Dutch Civil Code

Book 5 Real property rights

Title 5.9 Apartment rights

Section 5.9.1 General provisions

Article 5:106 Establishment of apartment rights
- 1. The real property right of an owner (ownership), leaseholder (long leasehold) or superficiary (right of superficies) in a building and its belongings and in the related land and its belongings can be split up into several apartment rights.
- 2. The real property right of an owner (ownership), leaseholder (long leasehold) or superficiary (right of superficies) in a bare land plot can be split up as well into several apartment rights.
- 3. Also an apartment right itself can be split up in various apartment rights. An apartment owner is entitled to proceed to such a split up as far as the notarial deed by which his apartment right has been established does not provide otherwise.
- 4. An apartment right is a share in the assets (registered properties) which are involved in a split up, and which share includes the exclusive right to use certain parts of the building, which parts are to be used, according to their functional arrangement, as a separate private unit. The share may include the exclusive right to use certain parts of the land belonging to that building. In the situation referred to in paragraph 2 the share includes the exclusive right to use certain parts of the bare land plot, which parts are to be used, according to their functional arrangement or denomination, as a separate private section of land.
- 5. By an apartment owner is understood a person who is entitled to an apartment right.
- 6. For the purpose of this Title the word ‘building’ also refers to a group of buildings involved in one and the same split up.
- 7. A leaseholder or superficiary is only entitled to split up his limited property right into apartment rights with approval of the owner of the immovable thing that is encumbered with the long leasehold or right of superficies. If the owner refuses to give the required approval, although he has no reasonable grounds to refuse it, or if he does not make a statement about it, then the Subdistrict Court may replace the required approval, upon request, by its authorisation; the person who requires the owner’s approval may lodge such a request with the Subdistrict Court in whose territory the encumbered immovable thing is located entirely or for the greater part.

Article 5:107 Establishment of future apartment rights
The real property right of an owner (ownership), leaseholder (long leasehold) or superficiary (right of superficies) in a building and its belongings and in the relating land and its belongings can be split up as well into several apartment rights with regard to an intended construction or change of the functional arrangement of a building. In case of such a split up the apartment rights come to existence at the time of registration of the notarial deed by which the apartment rights are established.

Article 5:108 Duties of the apartment owners
- 1. The apartment owners have towards each other the duty to realise and preserve the construction and functional arrangement of the building and of the relating land in accordance with the applying provisions of the notarial deed by which their apartment rights have been established.
- 2. Where a filed legal claim is based on the previous paragraph, the court may stay its judgment when an application based on Article 5:144, paragraph 1,under point (c), (d) or (h), is still pending.

Article 5:109 The split up
- 1. The split up is effectuated by a notarial deed, drawn up for this purpose, followed by its registration in the public registers for registered property.
- 2. A map is attached to the original notarial deed by which the apartment rights are established, indicating the boundaries of the different parts of the building and of the related land that are to be used as separate private units and of which, according to the notarial deed, the exclusive right of use is included in one individual apartment right. The map must meet the requirements of law referred to in Article 3:16, paragraph 2, of the Civil Code as set for registrations in the public registers for registered property.
- 3. Where the provisions of this Title speak of a notarial deed by which the apartment rights have been established, this includes the map meant in the previous paragraph, unless the contrary appears from a provision.

Article 5:110 Lack of power of disposition
- 1. When the person who has accomplished the split up has no power of disposition with regard to an asset (registered property) involved in the split up, that split up will nevertheless be valid if it is followed by a valid transfer of an apartment right or a valid encumbrance of such an apartment right with a limited property right.
- 2. An invalid split up will be considered to be valid too when an apartment right has been acquired by prescription.

Article 5:111 Content of the deed by which an apartment right is split off
The notarial deed by which the apartment rights are established must contain:
a. a description of the place where the building and related land is located;
b. a precise description of the parts of the building and related land that are to be used as separate private units, which may occur by referring to the map meant in Article 5:109, paragraph 2, and an allocation of these parts to the individual apartment rights (making it clear that a specific apartment right encloses the exclusive right to use that part as private unit);
c. the cadastral number and description of the different apartment rights, with indication of the apartment owner of each individual apartment right;
d. the internal arrangements applying to the apartment owners, that have to entail the provisions of a precise defined standard regulation which is registered in the public registers at the place where the notarial deed itself must be registered.

Article 5:112 Content of the internal arrangements
- 1. The internal arrangements must contain:
a. a list of the debts and costs that are for account of all apartment owners jointly;
b. a regulation for the preparation of an annual operations account for the preceding year and an account of the contributions to be paid by the apartment owners;
c. a regulation on the use, management (administration) and maintenance of the parts of the building and related land that are intended to be used by more apartment owners jointly;
d. a description of the persons responsible for insuring the building and the related land on behalf of the apartment owners jointly against dangers, and the risks that are covered by this insurance;
e. the incorporation (establishment) of an Association of Owners which has as objective to look after the common interests of the apartment owners, and its articles of association.
- 2. The articles of association of the Association of Owners must contain:
a. the name of the Association of Owners and that of the municipality where it has its seat. The name of the Association must start with the words: 'Vereniging van Eigenaars ('Association of Owners'), either in full or by its abbreviation 'V.v.E.' (A.o.O.); in addition it must indicate where the building and related land is located;
b. the objective of the Association of Owners;
c. a regulation for the contribution to be paid by the apartment owners periodically, but at least annual, to the Association of Owners;
d. a regulation for the way to call for a General Meeting of Owners and to determine the number of votes to be cast by each apartment owner at the General Meeting.
- 3. The internal arrangements may include a regulation by virtue of which all or certain apartment rights are attached to a membership of another association or cooperation defined in the arrangements, as far as this membership is in agreement with the articles of that association or cooperation.
- 4. The internal arrangements may include as well a regulation for the use, management (administration) and maintenance of the individual parts which are intended to be used exclusively by the apartment owners as their own separate private units. Such a regulation can imply that the General Meeting of Owners is competent to deny an apartment owner, or the one who exercises his rights, the possibility to use his private unit in a specific way, although this may only be the case for important reasons to be mentioned in the arrangements itself.

Article 5:113 Equal shares and liability
- 1. The shares that are created as a result of the split up of property into various apartment rights, shall be equal, unless the notarial deed by which the apartment rights have been established provides for different proportions. In that last situation the notarial deed must show on which ground the different proportions are based.
- 2. Each of the apartment owners must, in his mutual relation to the other apartment owners and in his relation to the Association of Owners, participate for an equal part in the debts and costs which are for account of all apartment owners jointly pursuant to law or the internal arrangements, unless the internal arrangements provide for another proportion of participation.
- 3. If the apartment owners are jointly liable towards a creditor for a debt as meant in the previous paragraph and the indebted performance is dividable (separable), then each of them is only liable towards that creditor in proportion to his own part meant in the previous paragraph.
- 4. If the apartment owners are jointly liable for a debt as meant in paragraph 2, then the Association of Owners is joint and several liable for this debt.
- 5. All persons who are an apartment owner at the moment on which a debt of the Association of Owners has come to existence, are, together with that Association of Owners, joint and several liable for this debt; when the indebted performance, however, is dividable (separable), each of them is only liable in proportion to his own part meant in paragraph 2.

Article 5:114 Seizure, mortgage or privilege existing at the moment that the apartment rights are established
- 1. When all of the assets (registered properties) involved in the split up are burdened with one and the same seizure, mortgage or privilege at the moment of registration of the notarial deed by which the apartment rights are established, then this seizure, mortgage or privilege will, as of then, become attached to each of the established apartment rights for the entire debt.
- 2. When only a part of the assets (registered properties) involved in the split up are burdened with one and the same seizure, mortgage or privilege at the moment of registration of the notarial deed by which the apartment rights are established, then the right to foreclose (right to sell under execution) this part continues to exist under the original conditions in spite of the split up; when this part of the involved assets (registered properties) will be foreclosed (sold under execution), the split up [and involved apartment rights] shall end with regard to that part.
- 3. When one or more of the assets (registered properties) involved in the split up are encumbered with an easement, a long leasehold, a right of superficies or a usufruct at the moment of registration of the notarial deed by which the apartment rights are established, then this easement, long leasehold, right of superficies or usufruct continues to exist untouched (unchanged).

Article 5:115 Long leaseholds and rights of superficies involved in the split up
- 1. When a long leasehold or right of superficies itself forms one of the assets (registered properties) involved in the split up, then the ground rent, that will become due and demandable after that split up. will become incumbent upon each of the apartment rights in proportion to their part as meant in Article 5:113, paragraph 2.
- 2. The Association of Owners is joint and several liable for a ground rent indebted by one or more apartment owners.

Article 5:116 Additional provisions when a long leasehold or right of superficies is involved in the split up
- 1. When a long leasehold or right of superficies itself is one of the assets (registered properties) involved in the split up, then the provisions of the following paragraphs will be applicable next to those of Article 5:87, paragraph 2 and 3, and Article 5:88.
- 2. The long leasehold or right of superficies involved in the split up may only be terminated for a default in payment of the ground rent when the entire ground rent has been left unpaid for two consecutive years.
- 3. When one or more apartment rights are seized or encumbered with a limited property right, then Article 5:87, paragraph 2, second sentence, and Article 5:88, paragraph 2, apply accordingly to that seizure or limited property right.
- 4. Where the ground rent chargeable to a specific apartment right has been left unpaid for two consecutive years, the court may assign this apartment right to the owner of the land if that owner requests so. In order to avoid that the legal claim will be inadmissible, the writ of summons must be served also within eight days on the persons who are registered in the public registers for registered property as limited proprietor or seizor of this apartment right.
- 5. By registration in the public registers of the judgment that has assigned the apartment right to the owner of the land, this apartment right shall pass (be conveyed) to the owner of the land and the seizures and limited property rights on that apartment right shall cease to exist. This registration may not take place before the judgment has become final and binding. After this registration the owner of the land is compelled to compensate the former apartment owner for the value of the apartment right at the time of registration of the judgment, under deduction of what he may claim from the former apartment owner on account of the long leasehold, including costs.
- 6. The notarial deed by which the apartment rights have been established may indicate how the value meant in the previous paragraph has to be determined.
- 7. Any arrangement derogating to the disadvantage of the apartment owner from the present Article, is null and void.

Article 5:117 Transferability of apartment rights
- 1. An apartment right can be transferred, apportioned, encumbered and foreclosed (sold under execution) as an independent registered property right.
- 2. Assets (registered properties) involved in the split up cannot, neither entirely nor partially, be transferred, apportioned, encumbered or foreclosed (sold under execution), this however without prejudice to the provisions of Article 5:114, paragraph 2.
- 3. The end of a split up with regard to only a few of the assets (registered properties) involved in the split up can only be effectuated through an amendment (change) of the notarial deed by which the apartment rights have been established.
- 4. The assets (registered properties) involved in the split up may, in derogation from paragraph 2, be encumbered with an easement by the apartment owners jointly.

Article 5:118 Establishing an easement on a private unit by the apartment owner
- 1. As far as the notarial deed by which the apartment rights have been established does not provide otherwise, an apartment owner may, without cooperation of the other apartment owners, encumber his own private unit with an easement on behalf of another private unit or of another (common) part of the immovable thing(s) involved in the split up or on behalf of another immovable thing.
- 2. As far as the notarial deed by which the apartment rights have been established does not provide otherwise, an apartment owner may, without cooperation of the other apartment owners, accept an easement which solely tends to serve his private unit (as being the dominant location) and he may, without cooperation of the other apartment owners, abandon (waive) such an easement again.
- 3. An easement as meant in the present Article will cease to exist when the exclusive right of use of the private unit that is encumbered with that easement (as servient location) or on behalf of which an easement has been accepted (as dominant location), has ended.

Article 5:118a Establishing a long leasehold or a right of superficies on a private unit by the apartment owner
- 1. As far as the notarial deed by which the apartment rights have been established does not provide otherwise, an apartment owner may, without cooperation of the other apartment owners or of the limited proprietors, encumber his own private unit with a long leasehold and, except as far as the split up concerns buildings, constructions and plants (vegetation), with a right of superficies.
- 2. The notarial deed by which the long leasehold or right of superficies has been established, indicates to what extent its proprietor (leaseholder, superficiary) is joint and several liable, next to the apartment owner, for the contributions indebted on account of the apartment right.
- 3. Unless the notarial deed by which the long leasehold has been established provides otherwise, the voting right at the General Meeting of Owners, attached to an apartment right encumbered with that long leasehold, will be exercised by the leaseholder. Unless the notarial deed by which the right of superficies has been established provides otherwise, the apartment owner who has established a right of superficies on his apartment right, keeps the voting right at the General Meeting of Owners, attached to his apartment right.

Article 5:119 Physical change of the private units
- 1. An apartment owner may, without approval of the other apartment owners, bring about physical changes to his own private unit, provided that the other private units or common parts of the property involved in the split up do not suffer a disadvantage as a result. He becomes the owner of what he has removed at the process of bringing about a rightful physical change to his private unit.
- 2. He is compelled to notify the Association of Owners immediately of a physical change brought about to his private unit. If the physical change leads to a modification of the insurance premium, then the difference is for his account and for account of his legal successors.
- 3. If it becomes clear at the end of the split up that the physical change of a private unit has decreased the value of the assets (registered properties) involved in the split up, then this is taken into account at the apportionment (division) of the community of property at the expense of the apartment owner who has made the physical change to his private unit or at the expense of his legal successors, even when the physical change has been brought about rightfully.
- 4. The internal arrangements may derogate from the present Article; for the purpose of paragraph 2 changes in the way in which a private unit is used may be equated with physical changes that are brought about to that private unit.

Article 5:120 Use of private units
- 1. Without prejudice to Article 5:112, paragraph 4, an apartment owner is entitled to use his own private unit himself or to give someone else the right of use of his private unit, always including the right to use the parts that are intended to be used by more apartment owners jointly (common parts).
- 2. Provisions of the internal arrangements about the use, management (administration) and maintenance apply also to a person to whom a right of use of a private unit is granted by the apartment owner. The internal arrangements may indicate that other provisions apply as well to a person to whom a right of use of a private unit is granted by the apartment owner.
- 3. A lessee (tenant) is not subject to a provision of the internal arrangements that has been registered after the lease agreement was entered into, unless he has agreed to this. If he refuses to accept this provision or if he does not give any statement about it, then the Subdistrict Court of the territory in which the building is entirely or for the greater part located, may order, upon the request of every apartment owner, that this provision shall apply also to the lessee (tenant).
- 4. After the split up has ended, the persons who are entitled to the assets (registered properties) that were involved in the split up are compelled to observe and continue a lease agreement (tenancy) that already had been entered into, provided that the duration of the lease is in conformity with local usage and that the lease is not entered into under exceptional burdensome conditions.

Article 5:121 Authorisation of the court that is replacing a necessary approval or cooperation
- 1. In all situations in which an apartment owner needs the approval or cooperation of one or more of the other apartment owners or of the Association of Owners or one of its bodies for performing certain acts with respect to parts of the immovable things that are intended to be used by the apartment owners jointly (common parts) and, in the case of a provision in the internal arrangements as meant in Article 5:112, paragraph 4, with regard to a private unit of an apartment owner, or when the Association of Owners or its bodies needs the approval of one or more apartment owners for performing such acts, this approval or cooperation may be replaced, upon the request of the one who needs it, by an authorisation of the Subdistrict Court in whose territory the building or the greater part of it is located. The Subdistrict Court may grant its authorisation if the approval or cooperation is refused without reasonable ground or if the person whose approval or cooperation is needed has not made a statement about it at all.
- 2. Where costs are involved in relation to the to be performed act meant in the previous paragraph, the Subdistrict Court may, upon the request of an apartment owner or of the Association of Owners, order to what proportion all or certain apartment owners or the Association of Owners have to participate in these costs.
- 3. When the to be performed act meant in the paragraph 1 concerns the installation of a new construction or a new device, the Subdistrict Court may also, upon request, make an arrangement indicating that and to what proportion the apartment owners of all or certain apartment rights must participate in the future costs of maintenance of that construction or device.
- 4. Where it concerns the cooperation in or approval of an act relating to the management or maintenance of the various parts of the building, with regard to which one or more of the apartment owners representing at least one half of the number of votes in the Association of Owners have given their corporation or approval, the authorisation may be granted also upon the request of the municipality where the building is located if the condition of the building does not comply with Article 1a, paragraph 1, or Article 1b, paragraph 2, of the Housing Act or if there is a serious threat that such a situation may arise.

Article 5:122 Alienation (passage) or apportionment of an apartment right
- 1. Insofar it has not been stipulated differently, the alienation (passage) under particular title or the apportionment of an apartment right shall include all rights that were obtained by the alienator and his predecessors in title in his capacity as apartment owner.
- 2. As soon as the alienation (passage) or apportionment of the apartment right has been effectuated, the acquiring party must immediately give notice in writing of his acquisition to the Association of Owners.
- 3. The former apartment owner and the acquiring party are both joint and several liable for the indebted contributions related to the alienated (passed) apartment right that have become or will become due and demandable in the running or preceding accounting year.
- 4. The internal arrangements may regulate to what extent the indebted contribution referred to in the previous paragraph is solely chargeable to the former apartment owner or solely to the acquiring party. The internal arrangements may also regulate that the former apartment owner will be liable, instead of the acquiring party, for certain contributions that will become due and demandable in future.
- 5. The notary ensures that the notarial deed of transfer or the notarial deed of apportionment contains an attached declaration of the board of the Association of Owners, enclosing a report of what the involved apartment owner is indebted on the day of the transfer or apportionment with regard to the contributions referred to in paragraph 3 for which the acquiring party is liable.
- 6. The declaration meant in the previous paragraph includes as well a report of the size of the reserve fund of the Association of Owners meant in Article 5:126, paragraph 1.

Article 5:123 Usufruct
- 1. Where an apartment right is encumbered with a usufruct the usufructuary replaces the apartment owner where it concerns the liability for debts incumbent on the apartment owners jointly and the contributions indebted to the joint apartment owners and the Association of Owners. At the end of the usufruct, however, the usufructuary is entitled to reclaim from the apartment owner the amounts he has paid in this respect as far as these payments are not related to ordinary expenditures and costs of normal repair.
- 2. When the apartment owner has satisfied the debts or contributions as meant in paragraph 1, he may claim from the usufructuary a compensation for the amounts paid in this respect, raised with an interest that will accrue as of the day of payment, as far as these payments are related to ordinary expenditures and costs of normal repair. With regard to the other amounts paid by the apartment owner, the usufructuary only has to pay the interest accrued from the day of payment of the amount until the end of the usufruct.
- 3. Unless the notarial deed by which the usufruct has been established provides otherwise, the voting right at the General Meeting of Owners attached to an apartment right which is encumbered with a usufruct may be exercised by the usufructuary.
- 4. Article 5:122 applies accordingly to the establishment, the transfer and the ending of a usufruct of an apartment right.

Section 5.9.2 The Association of Owners

Article 5:124 Association of Owners
- 1. The Association of Owners is a legal person.
- 2. Title 2.1 of the Civil Code does not apply to an Association of Owners, except for Articles 2:4, 2:6, 2:13, paragraph 2, 2:17, 2:18, 2:19, paragraph 1, 2 and 3, paragraph 4, second sentence, paragraph 6, second sentence, and paragraph 7, and Articles 2:20, 2:21 and 2:22, and taking into account the derogations referred to in the following Articles of the present Section.
- 3. Title 2.2 of the Civil Code shall only apply to the Association of Owners as far as the present Section refers to it.

Article 5:125 Powers and membership
- 1. The General Meeting of Owners has within the Association of Owners all powers that are not assigned by law or by its articles of association to other bodies of the Association of Owners.
- 2. By operation of law every apartment owner is a member of the Association of Owners. When a member stops being an apartment owner, his membership ends by operation of law.
- 3. Article 2:40, paragraph 2, of the Civil Code applies accordingly.

Article 5:126 Management (administration) and representation
- 1. The Association of Owners administers (manages) the community of property of the apartment owners, with exception of the private units of the apartment owners.
- 2. The Association of Owners may, within the limits of its powers, represent the joint apartment owners in and out of court.
- 3. The Association of Owners checks if the apartment owners observe the duties that are imposed by or under law and the articles of association upon them within their mutual relation and is entitled to start legal proceedings to this end against any apartment owner who fails to live up to such duty. For the purpose of the present Article an apartment owner includes a person who has derived a right of use of a private unit from an apartment owner.
- 4. As long as two-thirds of the apartment rights has not been transferred immediately after the incorporation (creation) of the Association of Owners, the Association of Owners shall not enter into maintenance agreements with a term longer than one year.

Article 5:127 Access to the General Meeting of Owners
- 1. All apartment owners have access to the General Meeting of Owners. The decisions (resolutions) of this meeting are taken by an absolute majority of the votes cast, as far as the articles of association do not stipulate differently.
- 2. Unless the articles of association stipulate differently, the President of the General Meeting of Owners is appointed by the Meeting from the members of the Association. Both, the President and the Executive Board of the Association, are competent to call for a General Meeting of Owners.
- 3. When an apartment right itself has been split up in different apartment rights, the votes of the apartment owner whose right has been split up, belong to the owners of the apartment rights derived from his original apartment right. These votes are cast at the General Meeting of Owners by the Executive Board of the Association of Owners, founded when the original apartment right was split up. The votes do not need to be cast identical. The owners of the apartment rights derived from the split up of the original apartment right are entitled to attend the General Meeting of Owners. Yet, only the Executive Board, meant in the second sentence, has the right to speak at this Meeting.

Article 5:127a Authorisation to the municipality by court order
- 1. In the event of a serious threat that a situation may arise in which a part of the building that is not intended for use as a separate unit does not comply with Article 1a, paragraph 1, or Article 1b, paragraph 2, of the Housing Act, the municipality may, upon its request, be authorised by the Subdistrict Court of the District Court in whose district the building or the greater part thereof is located, to:
a. convene a meeting of the Association of Owners in the manner as provided for in the articles of association;
b. attend the meeting, speak at it and to make proposals there concerning:
- the management and maintenance of the various parts of the building;
- contributions to the reserve fund;
- the membership of other associations or cooperatives with a view to the maintenance of the various parts of the building;
- the composition of the board;
- outsourcing management to a professional manager;
c. charge other than members of the Board of Directors to chair (lead) the meeting.
- 2. The convening notice for a meeting as meant in paragraph 1 shall state that it is given by virtue of a court order and for account of the municipality. The convening notice that is given in the manner as provided for in the articles of association or the internal regulations of the Association of Owners, is valid, even if proves that the authorization had been wrongly granted
- 3. No legal remedy or other provision is available against the court order of the Subdistrict Court, except cassation in the interest of law.

Article 5:128 Use of the common parts
- 1. The General Meeting of Owners is competent to set rules concerning the use of the parts of the immovable things that are intended to be used by more apartment owners jointly, as far as the internal arrangements do not provide stipulations for this subject.
- 2. Every apartment owner may ask a person to whom a right of use is granted if he is prepared to observe the rules meant in the previous paragraph. If this person is not prepared to this or makes no statement about it, then the Subdistrict Court within whose territory the building or the greater part of it is located, may order, upon the request of every apartment owner, that these rules shall apply also to the person to whom a right of use is granted.

Article 5:129 Link to Article 2:14; null and void resolutions
- 1. For the purpose of Article 2:14 of the Civil Code the notarial deed by which the apartment rights are established is equated with the articles of association of a legal person.
- 2. For the purpose of Article 2:15, paragraph 1, under point (c), of the Civil Code the internal arrangements, which by virtue of Article 5:111, under point (d), form a part of the notarial deed by which the apartment rights have been established, are not regarded as the internal arrangements of a legal person.

Article 5:130 Voidable resolutions of the Association of Owners
- 1. Contrary to Article 2:15, paragraph 3, of the Civil Code, a voidable resolution of a body of the Association of Owners has to be nullified by the Subdistrict Court in whose territory the building or the greater part of it is located, upon the request of the person who is able to demand its nullification by virtue of the present paragraph.
- 2. The application (petition) to nullify the voidable resolution must be lodged within a month after the day on which the applicant has become aware or could have become aware that the resolution has been taken.
- 3. The applicant, the Association of Owners and all other persons entitled to vote are called to the legal proceedings in order to be heard (questioned) about the application (petition). An appeal to a higher court against the court order of the Subdistrict Court can only be lodged within one month after the date of that court order.
- 4. The court for which the application (petition) is pending, is entitled to suspend the resolution of the body of the Association of Owners until the court's decision on the application (petition) has become final and binding.

Article 5:131 Executive Board of Directors
- 1. The Executive Board of the Association of Owners consists of one director, unless the articles of association stipulate that there will be two or more. In that last situation each of the directors may independently represent the Association when performing its juridical acts towards or with third parties, as far as the articles of association do not provide otherwise.
- 2. The Executive Board is appointed by the General Meeting of Owners, whether or not nominated from its members, and may at all times be suspended or dismissed by the General Meeting of Owners. The court may not order that the employment agreement between a director and the Association of Owners has to be restored.
- 3. As far as the articles of association do not provide otherwise, the Executive Board administers and manages the resources of the Association and ensures the implementation of the resolutions of its General Meeting of Owners.
- 4. The General Meeting of Owners may by resolution set aside the provisions of the previous paragraph and give directions to the Executive Board how to fulfil its tasks. These resolutions cannot be invoked against an opposite party of the Association, unless this party knew or should have known them.

Article 5:132 Give access to the private units
The apartment owners and the persons to whom a right of use of a private unit is granted, must give a director access to the private unit concerned, insofar this is necessary for the fulfilment of the tasks of the Executive Board of Directors. The same obligation exists with regard to persons who have been nominated by the director for this purpose.

Article 5:133 Absence of the Executive Board
- 1. Where the Executive Board is not able to act or when such a Board is absent, it is replaced by the President of the General Meeting of Owners, unless another arrangement has been made to this point in the articles of association or by the General Meeting of Owners.
- 2. In the event of a conflict of interests between on the one hand the Association of Owners or the joint apartment owners and on the other hand one of the directors, the President of the General Meeting of Owners replaces the Executive Board when no other directors are present to act on behalf of the Executive Board or when the Executive Board is not able to act itself.

Article 5:134 Writs and notifications to the joint apartment owners
- 1. Writs and notifications, addressed to the joint apartment owners, may be delivered to a director of the Executive Board of the Association of Owners in person or at the address of his residence, in which case they do not need to contain the names and home addresses of the apartment owners.
- 2. The addressed director immediately notifies the apartment owners of the content of the writ or notification.

Article 5:135 Application of some provisions of Book 2 of the Civil Code
Article 2:45, paragraph 4, and Article 2:48 of the Civil Code apply accordingly to the Association of Owners.

Section 5.9.3 Rights derived from insurance contracts

Article 5:136 Exercise of rights derived from an insurance contract
- 1. The person who, by virtue of the internal arrangements of the Association of Owners, is responsible for insuring the building and the related land on behalf of the joint apartment owners, represents the joint apartment owners in exercising the rights derived from the insurance contract and administers and manages the received insurance sums on their behalf.
- 2. As soon as it has been decided that a defect shall be restored, the received insurance sums shall be used for this purpose, on the understanding that after the restoration the mutual proportions of the values of the apartment rights must be the same as before. When calculating these values the physical changes brought about by an apartment owner to his own private unit are not taken into account, unless the involved apartment owner had notified the Association of Owners immediately of this physical change.
- 3. A restoration of the damage of a private units has to be accomplished as much as possible in accordance with the directions of the apartment owners whose units it concerns.
- 4. The payment to each of the apartment owners of his share of the insurance sum may only take place:
a. if a surplus remains after the restoration of the damage;
b. if three months have expired since the General Meeting of Owners has decided to abandon the restoration or a further restoration;
c. if the split up of the involved assets (registered properties) into apartment rights is terminated.
- 5. The internal arrangements may derogate from the provisions in the present Article.

Article 5:137 [reserved]

Article 5:138 Disputes over the restoration of damage or the way to achieve it
Disputes over the restoration of damage or over the way how the restoration must be achieved, shall be settled by the Subdistrict Court in whose territory the building or the greater part of it is located, upon the request of a direct interested party. An appeal to a higher court against this court order can be lodged only within one month after the date of that court order.

Section 5.9.4 Amendment (change) of the notarial deed by which the apartment rights have been established and the termination of the split up

Article 5:139 Amendment (change) of the notarial deed by which the apartment rights have been established
- 1. An amendment (change) of the notarial deed by which the apartment rights have been established can only be made with the cooperation of all apartment owners.
- 2. An amendment (change) may be made also with the cooperation of the Executive Board of the Association of Owners, if the General Meeting of Owners has taken a resolution pursuing this amendment (change) by a majority of at least 80 percent of the number of votes belonging to all apartment owners or by such a majority as regarded to be appropriate to this end according to the notarial deed by which the apartment rights have been established. The period for calling in the General Meeting of Owners to take such a resolution is at least fifteen days. Article 2:42, paragraphs 1, first sentence, paragraph 2, first sentence, and paragraph 3, of the Civil Code apply accordingly.
- 3. An amendment (change) of the notarial deed by which the apartment rights have been established requires the approval of those who have a limited property right in an apartment right and of those who have seized an apartment right and, if a long leasehold or right of superficies is one of the assets (registered properties) involved in the split up, of the owner of the immovable thing encumbered with that long leasehold or right of superficies. Also necessary is the approval of the persons entitled to an easement on an apartment right if their right is diminished by the amendment (change).
- 4. If the amendment (change) is related exclusively to the internal arrangements, then the approval of seizors is not required.
- 5. The amendment (change) becomes effective as soon as a notarial deed, drawn up for this purpose, is registered in the public registers for registered property, unless this deed mentions a later date to this end. If the amendment (change) is related to the boundary of parts of the building or the related land that are intended to be used exclusively as private units, then Article 5:109, paragraph 2, applies accordingly.

Article 5:140 Authorisation of the Subdistrict Court
- 1. Where a person whose cooperation or approval is required as referred to in paragraph 1 and 3 of the previous Article does not make a statement about the required cooperation or approval or if he refuses to cooperate or to give his approval without reasonable grounds, the required cooperation or approval may be replaced by the authorisation of the Subdistrict Court in whose territory the building or the greater part of it is located.
- 2. This authorisation may be granted only upon a request of one or more apartment owners holding at least half of the number of votes at the General Meeting of Owners.
- 3. This authorisation may be granted also upon a request of two apartment owners, or upon the request of an apartment owner who owns several apartment rights, when the amendment (change) solely relates to a change of the mutual boundaries of the parts of the immovable things that are intended to be used exclusively by them as a private unit, whether or not coupled to a change in the mutual relation of their shares in the assets (registered properties) involved in the split up, or of their contributions to the debts and costs which, pursuant to the law or the internal arrangements, are for account of the apartment owners jointly.
- 4. All persons whose cooperation or approval is required pursuant to Article 5:139 will be called by name to court in order to be heard (questioned) about the application (petition) meant in the previous paragraph.

Article 5:140a Authorization granted by the Subdistrict Court replacing a necessary cooperation or approval
- 1. If one or more of the ones mentioned in Article 5:139, paragraph 1 and 3, do not express themselves or, without any reasonable ground to do so, refuse to cooperate in or give their approval to an amendment of the internal regulations as proposed on the basis of Article 5:127a, paragraph 1, under b, then such cooperation or approval may be replaced by an authorization granted by the Subdistrict Court of the District Court in whose territory the building or the greater part thereof is located.
- 2. The authorization may be granted only upon the request of the municipality in which the building is located, if one or more apartment owners representing at least one half of the voting power in the meeting of the Association of Owners have declared to be in favour of the relevant amendment of the internal regulations.
- 3. All persons whose cooperation or approval is required pursuant to Article 5:139, shall be called upon by name to be heard on a request as referred to in paragraph 2.

Article 5:141 Nullification of a voidable amendment (change) of the notarial deed
- 1. When the amendment (change) is made without the required approval and without an alternative authorisation of the Subdistrict Court as referred to in Articles 5:139, 5:140 and 5:140a, it is voidable and it may be nullified by the court upon the request of the person whose approval has not been obtained.
- 2. The right of action to claim the nullification of the voidable amendment (changes) prescribes on the expiry of one year from the day following the one on which the person who may request the nullification has become aware of the amendment (change) or was notified in writing of it.
- 3. The court may deny the request to nullify the voidable amendment (change) when the applicant has not suffered any damage of the amendment (change) or when a reasonable compensation is offered to him that is sufficiently secured as well.

Article 5:142 Effects of an amendment (change) on existing limited property rights, seizures and privileges
- 1. Where the apartment rights were seized or encumbered with limited property rights before the notarial deed by which they were established was amended (changed), the amended (changed) apartment rights remain equally seized or encumbered with those limited property rights after the amendment (change), unless the notarial deed of amendment (change) provides otherwise
- 2. Privileges shall remain in effect after the amendment (change) of the notarial deed by which the apartment rights have been established.

Article 5:143 The ending of a split up
- 1. The split up ends by operation of law:
a. at the end of a long leasehold or right of superficies that was the only asset involved (registered property) in the split up where the end of this right is not followed by the establishment of a new long leasehold or a new right of superficies on the same immovable thing on behalf of the apartment owners.
b. by registration in the public registers for registered property of a judgment in which a cadastral plot, involved in the split up, has entirely been expropriated, when no other cadastral land plots were involved in the split up.
- 2. In all other situations the split up ends by a notarial deed, drawn up for this purpose, followed by its registration in the public registers for registered property. Articles 5:139, paragraph 1 and 3, 5:140 paragraph 1, 2 and 4 and 5:141 apply accordingly.

Article 5:144 Court order
- 1. Upon the request of a person whose cooperation or approval is required in order to amend (change) the notarial deed by which the apartment rights were established or in order to terminate the split up, the Subdistrict court in whose territory the building or the greater part of it is located may order that the before mentioned notarial deed is amended (changed) or that the splitting up has ended:
a. when that notarial deed by which the apartment rights were established does not meet the requirements set in Articles 5:111 and 5:112;
b. when from the functional arrangement of the private units does not show that these are intended to be used as private units;
c. when the construction or functional arrangement of the building or the functional arrangement of the related land is not or no longer in conformity with the description in the notarial deed by which the apartment rights were established;
d. in the event of a split up under Article 5:107, when the intended construction or change of the functional arrangement of a building has not been completed within a period of three years from the day of the registration;
e. when a long leasehold or right of superficies formed one of the assets (registered properties), together with other assets (registered properties), that were split up and this long leasehold or right of superficies has ended;
f. when one or more, although not all of the assets (registered properties) involved in the split up, have been foreclosed (sold under execution) or when one or more, although not all of the cadastral plots involved in the split up, have been expropriated, or when the person who has performed the split up had no power of disposition with regard to one or more, although not all of the assets (registered properties), involved in the split up;
g. when the building is seriously damaged or when it is fully or partially dismantled, unless a restoration may be expected within a reasonable time;
h. when all apartment owners have committed themselves to an agreement to make an amendment (change) as meant in the present Article or to end the split up.
- 2. When the court awards the request it may do so under specific conditions.
- 3. Article 5:140 paragraph 4 applies accordingly.

Article 5:145 Comply with a court order
- 1. The apartment owners are compelled to comply with the implementation of a court order as meant in the previous Article as soon as it has become final and binding. In such a case an approval as referred to in Article 5:139, paragraph 1 and 3, and Article 5:143, paragraph 2, is not required.
- 2. If the Subdistrict Court has appointed a representative by virtue of Article 3:300 of the Civil Code, it determines, upon the request of a direct interested party or of its own motion, the fee chargeable to this representative. This fee is for account of the persons who are represented by him.

Article 5:146 Position of existing limited property rights, seizures and privileges after the apartment rights have ended due to the ending of the split up
Limited property rights, seizures and privileges on or in an existing apartment right will, after the end of the split up, be attached in the same way to the share which the former apartment owner as a result of the split up has obtained in the assets (registered properties) that were involved in that split up.

Article 5:147 Liquidation (winding up) of the property of the dissolved Association of Owners
- 1. When the split up has ended, the dissolution of the Association of Owners sets in by operation of law.
- 2. The liquidation (winding up) of the property of the Association of Owners shall be completed with due observance of the following derogations from Articles 2:23 and 2:24 of the Civil Code.
- 3. After the creditors of the Association of Owners have been satisfied out of the property of the Association, the liquidator distributes the remaining property to the persons who were apartment owner at the time that the split up ended, everyone for their share as meant in Article 5:113 paragraph 1.
- 4. Article 2:23, paragraph 1, third sentence, and paragraph 4, and Article 2:23c, paragraph 1, of the Civil Code do not apply to the liquidation (winding up) of the property of an Association of Owners. The deposit for inspection of the account rendered and the list of distribution as referred to in Article 2:23b, paragraph 4, of the Civil Code must be handed over to the Registry of the District Court in whose territory the building or the greater part of it is located. Instead of the court assigned under Article 2:24, paragraph 2, of the Civil Code and under Article 995, first paragraph, second sentence, of the Code of Civil Procedure, the court in whose territory the building or the greater part of it is located, will be the competent court.