Welcome to the homeowners' association: what you (don't) get as a buyer
The difference between the sales brochure and the current state of the homeowners' association in apartments
)
About the gap between the sales brochure and reality after transfer
Anyone who buys an apartment automatically becomes a member of a Homeowners' Association (VvE) in addition to acquiring a home. For many buyers, this is an unfamiliar world. The sales brochure shows beautiful images of a new or renovated complex with high-quality finishes and shared facilities, or outlines endless possibilities for extending or modifying the apartment. But the reality after transfer often proves to be more difficult. There is often a gap between the expectations created by the brochure and the HOA structure that is actually in place. In this article, we explain where this gap comes from, what you do and do not get as a buyer, and what you need to take into account to avoid disappointment.
The brochure: dream image of a new living environment
Project developers and real estate agents use sales brochures to present properties in an attractive light. That makes sense; car dealerships also keep their stock washed and polished.
The sales brochure often includes:
The architect's sketches and impression images. Modern entrances, green indoor gardens, and decoration of the communal area with cozy sofas and beautiful plant pots;
Service charges that appear low, based on general assumptions or "reasonable contributions per square meter," regardless of what is specified in the deed of division;
Suggestions for amenities that may be realized in the future, such as charging stations, solar panels, a communal roof garden, or the possibility of a private roof terrace.
For the buyer, this is often the most important source of information when making a purchase. However, the brochure is not a legal document. The actual rights and obligations arise from the deed of division and the accompanying division regulations and, where applicable, the internal regulations.
)
The reality: the HOA structure after transfer
After the transfer at the notary, a completely different dynamic arises: the buyers become joint owners of the common areas and automatically become members of the homeowners' association. From that moment on, it is no longer the promises in the brochure that apply, but the legal and organizational agreements laid down in the deed and regulations or decided upon at a members' meeting.
Some common differences:
• Communal facilities: what is presented in the brochure as "shared use" may be missing from the deed of division. Without legal confirmation, it is not a homeowners' association facility, but a private initiative.
• Service costs: while brochures often quote low amounts, the first homeowners' association budget turns out to be higher. This is because a realistic estimate is made for insurance, maintenance, cleaning, energy, and reserves for future major maintenance.
• MJOP (Long-term maintenance plan): this is often missing during the sales phase. It is customary for this to be drawn up after the transfer. This clarifies which investments will be necessary in the coming years. Because the annual reserve is the largest expense item in the HOA budget, the amount of the annual reserve has a major impact on the amount of the monthly HOA contribution.
What do you get as a buyer?
When purchasing an apartment, you will receive:
An apartment right: your home and the right to use the common areas (roof, facades, stairwell, installations).
Voting rights in the homeowners' association: you have a say in decisions about the budget, maintenance, and facilities. Some decisions are subject to a different (higher) voting ratio.
Liability for joint costs: each member contributes according to the allocation formula in the deed of division. In most cases, these costs are charged on a monthly basis.
Right to maintenance of the common areas: If the deed of division stipulates that the window frames in the exterior facade are common property, you are also entitled to maintenance of those window frames. The same applies to the building insurance, which in 99.9% of cases is arranged through the owners' association.
What don't you automatically get?
There are also persistent misconceptions. You do not automatically get:
A fully functioning board: in many cases, the first board still has to be elected at the inaugural meeting (ALV). Until then, responsibility often lies temporarily with the developer or a manager. How do they deal with those responsibilities? And where does the focus lie for the owner who has just received their key? Probably not on setting up the owners' association.
A well-funded reserve fund: in new owners' associations, the reserve is usually still empty, even when the building is already old. Since 2021, there has been a legal obligation to set aside reserves based on a long-term maintenance plan. For existing buildings, an empty reserve means that extra funds must be accumulated in the early years to create a healthy financial basis.
Immediate implementation of luxury amenities: investments such as a load balancing system for charging stations, drawing up a long-term maintenance plan, collective solar panels, or camera security can only be carried out after a decision has been made at the general meeting. The limited or empty reserve must also be taken into account. Often, additional contributions from members are required for these types of expansions of communal facilities.
A fully equipped organization: insurance policies, maintenance contracts, and internal regulations still need to be established and arranged in the initial phase.
Solidarity and a shared course: new owners' associations consist of owners with different backgrounds and wishes. It is therefore not self-evident that everyone has the same view of the management or appearance of the complex. Developing a shared vision requires time, consultation, and decision-making.
Consequences in the initial period after transfer
The gap between the brochure and reality often leads to questions and frustrations in the initial period:
Who is responsible for handing over the common areas? As long as no formal board has been elected, the owners' association cannot officially take possession of the common areas. Any defects remain the responsibility of the developer or contractor.
How are the initial service costs determined? The developer's provisional budget is often adjusted as soon as a realistic long-term maintenance plan is available.
What if facilities mentioned in the brochure are missing? In that case, the general meeting must decide whether the owners' association still wants to realize this—including the distribution of costs.
Advice to buyers
When buying an apartment, it is wise to look not only at the brochure, but also at the legal and financial basis of the homeowners' association. Here are a few tips:
Request the deed of division and the regulations and, if necessary, have them reviewed by a lawyer.
Look at the initial budget. Is there a well-founded budget that divides the costs in accordance with the deed of division? Or is it a rough estimate? Ask whether a long-term maintenance plan is in preparation.
Inquire about the reserve fund and the plans for the start-up phase. Does the developer contribute to the reserve fund? Is a start-up deposit required from owners?
Be present at the first general meeting to help decide on management, maintenance, and finances. The first meeting will determine the policy and map out the route. In addition to meeting the other residents of your building, you will also get a sense of how everyone is "in the game." Are there volunteers who want to contribute to the homeowners' association? Or is everyone just sitting back and watching?
Be aware that not everything in the brochure is self-evident: many matters require the approval of the homeowners' association as a collective, or are an impression of how things could be/become. That is not always a given.
Conclusion
A sales brochure does not guarantee how a homeowners' association will ultimately be organized and function. The actual framework is laid down in the deed of division, the regulations, and the decisions of the owners' meeting.
Those who are aware of this will be better prepared when transitioning from buyer to HOA member. This prevents disappointment and ensures a healthy start for the association. After all, a well-functioning HOA is the key to long-term enjoyment of your home and maintaining its value.
At Delair Vastgoedbeheer, we have years of experience in setting up new-build owners' associations and redevelopment projects. From small-scale complexes with two apartments to large buildings with two hundred owners. From historic canal-side properties to modern business parks. We know the pitfalls, we know how things work, and we speak the language of both the developer and the future owners.
Are you still looking for a professional HOA manager for your HOA? Feel free to contact Delair property management for a no-obligation consultation.
)
About this blogger
Bjorn Brandhorst is a partner at Delair Vastgoedbeheer. This professional VvE management office manages over 1,400 VvEs, 80% of which are in the capital. With over 25 years of experience, they know the ins and outs of Amsterdam's BoEs.
Would you like to get in touch with Bjorn? Or advice from one of his 30 colleagues? Then please contact Delair