When you buy an apartment, you automatically become a member of an OA. It is legally established that the owners form an OA within a building. The OA is responsible by law for maintenance of the common parts of the building. As the owner, you are therefore obliged to make your contribution.
In 2008 a new law came into force that applies to both existing and new OAs. It has since been required to have an active and registered OA in which joint savings are established for maintenance of the common parts of the building.
The Improvement of Owners’ Associations Act came into force on 1 January 2018. From this date, OAs must maintain a minimum annual reservation of at least 0.5% of the rebuild value of the building. If the OA thinks that this will lead to a too high reservation, then it is possible to make a reservation based on a LTMP (long-term maintenance plan), provided that the maintenance plan meets the relevant requirements.
What is an OA?
The owners of the building must jointly take care of the maintenance of the common parts. This includes the roof, the facades, the foundation, the sewer system, the stairwell, the balconies, the window frames and the parking garage. However, there may be deviations per OA, consult the split deed and the (model) rules of your own OA to be certain. The intention is that your OA ensures that the money is spent wisely and that the building is well maintained and thus retains its value. This is very nice if you ever want to sell your property again.
An OA has a board and/or administrator. At least every couple of years all owners come together during a meeting to make decisions about, among other things, maintenance, the amount of the contribution and the expenses for the building. A report is then made of this (the minutes) so that everyone knows what has been discussed with each other.
As an OA you ensure that the building is well maintained and thus retains its value. This is very convenient should you ever want to sell it again.