has been in effect, which requires only certified administrators to work as administrators for condominium associations. This means that (almost) all administrators require certification. What does the term "certified administrator" mean? Who is required to be certified since the Condominium Association reform, and how does the rule affect ongoing management contracts? You'll find answers to these and other questions here.
The initial situation: This regulation applied before the introduction of certified administratorsLink to this section
Homeowners' associations (WEGs) have the option of appointing a manager. This manager will take care of the common property, while the individual apartments are managed by the respective owners. The rights and responsibilities of the WEG manager are set out in the WEG Act They are defined in detail and form the basis for proper management. Furthermore, additional condominium management tasks can be agreed upon in the management contract.
The condominium association management plays a particularly important role as the authorized agent for service of process, regardless of whether the condominium owners they serve are involved as plaintiffs or defendants in a legal dispute. This means that in their role, the administrator acts as the official representative of the condominium association.
LowEntry barriers before newCondominium Act
Before the certified administrator exam was introduced, the barriers to entry into the profession were relatively low: only a valid business license was required. This required only reliability under commercial law and a clean criminal record. Specific knowledge or proof of expertise were not necessary.
This meant that, theoretically, anyone could call themselves a property manager, and the comparatively low requirements essentially allowed anyone who met the basic requirements to become a property manager. The property manager could therefore begin their work as soon as they were appointed as such by a property manager.
New requirements for administrators: The concept of certified administratorsLink to this section
A significant change came into effect on December 1, 2023: condominium owners were granted the right to request the appointment of a certified property manager. This new regulation aims to improve the quality of property management and strengthen owners' trust. Consequently, only those managers who have obtained the relevant certification were allowed to work for a condominium association.
Legal basis: The ZertVerwV
The details of the certification are set out in the "Regulation on the Examination for Certified Property Managers under the German Condominium Act" (ZertVerwV). This regulation governs:
The content of the examThe certification processPossible exceptions
These measures are intended to ensure that condominium administrators have the necessary expertise to carry out their duties competently and in the interest of the community of owners.
Definition of certified administratorLink to this section
According to Section 26a of the German Condominium Act (WEG), anyone who meets the following requirements may call themselves a certified administrator:
Successful completion of an examination before the Chamber of Industry and Commerce (IHK)Proof of comprehensive legal, commercial and technical knowledgeConfirmation of professional competence for the management of residential property
The examination to become a certified administratorLink to this section
Administrators receive the designation "certified administrator" by successfully passing an examination at the Chamber of Commerce and Industry. An exception exists for those who are exempt from this examination requirement due to their specific training. This regulation ensures that administrators have the necessary legal, commercial, and technical knowledge to competently perform their duties as administrators.
The certified property manager examination covers various subject areas, including legal fundamentals with a focus on condominium law (mandatory in the oral part of the examination) and tenancy law.
Exceptions to the examination requirement
The regulation stipulates that certain professional groups and qualifications are exempt from the certified administrator examination. The following professional groups and qualification holders are automatically recognized as certified administrators and do not require an additional certified administrator examination.
Legal professionals: Persons qualified to serve as judges (e.g., lawyers, attorneys-at-law)Real estate professionals with specific training: With completed vocational training as a real estate agent or completed training as a clerk in the real estate and housing industryFurther training qualifications: Certified real estate specialistAcademics with specialist specialization: University degree with a focus on real estate management
Further training despite certification
Since 2018, residential property managers have been required to undergo mandatory continuing education. This regulation was introduced to maintain and continuously improve the quality of property management services.
The introduction of the "certified administrator" status does not change this obligation to continue training. On the contrary, it underscores the importance of lifelong learning in this dynamic professional field as an administrator.
Appointing a certified administrator: right or obligation?Link to this section
The German Condominium Act (WEG) regulates the essential aspects of certified property managers in Sections 19, 26a Paragraph 1, and 48. These regulations form the legal framework for the appointment of certified property managers and the rights of condominium owners.
In principle, there is no general obligation to appoint a certified property manager. The law does not contain any mandatory provisions requiring condominium associations to do so. Nevertheless, the Condominium Act considers the appointment of certified property managers to be part of proper management of the common property.
This means that apartment owners are generally entitled to a certified manager, and individual apartment owners can challenge the appointment of a non-certified manager.
Right of challenge and deadlines
Important points regarding the right of challenge and the appointment of a certified administrator:
Apartment owners can challenge a decision to appoint non-certified administratorsThe period for contesting the decision is one month after the Owners' meeting If the deadline is missed, the decision becomes finalA decision not challenged in a timely manner will result in a non-certified administrator remaining in office
These regulations create a balance between the right to qualified management and the flexibility of the condominium association in its decision-making.
Special regulations for small self-managed communities
For certain small condominium associations, special rules apply regarding the appointment of certified administrators:
Conditions for the exception:
Less than nine special property rightsA property owner was appointed as administratorLess than a third of homeowners require a certified manager
The consequences:
No right of individual apartment owners to a certified managerThe appointment of a certified administrator is not part of proper administrationThe appointed condominium management may operate without certification
Determination of community size:
The number of special property units can be found in the declaration of division
The Legal Affairs Committee of the German Bundestag proposes another possible exception: Uncertified property managers who enjoy the trust of the property owners could be exempt from the certification requirement. However, the practical and legal implementation of this exception is largely unclear and remains to be proven in practice.
These exceptions are fundamentally aimed at allowing flexibility for smaller communities and established administrative structures without undermining the fundamental right to professional administration.
Transitional period for existing WEG administratorsLink to this section
A generous transitional arrangement applies to administrators who were already active before the WEG reform on December 1, 2020. This arrangement provides for protection of existing contracts until June 1, 2024.
Until June 1, 2024, existing administrators were automatically considered certified. This applied to all condominium associations they had managed at the time of the reform. During this period, the administrators could continue to perform their duties in proper management without restrictions. The grandfathering thus temporarily secured their position.
After the transitional period expired, all administrators managing larger condominiums were required to provide proof of certification. Specifically, this meant passing the certified administrator examination before the Chamber of Industry and Commerce (IHK). Exceptions to this certification requirement applied only to those exempt from the examination requirement (see above).
Administrators who failed to meet these requirements therefore had to expect consequences. A lack of certification constitutes a clear obstacle to appointment and can serve as grounds for dismissal.
This regulation should give existing property managers sufficient time to adapt to the new requirements and acquire the necessary qualifications. At the same time, it should ensure the long-term professionalization of the residential property management profession.
Procedure and costs of the certified administrator examinationLink to this section
How do administrators obtain certification? The exam for certified administrators is divided into two parts: a written and an oral section. The written section lasts 90 minutes and is administered on a computer. To pass this section, participants must achieve at least 50% of the possible points in each subject area. Following the successful completion of the written section, the oral exam lasts 15 minutes. This can be taken as a group exam with up to five people.
Here, too, the minimum score of 50% of the available points applies. The exam language is German, and the grade is either "pass" or "fail."
Both parts of the exam must be passed to receive an overall "pass" grade. If a part of the exam is failed, participants have unlimited retakes. Upon successful completion of the exam, the Chamber of Industry and Commerce will issue an official certificate.
The Chamber of Industry and Commerce (IHK) has established a fee structure for the Certified Administrator exam. It is as follows:
Full inspection: €330.00
Includes both the written and oral examination partsThe same price applies for a complete retake of the exam
Partial repetition: €250.00
Only for the repetition of the oral part of the exam
Special service: €50.00
For the issue of a replacement certificate
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