When selling a condominium, the land register extract alone is not sufficient: The buyer and their bank want to know how the condominium owners’ association (WEG) is doing. In addition to the declaration of division, it is primarily the administrative documents – minutes, resolution collection, financial plan and service charge statement – that reveal the association’s financial condition. We show you which WEG documents you should compile, what they contain and why the buyer insists on them.
What are WEG documents – and how do they differ from the declaration of division?
WEG documents are the documents that reflect the ongoing life of your condominium owners’ association: resolutions, income, expenses and reserves. Since the WEG reform of 1 December 2020, the condominium owners’ association has had legal capacity – anyone who buys a condominium joins an existing organisation with its own funds and obligations. That is precisely why buyers are less interested in the condominium alone than in the entire “WEG company” behind it.
It is important to distinguish this from the declaration of division: This is the static constitution of the building. Together with the division plan and the community rules, it determines what constitutes separate property and what constitutes common property, how high the co-ownership shares are and which rules apply. The declaration of division is held by the land registry office and rarely changes.
The WEG documents in the narrower sense, on the other hand, are dynamic: They originate from the property management company and are updated year after year. While the declaration of division says what belongs to you, the administrative documents reveal how financially healthy the association is. This guide focuses precisely on these administrative documents.
These WEG documents does the buyer need
You should have the following documents ready before the notarial appointment. Each sheds light on a different aspect of the association.
The minutes of the owners’ meeting
In the minutes (records), the management documents what was discussed and resolved at the annual owners’ meetings. Pursuant to Section 24 (6) WEG, the minutes must be prepared and signed without undue delay after the meeting.
For buyers, the minutes are the most important source of information of all: They show planned and approved renovations (roof, façade, heating, energy-efficient modernization), increases in service charges, disputes among the owners, and announced special assessments. It is customary to provide the minutes from the last three years – some buyers and banks want a longer period.
The Collection of Resolutions
Under Section 24 (7) of the WEG, the collection of resolutions is mandatory for every owners’ association. It brings together all resolutions adopted at meetings or through circular procedures, stating the place and date, as well as court decisions – consecutively numbered and kept up to date.
While the minutes allow you to read through all the discussions, the collection of resolutions shows at a glance which regulations still apply today. This is crucial for the buyer, because they assume these resolutions: from the house rules and approved structural alterations to deviating cost allocations.
The Current Budget
The budget under Section 28 (1) of the WEG is the forecast for the current year. It shows the advances – i.e. the monthly service charges – as well as the expected income and expenses and the contributions to the maintenance reserve.
The buyer can use the budget to determine the monthly financial burden they will have to expect in the future and how much of it will flow into the reserve.
The Service Charge or Annual Statement
The annual statement under Section 28 (2) of the WEG is the final accounting after the end of the calendar year: it presents the actual income and expenses. On this basis, the owners resolve on additional payments or an adjustment of the advances (the so-called balance arising from the statement).
Comparing the budget and the statement shows the buyer whether the association calculates on a sound basis or whether expensive additional payments are regularly looming.
The Statement of Assets and the Maintenance Reserve
Since the 2020 WEG reform, the statement of assets under Section 28 (4) of the WEG has been mandatory for every property manager. It is a snapshot of the owners’ association’s assets and lists, among other things, bank balances, receivables, liabilities, and above all the balance of the maintenance reserve – this has been the name for the former repair reserve since the reform.
The maintenance reserve is the financial cushion for major repairs. A A low reserve fund in an older building is a clear warning sign: special assessments are more likely here. A well-funded reserve, on the other hand, indicates forward-looking management.
Property management agreement and approved special assessments
The current property management agreement or the resolution appointing the property manager should also be included. This tells the buyer who manages the owners’ association, under what conditions, and how long the appointment runs. Since the reform, owners can also require a certified property manager.
You should also disclose special assessments that have already been approved but are not yet due. These are particularly relevant to the buyer – more on this in the FAQ.
Why the buyer and their bank review the documents
Anyone buying a condominium is not only acquiring four walls, but also a proportional share in the financial situation of the entire owners’ association. Approved renovations, the amount of the reserve fund, and impending special assessments directly affect their budget.
The financing bank also almost always requires the condominium owners’ association documents. It uses them to assess whether the purchase price matches the condition of the building, how high the ongoing costs are, and whether the buyer is likely to face larger payments. If the documents are missing or outdated, this delays the financing approval – in the worst case, the sale falls through shortly before the notary appointment.
Advantages and disadvantages of complete owners’ association documents
Transparent records benefit both parties more than they cost. You should be aware of these points:
- Advantage – faster sale: If all documents are up to date, the buyer and bank can reach a decision quickly.
- Advantage – trust: Disclosed figures signal reliability and spare you price negotiations arising solely from uncertainty.
- Advantage – legal certainty: Disclosing relevant resolutions and liabilities reduces the risk of later claims for damages due to concealed circumstances.
- Disadvantage – time and costs: Obtaining the documents through the property management company takes time and may incur copying or processing fees.
- Disadvantage – transparency also reveals weaknesses: A low reserve fund, dispute minutes, or upcoming special assessments can depress the price – but cannot be concealed permanently anyway.
How to obtain the owners’ association documents
Your property management company is the most important point of contact. As an owner, under § 18 para. 4 WEG a statutory right to inspect the administrative documents. Request the documents early, as many property managers need several weeks and charge for the work.
Make sure that the documents are up to date: the minutes from the last three years, the most recent annual statement, the current budget, the asset report showing the balance of the maintenance reserve, as well as information on outstanding and approved special assessments. On a metasearch engine such as TraumImmo, you can then present your apartment with reliable key data – and appear prepared to prospective buyers from the outset.
FAQ about condominium association documents when selling an apartment
How many minutes of the owners’ meeting must I provide?
There is no fixed statutory number. In practice, the last three years have become standard; for older buildings or major renovations, buyers and banks often request a longer period. If in doubt, it is better to provide one extra set of minutes.
What is the difference between the declaration of division and condominium association documents?
The declaration of division is the static founding document recorded in the land register. It regulates ownership shares and the delineation between separate and common property. The condominium association documents, such as minutes, the budget and the statement, are dynamic, by contrast, and originate from the property manager. They document how the association is currently operating financially.
Does the buyer have to assume the seller’s outstanding service charge arrears?
As a rule, no. The buyer owes service charges only once they fall due after the change of ownership; a clause in the community regulations imposing the previous owner’s old debts on the buyer is invalid. The situation is different for a special assessment that has already been approved but is not due or invoiced until after the purchase – this may affect the buyer. Therefore, clarify any arrears before the notarial appointment.
Where can I obtain the condominium association documents?
From your property manager. As an owner, under Section 18 (4) WEG, you have the right to inspect the administrative documents. Allow some lead time, as compiling them may take a while.
What is the asset report?
Since the 2020 WEG reform, the asset report has been mandatory under Section 28 (4) WEG. It summarizes the association’s assets – in particular the balance of the maintenance reserve – and gives buyers a quick overview of the condominium owners’ association’s financial health.
Conclusion: What lies behind the apartment door is what matters
The key question for every buyer is not just “What is the apartment like?”, but “What is the community’s financial situation?”. The answers are provided by the minutes of the owners’ meeting, the resolutions collection, the financial plan, the service charge statement and the asset report. Compile these documents early through your property management company and keep them up to date. Complete, transparent condominium owners’ association documents speed up the sale, build trust and protect you from later disputes.