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Since June 1, 2024, a new Condominium Act has been in force that allows only certified administrators to work as administrators for condominiums. This means that (almost) all managers need to be certified. What is behind the term "certified administrator"? Who has to be certified since the WEG reform and how does the rule affect current management contracts? You can find answers to these and other questions here.
The initial situation: This regulation applied before the introduction of certified administrators
Condominium owners' associations (WEGs) have the option of appointing an administrator. This administrator exclusively looks after the common property, while the individual apartments are managed by the respective owners themselves. The rights and duties of the condominium administrator are set out in detail in the Condominium Act and form the basis for proper management. Additional condominium management tasks can also be agreed in the management contract.
The condominium administrator has a special role to play as an authorized representative, regardless of whether the condominium owners in question are involved in a legal dispute as plaintiffs or defendants. This means that the administrator acts as the official representative of the community of owners.
Low entry barriers before the new Condominium Act
Before the examination to become a certified administrator was introduced, the entry barriers for the profession were relatively low: only a valid business license was required. This only required commercial reliability and a clean criminal record. No specific knowledge or proof of expertise was required.
This meant that theoretically anyone could call themselves an administrator and the comparatively low requirements made it possible in principle for anyone who met the basic requirements to become a WEG administrator. The administrator could therefore start working as soon as he or she was appointed administrator by a WEG.
New requirements for administrators: The concept of certified administrators
On December 1, 2023, a significant change came into force: condominium owners were given the right to demand the appointment of a certified manager. This new regulation aims to improve the quality of property management and strengthen the trust of owners. As a result, only those administrators who have passed a corresponding certification will be allowed to work for a condominium.
Legal basis: The ZertVerwV
The details of certification are set out in the "Ordinance on the Examination for Certified Administrators under the German Condominium Act" (ZertVerwV). This ordinance regulates:
- The content of the exam
- The certification process
- Possible exemptions
These measures are intended to ensure that condominium administrators have the necessary expertise to perform their duties competently and in the interests of the community of owners.
Definition of certified administrator
Pursuant to Section 26a of the Condominium Act, anyone who fulfills the following requirements may call themselves a certified administrator:
- Successful completion of an examination at the Chamber of Industry and Commerce (IHK)
- Proof of comprehensive legal, commercial and technical knowledge
- Confirmation of professional competence for the management of residential property
The examination to become a certified administrator
Administrators receive the designation "certified administrator" by successfully passing an examination at the Chamber of Industry and Commerce. There is an exception for those who are exempt from this examination requirement due to their specific training. This regulation ensures that administrators have the necessary legal, commercial and technical knowledge to carry out their tasks as administrators competently.
The examination to become a certified administrator covers various specialist areas, including legal principles with a focus on condominium law (mandatory in the oral part of the examination) and tenancy law.
Exemptions from the audit obligation
The ordinance stipulates that certain professional groups and qualifications are exempt from the examination to become a certified administrator. The following professional groups and qualification holders are automatically recognized as certified administrators and do not require an additional examination to become a certified administrator.
- Legal professionals: persons qualified to hold judicial office (e.g. lawyers, fully qualified lawyers, attorneys)
- Real estate professionals with specific training: With completed vocational training as a real estate agent or completed training as a commercial agent in the real estate and housing industry
- Further training qualifications: Certified real estate specialist
- Academics with a specialization: University degree with a real estate focus
Further training despite certification
Since 2018, residential property managers have been subject to mandatory further training. This regulation was introduced in order to maintain and continuously improve the quality of property management services at a high level.
The introduction of the "certified administrator" status does not change this obligation for further training. On the contrary, it underlines the importance of lifelong learning in this dynamic professional field as an administrator.
The appointment of a certified administrator: right or duty?
Sections 19, 26a (1) and 48 of the Austrian Condominium Act (Wohnungseigentumsgesetz, WEG) regulate the key aspects of becoming a certified administrator. These provisions form the legal framework for the appointment of certified administrators and the rights of condominium owners.
In principle, there is no general obligation to appoint a certified administrator. The law does not provide for any mandatory provision that obliges condominium owners' associations to do so. Nevertheless, the German Condominium Act considers the appointment of certified administrators to be part of the proper administration of the common property.
This means that apartment owners are generally entitled to a certified administrator and individual apartment owners can challenge the appointment of an uncertified administrator.
Right of rescission and time limits
Important points on the right of avoidance and the appointment of a certified administrator:
- Apartment owners can challenge a resolution to appoint non-certified administrators
- The deadline for contestation is one month after the owners' meeting
- If the deadline is missed, the decision becomes final
- If a resolution is not contested in good time, a non-certified administrator remains in office
These regulations create a balance between the right to qualified management and the flexibility of the WEG in its decision-making.
Special regulation for small communities in self-administration
Special rules regarding the appointment of certified administrators apply to certain small WEGs:
Requirements for the exception:
- Fewer than nine special property rights
- A condominium owner has been appointed as administrator
- Less than a third of apartment owners require a certified administrator
The consequences:
- No entitlement of individual apartment owners to a certified administrator
- The appointment of a certified administrator is not part of proper administration
- The appointed condominium management company may operate without certification
Determination of the community size:
- The number of condominium units can be found in the declaration of division
The Legal Affairs Committee of the German Bundestag envisages another possible exception: Managers without certification who enjoy the trust of apartment owners could be exempt from the certification requirement. However, the practical and legal implementation of this exception is largely unclear and must prove itself in practice.
The basic aim of these exemptions is to allow flexibility for smaller communities and established administrative structures without undermining the fundamental requirement for professional administration.
Transition period for existing WEG administrators
A generous transitional regulation applies to administrators who were already active before the WEG reform on December 1, 2020. This regulation provides for grandfathering until June 1, 2024.
Until June 1, 2024, existing administrators were automatically considered certified. This applied to all condominium owners' associations that they were managing at the time of the reform. During this time, the administrators were able to continue their duties in proper administration without any restrictions. The grandfathering thus temporarily secured their position.
After the end of the transition period, all administrators who managed larger condominiums had to provide proof of certification. In concrete terms, this means that they had to have passed the examination to become a certified administrator before the Chamber of Industry and Commerce (IHK). Exceptions to this certification requirement only applied to those who are exempt from the examination requirement (see above).
Administrators who do not meet these requirements must therefore expect consequences. A lack of certification is a clear obstacle to appointment and can serve as grounds for dismissal of the administrator.
This regulation should give existing property managers sufficient time to adapt to the new requirements and acquire the necessary qualifications. At the same time, it should ensure the professionalization of the residential property management profession in the long term.
The change to Ralph is uncomplicated.
Procedure and costs of the examination to become a certified administrator
How do administrators obtain certification? The examination for certified administrators is divided into two parts and consists of a written and an oral part. The written part of the exam lasts 90 minutes and is conducted on a PC. To pass this part, participants must achieve at least 50% of the achievable points in each subject area. Once the written part has been passed, the oral examination follows, which lasts 15 minutes. This can be taken as a group examination with up to five people.
The limit of at least 50% of the achievable points also applies here. The examination language is German and the examination is graded as "pass" or "fail".
Both parts of the exam must be passed in order to receive the overall result "passed". If one part of the exam is not passed, there are unlimited opportunities for participants to retake the exam. Upon successful completion of the exam, the IHK will issue you with an official certification.
The Chamber of Industry and Commerce (IHK) has defined a fee structure for the examination to become a certified administrator. This is structured as follows:
Full inspection: 330,00 €
- Includes both the written and the oral part of the exam
- The same price applies for a complete retake of the exam
Partial repetition: 250,00 €
- Only for the repetition of the oral part of the examination
Special service: 50,00 €
- For the issue of a replacement certificate
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