Should you ask the neighbors when selling your apartment?

Neighbors can be quite a nuisance – even if you're already moving out and planning to sell your apartment. According to the German Condominium Act (WEG), they can, under certain circumstances, thwart your efforts to find a buyer. In which cases does the owners' association have a say? And how can you still manage to sell without any stress?

The regulation that could cause problems for you is called a restriction on alienation. How can you find out if this applies to you? A look at the condominium association's rules and regulations and the land register will give you certainty. According to Section 12 of the German Condominium Act (WEG), any existing restriction on alienation must be recorded there. If this isn't the case, your neighbors can complain about your prospective buyers all they want – you have no say in the matter. This also applies if the restriction on alienation is only mentioned in the condominium association's rules, because it only becomes legally binding once it is registered in the land register.

The restriction on disposal requires the consent of the remaining owners

If a corresponding entry exists in the land register, this means that you can only conclude a contract with the buyer of your apartment once the other owners have agreed to the sale. Otherwise, the contract is invalid. Section 12 of the German Condominium Act (WEG) serves precisely the purpose of allowing other owners in a condominium association to prevent a sale to a prospective buyer deemed problematic.

But don't worry: your neighbor can't reject every prospective buyer without reason. To invoke Section 12 of the German Condominium Act (WEG), a comprehensible and valid reason must exist. Furthermore, the opinion of a single neighbor is usually not decisive in the decision.

Three variants of the right to have a say

There are three different procedures by which the owners' association can decide on a sale. Which one applies should also be recorded in the land register.

1. All members decide on the sale
2. A majority decision decides on the sale
3. Only the property management company decides on the sale

Before you proceed with the sale of your apartment, it's advisable to check whether you're subject to any restrictions on sale and how these are determined. Otherwise, you could be in for an unpleasant surprise at the notary appointment. If you want to ensure your neighbors don't object at the last minute, it's best to entrust the sale of your apartment to a real estate expert. This way, you have someone with legal expertise who can help you select the right buyer. Then, it should be very difficult for the other owners to find valid arguments against the sale.

Do you want to sell your apartment in a multi-family building and avoid any mistakes? Contact us now. We are always here to help.

You need more information:

https://de.wikipedia.org/wiki/Wohnungseigentumsgesetz

https://de.wikipedia.org/wiki/Wohnungseigenet%C3%BCmergemeinschaft

https://de.statista.com/statistik/daten/studie/72062/umfrage/anteil-der-privaten-haushalte-mit-eigentumswohnung/

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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