Association of Owners
An apartment can under Dutch law be a “right of apartment”: a right that in actual fact, has two components: on the one hand the part-ownership of a building, on the other hand an exclusive right of use of a certain part of that building. In short: a co-ownership right and a right of use. The person entitled to the right of apartment is also called an apartment owner.
Legal advice in The Netherlands
Division into rights of apartment takes place by notarial deed, after which this deed is registered in the public registers. The law lists a number of minimal requirements for the contents of the deed of division. This concerns, among others, recording the location of the building. Membership of an Association of Owners (VvE) is automatically linked to a right of apartment. This VvE can adopt resolutions, act independently in public and enter into agreements.
Property division regulations
The property division regulations include, among others, how the VvE holds meetings and how many votes are required to adopt a VvE resolution. The property division regulations should include which debts and costs are to the account of the joint apartment owners. The association meets at least once a year. All apartment owners have access to the meeting. Resolutions are adopted by an absolute majority of the votes cast, unless otherwise determined in the articles of association. The chairman of the meeting is appointed from the association members. Under Dutch law a VvE director cannot act as chairman of the meeting.
Obligation to contribute
Each apartment owner is obliged to contribute in the costs to the account of the joint owners according to the regulations. This obligation to contribute is equal for all apartment owners, unless the regulations prescribe another ratio. In practice it is often complicated to find the proper allocation formula for the ratio of each owner’s obligation to contribute.
Dutch lawyer Association of Owners
The Dutch property lawyers of the AMS law firm in Amsterdam are highly experienced in advising on and litigating in disputes in Associations of Owners. Please contact our Dutch law firm for a free consultation without obligation.