Foundation, rights and obligations
According to the legal definition, the term “community of owners” refers to the entirety of all apartment owners within a condominium complex. It is therefore an association of owners of apartments within a building in which the members make decisions regarding the common property. The rights and obligations of the homeowners’ association (WEG) are regulated in the Home Ownership Act. Anyone purchasing residential property in an apartment building is therefore well advised to take a closer look at these legal provisions in advance. It is always possible to set up a community of owners if the residential units in a residential building or apartment building are divided up and there is no existing community.
How to become part of the community of owners
If you purchase residential property in a building that houses several residential units, you automatically become part of the condominium owners’ association (WEG). When you buy the apartment, you buy a leasehold share in the entire building. The amount of the share depends on how large your apartment is in relation to the entire building. While owners of detached houses have complete freedom of design with regard to their residential property, you are more restricted with your own apartment and must bow to the decisions of the majority. This applies, for example, to the exterior paintwork or plans to make structural changes to the garage or to demolish it. The homeowners’ association usually meets once a year and makes important decisions concerning the management and maintenance of the common property.
Elevator costs and other decisions
Various issues affecting the community are discussed at the owners’ meeting. Resolutions can be passed at the meeting if at least 50 percent of the rental property shares are represented by the members of the community. The main points discussed at the meeting include the economic plan for the common property, the annual statement of accounts and accounting or the vote on structural changes to the property. These may include renovation measures or the replacement of windows, for example. Items in the annual economic plan include expenses for waste disposal, winter services or elevator costs for multi-storey properties. The reserve account, in which the house money determined by the community is invested, is important for the annual economic planning. The reserve account is used to finance maintenance measures. Each owner must contribute a proportionate amount to the house allowance; the allocation is broken down by law according to rental property shares. According to the Drinking Water Ordinance, the community is also responsible for having the building’s drinking water tested regularly. In addition, the appointment of the management advisory board and the appointment and dismissal of a property manager are among the tasks of the homeowners’ association. The administrator is responsible for convening the owners’ meeting. If a community of owners is without a manager, for example because the manager has resigned, the meeting can also be convened by the chairman of the management committee, his deputy or jointly by the members of the committee. If there is no one within the community who would like to take on the position of property manager, it is also possible to appoint an external person to manage the property.
Special, partial and common property
There are various forms of joint ownership for a property. Common property includes the land as well as safety-relevant and necessary parts of the house, such as load-bearing walls, ceilings and the roof. Shared facilities such as an elevator or stairwell are also included. Special property includes all components that are not used jointly. This includes everything in the apartment, for example, but also parking spaces that belong to the residential property. Partial ownership is the special ownership of rooms that are not used for residential purposes. For example, a room that is used as an office or law firm is considered part ownership, while the occupied parts of the apartment are considered residential property.
Decision-making body for common property
The homeowners’ association performs important tasks and is responsible for property management. Problems sometimes arise within the community. These often concern the necessity and scope of renovation measures. Difficulties can also arise if the house money does not cover the costs of repairs. A harmonious relationship between the members is therefore an essential prerequisite for the smooth running of the meetings.
Translated with DeepL.com (free version)
Common property includes all property components that are not part of the separate property and are used by all owners. These include gardens and lawns, cellars, stairwells, elevators, walls, entrance doors, balconies, exterior walls and central heating systems.
The consent of all members of the condominium is required if structural changes are decided. This also applies if not everyone is affected by this change, for example because balconies are being converted on the building and not every party has one. The consent of all members is also required for a decision on the self-administration of the condominium.
The allocation of costs in a community of owners is regulated by law. All expenses incurred for the common property are therefore allocated proportionately. This includes operating and administration costs, maintenance and repairs as well as costs for modernization and structural alteration measures. Joint heating and electricity costs are also apportioned. According to WEG law, the costs are distributed in accordance with the rental property shares. However, it is also possible to decide on a different distribution of costs within the community. Different cost allocations are possible, for example, based on the number of persons, the living and usable space, the number of residential units or the cause.
The condominium owners’ association is a separate legal form. Each member is the owner of their own residential unit and co-owner of common property such as the garden, cellar or common rooms.
Self-administration of the WEG is possible by law. In this case, an internal administrator is appointed from within the community. Alternatively, it is possible to perform the administrative tasks jointly. However, in some cases this is associated with effort, namely if a contract has to be concluded by all co-owners. Nevertheless, this can make sense, for example, if the community is small and only a few owners are represented, or if the costs for the house fees are to be kept low.
