Blog series on apartments and renovations / Part 2: the 80% rule and update of the regulations
The renovation of an apartment usually requires approval from the meeting of owners. Sometimes this is not enough and the deed of division must be amended too. The decision of the Homeowners Association (HOA) in this matter must be taken with the correct number of votes. The deed of division and the law lay down the number of votes required. At most all votes are required. The minimum is 4/5 of all votes, i.e. 80%.
Amending the division with a 4/5 majority
For some time now – since the first of May 2005 – the law has become more flexible and therefore in many cases a decision to amend the division can be made with a 4/5 majority, i.e. a majority of 80% of all the owners’ votes.
Enforcing a result through the district judge
Sometimes the votes and cooperation of all the owners are necessary. If not all owners are willing to cooperate the proponents can turn to the district judge to try to achieve the desired result. Indeed, the district judge can issue an authorization that comes in the place of the required cooperation.
Updating the regulations?
If the division is amended for a renovation it is a good idea to check whether the regulations are still up to date. Perhaps they can benefit from being updated too.
When amending the regulations it might be tempting to only adjust the broad outlines of the regulations. But cutting corners can lead to mishaps, such as less flexibility.
Laying down the 80% rule
For instance, since the first of May 2008 the option of a decision with a 4/5 majority has become automatically applicable to divisions dating from before the first of May 2005. But if the regulations of such a division are amended the option of a 4/5 majority must explicitly be mentioned in order to be applicable.
Indeed, this automatism applies to old divisions and not to new divisions or to divisions which are amended.
Please feel free to contact me for more information on this topic.
This is part 2 of four blog posts about apartments and renovations.
Click here for part 1.
Click here for part 3.
Click here for part 4.
(Picture: Bernhard Hermant)