Obligation of the community of apartment owners to build the facility after the developer goes bankrupt?

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Hearing Date, BGH, V ZR 243/23

The case concerns a condominium owner who is demanding the construction of a yet-to-be-built condominium complex from the community of condominium owners (WEG). The plaintiff, a member of the WEG, seeks the completion of a building that was left unfinished due to the insolvency of the construction company during the demolition phase. Her requests for the property manager to obtain offers and to commission work were rejected by the owners’ assembly.

In response, she filed a motion for the replacement of a resolution pursuant to § 44 of the Condominium Act (WEG). The district court dismissed her action, but the regional court partially granted it. The court decided that an expert opinion on the demolition and construction costs must be obtained. The plaintiff relies on § 18, paragraph 2 WEG, which grants her a claim to the initial construction of the common property, as the WEG is unresolvable. However, according to the court, there is insufficient basis to assess the reasonableness of the construction, which is why the costs must first be determined. The defendant WEG objects, claiming that it does not adequately consider the legal specifics of a “stalled” construction project.

The decision of the Federal Court of Justice is highly anticipated.

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