Looking for a property manager? - What apartment owners need to consider

Appointing an administrator relieves the burden on homeowners and creates clear responsibilities. But what specific powers does the administrator have? How is he appointed and how is he removed? And what role does the administrator play in the sale of a condominium? The Saxony Chamber of Notaries explains the legal requirements.

Key role in the homeowners' association

If you imagine the homeowners' association as a company, the property manager would be a kind of managing director. "He is the executive body of the owners' meeting," says Dr. Tobias von Bressensdorf, Managing Director of the Saxony Chamber of Notaries. The administrator takes care of drawing up the business plan and annual accounts, convenes the owners' meeting, ensures compliance with the house rules and implements the resolutions of the owners' meeting.

The administrator not only takes on internal tasks, but also represents the community externally. In doing so, they generally act on behalf of all owners as a homeowners' association and not individuals. Their power of representation is far-reaching. For example, it can conclude contracts with janitor companies or cleaning staff. However, restrictions apply in particular to property purchase contracts or taking out loans for the homeowners' association.

Right to appoint a (certified) administrator

Every condominium owner has the right to apply for the appointment of an administrator. Recently, this administrator must also provide proof of legal, commercial and technical knowledge as a so-called certified administrator, which is generally carried out by means of an examination at the Chamber of Industry and Commerce, unless he or she already has the relevant qualifications "by default", for example as a fully qualified lawyer or real estate agent. In the case of smaller residential complexes with eight or fewer apartments, however, certification is not required if at least one third of the apartment owners do not request it.

Administrator appointment, dismissal and maximum duration

The administrator is appointed by a majority resolution of the owners' meeting. It is not possible to transfer this decision to other bodies such as the management advisory board. The owners' meeting can also dismiss the administrator at any time. A contract is usually concluded with the administrator, which specifies the tasks and duties in more detail and regulates the remuneration. This contract ends no later than six months after the administrator is dismissed. The duration of the management contract is a maximum of five years, or a maximum of three years for the first appointment following the establishment of condominium ownership.

Consent of the administrator to the sale - public certification and expiry

The administrator also plays an important role in the sale of residential property. Community regulations or the declaration of division may stipulate that a transfer can only take place with the administrator's consent. This is intended to protect the owners from the entry of unreliable persons into the community. "However, the administrator may only refuse consent if there is an important reason, for example if the purchaser is financially unreliable or threatens to disturb community peace," explains Dr. von Bressensdorf. Whether consent is required is usually noted in the land register.

The consent, as well as the administrator status, must be proven to the land registry by means of a publicly notarized deed. The minutes of the resolution appointing the administrator must be submitted as proof of administrator status. The signatures of the chairman of the owners' meeting, of a condominium owner and, if an administrative advisory board has been appointed, also of its chairman or his representative must be publicly notarized under the minutes. "Only through the notarial procedure can full proof of the appointment of the administrator and the submission of the administrator's consent be provided," adds Dr. von Bressensdorf. In order to avoid delays, it is recommended that all parties involved - irrespective of a specific sale - make an appointment with the notary promptly after the administrator has been appointed and that the minutes are filed with the land registry.

Notaries as contact persons

Notaries are available to condominium owners as a central point of contact, whether for the establishment or sale of condominiums or for questions relating to proof of the appointment of property managers.

You can find further press releases from the media association on all topics related to the notary's office in the Press portal of the media association of the chambers of notaries.