The extraordinary owners' meeting - everything you need to know

An extraordinary owners' meeting is a meeting of all condominium owners that takes place outside of the regular annual owners' meeting. It is convened to make important decisions or to discuss urgent problems that cannot wait until the next ordinary owners' meeting.

What are the requirements for convening an extraordinary owners' meeting?

An extraordinary owners' meeting can be held at any time in accordance with Section 24 (2) WEG. However, certain requirements must be met for an extraordinary owners' meeting to be convened: First and foremost, there must be a valid reason that requires a quick decision and cannot wait until the next regular owners' meeting. Examples of such valid reasons could be

• Acute damage to the building: Sudden and significant damage, such as damage caused by water, fire or storms, often requires immediate repair measures and therefore quick decisions by the owners
• Financial necessities: Unexpected costs, such as major repairs or the purchase of new communal facilities, often necessitate an extraordinary owners' meeting to decide on financing.
• Changes in property management: A change of manager or other organizational changes usually require a quick resolution by the owners.
• New legal provisions: New laws or changes to the community regulations may require an extraordinary owners' meeting to decide on the necessary adjustments at the condominium owners' meeting.
• Conflicts and disputes: In the event of serious conflicts within the community of owners or with third parties, extraordinary owners' meetings can help to find an amicable solution.
• Other unexpected events: Natural disasters or other unforeseen events that require immediate action can also justify an extraordinary owners' meeting.

These reasons must be stated in the invitation to the extraordinary owners' meeting. In order for the extraordinary owners' meeting to take place, at least a quarter of the condominium owners must also request that the extraordinary owners' meeting be convened. Decisions are based on the number of heads and not on ownership shares.

When can an extraordinary owners' meeting be convened?

An extraordinary owners' meeting can be convened at any time, but above all whenever the above-mentioned requirements are met. As there are no fixed dates for the extraordinary meeting, the COA's ability to act is guaranteed at all times.

To make it possible to convene a condominium owners' meeting, the extraordinary owners' meeting must always be announced in writing at least seven days in advance. According to the WEG Act, it is also possible in some cases to shorten the notice period to a few days. However, there must be a valid reason for deviating from the standard.

Important formalities for the invitation to the extraordinary owners' meeting

As with the ordinary owners' meeting, all owners must be informed of the upcoming meeting. The invitation to the extraordinary owners' meeting must include the following points:

• The planned agenda: The invitation must contain a comprehensive agenda that lists all items and resolutions to be discussed. Changes to the agenda are only possible under certain conditions.
• Place, date and time: In order to convene the extraordinary owners' meeting, the place, date and time of the meeting must be listed.
• Justification: The invitation must state why an extraordinary owners' meeting is necessary and which urgent matters are to be dealt with.

If the formalities are correct, nothing stands in the way of an extraordinary owners' meeting.

The invitation to the extraordinary owners' meeting

The invitation to the extraordinary owners' meeting can be sent in a variety of ways: by traditional letter post, modern e-mail or via the property management company's digital customer portal, if available. A personal handover or a notice in the hallway are also conceivable, but are usually only supplementary. It is crucial that every owner receives the invitation in good time and with proof of receipt in order to ensure the validity of the resolutions.

Who can convene an extraordinary owners' meeting? Owners or property management?

The extraordinary owners' meeting can be convened by various parties. This can either be done by the condominium administrators if they have an interest in clarifying certain matters. Alternatively, the management advisory board or its representative can also request that an extraordinary owners' meeting be convened and thus initiate an extraordinary owners' meeting.

The Condominium Act also grants owners the right to request an extraordinary owners' meeting. If at least 25% of the owners submit a written request to this effect, it must be considered if there is an urgent reason.

The procedure for an extraordinary owners' meeting

The procedure of an extraordinary owners' meeting is similar to that of an ordinary meeting - topics are discussed and resolutions are voted on. The necessary decisions can be reached by a simple majority, just like at an ordinary meeting. A unanimous vote is not required here. The WEG can therefore quickly initiate important resolutions. 

The meeting is chaired by the property management company. In cases where the property management refuses to hold an extraordinary owners' meeting, the meeting can also be taken over by the management advisory board or an owner.

As with the ordinary owners' meeting, minutes must also be kept here, which must be signed at the end by an authorized member and included in the collection of resolutions.

The difference between an ordinary and extraordinary owners' meeting

The main difference between an ordinary and extraordinary owners' meeting lies in the convening of the meeting, the deadline for convening the meeting and the topics discussed by the participants.

The convocation

An ordinary owners' meeting usually takes place at least once a year and deals with the usual matters relating to the property. An extraordinary owners' meeting, on the other hand, is convened unscheduled to discuss urgent matters or decisions that cannot wait until the next ordinary owners' meeting.

The topics

The topics discussed at the meetings can differ fundamentally: The following topics are usually on the agenda at ordinary COA meetings:

• General topics such as the business plan and annual accounts,
• The choice of new property management
• The election of the advisory boards
• General matters relating to the WEG

The extraordinary condominium owners' meeting, on the other hand, is used to discuss issues of increased urgency, such as mold infestation, burst pipes or breaches of duty by the property management company.

The deadline

The deadline for convening the ordinary owners' meeting is 3 weeks before the meeting date. The deadline for the extraordinary condominium owners' meeting, on the other hand, is only one week.

Special case of dismissal of the property management

If you as a condominium community wish to dismiss your current property manager, this is done in accordance with the provisions of the Condominium Act. It is necessary to dismiss the manager if the cooperation between the manager and the community of owners no longer works or if the manager no longer fulfills his or her duties properly. The aim of the dismissal is to appoint a new condominium administrator who better represents the interests of the community of owners.

The condominium management company is then obliged to hand over all documents relevant to the management of the community of owners to the subsequent company. This is important to ensure a seamless handover and guarantee the smooth operation of the COA. However, a dismissal may lead to legal disputes, especially if the dismissed administrator does not accept the decision.

When can the administrator be dismissed?

• At the request of the community of owners: If a certain proportion of the owners (usually a majority is required) request a dismissal, this must usually be carried out. This is followed by the convening of an extraordinary owners' meeting.
• At the administrator's request: The administrator can also declare his/her own resignation. This is often the case if the employment relationship with the community of owners is heavily burdened.

There can be many reasons for dismissal:

• Gross breach of duty: If the condominium manager does not properly perform his/her duties, such as managing funds or organizing repairs.
• Inability to manage the property properly: If the condominium administrator is no longer able to perform his/her tasks due to a lack of communication or organizational skills.
• Loss of trust: If the relationship between the administrator and the homeowners' association is so disturbed that cooperation based on trust is no longer possible.

Extraordinary owners' meeting without the property management

Although an extraordinary owners' meeting without the presence of a property manager is an exception, it is legally permissible and may be necessary under certain circumstances. Reasons for this may include, for example, the dismissal of the property manager, a vacant manager position or an urgent matter.

Holding such an owners' meeting requires greater initiative on the part of the condominium owners' association and clear regulation of the organizational processes. In order to ensure that resolutions are passed in a legally sound manner, it is advisable for owners to familiarize themselves in detail with the relevant legal provisions in advance.

How much does an extraordinary condominium owners' meeting cost?

The costs for an extraordinary owners' meeting depend on various factors, such as the size of the condominium owners' association, the complexity of the agenda and the agreed services of the condominium management. We cannot make a general statement about the costs for such a condominium owners' meeting. As a rule, the amount includes the preparatory work, the holding of the meeting and the preparation of the minutes. Additional costs, such as rental costs for a meeting room, are not included.

The exact costs can be found in the management contract. This contract not only sets out the general remuneration of the condominium management, but also contains specific provisions for special services such as the holding of extraordinary owners' meetings. We advise you to read the management contract carefully to avoid any surprises when it comes to the costs incurred.

Why dubious property management companies don't like extraordinary owners' meetings

It goes without saying that an extraordinary owners' meeting involves additional work, which is why such a meeting is naturally a thorn in the side of some dubious property managers. The main reason for this is that an extraordinary owners' meeting tends to bring up unpleasant topics that are outside the scope of day-to-day business. Once a resolution has been passed, the property management company must then react and take appropriate action, including repairing damage or having it repaired.

The property management company must also prepare the usual minutes and write the collection of resolutions, all of which represents additional work that goes beyond the normal scope. Another reason: If the property manager is to be dismissed and terminated due to breaches of duty, this also takes place at an extraordinary condominium owners' meeting. This is why rogue property managers almost always try to avoid or at least delay convening an extraordinary owners' meeting.

Tip: If your property management company regularly refuses to hold an extraordinary owners' meeting, this could be a reason to change your property management company.

Extraordinary WEG meeting with Ralph

As a modern property management company, Ralph offers you several advantages compared to other property management companies, especially when it comes to organizing and holding an extraordinary owners' meeting.

• Professional organization: As a modern property management company, Ralph has a professional working structure and experience in organizing extraordinary owners' meetings. This enables us to plan the process efficiently and ensure that all necessary items on the agenda are dealt with appropriately.
• Legal expertise and transparency: We know the legal requirements and ensure that every owners' meeting is held properly - whether ordinary or extraordinary. We make sure that all the necessary documents are provided to give you full transparency so that you can make informed decisions.
• Efficient communication: A modern property management company like Ralph has efficient communication channels to inform all owners about the upcoming condominium owners' meeting and to give you the opportunity to clarify your concerns and questions in advance. The invitations to the extraordinary meeting are always sent out on time.
• Proper minutes: We ensure that proper minutes are taken during the extraordinary owners' meeting. This ensures that all resolutions and discussions are documented, which is very important for the transparency and traceability of the results of the meeting.
• Conflict management: As a reputable property management company, Ralph has sufficient experience in dealing with conflicts within the ownership. We can mediate in disagreements and find constructive solutions to protect the common interests of all owners.

Switch to Ralph now

These and many other advantages help you to ensure that extraordinary owners' meetings are held efficiently and fairly and that your interests as owners are adequately taken into account. Are you looking for a new property management company, would you like to change your current property management company and work with us? Then take a look at our property management costs information page to find out more about our services! We look forward to hearing from you.