Introduction: Digitalization in condominium management
Advancing digitalization is influencing numerous areas of life and does not stop at the administration of condominium owners’ associations (COAs). Traditionally, owners’ meetings require the physical presence of all participants, which can pose a challenge, particularly in the event of physical distance or scheduling bottlenecks. Recent legal innovations now make it possible to pass resolutions digitally and hold meetings virtually. These developments offer COAs innovative approaches to improve communication and facilitate decision-making processes.
Legal basis for digital resolutions
The management of homeowners’ associations (WEGs) has made significant progress towards digitalization through legal innovations. Since October 17, 2024, an amendment to the German Condominium Act (WEG) has made it possible to hold owners’ meetings in fully digital form.
Key provisions:
– Virtual owners’ meetings: With a majority of at least three quarters of the votes cast, the condominium owners can decide to hold meetings without the physical presence of the owners and the manager. This resolution is valid for a period of up to three years from the date of the resolution.
– Comparability with a physical meeting: The virtual meeting must be comparable with a traditional physical meeting in terms of participation and the exercise of rights in order to ensure equal treatment of all owners.
Transitional arrangements:
– Obligation to hold a meeting in person until 2028: If the owners decide to hold virtual meetings before January 1, 2028, an in-person meeting must be held at least once a year up to and including 2028. However, this can be waived by a unanimous resolution of all owners.
– Legal consequences in the event of a breach: A breach of the obligation to hold a meeting in person does not lead to the nullity or contestability of the resolutions passed in a virtual meeting.
These legal adjustments offer condominium owners the opportunity to organize their meetings in a more flexible and modern way, whereby the legal framework is clearly defined.
Advantages of digital resolutions
The introduction of digital resolutions offers homeowners’ associations (WEGs) numerous advantages that promote both efficiency and the participation of owners.
Facilitated participation for owners:
– Spatial flexibility: Owners can attend meetings regardless of where they are, which is particularly advantageous for people with second homes or work commitments.
– Accessibility: Digital formats also enable owners with physical disabilities to participate easily without having to be physically present.
Time and cost savings:
– Elimination of travel times: Virtual participation eliminates the need to travel, which reduces both time and travel costs.
– More efficient meetings: Digital tools can streamline the flow of meetings and speed up decision-making processes.
Increased flexibility and faster decision-making processes:
– Prompt decision-making: Urgent decisions can be made more quickly without having to wait for the next physical meeting date.
– Easier appointment scheduling: Coordination of appointments is made easier as there is no need to be physically present.
Technical requirements and tools
The successful implementation of digital owners’ meetings requires both suitable technical equipment and the selection of appropriate software solutions.
Necessary technical equipment: Participants need internet-enabled devices such as computers, tablets or smartphones. A stable and fast internet connection is essential to avoid interruptions during the meeting. A microphone and speakers are required for active participation; a webcam also enables video transmission.
Software solutions for virtual owners’ meetings: Platforms such as Microsoft Teams or Zoom are frequently used. It must be ensured that only authorized participants have access. There are specialized tools that are specifically tailored to the requirements of owners’ meetings.
Challenges and solutions
The introduction of digital decision-making in homeowners’ associations (WEGs) brings with it numerous advantages as well as specific challenges. These relate to both technical aspects and acceptance among owners.
Dealing with technical hurdles and acceptance problems:
Some owners may have difficulties in dealing with digital technologies or be skeptical about them. To address these concerns, it is important to provide training and support to impart the necessary knowledge and build confidence in the new processes.
Training and support for less tech-savvy owners:
Organizing workshops or individual training sessions can help to ensure that all owners acquire the necessary digital skills. In addition, clear instructions and support materials should be provided to make it easier to get started.
Documentation of digitally adopted resolutions:
In order to ensure the legal certainty of digitally adopted resolutions, it is crucial that the digital platforms used comply with legal requirements. In particular, this includes data protection and the authentication of participants. In addition, the resolutions should be properly documented and archived.
Through proactive measures and targeted support, the aforementioned challenges can be successfully overcome and the benefits of digital decision-making can be fully exploited.
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