For anyone who owns a condominium, the reform of condominium law has had an impact that goes beyond mere theory. For many communities, day-to-day life in condominium management has changed in very practical ways since the new law took effect—regarding resolutions, construction projects, the powers of the property manager, and the question of how quickly decisions can actually be made. This is precisely why there is a need for a clear explanation of the new law on condominium management that not only summarizes the provisions but also explains the implications for owners.
First, the most important point: The reform was intended to give homeowners’ associations greater capacity to act. In many respects, it has succeeded in doing so. At the same time, however, new obligations have arisen, along with a greater need for coordination and, in some cases, new areas of conflict. For owners, this means: more opportunities, but also a greater need for legally sound and forward-looking management.
Explanation of the New Condominium Management Law: What It’s Really About
At its core, the so-called new law is a reform of the Condominium Act designed to modernize the management of common property. In the past, many sensible measures failed due to high barriers, procedural errors, or protracted approval processes. Today, condominium associations can make decisions more quickly in several areas.
This is particularly relevant for the practice of condominium management because the role of the management has shifted more toward organization, implementation, and legally sound preparation. Owners rightly expect that resolutions are drafted in a legally sound manner, that notices are issued correctly, and that measures are not only approved but also properly carried out.
The reform does not affect only large residential complexes. Small communities with just a few units are also quickly noticing the changes, such as regarding notice periods, online participation, access rights, or the question of when structural changes can be approved.
What has changed regarding homeowners’ meetings
A key point is the owners’ meeting. The notice period has been extended. This gives owners more time to prepare, but also requires better organization. At the same time, the rules regarding a quorum have been simplified. A meeting now generally has a quorum even if only a small portion of the co-ownership shares are represented.
At first glance, this sounds efficient—and it often is. In communities where there is little activity, this can be a real advantage, because urgent decisions no longer fail due to low turnout. On the other hand, it places a greater responsibility on each individual owner to take invitations seriously and attend meetings. Those who stay away usually cannot later challenge decisions on the grounds that too few people were present.
The option of holding homeowners’ association meetings electronically has also grown in importance. Fully digital meetings are not automatically the norm in every association, but hybrid or technology-assisted formats can facilitate decision-making. This is particularly practical for owners living out of town or investors. However, it requires that the community pass clear resolutions to this effect and that the event be professionally organized.
More rights regarding structural changes
One of the most noticeable aspects of the reform concerns structural changes. In the past, projects involving common property were often blocked due to strict approval requirements. The new law makes it significantly easier to pass resolutions. In many cases, a simple majority is now sufficient.
For property owners, this represents real progress, particularly when it comes to modernization, safety, or technological advancements. Typical examples include charging infrastructure for electric vehicles, accessibility improvements, burglary protection, or faster internet connections. Individual property owners are now better able to implement such so-called “privileged” structural changes than they were in the past.
But here, too, the same principle applies: Simplified decision-making does not automatically mean easy implementation. The key factors are who bears the costs, how the measure is technically integrated, and whether follow-up costs are clearly defined. It is precisely at this point that many misunderstandings arise in practice. A decision that is politically desired must nevertheless be formulated precisely from a legal and economic standpoint.
The role of the administrator has become clearer, but also more demanding
The reform has strengthened the position of the WEG property manager. The property manager represents the association externally and, in principle, has greater autonomy in carrying out day-to-day management tasks. This is helpful for homeowners’ associations because operational matters do not have to be referred back to the association meeting for every minor issue.
At the same time, expectations regarding professionalism have risen significantly. This is because greater freedom of action only works if responsibilities, decisions, and budgetary limits are strictly adhered to. A good administration therefore does not operate under the motto “We’ll take care of it,” but rather documents decisions in a traceable manner, communicates transparently, and maintains the distinction between day-to-day administration and policy issues requiring approval.
In this context, the role of the certified property manager is also relevant. While not every homeowners’ association is required to appoint a certified property manager immediately, the right to do so has become legally significant. For homeowners, this sends an important message: professional expertise is no longer just a nice-to-have, but a genuine indicator of quality.
Rights of Access and Transparency in Public Administration
Today, property owners have clearer rights to access administrative records. This enhances oversight and promotes greater transparency. For reputable management companies, this is not a problem, but rather part of providing proper service. For communities, however, it also means that records must be kept in an organized manner, transactions relevant to billing must be documented, and inquiries must be answered professionally.
Especially in communities with diverse interests, transparency is often the key to maintaining harmony. When proposals, the basis for decisions, business plans, and measures are presented in a clear and understandable way, the potential for conflict decreases noticeably. Where information is incomplete or delayed, however, mistrust and delays quickly arise.
How the new law affects small and large condominium associations differently
Not every homeowners’ association benefits from the reform in the same way. In larger complexes, the new law often brings noticeable relief because it makes decisions involving many stakeholders feasible in the first place. A quorum-capable meeting despite low attendance can be helpful there. Standardized processes and digital communication also demonstrate their benefits particularly clearly in larger structures.
In small condominium associations, the situation is often more nuanced. There, conflicts are more personal, decisions are more immediate, and the financial burden per unit is often felt more acutely. For example, if a structural change is decided by a simple majority, it can be discussed much more intensely in a community of four or six than in a complex with 80 units. The law creates opportunities, but it does not replace the need for effective facilitation and clear voting procedures.
Explanation of the New Condominium Management Law: What Owners Should Pay Close Attention To
From the owners’ perspective, there are three areas that deserve special attention. First, the convening and preparation of owners’ meetings. Procedural errors, unclear agenda items, or missing documents can render resolutions vulnerable to challenge. Second, the cost implications of construction projects. Not every approval automatically results in an equal distribution of costs. Third, the distinction between the property manager’s authority and decisions that are reserved for the community.
Owners who focus solely on the end result often overlook the risks involved in the process. Especially with larger investments, the quality of the preparation determines whether a measure will be implemented quickly later on or blocked for months. An experienced administration therefore considers the risks of legal challenges, financing, technical review, and contracting not just after a decision is made, but already when drafting the proposal.
For investors, there is another consideration: effective homeowners’ associations indirectly protect the property’s marketability and value. If necessary repairs, renovations, or energy-efficiency measures are put off for too long, this has a negative impact on the property. The new law can reduce this stagnation—provided the management makes sensible use of the new leeway.
What homeowners should do right now
Anyone who is a member of a homeowners’ association should first familiarize themselves with the basic documents: the declaration of division, the bylaws, recent resolutions, and the current status of planned measures. The new law does not automatically change everything. Many details continue to depend on existing agreements and the specific resolutions that have been passed.
It is equally important to examine the quality of administration. Are invitations sent out in a timely and clear manner? Are decisions clearly worded? Are proposals transparent, and is there clear communication regarding costs, deadlines, and responsibilities? This is precisely what reveals whether legal options are being utilized in the community’s best interest.
For homeowners’ associations in the Dortmund area and throughout North Rhine-Westphalia, one thing is paramount: property management must not only be legally sound but also function reliably in day-to-day operations. For decades, Willmann Property Management has supported homeowners’ associations with this commitment—ensuring legal compliance, maintaining personal accessibility, and focusing clearly on preserving property value.
The new condominium law does not relieve homeowners’ associations of their responsibilities. However, it does give them greater flexibility. Those who exercise this flexibility with professional diligence, clear communication, and a realistic view of costs and consequences lay the groundwork for sound decisions and a well-maintained property portfolio over the long term.
