Managing multi-owned, mixed-use developments in The Netherlands: The opinion of professional managing agents

Abstract

Purpose – This purpose of this paper is to analyses the management difficulties experienced in multi-owned, mixed-use developments and possible solutions, based on the opinions of professional management agencies in The Netherlands. Design/methodology/approach – We performed a survey among professional management agencies that take care of the day-to-day management of many multi-owned, mixed-use developments. The survey focused on aspects such as the influence of the developer on the deed of division and the appointment of the professional manager, and the role of legal advisors. Findings – The outcomes support the assumption that mixed-use developments have more problems, and problems of a different nature, than homogeneous complexes. We conclude that a custom-made deed of division, or at least one that is appropriate to the mixed-use situation, is preferable. The legal expert involved (a civil law notary) should therefore consult the owners and – if applicable – the professional management agency. They have the practical knowledge to identify management difficulties. Drawing up the deed of division should never be the final piece of the process, but it should be an analogous development to the design and development process. However, our hypothesis that developers should consult the notary during the planning phase of new projects was not confirmed by the survey. Originality/value – Most legal research focuses on the law and the legality of instruments, sometimes including the practical implications by performing case law research. We stress the importance of including day-to-day practice and practitioners in legal research. Professional management agencies have the requisite knowledge – both practical and legal – of how the system of “apartment ownership” works. This makes them a very useful source of information.