Homeowners’ association at a glance

A condominium owners’ association (WEG) is a community of owners who own one or more apartments in a common building. So when you buy an apartment unit in a property, you automatically become a co-owner and a part of the community of owners. Explore Real Estate Germany.

The community of owners can be described like this:

Community of all owners of a property.

The community of owners is responsible for the management, maintenance and modernization of the common property. Decisions are made at the owners’ meeting, where each owner has one vote. An administrator is appointed to represent the interests of the owners and is responsible for the management and maintenance of the common property. The condominium owners’ association is a legal entity and can, for example, conclude contracts or appear in court.

Homeowners’ association at a glance:

• A WEG is the community of all owners of a property
• Each owner can represent his right to vote at the meeting of owners
• Each owner has a certain co-ownership share in the common property
• Each member of a WEG must bear costs for the common property
• Each owner is responsible for his or her own special property
• Each owner has to fulfill certain rights and obligations
• Each COA must have certain documents that set out rules and boundaries

Ownership shares and common property

The distribution of property in a condominium owners’ association is defined in the declaration of division. There, it is described in detail which parts of the building are assigned to separate property and which are considered common property.

Each owner has a co-ownership share in the common property of the building, such as the land, the facade, the staircase or the roof. The size of the share depends on the size of the respective apartment in relation to the total living space of the building.

For this purpose, each owner occupies special ownership of his or her apartment. This means that he has sole ownership of his apartment and can use and manage it freely.

This is the right of each owner:

• Co-owner of the common property
• Special ownership of own apartment

Rights and duties of the WEG

Each owner of a condominium association has certain rights and obligations arising from the Condominium Act and the declaration of division. In this section, we will look at these aspects in more detail and explain what rights and obligations an owner has.

The rights and obligations in a WEG include:

• Management
• Maintenance
• Owners’ meeting
• Resolutions

Management and maintenance

The owners are jointly responsible for the management and maintenance of the common property. This includes, for example, the maintenance of the garden, the cleaning of the staircase or the repair of the roof. The costs are apportioned to the owners in proportion to their ownership shares.

This duty has every owner:

• Responsible for common property
• Responsible for internal or external management

Participation in the owners’ meeting

The owners’ meeting is the central body of the condominium owners’ association and is used to make important decisions for the common property. It is therefore important that the owners attend the meeting and express their opinions. However, there is no obligation to attend.

Minutes of the owners’ meeting must be kept and signed by an owner and the administrator. The minutes must contain all resolutions passed and voting results.

Are you interested in the topic of owners’ meetings? Learn more here!

• Owners’ meeting

Voting procedure and resolution

In the owners’ meeting, decisions are made by voting. There are different voting procedures, e.g. simple majority, qualified majority or unanimous decision. A resolution is only valid if it has been properly passed and does not violate any laws or the declaration of division.

House Rules, Declaration of Partition & Co.

In order to regulate the ownership shares in a house with several parties and to guarantee a harmonious living together, a written order is needed. Therefore, every multi-party house has a declaration of division, community rules and house rules.

The house rules are the most important document and, from the legal point of view, the first place to regulate the operation in a multi-apartment building. They are drawn up by the homeowners’ association or the appointed manager and are an obligation for them.

The community rules regulate all regulations and laws for living together in the residential complex and are legally behind the house rules. Since the community rules can be determined by the owners themselves, changes may be decided unanimously at the owners’ meeting.

The declaration of division of a property exists whenever the overall property is split into individual parts, such as individual residential units. It therefore describes the formal division of the property and thereby defines the rights and obligations of the owners.

Order of the WEG at a glance:

• House rules: regulates operation in multi-apartment building
• Community rules: regulates all the rules and laws for living together in the residential complex.
• Declaration of division: thus describes the formal division of the property

Ideal division at a glance: A form of co-ownership

• The co-ownership of several owners is registered in the land register
• Property is not shared in real terms
• Creation of two plots of land, which can be built on and managed independently
• Rights and obligations of the owners are regulated in the declaration of division
• Each owner himself responsible for the maintenance and repair of the property

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Foreclosure auctions – How you can always be part of it

We at Lukinski have listed for you how you will never miss an appointment for a foreclosure auction again. No matter from which part of Germany you come, we have the right address for you. And one more thing: We give you our tips on how you can best prepare for an auction date.

You’ve always wondered how friends or acquaintances who bid at foreclosure auctions knew when and where they were taking place? From now on, this will no longer happen to you. In the meantime, there are even Internet portals that show the foreclosure auctions divided into the different federal states.

Trust the official portal:

Foreclosures are posted at www.zvg-portal.de

List of all local courts in Germany

If you should not have the possibility on the different Internet portals after a suitable real estate to investigate, then there is also still another possibility of these dates to experience. The dates of auctions must be recorded as a notice in the competent district courts. In addition, the auction must also be recorded in the official gazette and can also be in a newspaper. If you do not know which local courts are in your area, there is a list of all local courts in Germany divided by federal state.

More information on foreclosures:

Tips for preparing for a foreclosure auction

To achieve the success you want at a foreclosure auction, you should prepare thoroughly. It makes sense to look at the foreclosure process several times before you attend a foreclosure auction yourself. The second step is to start looking. Look for offers that correspond to their interests by also activating the search filter on online platforms and do not waste time unnecessarily.

Then, once you have found a property that appeals to you, it is important that you gather enough information about the property. The most important information you can gather:

1. Review market value appraisals
2. Examine land records
3. Note the file number of the object to obtain even more information
4. If possible, arrange viewing appointments

Develop financing concept & follow preparation tips

It is particularly important that you come up with a sensible financing concept. Make sure that you don’t let yourself be distracted from your pre-determined highest bid in the heat of the moment, so that you don’t get into financial difficulties afterwards. However, before you bid at a foreclosure auction, you need to make sure that you can put down a security deposit. The security deposit must be 10 percent of the fair market value and must be paid to the court cashier before the auction. The total price of the property must be paid four – six weeks later.

If you follow these preparation tips, nothing will stand in the way of the auction of your dream property. Now all you have to do is bring your identity card or passport to the auction so that you can identify yourself.

Read also:

• Foreclosure explained
• Prevent foreclosure
• Foreclosure Submission
• Receivership
• Compulsory mortgage
• Tip! This is how an auction works (external): Compulsory auction procedure

Procedure of a forced sale – Video

Risks of a forced sale – You should be aware of these risks

Most people who attend a foreclosure auction hope to get a bargain. However, this is not always guaranteed. There are risks involved in a foreclosure auction that you should be aware of. Here, we have compiled possible risks for you so that you can be prepared in the event of a foreclosure.

Personal viewing rarely possible

Before participating in a foreclosure auction for a property, it is important to obtain sufficient information beforehand. Unfortunately, it is rarely possible to inspect the interior of a property in advance, as the occupant does not have to allow any insight into the interior. For this reason, possible damages or defects often only appear afterwards.

Existing tenancy must continue to exist – unless own need

If you buy an already rented property at an auction, you automatically become the landlord and have no right to terminate the tenancy, unless you need the property for your own use. You are therefore bound to the tenants to a certain extent.

Bidder offers more than financially possible

At a foreclosure auction, there is always the risk of falling into a so-called “bidding frenzy”. If the desire to buy the property at auction is particularly great, the risk of getting into such a situation increases. The active bidders drive each other up and do not notice it sometime that they have already arrived at the limit fixed by themselves before. Through this happening it can happen that one drives oneself into a financial ruin. Once a foreclosure sale has been concluded, there is no longer any right of withdrawal.

No warranty on construction defects

If you have managed to buy a property at auction and afterwards construction defects occur, this is particularly annoying. The disadvantage of a forced auction is that there is no warranty on construction defects.

Declaration of division at a glance: Establishment of residential and partial ownership

• Property is divided into co-ownership shares
• Each share of the division shall be connected with the separate ownership of a dwelling or of a room not used for residential purposes
• A notarial certification must be submitted for the land register entry
• Objectives of the declaration of division: Determination of the amount of the shares, qualification of the special property and its purpose of use, guarantee of special rights of use

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