Sale of housing shares
Real Estate Transaction in a Housing Corporation – What Am I Buying?
In contrast to property transactions, in a real estate transaction within a housing corporation, the subject of exchange is not a physical property but a security that typically grants the right to manage an apartment located within the housing corporation.
The actual land and buildings are owned by the housing corporation, whereas the apartment owners collectively exercise decision-making authority over the property through their ownership in the corporation. This form of ownership is often referred to as indirect or indirect ownership.
If You Suspect an Error in the Transaction
Clarify the situation and determine the next steps with the assistance of an expert.
What is my position as a shareholder?
The Finnish Apartment Building Act and the Articles of Association define the responsibilities, obligations, and rights of the apartment building company and its shareholders. The law provides the foundation for the operation of the apartment building company, and deviations can be made in certain situations through provisions included in the Articles of Association. The Articles of Association also define aspects such as the basis for maintenance fees and the maintenance responsibility between the shareholder and the apartment building company, which may differ from the provisions of the Apartment Building Act.
Differences between the sale of a new and a used property
The Housing Transactions Act, in turn, regulates housing transactions more specifically. The act includes separate provisions for both the exchange of new and used properties. Similarly, the Housing Transactions Act also governs aspects such as defects in housing transactions.
The sale of a new property typically occurs when a property is being sold for the first time to be used. The provisions pertaining to the sale of new properties are specifically established to protect consumers, as the seller of a new property is often a professionally operating entity, such as a construction company. The act encompasses a comprehensive consumer protection system, including requirements for the seller to provide guarantees and securities during the construction phase and after construction.
The provisions of the Housing Transactions Act regarding the sale of used properties come into effect when a property is sold as used or when a non-professional seller offers a property for use for the first time. Often, in the case of the sale of a used property, both the seller and the buyer are private individuals in a consumer position.
Help, this didn't go smoothly, what now?
Sometimes, real estate transactions don’t proceed smoothly, and errors may be detected during the process. It’s possible that the seller may not have provided information about the property that would have influenced the buyer’s decision if they had received this information before the transaction. The law includes separate provisions for defects in the case of new and used properties. In the case of a new property, a defect could occur, for example, if the property doesn’t meet the construction-related regulations in place during its construction, or if the construction hasn’t been carried out according to proper building practices. Defects in a new property sale could also result from the quality of the materials used in construction, if they are not of the usual good quality in terms of durability or characteristics.
Termination of Co-Ownership of Apartment Shares
In cases of inheritance distribution or other situations, an individual may acquire a share in an apartment ownership. If a co-owner no longer wishes to continue the co-ownership, they have the right to partition their share from the jointly owned apartment. Typically, dividing the apartment itself is not feasible. In this scenario, the co-owner has the right to apply for the termination of the co-ownership relationship and the sale of the apartment through a court application to the district court. A single co-owner can make the application, and the costs are divided among all co-owners in proportion to their ownership shares. The applicant covers the application fee. Usually, legal representation is sought, and upon confirming no conflicts of interest, the appointed attorney gives consent to proceed with the task.
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Asuntokaupassa edellytetään tarkkaavaisuutta ostajan puolelta ennen kauppakirjan allekirjoittamista. Kaupanteon jälkeen menetetään mahdollisuus vedota virheeseen, joka olisi ollut mahdollista havaita jo ennen kauppakirjan allekirjoitusta. Milloin näin tapahtuu?