An apartment right is a share in a building and the land it stands on, coupled with the exclusive right to use a particular unit. Buying a flat means buying such a share, not the physical unit itself. Every holder is automatically a member of the owners association, in Dutch the vereniging van eigenaars or VvE.
Statutory basis
The regime is in title 5.9 of the Civil Code, beginning with article 5:106. The division is effected by a notarial deed of division, which incorporates a set of rules known as the deed of division regulations. The association is regulated in article 5:124 and following. Article 5:126 obliges every association to maintain a reserve fund, calculated either on a multi-year maintenance plan or at a statutory minimum percentage of the reinstatement value.
How it works in practice
Decisions are taken in the general meeting, with voting rights and cost shares set out in the deed. The distinction between common parts and private parts, also drawn in the deed, decides who pays for what: the frame of a window may be common while the glass is private. An owner who disagrees with a decision can ask the court to annul it, but must do so within one month of learning of it, which is a short and strict period.
Where it goes wrong
Buyers underestimate the association. An association with no reserve fund, no maintenance plan and years of deferred work means a special levy after purchase, and the seller’s arrears can affect the buyer’s position. A second area is short-term letting and conversion: many sets of regulations prohibit or restrict them, and a prohibition binds the owner even if the municipality would permit the use. Third, works to a private part that touch the structure need the association’s consent, and carrying them out without it can lead to an order to restore.
Related terms
Transfer of title, ground lease and residential rent protection.
Is there a dispute in the association, a special levy or a decision you want annulled? Our real estate lawyers read the deed of division and advise on the deadlines.
