But you might want to know if you are about to buy one.
For the home hunt, there are many different apartment types in the market. Selveier, share and share are essentially the apartment types you will encounter in your housing hunt. Knowledge of these apartment types should be a part of the basic work you as a home buyer should do.
No significant differences between ownership forms
Apart from the bond apartments, which are not an ownership form but only one right to rent, the differences between the three ownership forms are small.
– Legally, there have been greater similarities between the different ownership forms, says Anders Leisner, a lawyer in the Huseiernes Landsforbund. He explains that the difference lies mainly in rental and maintenance financing.
– All three ownership forms are so neat that there are generally little challenges with them, adds general manager of Norway’s Real Estate Broker, Tormod Boldvik, to clicks. no.
Not all servers on heat pump
According to Statistics Norway, there are around 550 000 apartments in the country. Of these, almost 30 per cent are self-catering apartments, while almost 45 per cent of the apartments are found in housing cooperatives.
The self-catering apartment (or the owner’s section as it is also called) is the one that gives the owner the strongest legal rights. “Ownership is the designation of an apartment or a place where the owner has the exclusive right to use the apartment / room itself, but where the entire property (building and land) is in association with other section owners,” says judge Christan Fr Wyller, editor-in-chief of the Boligrett section at Great Norwegian lexicon.
Strictly speaking, you do not purchase a specific apartment , but an ideal shareholding in the community and a unique right to use a particular apartment.
“Section 1 of the Act defines an ownership section as a co-ownership in a built-up property, with an associated exclusive right to use a dwelling or other utility unit,” the owners of the Home Owners Association writes about the ownership section act, which is the law governing self-catering apartments.
Selvei’s right of access
An owner’s right of disposal over the apartment is more or less unlimited, provided he or she follows the United States Articles of Association. “The section owner has full legal authority over his section. That means, for example, you can sell, pledge and rent as you wish, “writes Huseiernes Landsforbund.
The only limitations are those who are statutory and approved by the whole community.
“It also opens for example to require that acquiring or renting must be over 60 years in homes specially designed for older people. This requires the determination of the articles of association and the consent of all parties concerned, “Huseiernes writes, and explains:” It can be confirmed that the lease and the acquisition of a section must be approved by the board, but there must be a valid reason for refusing approval. In addition to this, it is not possible to restrict access to the rental of sections. The condominium can not agree that rent shall not be allowed or permitted for a certain period of time “.
Even if you are the owner of a self-catering apartment, it does not mean you can afford the one you want.
“If a unions violate their obligations significantly, the union may require the section to be sold,” Huseiernes states on its webpages. They emphasize that the breach can be a matter of housing failure, non-payment of joint costs, breach of house rules or failure to maintain the section so that other sections are damaged.
However, because forced labor involves a strong deal in property ownership, the terms are strict in order for a self-catering apartment to be enforceable. The owner should have received a warning first.
The number of flats
After World War II, there was a great need for housing and a lot of construction projects were initiated based on the cooperative idea. In particular, this was prominent in cities and towns. And the housing model was used, which was already tested by the EMDC before the war.
Concepts House Law
Apartment: Apartment in residential property, organized as a limited liability company (or public limited company). Such a company is often called a housing company because the shares give the right to rent a particular apartment in the company’s property.
Share Apartment: Apartment that is linked to a stake in a housing company.
Housing Complaints: A housing company is a cooperative company that aims to grant owner-occupied property rights (borett) to own property in the team’s property. Everyone who lives is unitowners (members) in the housing company and they have the right and duty to use the housing share that is linked to. In this indirect way, the residents own their own property and control the property with all the neighbors.
Ownership: Apartment or premises where the owner has the exclusive right to use the apartment / room itself, but where the entire property (building and land) is in association with other section owners. Also called self-catering apartment.
Fellesgjeld: Fellesgjeld is the joint venture, the housing company or the mortgage company’s debt. Common debt is usually debt raised in connection with the construction and maintenance of the housing.
Sublease: The tenant further leases the leased item, in whole or in part. Sublease is generally not allowed without the landlord’s consent.
Deposits: When a person is to buy a home in a housing company, this is funded by paying a deposit.
Bond apartment: Apartment to be let away from the tenant giving a loan to the homeowner and, as security, gets a mortgage bond in the property.
Cohesion fraction: Shows how much share the owner owns. It will often be based on area or value, but the law has no rules regarding the determination. The union breach is the basis for the allocation of joint costs
Sources: Great Norwegian Dictionary, Wikipedia, Norwegian Housing Agency and Click. no
The housing corporations are built on a strong social principle. “The housing model allowed people without much capital to get housing. By firing a small amount of money, there was access to a home where the largest part of the financing was a joint loan loan that the housing company had made “, it is stated in the NOU-one” Hedge against loss of joint costs in housing cooperatives “.
The significant difference between unions and housing associations is that in a joint venture, the owner is an ideal share while a housing company is an indirect ownership model. “This means that the housing company owns property, buildings and any reason, while unit holders own shares in the housing company. The share gives borrower boret to a particular residence, “the Ministry of Public Affairs and Moderation writes in the parliamentary polls 155 L (2009-2010) on amendments to the corps.
Focus on joint debt
According to Tormod Boldvik, the one who is considering buying a cooperative housing unit should focus on the size of the joint debt.
– Restrictions have now been introduced, the joint debt of new housing cooperatives shall not exceed 75 per cent of the value. In general, I notice that people are concerned that the housing team is well organized and has a good economy, “he says.
Limited rental option
In practice, the difference between housing cooperatives and unions appears among other things in the possibility of sublease.
– The apartments in a housing company are governed by the so-called User Ownership principle, which implies that the possibility of sublease is limited. One must have lived there for at least one year before renting out, and for three years, Anders Leisner, emphasizing that it is not allowed to make statutes so liberal that you can freely rent out.
Limited Financial Responsibility
In a union, a creditor may require each co-owner to pay his share of a claim against all the unions. They are responsible in relation to their union break, a so-called pro rata responsibility. However, in a housing company, a creditor can not go on the individual unit owner. “Shareholders have no direct responsibility for the debt the housing company has. The borrower’s creditors must relate to the team and can not go on the individual shareholder, “explained at Store Norske.
According to Tormod Boldvik, during the financial crisis there was an unrest in some housing companies.
– Some housing companies suffered problems as residents failed to pay their common expenses, he says.
The impact of the unit holders on any bankruptcy is limited. They may risk losing their deposits, but will not be responsible for the debtors’ debts. “In addition to what follows from the Act on the Payment of Share Capital, Condensation and Joint Expenses, the Shareholder has no duty to cover the Company’s obligations”, it is explained in Store Norske.
If you yourself get trouble servicing your debt and you are not allowed to sell your apartment due to a poor housing market, you will be able to cancel your boret and leave the entire housing company.
They can lose their deposit, which, for many, will mean a serious backlash in the private economy, explains Tormod Boldvik.
This ownership form is similar to residential housing. Instead of purchasing a share, you buy a share with affiliated exclusive right of use for a particular property and you also become a co-owner of the housing liability company.
Living limited companies are, however, a form of organization that was banned in 2005. However, limited liability companies that already existed at that time could continue to exist.
Tormod Boldvik says that the real estate industry has a focus on the housing stock companies, among other things because the ownership changes are not registered in a public register, as is the case for housing companies and unions.
– We want the registration of ownership changes in housing limited companies to be more the same as for housing companies because the industry has experienced that even though the Companies Act sets requirements for the management of a shareholder book, this is not always as well taken care of.
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In addition to the fact that stock options are regulated by the Housing Act, they are also covered by the Companies Act.
– The Housing Acts Act regulates the use of the equity facility, while the Companies Act regulates corporate law, explains Boldvik.
Bond apartments are a special type of apartment where you as a buyer do not get any boret just a rental right. “Bond apartment, rented away from rent by the renter to the homeowner and, as collateral, is given a mortgage bond in the property”, described in the Large Norwegian Lecture.
This apartment form was banned in the late 90’s, and as a home buyer you probably will not encounter this type of apartment.
If you come across such an apartment, our advice is therefore to steer clear of it, says the head of the Legal Department of the Homeowners’ Association, Anders Leisner, to click. no.
How to highlight the unique of your home
Do it, be aware of the pitfalls of it. First and foremost, it is about risking losing a lot of what you have paid for the right of residence. The reason is that you are only entitled to get back the mortgage bond’s nominal value.
“There are several examples that buyers of a bond apartment have paid 10 times as much as the bond is denominated without being aware of what one actually paid for,” writes Jusstorget on its pages.
– We know that real estate agents do not want to convey the sale of bond apartments, says Boldvik.
The price chart also shows that the market is familiar with the pitfalls of bond apartments.
Today, this apartment type is almost unavailable, and a search on Finn. no and zett. no revealed five apartments.
Ownership form not essential for price
Tormod Boldvik finds that home buyers generally have good knowledge of the ownership forms that exist in the market.
– Nevertheless, I still have the practice of explaining what’s the difference.
With regard to the value of the apartment, ownership will be of little significance.
– We have no figures showing that there is a difference in value-added in all, explains the head of Norway’s Taxation Associations, Are Andenæs Huser, to clicks. no. He adds that a well-run housing company can be at least as good as a poorer-driven joint venture.
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