Receiver

The emergency administrator is a person or company appointed by the court to take over the management of a property or residential complex when its proper operation can no longer be ensured and there is no regular administrator in place. The appointment of an emergency administrator is made at the request of owners or condominium owners’ associations and is governed by Section 19(2)(6) of the WEG (Condominium Act). It is a last resort when internal solutions within the WEG have failed.

When is an emergency administrator appointed?

The appointment of an emergency administrator by the local court may be considered in the following situations:

• The previous property management firm has terminated its contract or ceased operations-and the condominium association is unable to act
• The owners’ meeting is permanently unable to reach a quorum (e.g., due to disputes or individual owners refusing to engage)
• Urgent maintenance or repair work must be initiated immediately, but there is no property manager
• Mismanagement or inaction on the part of the current property manager jeopardizes the common property
• The previous property manager has died, is insolvent, or can no longer be reached

In this case, the local court may appoint an emergency administrator for a limited period upon the request of one or more condominium owners. The local court at the property’s location has jurisdiction. The request may be submitted informally but should detail and substantiate the specific circumstances and the urgency of the matter.

Powers and Duties of the Emergency Administrator

The emergency administrator generally has the same powers as a regular WEG administrator pursuant to § 27 WEG. He or she may:

• Commission and pay for urgent maintenance measures
• Manage community accounts and collect maintenance fees
• Convene and chair the owners’ meeting
• Enter into contracts for day-to-day management (e.g., janitorial services, insurance, energy supply contracts)
• Represent the WEG vis-à-vis owners and authorities

The emergency administrator acts on behalf of the court and is accountable to it. His or her term is limited-the goal is to restore the WEG’s capacity to act as quickly as possible and facilitate the appointment of a regular administrator. The court may limit or expand the scope of his powers in the appointment order, depending on the specific circumstances.

However, the emergency administrator is not a permanent replacement for a regular administrator. He cannot make significant changes to the community bylaws nor decide on renovation measures that go beyond what is necessary to limit damage. The owners’ meeting remains responsible for major investments.

Costs and Liability

The costs of the emergency administrator are generally borne by the condominium association’s assets. If the association’s assets are insufficient, all unit owners may be required to contribute proportionally-in accordance with their co-ownership shares. The emergency administrator’s compensation is based on the agreement with the court or on the standard market rate for property management services.

The emergency administrator is liable for errors in the performance of their duties in accordance with general principles of liability. Since they act as an organ of the administration of justice, special duties of care apply. Professional liability insurance is generally mandatory for emergency administrators.

Distinction from the Right of Emergency Management

In a WEG, every condominium owner has a right of emergency management under Section 18(3) WEG: In acute emergencies, they may act without a resolution from the community to avert imminent damage-such as by immediately hiring a plumber in the event of a burst pipe. This right exists regardless of whether an administrator is in place and does not constitute the office of emergency administrator. The emergency administrator, on the other hand, assumes the administrative function on a permanent and comprehensive basis.

Practical Tip for Owners in Nuremberg and Franconia

In practice, we find that homeowners’ associations in Nuremberg and the surrounding region can often avoid the need for an emergency administrator if they select a professional property management firm early on. In the event of conflicts between owners or issues with the current administrator, we recommend acting quickly and proactively: convene an extraordinary owners’ meeting, document the situation objectively, and simultaneously search for a new management firm.

We are familiar with the established property management firms in the Nuremberg, Fürth, and Erlangen metropolitan area and are happy to assist in finding a reliable successor-often, the transition to a new management firm can be completed within a few weeks. This avoids the lengthy and costly court proceedings required to appoint an emergency administrator.

Frequently Asked Questions

How do you apply for an emergency administrator?

The application must be filed with the competent local court at the location of the residential complex. In Nuremberg, the Nuremberg Local Court has jurisdiction. Any apartment owner is entitled to file the application. The application should outline the reasons for the urgency and the WEG’s inability to act and be accompanied by supporting documents (e.g., the management company’s notice of termination, failed resolutions, minutes of unsuccessful owners’ meetings). An attorney can assist in drafting the application and improve the chances of a swift appointment.

Can an emergency administrator also be appointed for a single-unit property?

No, the emergency administrator under the WEG is limited to condominium complexes. For individual properties, if the owner is unable to act (e.g., due to guardianship or absence), a guardian or custodian may be appointed by the court. For rental properties where the landlord is permanently unreachable, tenants may, in certain cases, deposit rent with the local court.

Does the emergency administrator’s term end automatically?

The office ends either upon the expiration of the court-set deadline or when the WEG appoints a regular administrator. As a rule, the emergency administrator informs the court of the situation once the WEG’s capacity to act has been restored. The court then formally revokes the appointment. Owners should actively seek a new administration in parallel with the emergency administrator proceedings to minimize this costly phase.

What happens if a condominium association does not apply for an emergency administrator even though it is unable to act?

Without an administrator, the condominium association cannot pass legally binding resolutions or enter into contracts. Urgent repairs are not carried out, maintenance fees are not collected, and insurance claims cannot be filed. In the worst-case scenario, inaction can result in significant damage to the common property, for which all owners are proportionally liable. Applying for an emergency administrator in such situations is not an option, but an obligation to the community.

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