In this article, we will, among other things, take a closer look at what a landowner association is, how a landowner association is founded and when you, as a landowner, are obliged to be a member of a landowner association.
What is a landowner association?
A landowner association is an association of landowners in a defined area that represents the interests of the landowners to the local municipality or other public authorities. The landowner association handles tasks in the area where the landowners reside, such as maintenance of common roads, sewers, and areas shared by the landowners. The landowner association also looks after the interests of the landowners in connection with, for instance, hearings on new local or municipal plans, waste management, nature conservation, water plans, or new road and traffic conditions.
How are landowner associations established?
A landowner association can be established voluntarily by landowners living in a defined area or by the municipality. In the latter case, the municipality parcels out properties in a given area for single-family houses. In connection with establishing the landowner association, rules are drawn up outlining the detailed obligations of membership.
Can you be forced to join a landowner association?
Whether membership in a landowner association is voluntary or compulsory depends on whether there is a registered easement or local plan regulations to this effect. If there is a registered obligation, you must be a member of the landowner association and automatically become part of it. Compulsory membership will also appear in the rules of the landowner association.
The rules of the landowner association
The rights of the landowner association to make decisions on behalf of its individual members depends on the terms outlined in the landowner association documentation. However, the rules must relate to matters relevant to the landowner association (in areas that seem appropriate for the landowner association). These areas could include, for instance, how your hedge should be maintained, planting in the area, the obligation of members to report construction work to the local municipality given any damage to the road or pavement caused by construction, etc. However, the obligations laid out in the rules of the landowner association also give individual members the right of co-determination to influence decisions at general meetings. The rules of the landowner association will also state how its members are liable for any debts.
How much do you pay to a landowner association?
The amount you must pay in membership fees to the landowner association will usually depend on the landowner association’s activities and size. The membership fee is usually paid bi-annually or annually by each individual member. In some rowhouse areas, homeowner’s insurance is also taken out through the landowner association. In this case, the homeowner’s insurance is paid as part of the membership fee.
What to be aware of before buying a plot of land or a house?
When buying a property where membership in a landowner association is compulsory, you should always review the rules, budgets, financial reports, and summaries of the landowner association’s general meetings. This way, you will know the obligations that come with membership if you end up buying the property or plot of land. If membership in a landowner association is compulsory, the real estate agent is obliged to disclose this fact in the purchase agreement.
Professional buyer counseling
You should always make use of buyer counselling when purchasing a home. At Minkøbermægler.dk, we look after your interests throughout the entire buying process as your personal adviser. Contact us today to learn more about how we can help you get through your real estate purchase safely.
Note, the real estate agent is hired by the seller and represents the seller’s interests throughout the whole process, while the buyer’s agent exclusively represents the interests of the buyer.
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