Co-ownership share

The co-ownership share (MEA) describes an apartment owner’s calculated share of the total common property of a multi-unit residential building. It is specified in the Declaration of Division, expressed in thousandths (e.g., 84/1000) or as a fraction, and recorded in the land register. The MEA determines the proportion in which each owner bears the costs and expenses of the common property and how voting rights are weighted at the owners’ meeting-unless the declaration of division provides for a different voting principle.

Calculation and Function of the Co-Ownership Share

The MEA is determined by the dividing owner (usually the developer or the original sole owner) when the condominium association is established. It is often based on the living area of the respective unit of exclusive ownership in relation to the total living area, but may also be calculated differently. The MEA has no effect on the market value of the apartment, but is decisive for the allocation of costs in the HOA statement and for the distribution of property tax and building insurance premiums.

In practice, this means: An apartment with an MEA of 100/1000 bears exactly 10% of all common costs-from the building manager’s salary and insurance premiums to contributions to the maintenance reserve fund. Anyone who purchases such an apartment commits to this proportional cost-sharing on a permanent basis. It is therefore important to know the MEA before purchasing and to compare it with the actual maintenance fee costs from recent years.

Co-ownership Share and WEG Statement

In the annual maintenance fee statement, common expenses-administration, janitor, insurance, maintenance reserve-are allocated to the owners based on the MEA, unless the declaration of division specifies a different allocation formula (e.g., consumption, number of occupants). Those with a higher MEA pay correspondingly more-regardless of how intensively they use the common areas. This can lead to disproportionately high maintenance fee burdens for large attic apartments with a high MEA.

Some declarations of division provide for different allocation keys for certain costs: heating costs based on consumption, elevator costs based on floor level, or water costs based on the number of residents. These special provisions are set forth in the declaration of division or the community bylaws and should be known before the purchase.

Co-ownership Share When Buying a Condominium

Prospective buyers should know the MEA of their desired apartment, as it determines the running costs and the voting weight at the owners’ meeting. A high MEA means more influence, but also higher operating costs. When purchasing a condominium, the purchase agreement, declaration of division, and current WEG statement should be carefully reviewed-we help you understand these documents.

The maintenance fee statements for the past three years provide insight into how high the actual monthly costs were and whether the maintenance reserve is sufficiently funded. An insufficient reserve indicates potential future special assessments-that is, extraordinary payments that owners must make for major maintenance projects.

Practical Tip for Owners in Nuremberg and Franconia

In older Nuremberg residential complexes from the 1960s and 1970s, the MEA allocation keys do not always correspond to the actual living space, as historical calculation methods may have differed. Anyone investing in such a condominium association who finds that their MEA is significantly higher than their proportional living space should have it checked to see if an adjustment to the declaration of division is possible and advisable. We are happy to advise you on the cost structure of a condominium association before purchase and help you understand and evaluate the relevant documents.

Voting Rights and Decision-Making at the Owners’ Meeting

In many condominium associations, the co-ownership share determines the weight of a vote at the owners’ meeting. An apartment with an MEA of 200/1000 thus has twice as much voting weight as one with 100/1000-provided the declaration of division stipulates the value principle. Alternatively, the per-owner principle (one vote per owner) or the per-unit principle (one vote per unit of exclusive ownership) may be agreed upon. The voting principle established in the declaration of division can only be changed by unanimous consent of all owners.

For buyers of a condominium, voting rights are relevant if they wish to actively shape the condominium association themselves-for example, to implement or prevent modernization measures. Those who purchase multiple units in the same condominium association consolidate their voting weight accordingly. Institutional investors specifically leverage this to influence management decisions.

Special Assessments and the Importance of the Maintenance Reserve

One risk that is often underestimated when purchasing a condominium is special assessments. If the maintenance reserve is insufficient for major repairs-such as roof replacement, facade renovation, or elevator modernization-the owners’ meeting resolves to impose a special assessment. This is distributed according to MEA: Anyone holding a 150/1000 share bears 15 percent of the special assessment.

Before purchasing, it is therefore strongly recommended not only to check the current reserve fund balance but also to assess whether it is sufficient given the building’s condition and foreseeable measures. A rule of thumb: For older buildings, the maintenance reserve should amount to at least 80 to 100 euros per square meter of living space per year. If it is significantly lower, the risk of a special assessment increases-and the purchase price should be adjusted accordingly.

Frequently Asked Questions

Does the co-ownership share affect the purchase price of the apartment?

No, not directly. The purchase price of a condominium depends on location, size, and condition. However, the co-ownership share influences the ongoing maintenance fees, which indirectly affects the property’s attractiveness and return on investment.

Can the co-ownership share be changed retroactively?

A change to the MEA requires the consent of all affected apartment owners and must be notarized and entered in the land registry. In practice, this is complex and rare, but possible-for example, when apartments are merged or separated.

Can the WEG deviate from the MEA allocation keys?

Yes. The WEG may establish other cost allocation keys by resolution or in the community bylaws, such as consumption-based billing for heating costs or per-unit shares for certain expenses. This generally requires a qualified resolution or a provision in the declaration of division.

What is the difference between the MEA and living space?

Living space describes the actual size of the apartment in square meters. The MEA is a notional share in the common property, which is often based on the living area but does not necessarily correspond to it. When settling operating costs, both the MEA and the living area can serve as allocation keys-depending on the agreement in the declaration of division.

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