The most important points
When you buy a condominium, you automatically become part of the condominium owners' association (WEG) – and that can sometimes be complicated. As real estate agents, we know that if you know the rules, rights, and obligations, you can avoid costly mistakes and live peacefully in your home. We'll show you how the administration works, what you need to pay attention to when it comes to maintenance fees and reserves, and how to confidently navigate your owners' meeting.
1: What is a condominium owners' association (WEG)?
A condominium owners' association (WEG) is automatically created as soon as a house or apartment is divided up and the first unit is sold. The WEG is an independent association that can conclude its own contracts, take legal action, and make decisions. It performs these tasks through bodies such as the owners' meeting or the administrator.
The WEG Act: The basis for your property
The Condominium Act (WEG) regulates the coexistence and management of condominiums. The 2020 reform modernized the law to make it easier to make decisions and strengthen the rights of individual owners.
The law distinguishes between two types of property:
- Specially owned property: This is the space in your apartment that you can use and design as you wish, for example, painting the walls or laying the floor.
- Common property: This includes all parts of the building and property that are important for safety and maintenance, such as the roof, stairwell, windows, or garden. The WEG decides on these matters jointly.
The declaration of division and community rules of the WEG
The declaration of division is the starting point for every condominium owners' association (WEG). In this notarized document, the property is divided into your own apartment (separate property) and everything that is used jointly (common property).
Closely related to this is the community rules – essentially the "rules of the game" or constitution of the WEG. It specifies the rights and obligations of each owner and may even deviate from the legal requirements, for example with regard to costs or the use of common areas.
Before you buy a condominium, it is worth taking a close look at these documents. This will give you a clear understanding of how the community works and what rules apply to you.
2: Who makes the decisions? An overview of the WEG's governing bodies
The condominium owners' association (WEG) does not decide and act as an individual, but through specific bodies that are defined in the Condominium Act (WEG Act).
The owners' meeting
The owners' meeting is the central body of every condominium association. This is where all owners meet to discuss common property and make important decisions.
- What is decided? The owners' meeting determines, for example, the budget, the annual statement of accounts, major renovation measures, the appointment of the WEG administration, and the house rules.
- How does it work? A meeting must be held at least once a year. All decisions made are recorded in writing and are binding for every owner.
Why you should attend the owners' meeting
Important decisions for your building are made at an owners' meeting—from new house rules to renovations. Every owner is allowed to participate, submit motions, and vote. The resolutions passed are legally binding for everyone, even if you voted against them. It is in your own interest to attend whenever possible, as far-reaching decisions are often made here and you can keep track of costs and administration.
What happens if you are not there?
Those who are absent waive their right to have a say. If you stay away and do not send a proxy with power of attorney, the others will have the final say. Your vote will then be missing from the ballot – and you will still have to implement the decision in the end. Example: At a meeting, new quiet hours are decided or the roof is renovated. You weren't there? The decisions still apply to you. You have to pay your share and abide by the rules without having voted.
The WEG administration
The WEG administration takes care of all the day-to-day tasks of the owners' association and ensures that decisions are implemented. Since the 2020 reform, it has been given more decision-making powers, which makes administration much more efficient.
The tasks can be roughly divided into four main areas:
In this way, the administration ensures that decisions are not just on paper, but are put into practice – and that your property is well looked after in every respect.
3: The finances of the WEG: understanding building fees and maintenance reserves
A stable financial situation for the WEG is crucial to maintaining the value of your property. The most important factors here are the maintenance fees for ongoing operations and the maintenance reserve for repairs and renovations.
What are maintenance fees?
The building maintenance fee is the monthly contribution that each owner pays to the WEG. This covers all running costs for the common property, such as cleaning, garden maintenance, heating, and insurance.
What is included in the maintenance fee?
The building maintenance fee covers all running costs incurred for the common property. Typically, this includes:
- Heating and hot water – your consumption costs
- Operating costs – for example, water, sewage, garbage collection, or property tax
- Administrative costs – the fee for WEG administration
- Maintenance and repairs – contributions to the reserve fund for maintenance and renovation measures
Are building maintenance fees apportionable?
Part of the building maintenance fees are apportionable, meaning that you can pass these costs on to your tenants. These include, for example, heating costs or water and garbage fees. Other components, such as administrative costs or contributions to the maintenance reserve, are not apportionable and must be borne by the owner.
The maintenance reserve
The maintenance reserve (officially known as the conservation reserve since the 2020 WEG reform) is the money saved by the owners' association. It is only used for major repairs or renovations to the common property—for example, a new roof or a new heating system. A sufficiently filled reserve is required by law and shows that the WEG is in good financial shape.
Why the maintenance reserve is so important
The maintenance reserve is the owners' association's savings account for major repairs to the building – for example, a new roof, heating system, or facade work. If the reserve is too small, the WEG often has to decide on a special assessment for such work. This can quickly become expensive and surprising for individual owners.
The amount of the reserve is specified in the budget and depends on the age, condition, and size of the building. A common guideline for new buildings is around 7 to 10 euros per square meter of living space per year. Forward-looking management ensures that enough is saved regularly so that unexpected costs do not become a problem.
3 tips for relaxed coexistence in the condominium owners' association
Knowing your rights and obligations in the condominium owners' association protects you from expensive surprises and conflicts. These tips will help you lay the foundation for harmonious coexistence:
- 1. Get involved: Attend the owners' meeting. This is the only way you can have a say in the decisions that are made. Example: If a vote is taken on roof renovation, you can join in the discussion directly instead of having to pay a high special assessment later without having had a say.
- 2. Ensure transparency: Check the budget and annual statement regularly. This way, you will know exactly what your maintenance fees are being used for and how high the maintenance reserve is—and you will be able to see early on if any major repairs are imminent.
- 3. Knowledge is protection: Familiarize yourself with the basics of the WEG Act and the declaration of division. If you know the rules, you can better assess which decisions are fair and how the community works.
By actively participating, you not only avoid surprises such as sudden high special assessments for roof renovation, but you can also have a say in decisions and ensure that your WEG runs smoothly.
