Declarations of Division vs. House Rules: Differences and How They Work
When dealing with apartments and Homeowners’ Associations (HOAs), two key documents often come up: the declaration of division and house rules. While both outline regulations, they serve different purposes and have different legal statuses.
What is a declaration of division?
The declaration is part of the deed of division and includes:
- Obligations: Cost-sharing and maintenance responsibilities.
- Management and use: Rules for common areas and insurance.
- Voting rights: How decisions are made within the HOA.
This document is legally binding and challenging to change, often requiring unanimous consent.
What are house rules?
House rules are less formal and focus on everyday usage of the property, such as:
- Parking guidelines.
- Noise restrictions.
- Use of shared spaces.
These rules can be more easily amended, usually during an HOA meeting.
Key differences
- Legal status: The declaration is binding; house rules are supplementary.
- Content: The declaration covers ownership and management, while house rules are practical.
- Amendments: Changing the declaration often requires unanimity; house rules can usually be altered with a majority vote.
Why does this matter for agents?
Agents should review both documents and inform clients about the regulations that may affect their property. This prepares buyers for what to expect and prevents conflicts post-purchase.
Ready to kick-start your real estate journey?
Enroll in our Dutch Expat Realtor Training today!