Ownership Shares in the Deed of Division: What Do They Mean for Costs and Voting Rights?

When buying an apartment, terms like “ownership shares” often come up in the deed of division. But what do these shares represent, and why are they important? For real estate agents, explaining this to buyers and sellers is crucial.

What are ownership shares?

Ownership shares determine an apartment owner’s stake in the entire building. This share, outlined in the deed of division, affects two key aspects:

1. Cost-sharing: Shares dictate how much an owner contributes to common expenses, such as maintenance or insurance.
2. Voting rights: The larger the share, the more votes an owner has in HOA meetings.

For example, an owner with a large apartment typically has a bigger share, paying more for communal costs but also holding more influence in decision-making.

What does the deed of division say about ownership shares?

The deed includes:

• The precise allocation of shares.
• Any deviations from the standard rule that all units are equal.

It’s essential to review the deed, especially if there are exceptions that might affect costs or voting power.

Why does this matter for agents?

Agents should inform clients about:

• Impact on monthly expenses: Units with larger shares contribute more to maintenance and other fees.
• HOA decision-making: Buyers need to understand how much influence they’ll have in meetings.

By clarifying these points, agents can help clients make more informed decisions.