What If an Apartment’s Actual Use Doesn’t Match the Deed of Division?

Sometimes, an apartment is used in a way that doesn’t align with the deed of division—such as a residential unit being rented as office space. What are the consequences, and how can agents handle this?

What Does the Deed of Division Say?

The deed specifies which parts of the building are common and how private sections may be used. These rules are legally binding. If usage deviates from the deed, it can lead to legal and financial issues.

Consequences of Misuse

1. Violation of Rules:
   • Misuse can lead to conflicts with the Homeowners’ Association (HOA), which may demand compliance.
2. Fines or Sanctions:
   • The HOA might impose penalties or take legal action in some cases.
3. Problems at Sale:
   • If buyers discover that usage doesn’t comply with the deed, it may delay the sale or lower the property’s value.

What Can Agents Do?

• Verify Usage:
  • Compare the current situation with the deed of division.
• Inform the Seller:
  • Advise the seller about potential issues and recommend rectifying the situation if necessary.
• Advise the Buyer:
  • Explain the risks associated with non-compliant usage.

Practical Tip

If the current usage doesn’t match the deed, a deed amendment or HOA approval might be required. This prevents complications during the sale process.