Validity of Resolutions in Property Owners' Associations

Welcome to the Hochheiden Property Management blog, your trusted partner in property management. A central element in the administration of property owner associations is decision-making in the owners' meeting. The validity of these decisions is crucial for the smooth functioning of the community and the implementation of communal goals. In this post, we aim to provide you with important information regarding the validity of resolutions in property owner associations and demonstrate how you can ensure the legal compliance and enforceability of decisions.

What Makes a Resolution Valid?

A resolution in a property owners' association is only valid if it was adopted in a properly convened owners' meeting and the voting process complies with legal requirements and the community regulations. Essential criteria for validity include:

  • Proper Convocation: The owners' meeting must be convened within the prescribed deadlines and with a clear agenda.

  • Quorum: The meeting is generally considered quorate if more than half of the co-ownership shares are represented. The specific regulations may be defined in the community regulations.

  • Majority Decision: Resolutions are adopted by a majority of the votes cast, unless the community regulations stipulate otherwise.

Challenging Resolutions

Owners can challenge resolutions if they believe a resolution is unlawful. Reasons for challenging a resolution may include:

  • Violations of the Condominium Act (WEG) or the community regulations

  • Procedural errors in decision-making

  • Resolutions that violate the principle of proper administration

A challenge typically must be filed within one month of becoming aware of the resolution by filing a lawsuit with the competent district court.

Best Practices for Valid Resolutions

  • Transparency and Communication: Ensure clear and transparent communication before, during, and after the owners' meeting.

  • Thorough Preparation: Carefully prepare the agenda and ensure that all relevant information is available to owners before the meeting.

  • Documentation: Keep accurate records of the meeting and the resolutions adopted. The minutes should be signed by the meeting chair and a chosen secretary.

  • Legal Review: For complex issues or uncertainties regarding legal matters, consulting a legal expert may be advisable.

Conclusion

The validity of resolutions is a fundamental aspect of property owners' association management. To ensure legal compliance and the implementation of resolutions, careful preparation and conduct of owners' meetings are essential. Hochheiden Property Management is here to professionally guide the resolution-making process and protect the interests of all owners.

Do you have questions about the validity of resolutions or need assistance with managing your property owners' association? Contact us – we're here to support you with our expertise and experience.