Selling your flat: What you need to know about the owners’ association’s right to have a say
At first glance, selling a flat may seem like a purely personal decision. However, many owners are surprised to discover that they are not always free to decide to whom they sell their flat. The reason for this lies in Section 12 of the German Condominium Act (WEG), which grants the owners’ association a say in certain cases. This so-called restriction on disposal can influence the sales process and requires sellers to prepare thoroughly.
The restriction on sale means that the consent of the owners’ association or the property manager is required before a sale can become legally binding. This rule is intended to ensure that new flat owners are a good fit for the community and to prevent potential conflicts. Such restrictions are often set out in the community rules and serve to protect the interests of all owners. For example, a community might wish to prevent a flat from being sold to buyers who do not comply with the house rules or who are in a precarious financial situation.
It is therefore important for sellers to check at an early stage whether such a restriction exists and what conditions must be met in order to obtain consent. As a rule, the prospective buyer is required to provide certain evidence, such as a credit check or information on the intended use of the flat. The property manager or the owners’ association then has a set period within which to grant or refuse their consent.
What happens if consent is refused? In such cases, sellers have the right to take legal action to have the decision reviewed. However, this can significantly delay the sale process and incur additional costs. It is therefore advisable to communicate transparently with the residents’ association and the property manager from the outset to avoid misunderstandings or conflicts.
An experienced estate agent can offer valuable support in such situations. They are familiar with the legal framework and can help to identify and resolve potential problems at an early stage. They can also mediate between the interests of the seller and the owners’ association to ensure the sale proceeds more smoothly.
Conclusion: Section 12 of the WEG and the associated restrictions on sale do not constitute insurmountable obstacles, but they can influence the sales process. With thorough preparation and professional support, potential stumbling blocks can be avoided, ensuring that the sale is completed successfully and without unnecessary delays.
Why is there a restriction on disposal?
The restriction on disposal is intended to prevent undesirable individuals from becoming members of the owners’ association. For example: you have found a solvent buyer who, however, wishes to run a business that could disturb the peace of the building, such as a nightclub or brothel. The owners’ association has a legitimate interest in avoiding such conflicts and could refuse the sale in such cases.
When does the right to have a say apply?
- The right to have a say must be expressly laid down in the rules of the owners’ association and entered in the land register.
- The consent of the owners’ association is only required if this provision is in place.
- Any refusal by the buyer must be justified on valid grounds, such as a potential threat to domestic peace.
How do you go about it?
If your owners’ association has a say in the matter, you should:
- Check the house rules to clarify the existing regulations.
- Talk to your neighbours in good time to address any concerns and encourage them to approve your buyer.
- If in doubt, seek legal advice to ensure the sale is legally sound.
An experienced estate agent can also support you by selecting reputable prospective buyers and ensuring that all legal requirements are met.
