Reviving a dormant owners’ association (VvE)

What is a dormant VvE?

As soon as a building is divided into apartment rights, an owners’ association exists automatically. Every owner is a member, whether they like it or not. In small buildings it is common that nothing was ever arranged. Or the board stopped at some point and nobody took over. That is what we call a dormant VvE.

Why reviving it pays off

Without an active association, it is unclear who pays for the roof when it leaks. No money has been saved for major maintenance, even though the law requires it. And anyone who wants to sell their apartment often gets questions about the association from the buyer or the bank. An active association prevents disputes over unexpected costs and makes selling easier.

Step 1: find out who the owners are

Make a list of all apartments and their owners. The Land Registry (Kadaster) can tell you who owns an apartment right. It also holds the deed of division (splitsingsakte). That deed sets out the ownership share (breukdeel) of each apartment and usually contains the regulations (splitsingsreglement).

Step 2: gather the documents

Collect the deed of division, the regulations, old minutes, insurance papers and any contracts. If something is missing, write that down. It is not a disaster if not everything is complete. You build on what is there.

Also ask former board members or a previous managing agent. Someone often still has a folder or an old mailbox with documents. Check with the bank whether an account in the association’s name still exists.

Step 3: check the KvK, the bank and the insurance

An owners’ association should be registered in the Trade Register of the Chamber of Commerce (KvK, Kamer van Koophandel). Check whether it is, and who is listed as a board member. Also check whether the association has its own bank account and whether the building is properly insured. Under many regulations, the association itself takes out the building insurance for the whole building.

Step 4: call a meeting

If there is no board, owners can often call a meeting themselves. The regulations state how to do this and how many owners are needed. Invite everyone and keep the first agenda short:

• introductions and explaining why the association needs to become active again;
• electing a board, even if it is only one or two people;
• agreeing how much everyone will contribute each month;
• making a start on a maintenance plan.

Step 5: start saving

Every association must set money aside for major maintenance. Since 1 January 2018, the law also says how much at least. If the association has no long-term maintenance plan (MJOP, meerjarenonderhoudsplan), that is at least 0.5% of the rebuild value of the building each year. With an MJOP, you reserve the amount the plan says is needed. Start small if you have to, but start.

Source: Article 5:126 of the Dutch Civil Code (Burgerlijk Wetboek, BW), see wetten.overheid.nl (in Dutch).

Step 6: keep it going

The hardest part is not the first meeting, but the year after. Agree on a fixed month for the annual general meeting (ALV). Share the tasks, so not everything falls on one person. Keep documents where everyone can find them, not in someone’s mailbox. And tell residents regularly what is happening, even if it is not much.

A simple yearly rhythm helps: the annual accounts and the meeting in spring, a walk around the building in summer to see what needs attention, and the budget for the next year in autumn.