Condominium agreement after apartment building conversion: management, costs and special use

The condominium agreement becomes the legal operating framework of a converted apartment building. It connects units in the valuation report with co-ownership shares and addresses matters that WEG 2002 permits owners to regulate by agreement. A generic template is rarely sufficient for a mixed use old building. Shops, rented apartments, cellars, roof areas, courtyards and plant each create distinct questions of use, administration and expense.

The agreement cannot displace mandatory law. Common parts remain common, required resolution processes cannot be removed at will and buyer rights may not be unfairly restricted. Before signing, the valuation report, plans, leases, intended special uses, renovation status and management model should be reconciled. Every inconsistency is repeated in each later unit sale.

Written agreement and a complete unit structure

Section 3(1)(1) WEG 2002 identifies a written agreement of all co-owners as a basis for establishing condominium ownership. The scheme must include all eligible objects intended as condominium units. Condominium ownership cannot be created over common parts. The agreement therefore requires a complete unit schedule and cannot turn a shared area into an individual unit merely by naming it as such.

Section 6 connects the agreement with evidence of eligible units and the valuation report. All records should use the same unit names and appurtenance allocations. The condominium conversion and unit sales topic page explains the wider process. Plan attachments should be identified by date and version so that the governing document remains clear.

Distinguish ownership, appurtenances and use arrangements

A condominium owner has exclusive use of the unit under section 16(1) WEG 2002. An appurtenance under section 2(3) is attached to the unit when statutory requirements are met. A use arrangement may allocate the practical use of a common area without turning it into an appurtenance or separate property. The agreement should not blur these categories.

Garden areas, courtyards, bicycle spaces, roof areas and advertising positions each require a decision on the legally available category. Access, maintenance, liability and cost must follow. Exclusive use of a garden does not answer who maintains fences, trees or utilities. The condominium ownership and management topic page places these questions in later administration.

Plan for alterations to units and common parts

Section 16(2) WEG 2002 regulates alterations and the use of common parts for them. The agreement may set sensible standards for applications, plans, technical evidence and site coordination. It cannot simply remove every statutory alteration right or design consent requirements so that mandatory rights become ineffective.

Apartment buildings commonly face combinations, service routes, air conditioning, roof development, shop alterations and accessibility work. A transparent procedure and clear record requirements help all owners. Building law, tenancy law and other required consents remain separate. The condominium agreement is not a substitute for a permit or a consent arising from another legal relationship.

Establish workable owners’ association management

Once condominium ownership exists, the owners’ association has legal capacity for administration under section 18 WEG 2002. It may appoint a manager under section 19; section 20 describes central duties and representation. The agreement should support initial management, record handover and the scope of the management contract without misstating the manager’s statutory role.

Accounts, signing authority, digital communication, insurance, maintenance contracts and transition from the previous building manager deserve attention. Rented units require a clear distinction between association administration and each owner’s landlord duties. One manager may assist both functions operationally, but the legal roles remain different.

Do not replace resolutions with contractual shortcuts

Section 24 WEG 2002 governs collective decision making and generally requires an opportunity for all owners to comment. Ordinary administration under section 28 and extraordinary administration under section 29 follow different rules and remedies. An agreement may organise the process but should not create a broad permanent authority that removes required resolutions or control rights.

Information standards can be agreed for recurring decisions, such as competing tenders, technical descriptions and cost forecasts before major work. This improves decision readiness without replacing statute. During unit sales the records should also identify when new owners enter the decision process and which earlier contracts and financing commitments already bind the association.

Make expense allocation and reserve rules traceable

Section 31 WEG 2002 requires an appropriate reserve fund. Section 32 generally allocates expenses by co-ownership share and permits alternative arrangements in defined circumstances. The agreement should identify not just a percentage but the expenses to which each key applies. Lifts, heating, garages, courtyards and shops may raise different use and cost questions.

Extra care is needed for a main lease that predates condominium ownership. Section 32 contains an interface with its previous allocation key. Owner expenses and amounts recoverable from tenants require separate analysis. An apparently convenient special key may otherwise produce accounts that work neither among owners nor under the leases.

Avoid invalid restrictions and conflicting buyer statements

Section 38 WEG 2002 makes certain reservations and agreements ineffective where they remove or unfairly restrict use or disposal rights of applicants or owners. This may affect long commitments for work, brokerage or disposal restrictions. A project owner should not protect organisational preferences with clauses that undermine statutory safeguards.

Each unit sale contract must match the condominium agreement. Appurtenances, expenses, reserve, management and special use should not be described differently. The data room completeness check helps structure the records. Before the first sale, a clause matrix should trace every buyer statement to the underlying agreement and attachment.

Use the agreement as an ongoing management record

A strong agreement matters after registration. It should be translated into the management file and buyer handover. A short guide can identify appurtenances, use rights, expense keys and the process for alteration requests. The guide does not replace the agreement but makes it usable in daily administration.

Later amendments require the appropriate consent and form. The original agreement, plans, valuation report and all amendments should remain together. The handover and effective date area explains which records should transfer at each ownership change. This keeps the structure traceable after multiple unit sales.