The small ‘VvE’ – what do you need to know?

There are a whole bunch of small Owners ‘ Associations (VVEs ) in the Netherlands. Consider, for example, the up-down home, often known as a red-black home. Or property with the lower house and apartment above the apartment and “I-high, II and III high-high ‘.

What is an active VVE?
This love t that is done at least:

  • Registration Chamber of Commerce
  • Joint bank account
  • A reserve fund on which the owners put in monthly money for maintenance in particular.
  • A More Years Maintenance Plan (MJOP)
  • A joint home insurance
  • An annual meeting from which minutes are made

The problem of sleeping VVEs
With large VVEs (think of an apartment building) the VVE is actually always active. This is not always the case with the little ones: we see a lot of ‘sleeping’ VVEs. And this is a problem. Nowadays many banks do very hard on the remote’s drawing of a mortgage loan for an apartment without active owners association. In addition, this means that there are no maintenance spots and maintenance agreements for the building. The result is that maintenance is often postponed or does not happen at all, and the condition of buildings falls into disrepair.

The legal obligation
It is required by law to make an annual reservation for maintenance. The minimum amount that must be saved must be evident from the MJOP or must be 0.5% of the rebuild value of the property. There is currently no sanction for if you do not do this. You can, however, enforce the cooperation of your neighbors through the courts if they do not want to cooperate. As a buyer of your new home, that might not be the best start right away. The Dutch Association of Real Estate Agents (NVM) actively encourages its members to make their VVE active (sellers of houses) before putting an apartment up for sale. An active VVE is a lot more attractive for sale and we notice that this is becoming increasingly important (partly due to the influence of the banks).

The division deed (‘de splitsingsakte’)
The division deed is the foundation of the agreements between the owners.

This contains the location and the ground, how and in what proportion the apartments are split, which parts are common and which private, the cadastral designations and the division regulations that apply. This deed of division has been drawn up by the notary and can only be changed with the cooperation of at least 80% of all owners. The division deed is recorded in the public registers and is therefore accessible to everyone.

Split rules (‘het splitsingsreglement’)
This is part of the division deed. This regulates the rights and obligations of each apartment (owner) , the costs and debts for whose account, the number of votes per owner in the meeting, how the building is insured and the incorporation and statutes of the VVE. In very many cases, model rules are used. Of these, 5 are in circulation (1973, 1983, 1992, 2006 and 2017). For new VVEs, the 2017 regulations are usually chosen.

Examples of matters regulated in the division regulations:

  • The use of roof terraces
  • The role of the chairman
  • Maintenance of the private areas
  • Electric car charging point (for 2017 model)
  • The statutes
  • Etc.

Rules of Procedure (‘het huishoudelijk reglement’)
The internal rules can be used to agree on matters that are not included in the division deed, the division regulations and the articles of association. These therefore only serve as a supplement.

Think of agreements about sound-insulating floor coverings , the use of central areas (things in the stairwell), not being allowed to place a dish on the balcony, etc.

If following the division deed and the rent division regulations , this cannot be prohibited via the internal regulations. Except short stay (Airbnb).

Short Stay
You can determine whether short stay is permitted from the division deed and the division regulations.

There are 3 options:

  • Short stay is allowed
  • Short stay is not allowed, but the VVE can grant permission for this
  • Short stay is not permitted, and VVE can not grant permission for this

In practice, I recommend that you be very careful with buying an investment property with the aim of ‘air-trading’ it. Not only because many VVEs are against this (and a legal conflict is not fun), but also because it is being restricted or restricted in more and more municipalities.

The decision-making and the General Members Meeting
To legitimately make a decision within the VVE works as follows.

  1. First, all owners must be called for the meeting. The unbundling rules regulate how long in advance this must be minimal.
  2. Then what needs to be voted on must be included on the agenda.
  3. For important decisions, a minimum number of votes must be present at the meeting. This is called the quorum. The height of the quorum is regulated in the deed of division.
  4. If important decisions are voted on, there is also a minimum voting ratio. How high this is, is again regulated in the division deed. This may be 2/3 or eg. 4/5 th of the number of votes present.

If something has been decided within the VVE that you do not agree with and you want to reverse this, look at the following steps to see whether you can reverse this.

Finally
Again: an apartment with an active and healthy VVE is doing better in sales. But the sale should not be the reason for activating your VVE. An active owners association, with an active maintenance planning and adequate resources prevents impoverishment of your equipmen t ementsgebouw, it prevents discussions with neighbors and it is good for the value of your apartment. One last tip: do not forget to state your share in the reserve pot with the annual tax return.

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