Important points you need to know about the homeowners association
Important points you need to know about the homeowners association. The Owners’ Association (VvE) is an organization responsible for the management and maintenance of a building or complex in which several owners live together.
Here are some important points to know about the Home Owners Association:
1. Purpose of the VvE:
The aim of the VvE is to represent the common interests of the owners of apartments in a building or complex. This includes the management and maintenance of communal areas and facilities.
If you buy an apartment in a building with multiple owners, you automatically become a member of the homeowners’ association. Membership is required by law.
3. Service costs:
Members of the VvE pay service fees to cover common costs, such as maintenance, insurance and cleaning of common areas.
The VvE regularly holds meetings where important decisions are made. Members have the right to participate in these meetings and to vote on various matters.
5. Reserve fund:
The homeowners’ association must have a reserve fund for future maintenance and unforeseen expenses. This fund is supplemented with contributions from members.
6. Deed of division:
The division deed establishes the rights and obligations of the owners and divides the building into apartment rights.
7. House rules:
These regulations contain additional rules and regulations for the use of common areas and for the behavior of residents.
8. Governance and management:
The VvE has a board that is responsible for daily management and making decisions on behalf of the members.
9. Professional manager:
Some homeowners’ associations hire a professional manager to perform tasks such as administration, financial management and maintenance coordination.
In the event of disputes, members of the homeowners’ association can take legal action.
It is important to be aware of the rules and responsibilities within the homeowners’ association, because this affects living in an apartment complex.
A “dormant VvE” (Association of Owners)
A “dormant homeowners’ association” refers to an Owners’ Association that, although formally existing (usually established when a building is divided into apartments), is not actually active. In a dormant homeowners’ association, the duties and responsibilities normally performed by the homeowners’ association are not fulfilled.
Here are some characteristics and potential problems of a dormant HOA:
1. Lack of Maintenance:
An active homeowners’ association plays a crucial role in the management and maintenance of common parts of a building. In a dormant homeowners’ association, maintenance can be neglected, which can lead to deterioration of the building.
2. Financial Problems:
If periodic contributions (service charges) are not collected from owners, this can lead to financial problems. There may not be a reserve fund for future repairs and maintenance.
3. Disputes and Conflicts:
Lack of decision-making and communication can lead to disputes between owners over issues such as maintenance, repairs, and other important matters.
4. Uncertainty in Sales:
Buyers may be reluctant to purchase an apartment in a building with a dormant HOA due to the uncertainty of future maintenance and costs.
5. Activation of the VvE:
In some cases it may be necessary to take legal action to activate the HOA if the situation is serious. This may, for example, involve convening a meeting to appoint new directors and make decisions.
6. Legal Obligations:
In the Netherlands there are legal obligations regarding having an active homeowners’ association. If there is no active homeowners’ association, this can cause legal problems.
When considering purchasing an apartment, it is important to investigate the status of the homeowners’ association. A healthy and active homeowners’ association contributes to maintaining the value of the property and ensures good management of the building.
Activating an HOA (Homeowners Association) may be necessary if the HOA is currently considered “dormant”.
Here are some steps that can be taken to activate an HOA:
1. Informing and Gathering:
Inform all owners of the need to activate the VvE. Organize a meeting where the owners can discuss the benefits of an active HOA and what steps should be taken.
2. Appoint directors:
During the meeting, owners can appoint directors. These directors are responsible for the daily management of the VvE. Agreements must be made about the duties and responsibilities of the directors.
3. Agreements and Regulations:
Make agreements about the functioning of the VvE, including the regulations and the amount of the service costs. It is important to agree on the financial contributions of each owner.
4. Opening a bank account:
An active homeowners’ association needs its own bank account. Open a bank account in the name of the VvE into which the periodic contributions can be deposited.
5. Register with the Chamber of Commerce:
A homeowners’ association must be registered with the Chamber of Commerce. The directors are responsible for this registration.
6. Hold Annual Meeting:
Schedule regular meetings (at least once a year) where important decisions can be made, financial matters can be discussed and owners can participate in decision-making.
7. Draw up a maintenance plan:
Draw up a maintenance plan that indicates what maintenance needs to be carried out and how the finances for this maintenance will be managed.
8. Professional Administrator Consider:
Depending on the size of the building and the complexity of the HOA, considering a professional HOA manager may be beneficial. This manager can assist with daily management and compliance with rules and laws.
It is advisable to seek legal advice when activating an HOA, as there are specific rules and obligations that must be met.
Registration of the Owners’ Association with the Chamber of Commerce
Yes, an Owners’ Association (VvE) must be registered with the Chamber of Commerce (KvK). The Chamber of Commerce is the official body where legal entities, including homeowners’ associations, are registered in the Netherlands. Registering with the Chamber of Commerce is a legal obligation.
Here are the steps you need to follow to register a homeowners’ association with the Chamber of Commerce:
1. Prepare documents:
Make sure you have all the necessary documents, such as the articles of association of the homeowners’ association, the regulations, the deed of division, and other relevant information.
2. Register online:
Go to the Chamber of Commerce website and register your VvE online. This can often be done digitally.
3. Complete registration form:
Complete the registration form with the required information, including the name of the homeowners’ association, the business address, the directors, and other relevant information.
4. Add required supporting documents:
Add the necessary supporting documents, such as the articles of association, deed of division, and other documentation required for registration.
5. Payment of Registration Fees:
Pay the registration fee. The Chamber of Commerce charges costs for registration.
6. Confirmation Received:
After registration you will receive confirmation of registration and a Chamber of Commerce number.
It is important to follow these steps carefully to ensure that the HOA is registered correctly and meets all legal requirements. Registering with the Chamber of Commerce also helps to obtain legal personality for the homeowners’ association.
Certainly, if you have further questions about the Owners’ Association (VvE) or if you are interested in buying, investing or renting out real estate in Rotterdam, you can feel free to contact Room Rotterdam Real Estate. We can provide you with more information and tailor-made guidance.