Circular Resolution: Definition, Requirements, and Process Under German Condominium Law

A circular resolution (Umlaufbeschluss) is a decision made by a homeowners' association without holding a meeting. Under the basic rule of German condominium law (WEG), all owners must agree in text form (unanimity). Since the WEMoG reform, owners can pass a prior resolution allowing a simple majority of votes cast to suffice for a single, specifically named matter. The resolution only becomes legally effective once the result has been formally announced.

What Is a Circular Resolution?

A circular resolution allows a homeowners' association (WEG) to make decisions without holding a meeting in the traditional sense. Instead of gathering in person or virtually, owners cast their votes in writing or text form - for example by letter, email, or through a digital voting tool. The legal basis for this procedure is found in the German Condominium Act (Wohnungseigentumsgesetz, WEG).

Under Section 23(3) sentence 1 WEG, a resolution passed without a meeting is only valid, as a general rule, if ALL owners give their consent in text form, according to the Condominium Act. This so-called unanimity requirement is a considerably higher hurdle than the simple majority that suffices for resolutions passed at a regular owners' meeting under Section 25(1) WEG. A single missing consent, an abstention, or mere silence is enough to make the circular resolution fail under the general rule, as set out in the Condominium Act.

The WEMoG reform, which took effect on 1 December 2020, introduced an important exception: under Section 23(3) sentence 2 WEG, owners can now resolve that, for a single, specifically named matter, a majority of the votes cast is sufficient, as the Condominium Act states. Before the reform, there was no way to depart from the unanimity requirement. This so-called "lowering resolution" must itself first be passed, typically at an in-person or virtual meeting under Section 25(1) WEG by simple majority. It then applies only to the specific matter named, not generally and not as a blanket rule for future circular procedures.

A circular resolution does not automatically take effect the moment the last vote is cast. The wording of the law itself does not explicitly set out the exact point at which it becomes effective. In legal practice and according to the prevailing view, a circular resolution, like any WEG resolution, only becomes effective once the result has been formally announced to all owners, as reflected in the Condominium Act. This announcement is usually made by the property manager as soon as all required declarations have been received, or once it is clear that the necessary quorum has been reached. If even a single owner's required text-form declaration is missing, the manager may not, under the general rule, announce a valid resolution.

Once announced, the resolution must then be recorded in the resolution log (Beschluss-Sammlung) kept by the property manager (Section 24(7) and (8) WEG), as described in the Condominium Act. Every owner, as well as any third party they authorize, has the right to inspect this resolution log (Section 24(7) sentence 8 WEG).

What Are the Advantages of a Circular Resolution?

The biggest practical advantage of the circular resolution procedure is that no in-person or virtual meeting needs to be organized. For property managers and owners' associations, this means less coordination effort, faster decisions on urgent individual matters, and greater flexibility when finding a date that works for everyone would otherwise be difficult.

Criterion · Circular Resolution · Resolution at a Meeting

Legal basis · Section 23(3) WEG · Section 25(1) WEG

Consent required (general rule) · Unanimity of all owners · Majority of votes cast

Exception possible since · WEMoG, 1 December 2020, for a specific matter · not applicable, majority already applies

Form of consent · Text form · Vote at the meeting

Effectiveness · Upon announcement of the result · Upon announcement at the meeting

Documentation · Resolution log, Section 24(7) and (8) WEG · Resolution log, Section 24(7) and (8) WEG

Despite these advantages, the circular resolution remains, under the general rule, tied to a high hurdle: the consent of every single owner. In larger associations with many parties, this can be difficult in practice, which is why many property managers obtain a WEMoG lowering resolution in advance at a meeting for urgent individual matters. This makes it possible to later decide specific, clearly defined matters by simple majority through the circular procedure, without needing every owner's consent each time.

The organizational effort surrounding circular resolutions - tracking deadlines, following up on responses, and maintaining the resolution log - ties up significant staff resources at many property management firms. Where employees are already stretched thin by high call and email volumes, the added coordination work for circular procedures quickly becomes a burden. Automated communication tools can help here by reminding owners of outstanding responses and handling routine questions about the procedure. How such a AI-powered solution for property managers can look in practice shows one way to automate owner communication without hiring additional staff.

What Should Property Managers Keep in Mind for Circular Resolutions?

1. Before starting any circular procedure, check whether the general rule applies (unanimity required) or whether the matter has already been cleared for majority voting through a prior lowering resolution.
2. Make sure that all consent declarations are actually submitted in text form before announcing the result.
3. Record every effective circular resolution in the resolution log without delay, and give owners the legally guaranteed right to inspect it.
4. For recurring, urgent individual matters, make use of the option to pass a lowering resolution in advance at a meeting, to simplify later circular procedures.

For property managers looking to professionalize their internal processes around resolutions, deadline tracking, and owner communication more broadly, it's worth taking a look at practical training offerings, such as the Vectimo Academy.

What's the Bottom Line on Circular Resolutions?

The circular resolution is a valuable but, under the general rule, strictly regulated tool in condominium management. It saves the effort of organizing a meeting, but as a rule requires the consent of every owner in text form. Since the WEMoG reform, associations have been able to lower this hurdle to a simple majority for specific, clearly named matters, making the procedure noticeably more practical. What remains essential in every case is the correct announcement of the result and complete documentation in the resolution log.