As the director of a Homeowners' Association (HOA), you already have enough on your plate: maintenance, finances, resident affairs. But did you know that you may also have to deal with the UBO registration requirement?
UBO stands for Ultimate Beneficial Owner – the ultimate beneficial owner of an organization. This is someone who owns or controls more than 25% of the organization.
1. Does UBO registration apply to a homeowners' association?
In most cases, no. This is because a VvE has no shareholders or owners with more than a 25% interest—each member has a share in the community that is laid down in the deed of division.
However:
Special legal forms within real estate (e.g., cooperatives or foundations that manage real estate) may be subject to the UBO obligation.
Sometimes a bank or notary will request a statement or confirmation that there is no UBO.
2. What should a homeowners' association do?
- Verify that your legal form is indeed a homeowners' association and not another entity.
- Record in the minutes that the board has assessed that no UBO applies.
- Communicate this to parties who request it (bank, accountant, notary).
Tip: Use a standard declaration to save time.
3. Why is it often asked?
UBO registration is part of European legislation to combat money laundering and terrorist financing. Because some real estate structures are susceptible to abuse, banks and notaries prefer not to take any risks and ask standard questions.
4. Possible misunderstandings
“We don't have a UBO, so we don't need to do anything.”
→ Incorrect. You must be able to demonstrate that you have checked it.
"The administrator handles this automatically."
→ Not always. The board remains ultimately responsible.
5. Checklist for your homeowners' association
- Is our legal form really a homeowners' association?
- Have we determined that no UBO applies?
- Is this recorded in the minutes?
- Do we have a standard statement ready for third parties?
Want to read more about relevant topics?
Director liability → How to limit your personal risks
Data protection → Handling personal data securely
Reserve fund → Financial obligations of the homeowners' association
Help from our HOA experts
We are happy to help you draw up a UBO declaration and advise you on your legal obligations as a board member.
Call our HOA experts at 010 – 288 44 73 or send an email to vve@schoutenzekehreid.nl
