Changing Your HOA Management Without the Stress: How to Terminate Your HOA Management Correctly

Many homeowners' associations (HOAs) in Switzerland put off changing their management for years. The concern about legal pitfalls, complicated handovers or difficult discussions at the meeting is significant. Yet reality shows that a change is often the only way to break up entrenched structures and substantially reduce management costs. In this guide, you will learn how to make the transition in a legally sound and efficient manner. 

1. The legal basis: When is termination possible? 

The relationship between the community and its management is fundamentally a mandate relationship. In Switzerland, the management contract usually governs the details.

• Ordinary termination: Review your contract. Notice periods of 3 to 6 months to the end of the management year are common. 
• Statutory removal (Art. 712r ZGB): The owners' meeting can remove the management at any time. However, if fixed contract terms apply, removal without "good cause" may give rise to claims for damages. The ordinary notice period is therefore usually the safest route.

 2. Step by step to a new model 

Step 1: Review the regulations 

Before taking action, consult your HOA regulations. These specify which majorities are required for the removal or non-re-election of the management. As a rule, a simple majority of the head votes present or represented is sufficient.

Step 2: Correct agenda setting 

For a resolution to be legally binding, it must appear on the invitation to the owners' meeting. A delegate or group of owners should submit the request in good time to have the item "Termination of current management and new election" placed on the agenda.

Step 3: The vote and the minutes 

The termination is put to a vote at the meeting. Importantly, the minutes must record the voting result precisely. Properly kept minutes are your protection against subsequent challenges. 

Step 4: Written termination 

Following the resolution, the termination must be sent to the management in writing and by registered mail. Ensure that the authorised signatories as defined in the regulations (usually the committee or delegate) sign the notice.

3. The handover of documents: No need to fear the paper mountain 

A common concern is: "What happens to our files?" The outgoing management is legally obliged to hand over all documents. 

These include: 

• Accounting records and supporting documents from the last 10 years 
• Plans, insurance and service contracts 
• Owner master data 
• Keys and bank access details 

The digital advantage: When you switch to HOA Accounting, we actively support you through the handover. We digitalise the relevant master data so that you can leave the old paper trail behind.

4. Common mistakes to avoid 

• Missing the notice deadline: Even a single day's delay can result in the contract automatically renewing for another year. 
• No successor solution in place: Present the alternative to the meeting at the time of the vote (e.g. our efficient digital model). This takes away co-owners' concerns about a "leaderless" period. 

Conclusion 

Changing your management is not a bureaucratic ordeal – it is a standard process. If deadlines are met and the agenda is set correctly, there is nothing standing in the way of a fresh start with more modern, cost-effective processes. 

Link: Template for convening an extraordinary general meeting 

Link: Minutes template for extraordinary general meeting