Homeowners' association (HOA)

Condominium Owners’ Association - The Condominium Owners’ Association (WEG) comprises all owners of condominium units and fractional ownership interests within a property. It is automatically established upon the sale of the first condominium unit and is a community with limited legal capacity - it can file lawsuits, be sued, and enter into contracts. The legal basis is the Condominium Act, which was comprehensively reformed in 2020 (WEMoG).

Governing Bodies and Administration

The WEG has two central governing bodies: The owners’ meeting is the decision-making body - it decides on the budget, annual financial statements, maintenance measures, structural changes, and the appointment of the property manager. Resolutions are passed by a simple majority of the voting rights present or represented (exceptions: qualified majority for structural alterations with costs distributed among all owners). An ordinary meeting must be convened at least once a year.

The WEG administrator is the executive body-since the 2020 reform, they have had expanded powers for day-to-day management measures (proper maintenance and administration). As of December 1, 2023, a certified administrator must be able to provide proof of a professional competence exam (IHK). The administrator is appointed for a maximum of 5 years (for initial appointments: 3 years).

New since the 2020 WEG reform: Every owner has an enforceable right to proper administration-even if the majority votes against necessary measures, a single owner can take legal action. This significantly strengthens the rights of minority owners.

Costs and Budget

The WEG prepares an annual budget that includes the projected income and expenses for the common property. Typical cost items include: property management (20-35 euros/unit/month), building insurance, stairwell cleaning, garden maintenance, elevator maintenance, waste disposal, and the maintenance reserve (formerly: repair reserve).

The monthly advance payment (maintenance fee) ranges from 2.50-5.00 euros/m², depending on the building’s amenities and age. At the end of the fiscal year, the property manager prepares the annual statement-it is approved at the owners’ meeting and serves as the basis for any additional payments or refunds.

Since the WEG reform, the creation of an adequate maintenance reserve has been mandatory. Anyone purchasing a condominium should carefully check the status of the reserve: An insufficient reserve increases the risk of special assessments-one-time additional charges for major maintenance measures.

Decision-Making and Owners’ Rights

Since the 2020 WEG reform, resolutions can also be passed in written form (without an in-person meeting) if all owners agree. Online owners’ meetings have been permitted since then, which is particularly advantageous for WEGs with owners outside of Nuremberg.

Important resolutions by majority type:

• Simple majority: day-to-day management, budget, annual financial statement, appointment of a property manager
• Double-qualified majority (2/3 + 50% of the MEA): structural changes that bind all owners
• Unanimity: dissolution of the WEG, fundamental amendment of the community bylaws

Every owner has the right to challenge resolutions in court within one month of the minutes being published (Section 44 WEG). The competent court in Nuremberg is the Nuremberg Local Court.

Practical Tip for Owners in Nuremberg

We recommend that WEG members in Nuremberg actively participate in the owners’ meeting-many far-reaching resolutions (special assessments, renovations, changes in property management) are passed by a narrow margin. In larger Nuremberg WEGs (frequently in Langwasser, Zerzabelshof, and the high-rise developments of the 1960s/70s in Nordostbahnhof), significant renovation investments are on the horizon in the coming years-heating system replacement, facade insulation, and elevator upgrades.

Check whether your condominium association has sufficient maintenance reserves. If these are below 15 euros/m²/year, you should request an increase to avoid special assessments. We help buyers of condominiums in Nuremberg carefully review the HOA documents (declaration of division, minutes, annual financial statements, reserve fund balance) before purchasing-because a poorly managed HOA can result in significant additional costs.

Frequently Asked Questions

Can I withdraw from a condominium association?

No, it is not possible to withdraw from the condominium association as long as you are an owner. Membership ends only through the sale of the unit, foreclosure, or dissolution of the condominium association (requires unanimous consent of all owners). Even if you are dissatisfied with the management or other owners, your membership remains in effect-the proper course of action is to exert influence through the owners’ meeting.

What to do if you have a poor HOA manager?

The owners’ meeting can remove the manager at any time by a simple majority-since the 2020 HOA reform, a “good cause” is no longer required for this. The management contract then ends no later than 6 months after the dismissal. Alternatively, owners representing at least 25% of the voting rights can convene an extraordinary owners’ meeting. In Nuremberg, there are numerous certified property management companies available (directory at the Nuremberg Chamber of Industry and Commerce for Middle Franconia).

How high should the maintenance reserve be?

The amount depends on the age and condition of the building. The Peters formula serves as a guideline: Annual reserve = construction costs × 1.5 / (80-year useful life). For a Nuremberg apartment building with construction costs of 2,000 euros/m², this results in a recommended reserve of approximately 37.50 euros/m²/year. In practice, many condominium associations fall well below this figure-we recommend at least 15-20 euros/m²/year for buildings constructed in 1970 or later.

Who is liable if the condominium association causes damage?

Since the 2020 condominium reform, liability primarily rests with the condominium association as a community-no longer with the individual owners personally. However, if the HOA becomes insolvent, creditors can seek recourse from the individual owners on a pro-rata basis. The HOA is also liable for damage to a co-owner’s separate property resulting from inadequate maintenance of the common property-this is a frequent point of dispute in cases of water damage caused by leaky pipes in common areas.

How do I find a qualified property management company in Nuremberg?

Since December 1, 2023, WEG property managers in Germany must provide proof of a professional qualification exam from the Chamber of Industry and Commerce (IHK) or demonstrate equivalent qualifications. The directory of certified WEG property managers is maintained by the IHK Nuremberg for Middle Franconia (Ulmenstraße, Nuremberg). When selecting a property manager, homeowners’ associations should consider the following criteria in addition to certification: the number of units managed within the Nuremberg metropolitan area (local market knowledge), response times in the event of damage, the quality of accounting software and digital access for owners, reference properties of comparable size and age, and the amount of the monthly management fee. Typical management fees for Nuremberg condominium properties range between 25 and 45 euros per residential unit per month, depending on the scope of services and property size. Anyone changing property managers should agree on a handover checklist that systematically records all documents, keys, access data, and bank account details-disputes over the completeness of the handover are one of the most common sources of conflict when changing property managers.

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