The most important aspects of the Condominium Act (WEG)

If you want to sell or buy a condominium, you should know the basics of the Condominium Act. It contains provisions regarding ownership and regulates what belongs exclusively to the apartment owner and what belongs to all residents of the apartment building.

What does the Condominium Act regulate?

The Condominium Act of 1951 should be taken into account when selling and buying an apartment. In 2020, a Condominium Act reform carried out. The Condominium Act regulates the Creation of homeownership and the subdivision of real estate in Exclusive property and Common property. It also contains regulations on Owners' meeting and on the resolutions passed there. The creation of residential property is part of the first section of the act and serves as the basis for the land registry office to assign a separate land register page to each co-ownership share. When selling or acquiring a property, inspection is a current land register extract necessary to gain insight into Land Register to enable.

The association of apartment owners in an apartment building is the subject of the second section. Sections 13, 14, and 16 regulate the use and cost allocation as well as the rights and duties of the apartment owners. The first two sections are relevant for the sale of an apartment.

The second part of the Condominium Act deals with the right of permanent residence and the associated reversionary claim. The perpetual right of habitation can enable a person (not the apartment owner) to use and dispose of a specific apartment. In contrast to the right of habitation, the perpetual right of habitation can be sold and inherited. The reversionary claim can still be separated from the residential ownership of the property.

In the third section is the Administration settled. The duties of the manager are described in Section 27. The remaining four sections are of only minor importance for the sale of the apartment. Various commentaries are available as explanations. They are primarily intended to make work easier for managers and lawyers and are less useful for the sale of the apartment.

The law, updated in 2020, also regulates which structural changes apartment owners may also carry out in the apartment, who bears the costs of the construction measures and who may use structural innovations. Thus, an individual owner can install a Electric car charging station in the house or remodeling measure to Burglary protection enforce against the will of the majority of apartment owners. The law refers to so-called privileged measures.

How are division and ownership structured?

Paragraph 8 of the Condominium Act states that property owners can divide their property into several co-ownership shares. If the property is built on, the owner can divide an apartment building into condominiums, which they sell individually. Important when selling an apartment is the Deed of partition. It is also important for the potential buyer of your condominium, as it contains answers to many questions. Part of the declaration is usually a community order, which lays down the rights and obligations of the owners among themselves, but does not necessarily have to be present. Every declaration of division contains an assignment of the building's components to special and common property.

Separate ownership is governed by Section 5. The apartment used by the owner themselves is separate ownership. The owner is solely responsible for its maintenance. The common property is governed by Section 1, Paragraph 5 and includes various areas such as the stairwell, which can be used by all owners and for whose maintenance all owners must pay. The co-ownership share of each owner determines the costs with which the respective owner must contribute.

The declaration of division regulates for which separate ownership special use rights apply. This can be garden areas or a storage room per apartment. When selling an apartment, the potential buyer should be granted insight into the declaration of division. We as Real estate agent obtain the declaration of division and read it thoroughly in order to be able to answer the buyer's questions regarding ownership structures.

What is important in administration?

The Administration is regulated in Section 20 of the Condominium Act. She must be informed about the planned apartment sale. The Appointment of the administrator takes place through the homeowners association. The administrator's duties include convening homeowners meetings and implementing the measures decided there. The administrator's activities are divided into four areas:
1) The administrator takes over administrative tasks, which include the property expense statement as well as the calculation and request of special assessments if there are insufficient maintenance reserves for a renovation measure. The property manager is involved in the sale of an apartment because the declaration of division often stipulates the manager's consent in the event of a change of ownership.

2) The administrator takes on numerous legal duties, for example, the conclusion of contracts, contract review, and the legal representation of the owners' association. The administrator must ensure compliance with all legal aspects, such as the state building code and fire safety regulations.

3) To the organizational tasks The administrator's duties include correspondence with the owners and, in the case of rented condominiums, with the tenants as well. The administrator must conduct the condominium owners' meeting and prepare the minutes of the owners' meeting.

4) The administrator is also with technical tasks entrusted, for example, with the planning and awarding of maintenance work as well as the recording of consumption values, which include electricity and heating. If desired by the owners, the property manager can be supported by a management advisory board. Members of the homeowners association can serve on the advisory board. Other persons may become members of the advisory board if this is permitted in the community rules or if there is a corresponding majority resolution by the condominium owners. The management advisory board works on an honorary (volunteer) basis and mediates between owners and the manager. Its duties include finances, such as the correct posting of invoice amounts as well as annual financial statements. If prescribed in the declaration of division, the management advisory board must sign the minutes of the owners' meeting. Advisory board members are protected against claims for damages. If, for example, an overpriced offer was approved for a renovation measure, which led to financial damage for the condominium owner, the board could be held liable for this. To avert claims for damages against the board, a liability waiver for slight negligence can be agreed upon. A professional indemnity insurance policy can also be taken out.

The Condominium Act as an important basis for the sale of apartments

When selling an apartment, you should know the regulations regarding separate and common property in the Condominium Act, as disputes frequently arise between owners and the property manager, as well as among the apartment owners themselves. Regarding various components of the apartment building, it is not always clear to owners whether they are separate or common property.

Below are answers to three important questions that may also be of interest to the potential buyer when selling the apartment. The potential buyer should be informed about this during the viewing of your condominium.

How are windows and doors assigned?

Windows lead to disputes in many homeowners associations. It is not always clear how costs are distributed in the event of repairs. The Condominium Act states that windows belong without exception to all homeowners (common property). If windows need to be repaired, a Allocation of repair costs to the homeowners association.
However, different regulations can be set out in the declaration of division. The care and maintenance of the windows as well as the costs for repair can be assigned to the respective user. In these cases, the respective owner is then responsible for the maintenance of the windows as private ownership. If the window of your condominium needs to be repaired, however, you must take a few things into account. It is also important that the new owner is informed when the apartment is sold if the windows are assigned to the private ownership in accordance with the declaration of division.

Even if the windows are defined as special ownership in the declaration of division, you may not replace them arbitrarily or paint them however you like. Windows are part of the facade and therefore need to look uniform. The declaration of division often stipulates that the owner must maintain the inside of the windows. This also includes regularly painting the inner frame. The homeowners' association, on the other hand, is responsible for the maintenance of the outside. The costs for the maintenance of the outside are allocated among the individual owners based on their shares of joint ownership.

Whether doors belong to private or common property depends on where they are located. Interior doors located within the apartments are special property. The apartment owner is responsible for its maintenance. The front door of the house and the apartment entrance doors are common property..

Who is allowed to use the garden?

Disputes frequently arise when using terraces or garden areas. Often, the ground floor residents believe that only they are allowed to use the terrace or the garden. If no one has previously objected to the garden or terrace being used exclusively by the ground floor residents, this can change when an apartment on a higher floor is sold. The new apartment owner might think differently and also demand a right to use the garden. Residents of a higher floor could also change their minds, leading to disputes.

To avoid such disputes and create legal certainty, it is necessary to, to assign a right of special use to the condominium ownership. With the right of special use, the respective beneficiary can use common property alone.

Basements can also represent such a point of contention. When selling an apartment, it is essential to point out the right of special use. If you are selling your ground floor condominium and a right of special use applies to the garden or terrace, the new owner buys the apartment as separate property and automatically acquires the exclusive right of use to the garden.

The special right of use also regulates the assumption of costs. If a special right of use exists for the garden, its owner must also bear the costs of garden maintenance.

Subsequent granting of the right of special use is possible

The Condominium Act provides that the common property may be used by all condominium owners. If only individual owners are to receive a right of use, a special right of use must be assigned to the corresponding separate property. A Modification of the declaration of division is required, for which the consent of all owners is required.

To prevent disputes, a special right of use for parts of the common property can be established in the declaration of division, for example for storage rooms, garage parking spaces, or terraces. A special right of use can be transferred to another co-owner even without the consent of the other co-owners. This is possible, for example, when two owners agree to exchange the basement rooms assigned to their apartments. Notarization is not required for such an agreement. While a verbal agreement is sufficient, it loses its validity when an apartment is sold. The new owner can demand a reversion of the basement rooms. A special right of use only applies if a corresponding entry regarding the declaration of division is made in the land register (condominium land register)..

What should apartment owners know about participating in the meeting in electronic form?

According to the new legal requirements (Section 23, paragraph 1, sentence 2 of the German Condominium Act - WEG), condominium owners have the option to participate in owners' meetings in electronic form as well. Two aspects must be considered:

In principle, it must still be possible to attend a meeting in person. The law contains no provisions regarding the specific arrangement of participation in electronic form. Therefore, it is up to the apartment owners to pass a resolution in this regard. Furthermore, they can also decide on the Structuring of freedom of assembly decide. In owners' meetings that take place exclusively in virtual form, no resolution-making authority is possible. The apartment owners must always have the opportunity to be personally present at a meeting.

Conclusion: Note the Condominium Act and the declaration of division when selling an apartment

If you want to sell your condominium, it is necessary to know the Condominium Act. You should definitely inform yourself about the declaration of division, which regulates private ownership and common property in an apartment building.

For various areas of the apartment building, a right of special use can be assigned in the declaration of division to the respective special property. A subsequent assignment of a right of special use is possible, but the declaration must be amended, which requires the consent of all owners.

Rogers Real Estate accompanies you competent with the Sale of your apartment. Get comprehensive advice. Rogers Real Estate places value on a high-quality presentation of real estate. Buyers appreciate professional preparation of real estate and answering all questions regarding condominium ownership. It helps those make the right purchase decision.