Default reserve (WEG) – The default reserve comes into effect in the event of the insolvency of a condominium owner if there is a risk that the owner will no longer be able to meet his financial obligations. In order not to endanger the entire community by the insolvency, this default reserve can be determined, from which then necessary payments are made. The German Condominium Act (Wohnungseigentumsgesetz, WEG) stipulates that each condominium owner is obliged to contribute to the burdens and costs of the residential community.
Default reserve (WEG) at a glance: Special apportionment in the event of insolvency of condominium owners
- Is a hedge for the case of insolvency of a condominium owner
- To protect against the danger of the entire housing community
- In the event of insolvency, the necessary payments are made from it
- Each condominium owner has the obligation to share in the burdens and costs of the residential community.
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