Apartment buildings
Various rights and obligations are involved in owning or living in a multi-owner building which are apartment buildings containing apartments that are owned by more than one party.
Multi-owner buildings
- Rules on multi-owner building addresses, among other things:
- definitions of private property and jointly held property,
- conduct in close quarters,
- residents' associations and their activities and
- joint residents' association funds and division of costs.
- A residents' association consists of all the owners in a multi-owner building, and need not be especially or formally established.
- The owners of multi-owner buildings are under obligation to participate in the activities of residents' associations.
- All decisions relating to the operation, maintenance and arrangement of jointly held areas shall be made at residents' association meetings.
- Particular rules apply to calling meetings, voting and other issues relating to decision making.
- A joint residents' association fund shall be established to pay for joint costs, if at least 25% of the owners request it. A joint residents' association fund must have its own account.
- If there is any dispute between the owners of a multi-owner building as regards their rights and obligations, an opinion may be sought from Housing Affairs Complaint Committee. The procedure is free of charge for the parties.
Joint ownership agreements
- The owners of apartment buildings are obliged to prepare a joint ownership agreement for the building. These form the basis for the rights and obligations of each owner.
- The joint ownership agreement contains information on the division of a building into private property and jointly held property, the share of each and participation in costs.
- Property in multi-owner buildings may not be sold until a joint ownership agreement has been prepared.
- Anyone preparing a joint ownership agreement must have a permit from the Minister of Social Affairs.