The Procedure for Dividing into Apartment Rights: From Start to Deed
Dividing a building into apartment rights is a precise process that ensures each owner’s rights and obligations are legally defined. But how does it work, and what should real estate agents know about it?
What is division?
When a building is divided into apartment rights, each owner gains exclusive rights to a specific part of the property, such as an apartment, while also becoming co-owner of shared areas like the roof or entrance.
Steps in the division process
- Owner preparation: The building owner decides which parts remain common and which are private, to be outlined in the deed of division.
- Drafting the deed of division: A notary creates a legal document detailing the property’s division, ownership shares, and rules for use and maintenance.
- Creating a division plan: A drawing accompanies the deed, clearly marking private and common areas.
- Registration in public records: The deed is registered in the land registry to make it legally binding.
What’s important for agents?
- Review the deed of division: Agents must understand what is being sold—not just the apartment but also a share in the common areas.
- Educate clients: Explain that the deed governs their rights and obligations, which can impact the property’s value and usability.
Common issues
- Incorrect division plan: Always ensure the physical property matches the legal documentation.
- Confusing ownership shares: These determine costs and voting rights in the HOA. Errors can cause disputes.
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