Buying an apartment: what to check with the owners' association
When you buy an apartment, you're not just buying your own home - you also become a member of an Owners' Association (VvE). The VvE manages the shared parts of the building, such as the roof, the façade and the stairwell. A healthy VvE is therefore just as important as the home itself.
What does a VvE do?
The VvE takes care of the building's maintenance and the shared insurance. All owners pay a monthly contribution for this, often called service charges. The VvE makes decisions during an annual meeting. Topics discussed there include maintenance, budget and house rules.
Active or dormant?
There's a big difference between an active and a dormant VvE. An active VvE meets annually, has a budget and saves for future maintenance. A dormant VvE doesn't. That can mean there's deferred maintenance, or that after purchase you're faced with a substantial one-off contribution.
The long-term maintenance plan
A long-term maintenance plan (MJOP) shows what maintenance will be needed in the coming years and roughly what it will cost. This lets you see whether the monthly contribution is sufficient and whether major expenses are planned, such as a new roof or replacing window frames.
The reserve fund
The reserve fund is the VvE's savings pot. Maintenance is paid from it. Compare the balance with the plans in the MJOP. If the fund is small and major maintenance is planned, contributions are likely to rise.
Documents to request
Always request the deed of division, the division regulations, the house rules, the minutes of the latest meetings, the annual accounts and the budget. The minutes often show which discussions are taking place, for example about defects or disputes. Your buying agent will review these documents with you.
Leasehold
In some cities, such as Amsterdam, part of the apartments are on leasehold land. You then pay a fee for the use of the land. The conditions can greatly influence the monthly costs and the value. Get properly informed about this. Read more in our article on buying a house in Amsterdam-Noord.
Rules and use
The house rules determine, for example, whether you may keep pets, whether you may install a hard floor, and how you may use the storage room or roof terrace. Renting out is also often subject to rules. Thinking about renting out the apartment later? Then also read our article on renting out a home.
Financing and valuation
When financing an apartment, the lender also looks at the VvE. A valuer includes the building's condition in the report. Via our mortgage advice you'll know what you can borrow, including the service charges in your monthly costs.
Buying your apartment with confidence
Buying an apartment requires an extra critical eye. Browse the current listings or get in touch with our buying agents. We'll go through the VvE documents with you, so you know exactly what you're buying.
Questions to ask during the viewing
Ask the seller or the selling agent how active the VvE is, who manages it, and when the last meeting was. Ask whether any major decisions have recently been made, whether there are any disputes, and whether there are arrears in paying contributions. Also ask about parking options, storage, and the rules for using shared spaces.
The VvE contribution in your monthly costs
The monthly VvE contribution is a fixed cost alongside your mortgage. Include it when calculating your monthly expenses. A higher contribution isn't necessarily negative: it can mean the VvE is saving well for maintenance. A strikingly low contribution can mean extra costs will follow later. So always look at the overall picture.