The Owners' Association (VvE) plays an important role in the sale of an apartment.
Is it a new apartment division or is there a dormant Owners' Association (VvE)? In that case, additional steps are often required before the apartment is ready for sale.
What is an Owners' Association (VvE)?
An Owners' Association (VvE) is established by operation of law as soon as a building is legally divided into apartment rights. An Owners' Association is therefore legally mandatory. Every apartment owner automatically becomes a member of the VvE. The VvE is responsible for the management and maintenance of the common areas of the building, such as the roof, the facade, the foundation, the entrance, and any shared installations. In addition, joint decisions are made within the VvE regarding maintenance, insurance, and the distribution of shared costs.
Why is a well-organized VvE important?
A well-functioning VvE is not only important for the management and maintenance of the building, but also for a smooth sales process. An active and well-organized VvE contributes to the attractiveness of an apartment and gives buyers more insight into the organization and financial situation of the building. During the purchase and financing process, buyers and mortgage lenders assess, among other things, the financial organization, the building insurance, the budget, the monthly HOA contribution, and the available HOA documentation. When these matters are in order, it inspires confidence and can contribute to a smoother sales and financing process.
What is involved in establishing or activating an HOA?
When a new HOA needs to be set up or a dormant HOA needs to be reactivated, various legal, administrative, and organizational matters must be arranged. Depending on the situation, this involves, among other things:
registering or updating the HOA with the Chamber of Commerce;
opening or activating a bank account in the name of the HOA;
taking out or updating joint building insurance;
drafting a budget and determining the monthly HOA contribution;
forming a reserve fund for future maintenance;
appointing a board and setting up the administration. After the establishment or activation of the Owners' Association (VvE), one may choose to entrust the management to a professional VvE manager. At a later stage, the joint owners may decide to continue the management professionally or to carry it out (partially) themselves.
**Guidance regarding the VvE**
Establishing a new VvE or activating a dormant VvE often coincides with the sale of an apartment. Various parties are involved in this process, and diverse legal, administrative, and organizational steps must be carefully coordinated.
At NEWCURB Makelaars, we therefore look beyond the sale alone. When a VvE still needs to be established or reactivated, we also guide the step towards this process. To this end, we collaborate with experienced professional VvE managers who provide support with the establishment, activation, and – if desired – the future management of the VvE.
In this way, the sale of your apartment and the organization of the VvE align seamlessly, and you are expected to achieve a higher return.
