Co-op apartment with balcony in a beautiful turn-of-the-century building

Co-op Unit No. 6

A legal entity may acquire.

Co-ownership right with a registered title.

The apartment is a cooperative apartment, meaning that the owners have their own title deeds and are collectively members of a cooperative association that manages the property through a board of directors.

Title registration fee for private individuals: 1.5% of the purchase price

The cooperative apartment may be sublet.

Not eligible for a mortgage.

The property was built between 1896 and 1898.

There are 11 condominium units. 

No elevator.

There are two rental units. The revenue goes toward trash collection, heating, cleaning, the courtyard, etc.

The cooperative member is responsible for electricity service, telephone service, and broadband.

The apartment number for the cooperative is No. 6.

The cooperative's share is 10.3%.

The cooperative has access to an attic storage room.

Shared laundry room in the basement.

Mortgages totaling 2 mkr, but these do not encumber this share.

Contact the real estate agent for the property’s contact person and information about the property’s financial situation.

What is a cooperative apartment?

A “co-op apartment” refers to an apartment in a multi-family building where you, along with other apartment owners, own a share in the property in which the apartment is located. This is not very common, mainly because such an apartment cannot be used as collateral for a loan.

Purchase of a share in the property

When you purchase a condominium unit, you are buying a share in the property. This means that you do not own the specific apartment in which you live, but rather you are a co-owner of an ideal share of the property. The size of the share is usually linked to the size of your apartment relative to the total living space in the building.

This means that you pay the registration fee for the purchase and pay property tax on your share.
No mortgage

It is not possible to take out a mortgage on a share of a property. A mortgage deed always covers the entire property. A key provision in the agreement between the property owners is that no co-owner may demand that a mortgage be taken out on the property.

A buyer of a share must therefore be able to finance the purchase in some other way.

Comprehensive Agreement

There is no legislation governing condominiums, although proposals have been made in the Riksdag to introduce such legislation. However, we find it difficult to imagine what such a law would look like.

The following items are typically included in a co-ownership agreement (property ownership agreement):

• Which apartment, storage unit, etc., the co-owner has the right to use.
• Reference to Chapter 12 of the Land Code (Tenancy Act), which governs the rights and obligations of co-owners.
• How the co-owner’s annual fee is calculated and paid. The annual fee is intended to cover interest and principal payments on the property’s loan, as well as ongoing operating costs. The annual fee is lower if rental income is received from leased premises, etc.
• A co-owner’s maintenance obligation with respect to their own apartment. In this context, the situation in a housing cooperative is typically used as a reference.
• Provisions regarding the elected “board of directors,” the administrator, and the auditor.
• Provisions Regarding the Forfeiture of the Right of Disposal.
• Provisions regarding partner meetings, which are similar to the general meeting of a housing cooperative.
• Agreement that the law on joint ownership shall not apply between the co-owners.

Since there is no specific legislation governing condominiums, it is up to the district court to rule on any breaches of the co-ownership agreement.

Tax on Sales

A property consisting of owner-occupied condominiums is classified as a commercial property, so a private individual who sells their share in the property is taxed on 90% of the profit (27% tax). A loss may be deducted at a rate of 63%.

A condominium cannot be considered either a primary residence or a replacement residence, so no deferral can be obtained when moving to a new home that involves a cooperative apartment.

Source: https://www.bjornlunden.se/juridik/andelsl%C3%A4genhet__131