Management advisory board: everything you need to know

What is the advisory board?

In condominium owners' associations, the management advisory board plays an important role as a link between the owners and the management. The advisory board, which is elected by the owners, has the task of supervising and supporting the work of the management, but does not have any decision-making powers itself. In principle, the advisory board may only make suggestions. The final decision is made jointly by the owners.

How is the advisory board appointed?

The appointment and organization of the management advisory board is governed by Section 29 (2) WEG. Accordingly, the appointment of an administrative advisory board in a WEG is not mandatory. Whether it is useful for the community of owners depends on the individual tasks in the WEG. However, if an advisory board is appointed, it usually consists of three members. A different composition is permissible.

As soon as the advisory board consists of more than one member, a chairperson and a deputy chairperson must be elected. The number of advisory board members is not specified by law, but should always be based on the size of the residential complex and the scope of the administrative tasks. When appointing the members of the advisory board, the condominium can also determine who should take on the role of chairman and deputy chairman. The management advisory board is appointed by majority vote. If the condominium does not reach a corresponding agreement, this decision is the responsibility of the advisory board itself.

How often is the advisory board elected?

How often a new advisory board is elected is not specified in the Condominium Act. This is decided by the condominium owners themselves. As a rule, the members of the advisory board are elected once a year, but other arrangements are also possible.

Membership of the advisory board is not unlimited. It can be terminated for various reasons:

• End of membership upon sale: If a condominium owner leaves the owners' association due to the sale of the condominium, he or she simultaneously loses his or her office on the administrative advisory board.
• Dismissal by resolution: The owners' meeting can dismiss an existing member of the advisory board if the condominium owners' association is dissatisfied with their activities.
• Tacit dismissal: Dismissal can also take place indirectly if the condominium owners elect a new advisory board.
• Right to resign: Every member of the Advisory Board has the right to voluntarily resign from office at any time.

Who can be a member of the advisory board?

In principle, any owner can become a member of the management advisory board (Section 29 (1) sentence 1 WEG) and take on its tasks and duties. Exceptions may be regulated in the community rules, for example for non-owners. The administrator is excluded as he/she is supposed to monitor the administrative activities. Further grounds for exclusion may lie in the person of the candidate, for example in the event of serious conflicts or conflicts of interest.

What tasks does the advisory board perform?

The WEG advisory board assumes a controlling, advisory and mediating function vis-à-vis the manager and the WEG. On the one hand, the management advisory board monitors the activities of the property management company, audits the accounts and ensures that all management tasks are carried out properly.

Secondly, the advisory board supports the management in preparing and holding the owners' meeting and advises on important decisions, such as the planning of maintenance measures. The advisory board can also make suggestions to the manager for improving the management activities. The prerequisite for this is a corresponding resolution by the owners' meeting, which the advisory board must approve.

Another important task is to review the business plan and the annual accounts (in accordance with 29 para. 2 WEG) and to provide these with an oral or written statement. However, it is important to note here that the advisory board has no rights to issue instructions to the administrator.

All in all, the advisory board also has a unifying role: it acts as a link between the condominium owners and the property management and represents the interests of the condominium. Through its control function, the advisory board contributes to the transparency and efficiency of the management. In summary, these tasks are therefore particularly important:

• Monitoring: The management advisory board looks closely at whether the condominium administrator is carrying out his/her work correctly.
• Advice: When it comes to important decisions, such as which company should carry out a repair, the advisory board gives its opinion.
• Mediation: The management advisory board is, so to speak, the "mediator" between the WEG and the administrator.

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Other tasks of the management advisory board

In addition to its general duties of support and monitoring, the management advisory board can also assume other responsibilities.

Important: These additional tasks must not interfere with the defined responsibilities of the administrator and the entire homeowners' association.

Possible additional tasks:

• Construction measures: Supervision and acceptance of construction or repair work on common property.
• House rules: Creation and adaptation of the house rules.
• Property management contract: Preparation, conclusion and, if necessary, termination of the contract with the property manager.
• Warranty: Enforcement of warranty claims for the common property.

What tasks does the advisory board not perform?

In principle, the administrative advisory board of a condominium owners' association must always observe the limits of the responsibilities of the administrators and owners when taking on additional tasks.

For example, the advisory board may not make any decisions that fall within the area of responsibility of the administrator or the community of owners. This includes in particular

• Personnel decisions: The advisory board may neither hire nor fire the administrator.
• Financial decisions: The approval of accounts, the awarding of contracts or the conclusion of agreements are tasks of the management or the community of owners.
• Representation of the WEG: The advisory board may not represent the WEG externally.
• Restriction of rights: The management advisory board may not restrict the rights of individual owners, such as the right to speak at the owners' meeting.
• Personal benefit: The Advisory Board may not derive any personal benefit from its activities.

What are the duties of the advisory board?

As a body of the WEG, the management advisory board also has certain duties to fulfill. In addition to the general duty to exercise their office with due care, this includes in particular the duty to provide information and accountability to the condominium owners.

In addition, the advisory board is obliged to hand over all documents that have arisen in connection with its activities. In certain cases, for example if there is no administrator, the advisory board must convene an owners' meeting.

The management board is liable to the WEG

Members of the management advisory board of a condominium can be held personally liable if they negligently or intentionally violate their duties and cause damage to the condominium as a result. However, the Condominium Act restricts the liability of honorary advisory board members: as a rule, they are only liable in cases of gross negligence or intent.

What rights does the advisory board have ?

In addition to its tasks and duties, the advisory board also has certain rights. For example, the members of the advisory board may request information and documents from the property management company that are relevant to their duties.

Advisory boards may also instruct the administrator to examine or prepare certain matters. However, the advisory board has no authority to issue instructions and its rights are always tied to those of the other co-owners.

Misunderstandings regarding the tasks and duties of the advisory board

A common misunderstanding is that the advisory board has the right to issue instructions to the administrator. However, this is not the case. The advisory board merely has the task of supporting and monitoring the management of the condominium. However, the administrator remains responsible for the management activities and the implementation of the resolutions of the owners' meeting.

What to do if the advisory board does not fulfill its duties?

If the management advisory board does not perform its duties properly or exceeds its powers, you as a condominium owner have various options for taking action against it.

Possible procedures:

1. Addressing the condominium management: First of all, the management should be asked to speak to the advisory board and clarify the situation.
2. Legal check: The owners should inform themselves about their rights and obligations, in particular about the Condominium Act.
3. Joint approach: Several owners should seek a joint discussion with the advisory board and press for a change in behavior.
4. Written request to the administrator: If discussions do not bear fruit, a written request can be sent to the administrator to make the matter official.
5. Legal advice: If problems persist, it is advisable to consult a lawyer.
6. Deselection of the advisory board: As a last resort, the entire advisory board can be voted out of office at the owners' meeting. This motion must be justified and submitted in good time.
7. Legal action: If the application for deselection is rejected, legal action can be taken against this decision.
8. Extraordinary owners' meeting: If the administrator refuses to hold an extraordinary owners' meeting, this can also be enforced in court.

Important information for you as the owner:

• Reason: Every application must be substantiated.
• Deadline: Motions must be submitted in good time so that they can be included in the agenda.
• Joint approach: A joint approach by all owners strengthens your position and increases your chances of success.

Conclusion: If the tasks of the management advisory board are not fulfilled, the owners have various options to remedy the situation. Early intervention and clear communication are crucial here.

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