What is Apartment Law and Why Is It Important for Real Estate Agents?

As a real estate agent, you’ll often deal with apartments. But did you know that buying or selling an apartment involves more than just the unit itself? That’s where apartment law comes in.

What is apartment law?

Apartment law grants the owner the exclusive right to use a specific part of a building, such as an apartment or a shop. At the same time, apartment owners share ownership of the entire building and the land beneath it. This means they are collectively responsible for shared areas like the roof, facades, and entrance.

For example, when you buy an apartment, you’re purchasing more than just your unit. You’re also buying a share of the entire building and gaining voting rights in the Homeowners’ Association (HOA).

Why is it important for agents?

1. Understanding the rules is essential: As an agent, you need to know how apartment law works. It defines not only what you’re selling but also your client’s rights and obligations.
2. The HOA matters: Every apartment belongs to a Homeowners’ Association (HOA), which handles maintenance and makes key decisions. As an agent, it’s your job to verify if the HOA is functioning properly.
3. Impact on value: Apartment law and the HOA can significantly affect the value of a unit. Issues like deferred maintenance or a non-compliant HOA can lower an apartment’s marketability.

Practical tip for agents

Always review the deed of division and house rules before a sale. These documents clarify which parts of the building are shared and which are private. This ensures no surprises for you or your client.

Apartment law might sound complex, but with a solid understanding, you can better assist your clients in buying and selling apartments.