Warning signs to look out for when buying into a VvE

Warning signs to look out for when buying into a VvE

It is common for the former owner to have already appointed a VvE management firm. This is often presented as a benefit, as a professionally managed VvE can ensure that the building is properly administered and may help speed up the transaction.

However, in some cases, this arrangement can be used to transfer maintenance or repair costs that should have been the responsibility of the previous owner to new owners. For expat buyers unfamiliar with how a VvE operates, these risks can easily go unnoticed. It is therefore important to be aware of potential warning signs:

• Unexpected repair costs in the MJOP
  If the proposed Multi-Year Maintenance Plan (MJOP) includes expenses for repairs that should have been completed before your purchase, this may indicate that costs are being shifted to new owners.
• Outstanding debts or unpaid charges
  Be alert if unpaid building-related expenses—such as utility bills or service costs—are passed on to you after purchase.
• Lack of transparency in decision-making
  If decisions are made without your involvement, such as pre-signed contracts with cleaning or insurance companies without owner approval, this is a red flag. The first general meeting (AVL) should be used to discuss and compare options, not to enforce decisions that were made in advance.
• Pressure to vote without sufficient information
  You should not be forced to vote on important matters during an AVL meeting without having received proper documentation or enough time to review and consider the proposals.

What to do if you encounter these issues

If any of the above situations apply, there are several steps you can take to protect yourself:

1. Review the AVL agenda carefully
   Examine the agenda sent by the management firm and identify any items that raise concerns or resemble the warning signs described above.
2. Coordinate with other owners
   Discuss your concerns with fellow owners. If a majority agrees, you can vote against decisions made before the first official AVL meeting and withhold payment of disputed fees. Make sure owners attend the meeting or provide a proxy to ensure sufficient voting power.
3. Propose a change of management
   If the majority of owners agrees, you can replace the VvE management firm. This must be done through an official AVL meeting where the change is formally approved.