NEW HOME OWNERSHIP LAW – WHAT HAS CHANGED?

On 1 December 2020, the ‘Act to Promote Electromobility and to Modernize the Home Ownership Act and to Amend Cost and Land Register Regulations – Home Ownership Modernisation Act, WEMoG’ came into force. The new Home Ownership Act results in changes for owners, but also for tenants.

Entitlement of owners and tenants to modernisation and refurbishment

The new legal regulations give every owner or tenant of a flat or house a legal entitlement to certain modernisation and refurbishment measures.

This includes

• Installation of a charging station for electric vehicles
• Barrier-free extension and conversion
• Burglary protection measures
• A fiber optic connection for the building.

The owner bears the costs for this – even if they demand corresponding structural changes to the common property.

Reform of the owners’ meeting

The new Home Ownership Act provides for an upgrading of the owners’ meeting as a central decision-making body. For example, resolutions on remodeling measures and the allocation of costs are now also possible with a simple majority. The meeting is quorate even if not all owners are present.

Changes for property managers

The new law gives administrators the right to decide on measures of downstream importance on their own responsibility, provided that these do not lead to far-reaching obligations for the owners. With the exception of the conclusion of loan agreements, administrators will be authorized to represent the community of owners externally. In return, the owners can limit the administrator’s internal decision-making powers and dismiss him or her without good cause. In future, owners will have the right to inspect management documents and to have the manager submit an annual asset report. Although a certificate of competence for property managers is not mandatory under the new legal situation, every owner has the right to demand such proof.

Right to seizure of property

Owners who grossly violate their duties towards the community can be deprived of their property under the new Home Ownership Act. After prior warning, they can be forced to sell their property. The decision to do so requires a qualified majority.

Land register entry for special rights of use

Special usage rights – including for terraces, gardens or car parks – can be entered in the land register under the new law. This gives them the status of special property.

New regulations for tenants

In future, tenants must generally tolerate legally secured modernisations of the rental property. In addition, landlords will in future be able to charge rent and ancillary costs based on the number of square meters or their co-ownership share in the residential complex.