Whenever you buy an apartment that is part of an apartment block or building, it is almost certain that it’s part of a VVE, also called the home owner’s association. It is also possible to have a VVE when purchasing a house that is not part of a larger building. On a monthly basis you will pay service fees to the VVE which is responsible for maintaining the building and public areas, building up a reserve to cover future maintenance costs, taking out building insurance and making sure that the house rules or bylaws are followed.
Once a year the VVE will come together to discuss the budget, upcoming maintenance, responsibilities and other matters that individual owners can bring to the table. The size of a VVE can range from 2 owners to a large number of owners. The smaller ones can often be managed by the owners themselves. It is however more common that a company manages the association and all financial and formal matters in return for a monthly fee.
When you’re planning on buying a home that is part of VVE it is good to review the minutes of the past meetings, the bylaws and the amount of money that they have in savings. This information will tell you more about whether the association is healthy, if the building is properly managed but also how the relationships between the owners are.
Furthermore when buying a home that is part of a VVE you will become part of the association itself and receive voting rights. The weight of your voting rights is stated in the purchase contract. Upon purchasing your property you will also buy into the reserves that are built up by the previous owner. It is important to note that this amount will be deducted from the purchase price when the 2% transfer tax which is due upon becoming the owner of the property is calculated.
Good luck with your search and please reach out if you have any questions.