The Federal Court of Justice (BGH) has clarified a long-standing legal dispute in condominium law with its ruling of March 27, 2026 (Ref. V ZR 7/25) and significantly simplified decision-making for Homeowners Associations (HOAs).
The Previous Legal Situation
Previously, in the jurisdiction of many local and regional courts, the unwritten principle applied that an HOA must generally obtain at least three comparable offers for maintenance or renovation measures on common property before it could pass a resolution. If these three offers were missing, resolutions were often contestable due to violation of "proper management" and were overturned by courts.
The New BGH Decision
The BGH has now explicitly rejected this rigid "three-offer rule". The Karlsruhe judges ruled that the law does not prescribe a fixed number of offers. The sole decisive factor is whether the condominium owners are able to make a **proper and economically reasonable decision** based on the information available to them.
This means, for example, that if there is a sound offer from a long-standing and proven partner contracting firm, the HOA can resolve the measure even without two additional alibi offers, if the price appears reasonable and the owners are familiar with the quality.
"There is no rigid obligation to obtain three comparative offers. Condominium owners have a wide margin of discretion in selecting contracting companies and can decide based on reliable empirical values." — Federal Court of Justice, March 2026
Benefits for Homeowners Associations
This ruling brings major relief to everyday operations:
- Faster Response Times: Renovation and repair work can be decided and commissioned much faster. The tedious process of obtaining comparative offers is eliminated in emergencies.
- Less Bureaucracy for Management: Property managers no longer have to desperately search for contractors who have no interest in submitting a bid anyway, just to meet a "quota."
- Strengthening Local Contractor Relations: Trustworthy companies that have been doing good work for the HOA for years can be recommissioned without complications.
Our Quality Promise as Manager
Although the BGH has relaxed the requirement, economic action remains our top priority. We use our **regional contractor network in the Rhineland** in a targeted manner. For major projects, we continue to obtain comparative offers to ensure cost transparency. For minor repairs, we utilize the new freedom of the BGH ruling to resolve damage for you in an accelerated and unbureaucratic way.
Note on source: This article is based on the supreme court rulings of the Federal Court of Justice (BGH), in particular the judgment of March 27, 2026 (Ref. V ZR 7/25), on the abolition of the rigid three-offer rule for maintenance resolutions.