Homeowners' Association

Homeowners’ Association - The homeowners’ association (WEG) comprises all owners of individual units within a residential complex. It is established by law upon the registration of the first individual unit in the land registry and, since the 2020 WEG reform, has been an association with partial legal capacity that has its own rights and obligations.

Organization and Governing Bodies

The homeowners’ association has two central governing bodies: the owners’ meeting and the property manager.

The owners’ meeting is the highest decision-making body. It convenes at least once a year and decides on the budget, the annual financial statement, the appointment and dismissal of the property manager, and maintenance measures. Resolutions are passed by a simple majority of the votes present or represented.

The property manager is appointed by the owners’ meeting and handles the day-to-day management of the common property. Since the 2020 WEG reform, every owner is entitled to a certified property manager with a Chamber of Industry and Commerce (IHK) certificate of competence. The property manager may be dismissed at any time by a simple majority.

In addition, an administrative advisory board may be appointed to support and oversee the property manager. It consists of at least three owners and reviews, among other things, the budget and the annual financial statement.

Rights and Obligations of the Owners

Every owner has the right to freely use, rent out, and sell their individual unit. At the same time, they are obligated to pay the monthly maintenance fee. Since the 2020 WEG reform, every owner has a right to permission for certain structural changes: electric vehicle charging stations, accessibility modifications, burglary protection, and fiber-optic connections.

Since the reform, structural changes to the common property can be decided by a simple majority. In principle, the costs are borne only by those who have agreed-unless the measure was decided with more than two-thirds of the votes and half of the co-ownership shares.

Overview of WEG Voting Majorities (following the 2020 WEG Reform)

Subject of Resolution	Required Majority	Legal Basis
Annual Statement of Accounts, Operating Budget	Simple Majority (>50% of votes)	§ 25 WEG
Appointment/dismissal of property manager	Simple majority	§ 26 WEG
Construction measures (general)	Simple majority	§ 20(1) WEG
Major renovations (cost sharing by all)	>2/3 of the votes and >1/2 of the MEA	§ 21(2) WEG
Permission claims (EV chargers, accessibility)	Individual claim - no resolution required	Section 20(2) WEG
Amendment of the community rules	Unanimity (all owners)	Section 10(3) WEG
Dissolution of the community	Not possible (WEG by operation of law)	Section 11 WEG

Maintenance Reserve and Financial Planning

A central element of WEG finance is the maintenance reserve (also: preservation reserve), which is contributed monthly by all owners and used for major renovation projects-roof renovation, facade insulation, elevator modernization. The amount of the reserve is specified in the budget plan. If the reserve is set too low, the community must approve a special assessment for major projects-an additional payment that, depending on the cost of the project and the co-ownership share, can amount to several thousand euros per residential unit. Anyone purchasing a condominium should carefully check the size of the reserve fund: A low reserve fund balance in an older building with pending renovation needs poses a significant financial risk.

Practical Tip for Owners in Nuremberg and Franconia

In the Nuremberg metropolitan region, there are numerous residential complexes from the 1950s to the 1980s that require extensive renovation. We recommend that prospective buyers review the minutes of the last three owners’ meetings before purchasing, check the level of the maintenance reserve, and clarify which renovation measures are planned or have already been approved for the coming years. An insufficiently funded reserve fund suggests that special assessments are likely-this should be factored into the purchase price. In Nuremberg, numerous professional property management firms oversee condominium complexes; the quality of management-evident in well-organized annual financial statements, up-to-date minutes, and transparent communication-is an important quality indicator when purchasing.

Frequently Asked Questions

What happens if an owner fails to pay maintenance fees?

The property manager is obligated to pursue overdue maintenance fees through legal action. The homeowners’ association has a statutory priority in foreclosure proceedings: Overdue maintenance fees from the past two years take precedence over the banks’ mortgage liens (Section 10(1)(2) of the German Foreclosure Act (ZVG)). This protects the other owners from long-term financial losses caused by insolvent co-owners. If maintenance fees remain permanently unpaid, the community may also initiate a foreclosure sale of the delinquent owner’s unit-a serious but effective measure.

Can I withdraw from a homeowners’ association?

No, membership is established by law and only ends with the sale of the unit. An owner also cannot opt out of individual resolutions-these are binding on everyone unless they are challenged in court within one month. Anyone who is permanently dissatisfied with the association ultimately has only one option: to sell the unit. Before purchasing, it is therefore advisable to assess the atmosphere of the association by reviewing meeting minutes and speaking with the property manager.

How can I challenge invalid resolutions?

Resolutions may be challenged within one month of their adoption by filing an action to contest the resolution with the competent local court (Section 44 WEG). Grounds for challenge may include procedural errors (e.g., improper notice of meeting, subject matter not on the agenda) or substantive defects (e.g., violation of proper administration). The locally competent court in Nuremberg is the Nuremberg Local Court. If the one-month deadline is missed, even an unlawful resolution becomes final-and appeals are then barred.

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