Short answer: when you buy an apartment in the Netherlands, you don't buy a separate home but an apartment right (appartementsrecht): a share in the whole building, with the right to use your own unit exclusively. All owners together own the roof, the facade, the foundations, the stairwell and the lift. To manage that together, every divided building has an owners' association, the Vereniging van Eigenaars or VvE. You become a member automatically and pay a monthly contribution for insurance, maintenance and savings for major works: the reserve fund (reservefonds).
What you actually buy: an apartment right
Legally, an apartment building is "divided" into apartment rights. Dutch law describes an apartment right as a share in the building and the land that gives the right to use certain parts exclusively (article 5:106(4) of the Dutch Civil Code). Your home is yours to use, but you share the walls around it with your neighbours.
How the building is divided is set out in the deed of division (splitsingsakte), with a division drawing. It says what is private and what is shared, how large your share is (your fraction, breukdeel) and which rules apply. How to read it is explained in Reading a deed of division.
Why there is always a VvE
The regulations in the deed of division must provide for the formation of an owners' association (article 5:112(1)). The VvE comes into existence together with the division, and it is a legal entity (article 5:124). There is no opting out: whoever buys an apartment right is a member.
Every VvE must be registered in the Dutch Business Register (KVK), even if it does very little. Banks check that registration when you apply for a mortgage.
Who decides?
- The meeting of owners (vergadering van eigenaars, often called the ALV): all owners together. It decides on the budget, the contribution, maintenance and loans. How many votes you have is set in the deed of division.
- The board (bestuur): carries out the decisions. In a small building this is often one of the owners.
- The managing agent (beheerder): many VvEs hire a professional manager for the bookkeeping, collecting contributions and arranging maintenance. That is a choice, not an obligation.
As an owner you have a say, but you are also bound by what the majority decides, even if you voted against it.
What your monthly contribution pays for
The VvE pays for the shared parts, and the owners fund it through a contribution due at least once a year (article 5:112(2)). In practice it is usually a monthly amount. It typically covers:
- buildings insurance (opstalverzekering) for the whole building;
- day-to-day maintenance and cleaning of shared areas, and the lift;
- energy for the stairwell, corridors and car park;
- management and administration;
- the yearly payment into the reserve fund for major works, such as a new roof, painting or window frames.
Some buildings also charge heating or water through the VvE. What owners pay on average and why it differs so much is covered in What is a normal VvE contribution?
The reserve fund is mandatory
A VvE must keep a reserve fund for costs that don't recur every year (article 5:126(1)). Since 1 January 2018, under the act improving the functioning of VvEs (Wet verbetering functioneren VvE's), it must also put in a minimum amount every year: at least what follows from a multi-year maintenance plan (MJOP) no more than five years old and covering at least ten years, or otherwise at least 0.5% of the building's rebuild value (article 5:126(2)).
Whether that is enough is a different question. A building that saves too little later asks for an extra contribution or takes out a loan. Read How big should a VvE reserve fund be? and VvE loan when buying.
A dormant VvE
Especially in small buildings, such as an upstairs and a downstairs flat, the VvE often exists only on paper: no meetings, no contribution, no reserve fund. This is called a dormant VvE (slapende VvE). The legal duties still apply. For you as a buyer, it means nobody has saved for the roof or the foundations, and you will have to sort those costs out with the neighbours. A missing KVK registration can also delay your mortgage.
What you receive as a buyer, and what to check
Ask the estate agent for the VvE documents before you make an offer:
- the deed of division and any amendments;
- the minutes of the last two or three meetings;
- the annual accounts and the budget;
- the MJOP;
- the house rules (huishoudelijk reglement), if there are any.
Watch out for arrears as well. As a buyer you are jointly liable with the seller for contributions that fell due in the current or the previous financial year (article 5:122(3)). That is why the notary asks the board for a statement of outstanding amounts at the transfer.
Compared with what you may know
A VvE is similar to a homeowners' association (HOA) or condo association in the United States. It differs a lot from English leasehold, where a freeholder owns the building and you pay them service charges. In the Netherlands there is no separate owner of the building: the owners together own it, through the VvE. That is closest to share of freehold.
Terms you will come across:
| Term | Meaning |
|---|---|
| VvE | Vereniging van Eigenaars, all owners in the building together |
| ALV | Algemene ledenvergadering, the meeting of owners |
| MJOP | Meerjarenonderhoudsplan, the multi-year maintenance plan |
| Reservefonds | Reserve fund, the savings for major maintenance |
| Splitsingsakte | Deed of division, the notarial deed that divides the building and sets the rules |
| Servicekosten | Common word for the monthly VvE contribution |
| Erfpacht | Ground lease: the land belongs to, for example, the municipality, and you pay for it separately |
Frequently asked questions
Do I have to join the VvE?
Yes. Anyone who buys an apartment right is automatically a member. The VvE comes into existence when the building is divided, and you can't leave it while you own the apartment.
What does the VvE contribution cover?
Buildings insurance, maintenance and cleaning of shared parts, energy for shared areas, management and the savings for major maintenance. Sometimes heating and water too.
What is a dormant VvE?
A VvE that exists but isn't active: no meetings, no contribution and no reserve fund. The legal duties still apply, and as a buyer you inherit the postponed maintenance.
Am I liable for the seller's unpaid contributions?
Yes, together with the seller, for contributions from the current and the previous financial year. That is why the notary asks the board for a statement, and you aren't liable for more than the amount in it.
Sources
- Dutch Civil Code Book 5, articles 106, 112, 122, 124 and 126 (consulted 27 October 2026)
- KVK: Registering an owners' association (consulted 27 October 2026)
- SDU: VvEs must reserve 0.5% of the rebuild value every year