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WEG law: new rules for owner communities

2020-10-09T13:27:08.377Z


Some also call it the forecourt of hell: owner associations. A new version of the law is now intended to help avoid disputes.


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Condominiums in Cologne: More responsibility

Photo: Rolf Vennenbernd / dpa

Whether new windows, the construction of charging stations in the underground car park or even extensive renovations to the whole house: the question of which rights and obligations arise from joint ownership regularly poses challenges for apartment owners or even causes disputes.

A fundamental reform of the Condominium Act (WEG) should now make a contribution to making things more peaceful again - also for the frequently deployed administrators, whose powers were at times heavily disputed.

Why is the law being reformed?

In its previous form, the WEG has been in effect since 1951. At that time, it was intended to strengthen housing construction and thus enable broad sections of the population to purchase a condominium.

Climate protection, digitization or demographic change did not play a role at that time.

Over the years, the WEG has been adapted several times, but has never been fundamentally overhauled.

The reform is therefore considered overdue.

According to the Association Living in Property (WiE), the changes affect the owners of around ten million apartments in Germany.

What changes?

A central point of the reform is that modernizations should be easier in the future - especially with a view to energetic and age-appropriate renovations or the installation of charging stations for electric cars.

The Federal Association of Energy and Water Management welcomes the fact that this removes a major obstacle to the breakthrough of electromobility.

In addition, the management of common property should become more efficient.

What does this mean for homeowners?

In future, owners will be able to initiate certain construction measures on their own, i.e. without the consent of the co-owners - provided they bear the costs themselves. This applies to so-called wall boxes as well as to burglar-proof windows and doors, a stair lift or fiber optic connection.

In other cases, lower requirements for the majority required to bring about effective resolutions will apply in future.

The installation of a modern, climate-friendly heating system, for example, could then be decided by around half of the owners.

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In order to protect owners from financial overload, all apartment owners only have to contribute to the costs of renovation measures if the structural change has been decided by two thirds of the owners - and only if the change is not associated with "disproportionate costs" .

Otherwise, the owners who have approved the measure bear the costs.

It is not yet foreseeable whether this could result in individual owners voting tactically at the meetings in the future in order to gain advantages for themselves.

The association living in property points out that many of the effects of the complex set of rules can only be assessed in practice.

The reform brings the owners "more scope to manage their common property, but also more responsibility".

Do administrators have more power in the future?

The original version of the legislative reform was heavily criticized primarily because of the role of the property manager, which the owners can appoint.

WiE, for example, feared that their powers would be upgraded at the expense of the owners - and that they could possibly act over the heads of the apartment owners.

In future, the administrators should be the representatives of the community of owners to the outside world and also be able to conclude contracts.

At the same time, however, their room for maneuver is limited - because the owners can remove the administrators without good cause.

The owners' association Haus & Grund sees this as a "balanced law for both owners and administrators".

In addition, owners can now request that the managers be certified by the local chambers of industry and commerce.

The Association of Real Estate Managers Germany welcomes the introduction of such a certificate of competence - this enhances the activity.

What are the consequences of tenants?

The German Tenants' Association warns that renting apartment owners will in future have the option of apportioning operating costs to tenants according to co-ownership shares instead of the usual amount of living space as was previously the case.

This harbors "considerable potential for conflict", since the distribution scale is not transparent for tenants.

When do the rules apply?

After the approval of the Federal Council on Friday, the law now has to be signed by the Federal President and then announced in the Federal Law Gazette.

According to the Federal Council, it will "mainly come into force at the beginning of the month after next" - that is, on December 1st.

This means that owners of potential investments could benefit from the lower value added tax, which was reduced by the corona crisis until the end of the year, at least in December.

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mik / afp

Source: spiegel

All business articles on 2020-10-09

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