The deed of division: What is it for and what should I pay attention to?

When buying an apartment in the Netherlands, a buyer is informed about the contents of the deed of division. This is a document drawn up by a notary to legally record the division of the complex in which the apartment is located.

Under Dutch law, a buyer of an apartment acquires an indivisible share in the ownership of the entire complex. Attached to this share of the full ownership right, which belongs to the joint owners of the complex, is an exclusive right of use. This exclusive use consists of the space that the buyer has purchased.

Contents of the deed of division

The deed of division determines what (percentage) share of the entire building the apartment owner owns. It also describes precisely what the apartment rights consist of and how it is bounded.

The deed of division also sets out a set of regulations (or declares a model set of regulations applicable). These division regulations record important rules about the use of the apartment and the common areas of the complex.

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It also states for which maintenance costs the owners’ association (Vereniging van Eigenaren) is responsible. The other maintenance costs are borne by the individual owners. In most cases, the party that is allowed to decide on a maintenance item (the individual owner or the owners’ association) also bears the costs of the maintenance.

For the maintenance of common areas (for example, a shared entrance, the foundation under the building, or the load-bearing parts of the roof), the owners’ association is responsible. These costs are passed on to the owners on the basis of the ownership ratio.

An active owners’ association will set aside a reserve fund for major expenses. In this way, the owners contribute an amount in their monthly payments that can be used for major maintenance.

Judicial status of the deed of division

The deed of division has a special position in Dutch law. Like many statutory provisions, neither an owner nor an owners’ association may deviate from it. A decision of an owners’ association that conflicts with the deed of division is void. An individual owner cannot be prejudiced by such a decision.

Under specific circumstances, it is possible to amend a deed of division. In principle, this can only be done with the cooperation of all owners in a complex. Mortgage holders must also agree to such a change.

These strict requirements are imposed because the property right is affected by an amendment to the deed of division. Any change to the deed must be recorded by a notary. All owners must sign this deed. Only then can the new rules of a deed of division be departed from.

If owners form a blocking minority, a court can be asked for substitute authorisation to cooperate with the amendment. In such a case, the court assesses whether the owners refusing consent are basing their refusal on unreasonable grounds. If so, the court’s ruling can take the place of their signature on the deed of amendment.

What should you pay attention to when buying an apartment? 

When purchasing an apartment, the deed of division is generally always sent along with the purchase agreement (draft). It is wise to investigate whether the apartment you are about to buy is being used in accordance with the deed of division.

It is also a good idea to check the regulations and see whether any special agreements regarding maintenance costs have been made. This may help prevent major unexpected expenses in the future.