Building organization
Overview of how a VME works: roles, statutes, decision-making and rules.
What is a VME?
The association of co-owners (VME) is the legal entity that unites all co-owners of a building. The VME has a name, registered office, company number and its own bank account. It organizes annual owner meetings and makes decisions that are executed by the property manager.
Who does what in a VME?
- VME: decides on management of common parts via the general meeting.
- Property Manager: represents the VME, invites to the AGM, ensures legal correctness and executes decisions.
- Auditor: supervision of accounting, appointed by AGM, mandate until next AGM.
- Board of co-ownership: mandatory from 20 units; oversees the work of the property manager, members are co-owners.
- General Assembly: all co-owners together; discusses and decides on agenda items.
General Assembly: chairperson, secretary and property manager
- Chairperson: appointed by the AGM; chairs the meeting and signs the minutes.
- Secretary: drafts minutes (often the property manager).
- Property Manager: organizes the AGM, ensures legality and executes decisions.
Statutes and building rules
- Deed of division: description of the building, private and common parts and share distribution.
- Co-ownership regulations: distribution of costs, rights and obligations.
- RIO (Internal Regulations): annually adjustable document with practical agreements, meeting periods and possible penalty clauses.
What majorities are needed?
- 50%+: ordinary decisions on daily management.
- 2/3: changes regarding enjoyment/use/management of common parts; certain works.
- 4/5: other statute changes, cost distribution, destination, acts of disposal on common goods.
- Unanimity: e.g., change in share distribution (with exceptions) or dissolution of the VME.
What if an owner does not comply with the rules?
The property manager first points out the violation to the owner in writing. If no action follows, (registered) formal notices may follow. The AGM can mandate the property manager to take further steps (e.g., lawyer) on behalf of the VME.
GDPR in the VME
Personal data of co-owners are processed within the VME in accordance with GDPR and the Civil Code. The property manager is the processor; the VME remains the controller. Data is shared where this is necessary and proportionate for building management.