Apartment owners: You need to know these rights and obligations

What applies to condominiums? This is why rights and obligations are so important for the homeowners' association

Anyone who buys a condominium in a building automatically becomes a member of a community of owners. This community makes joint decisions about the building, such as repairs, modernization and the distribution of costs.

The homeowners' association is based on a combination of rights and obligations, among other things. For example, each owner has the right to use their apartment as they see fit. At the same time, you are obliged to respect the rights of the other owners and to abide by the community rules.

The German Condominium Act (WEG) regulates the complex legal relationships between owners and sets out the basic rights and obligations. We have summarized the most important points for you.

What rights do you have as a homeowner?

As an owner, you enjoy a variety of rights that ensure your interest and co-determination in the community of owners and your condominium. These rights include

• Right to design and use your condominium: Every condominium owner has the right to use, rent or otherwise dispose of their condominium or unit. This is subject to compliance with the provisions of the community regulations and the rights of the other owners.
• Voting rights at the owners' meeting: Your opinion counts. As an owner, you have the right to take part in owners' meetings and vote on decisions concerning the common property.
• Right to information: You are entitled to comprehensive information about the finances and management of the community of owners.
• Right to have a say in modernizations: Before major structural changes or modernization measures are carried out, you have the right to have a say in certain cases.
• Right to an advisory board: You have the right to elect an advisory board to represent your interests vis-à-vis the property management company.

What obligations do you have as a condominium owner?

Your rights as a condominium owner and part of the community of owners go hand in hand with certain obligations. These serve to protect the rights of the other condominium owners and enable peaceful coexistence. Your duties include

• Participation in maintenance: As an owner, you are obliged to participate in the maintenance and repair of the common property.
• Obligation to pay house charges: The costs are divided proportionately among all apartment owners. Pursuant to Section 16 (2) and (3) of the German Condominium Act (WEG), each owner of an apartment is therefore obliged to pay a monthly contribution to the house allowance. This serves to finance all costs incurred for the maintenance, administration and use of the common property. The obligation to pay house fees also applies in the event of vacancy.
• Take care of vacancies: If a residential property is temporarily not rented out and is vacant, the owner is obliged to keep the apartment in perfect condition. This includes, for example, regularly flushing the water pipes to prevent legionella. The obligation to pay house fees also applies when the property is vacant.
• Special case of special apportionment: According to the Condominium Act, a community of owners can decide on a special apportionment if necessary to cover extraordinary costs. The amount of the special contribution depends on the total costs of the project and the available reserves. Such a resolution must meet certain legal requirements.
• Compliance with the community rules: All owners must comply with the rules and resolutions of the condominium owners' meeting set out in the community rules.
• Observe resolutions: If the community of owners adopts majority resolutions, all owners are obliged to accept them and implement them accordingly.
• Making tenants responsible: By incorporating the house and community rules into the tenancy agreement, the tenant is obliged to comply with all the rules contained therein. As the owner, you must also inform your property manager immediately when the new tenant moves in.

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The owners' meeting: the heart of the community of owners

The owners' meeting is the central decision-making body of the community of owners. It meets at least once a year and allows all owners to actively participate in important decisions. From facade renovations to the installation of new windows - this is where all key decisions relating to the residential complex are made.

The community of owners decides on various aspects at the meeting, including

• Determination of the house rules
• Formation of maintenance reserves
• Regulations on the use of the common property
• Approval of conversion measures and repairs
• Election of the property management and the advisory board
• Conclusion of insurance policies for the community of owners

How condominium owners pass resolutions at the condominium owners' meeting

There are three ways in which the community of owners makes decisions for your property:

1. Ordinary owners' meeting:
   • Annual standard meeting
   • Vote on proposals submitted
   • Resolutions are binding for all owners
2. Extraordinary owners' meeting:
   • For urgent decisions
   • Convening by the chairperson or administrators
   • Also possible at the request of at least 25% of the owners
3. Circular resolution:
   • For urgent matters
   • Written vote by circular letter
   • Requires the consent of all owners

The owners' meeting thus ensures that all important decisions are made democratically and in consideration of all owner interests.

WEG law is regulated in the Condominium Act

The Condominium Act serves as the legal basis for your community of owners. It sets out the rights and obligations of the owners. WEF law also states that the division of the property distinguishes between separate property and common property.

According to the Condominium Act, ownership of a residential complex can be determined by a contractual agreement and by a declaration of division. The declaration of division regulates what belongs to you as the owner (your separate property) and what you use together with the other owners (common property).

Right to use the special and common property

In the case of condominium ownership, the right to use the special property relates to living and generally excludes the exercise of a trade. However, the use of an apartment for the exercise of liberal professions such as doctor or lawyer is permitted as long as it does not cause any disadvantages compared to the permitted use.

When renting out a residential property, care must be taken to ensure that the purpose of the rental is consistent with the intended purpose and that the use fits in with the character and purpose of the property. The local and structural conditions as well as the type and scope of use must be taken into account.

Example

The use of a condominium as a doctor's surgery or physiotherapy practice is permitted as long as the visitor traffic is not unduly disruptive. On the other hand, the use of the condominium as a day care center for five children for a fee is not permitted (BGH, NZM 2012, 687).

Within the framework of the declaration of partition, the dividing owners shall additionally issue community regulations pursuant to Section 10 (1), Sentence 2. These shall supplement and concretize the general purpose provisions in the law and in the partition plan. The designation of rooms in the partition plan is not binding and, in case of doubt, information provided by the architect in the approval plan is subordinate. The community regulations can also be referred to as the "community statutes", similar to association law.

Examples of the limits of use include:

• The designation "business or commercial premises" in the community regulations or declaration of division also includes use as a restaurant.
• A restaurant, dry cleaner, ice cream parlor or sex store are not compatible with the narrower purpose of a retail store.
• The operation of a medical practice is not permitted under the designation "office for partial ownership".
• It is the administrator's responsibility to sound out the limits of use in individual cases and to demand compliance. The order of examination is: resolution, house rules, community rules, declaration of division. The statutory provisions of §§ 13 and 14 are used as a supplement. The limits of use lie where they infringe the exercise of the rights of the other co-owners.

Liability: When is the condominium owner liable, when is the community liable?

When it comes to liability in a condominium owners' association, there are various scenarios to consider. As the owner of an apartment, you are initially responsible for damage that you yourself cause to the common property or that is caused to third parties through your fault.

This liability is limited to their personal separate property. A classic example of this would be a defective pipe in your own apartment that causes water damage in the apartment below.

However, all condominium owners are also jointly liable to creditors of the community of owners. If, for example, the manager fails to pay a due invoice for tradesmen's services, the entire community of owners is responsible for settling this debt. The individual share of liability depends on the respective share of the common property. In such cases, the entire community is always liable and not an individual owner alone.

However, the potential liability of a condominium owner does not automatically end with the sale of the property. You can still be held liable for damages or liabilities incurred during your membership of the community of owners for up to five years after the sale. This regulation underlines the long-term responsibility that comes with owning a condominium and should be taken into account when selling a property.

The property management company is responsible for the joint obligations of condominium owners

The property management company is usually responsible for ensuring compliance with the obligations relating to the common property. This includes the following tasks for you and your homeowners' association:

• Compliance with the house rules
• Proper maintenance and repair of the common property
• Convening and chairing the owners' meeting
• Implementing the decisions taken
• Draw up a business plan
• Create annual accounts
• Care and overview of the WEG's finances

Do you already know Ralph?

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In addition, WEG management through Ralph has some unique advantages:

• On-time billing or money back: With Ralph, you will receive your WEG annual statement by the end of June at the latest or we will stop our current bills. You also have "live" insight into any finances throughout.  
• Responsiveness with 24h response guarantee: We are available from 09-19:00 -- whether by phone, email or via WhatsApp, etc. We guaranteed answers within 24 hours. Of course, each object has a personal supervisor.
• Possibility of digital ETV and dashboard: Ralph has his own team of developers and his own software. As an owner, you can always view not only all important documents via a dashboard, but also follow live how advanced tasks we are working on are in the process. Of course, you can also participate digitally in the ETV and even conveniently vote digitally in advance.
• Free switch, cancel at any time: We don't want to work for clients because they are tied up in contracts, but because they count on Ralph. If you are not satisfied, you as the client can get out of our contract at any time - no questions asked. In addition, switching to Ralph is free of charge and we will assist in organizing the ETV if requested.

The advantage of Ralph is that, compared to a classic administration, money can be saved thanks to the automations in the background, despite the better and faster service.

Want to learn more about Ralph? Request your free quote now. Do you have any further questions? Contact us at any time. We look forward to hearing from you and answer every inquiry personally!