When a building is split into individual condominium units, the owners automatically form a Wohnungseigentümergemeinschaft (WEG), a community of owners. Germany's condominium law was overhauled by the Wohnungseigentumsmodernisierungsgesetz (WEMoG), which took effect on 1 December 2020. This guide covers what changed, what the administrator does, how owners pass resolutions, how Hausgeld and the Wirtschaftsplan work, what belongs in the annual statement, and the deadlines that matter.
The reform strengthened the Gemeinschaft der Wohnungseigentümer (GdWE) as a legal entity. The community, not the individual owners, holds the rights and duties, signs contracts, and is represented externally by its administrator (Section 9b WEG). Claims about the common property generally run against the community.
What the 2020 reform changed
- Administrator powers. The Verwalter may now take routine measures of proper administration alone; only weightier decisions need a resolution (Section 27 WEG).
- Certified administrator. Since 1 December 2022 owners can demand a certified administrator (zertifizierter Verwalter, Section 26a WEG) who has passed an exam before the Chamber of Industry and Commerce (IHK). Administrators already in office at the reform counted as certified for a transition period.
- Easier building measures. Structural changes (bauliche Veränderungen) are generally decided by simple majority (Section 20 WEG); cost sharing follows Section 21.
- No more quorum. A properly convened meeting can resolve regardless of how many co-ownership shares attend.
- Asset report. A new Vermögensbericht must show the reserve level and the community's assets each year.
The administrator (Verwalter) and their duties
The administrator runs the community's day-to-day affairs: executing resolutions, collecting Hausgeld, commissioning maintenance, keeping the accounts, convening the meeting, and drafting the Wirtschaftsplan and annual statement. They must keep a continuously numbered Beschluss-Sammlung, a collection of every resolution and relevant court ruling (Section 24 (7)). A Verwaltungsbeirat (advisory board) supports and supervises the administrator; the reform made the board size flexible and limited the liability of unpaid members to intent and gross negligence (Section 29 WEG).
The owners meeting and how resolutions pass
The administrator must convene an Eigentümerversammlung at least once a year (Section 24 (1)). The invitation must go out at least three weeks in advance (up from two) and may be in text form such as email (Section 24 (4)). Ordinary matters pass by a simple majority of the votes cast. Every resolution can be challenged before the local court (Amtsgericht) by Anfechtungsklage within one month, with the grounds filed within two months (Section 45 WEG), a deadline both owners and administrators must watch. Since a 2024 change, the community can resolve by a three-quarters majority to hold meetings purely online.
Hausgeld and the Wirtschaftsplan
Each owner pays Hausgeld: a monthly advance toward operating costs, maintenance, and the reserve. The administrator prepares a yearly Wirtschaftsplan (budget). Since the reform, owners no longer resolve on the whole plan; they resolve only on the advance payments (Vorschüsse) it calls for (Section 28 (1)). Part of the Hausgeld feeds the Erhaltungsrücklage (maintenance reserve, renamed by the reform from Instandhaltungsrücklage), which must be kept at an appropriate level. A landlord who owns a unit passes eligible running costs on to tenants; our Nebenkostenabrechnung guide covers how that flows through.
The annual statement (Jahresabrechnung)
After the business year ends, the administrator prepares the Jahresabrechnung, comparing planned and actual figures per owner. Owners then resolve only on the balancing amount (Abrechnungsspitze): the back-payments (Nachschüsse) owed or the adjustment of advances, not on the full statement (Section 28 (2)). The administrator must also produce the Vermögensbericht showing the reserve and asset position (Section 28 (4)). There is no fixed statutory date, but proper administration means delivering it in good time, usually within the first half of the following year. Records must be retained: accounting vouchers for eight years (reduced from ten in 2025), and books and annual statements for ten years; our GoBD archiving guide covers the detail.
Key deadlines at a glance
| Task | Timing |
|---|---|
| Owners meeting | At least once per calendar year |
| Meeting invitation | At least 3 weeks ahead, may be in text form |
| Resolution challenge (Anfechtungsklage) | Within 1 month; grounds within 2 months |
| Wirtschaftsplan advance payments | Resolved for the coming year |
| Jahresabrechnung | Resolved the year after the business year |
| Record retention | Vouchers 8 years; books and statements 10 years |
Keeping units, owners and charges in one place
REPM is not a dedicated WEG accounting package, but if you own or develop units inside a WEG it helps to keep the underlying data on one record. On the management side you track units, ownership shares, tenants, leases, and maintenance history; on the development side a four-level hierarchy (Quartier, Bauabschnitt, Haus, Wohnung) and the DIN 276 cost cockpit sit on the same property. That gives you a clean source for the unit, owner, and charge data your administrator and your own bookkeeping both rely on. Start a free REPM trial to see the property record.
Frequently asked questions
What is a WEG?
A Wohnungseigentümergemeinschaft is the community every owner joins automatically once a building is divided into condominium units. Since the 2020 reform it is a legal entity that holds rights and duties and is represented externally by its administrator.
How much notice is required for an owners meeting?
The administrator must send the invitation at least three weeks before the meeting, and text form such as email is sufficient. The meeting must be held at least once a year.
What do owners actually vote on for the Wirtschaftsplan and Jahresabrechnung?
Since the reform owners vote only on the money owed, not the whole document: the advance payments (Vorschüsse) from the Wirtschaftsplan, and the balancing amount (Abrechnungsspitze), meaning back-payments or adjusted advances, from the annual statement.
How long can a resolution be challenged?
A resolution can be challenged before the local court within one month of the meeting, with the written grounds filed within two months (Section 45 WEG). After that it becomes binding even if flawed, unless it is void.