The transfer of a flat into personal ownership is most often discussed in the case of its privatisation from the state or municipal housing fund or in the case of transfer of cooperative flats to individual members of a cooperative.
The transfer of a flat into personal ownership is most often discussed in the case of its privatisation from the state or municipal housing fund or in the case of transfer of cooperative flats to individual members of a cooperative.
A number of housing associations are dealing with the problem of common commercial premises. Non-residential units are owned by the cooperative. The rent from shops or pubs on the ground floor is used to finance repairs to the building. However, what is to be done with these premises when the flats are transferred to so-called personal ownership? Of course, individual members do not want to lose their share of the income.
We always offer several options to our clients. Recently, one housing association agreed that they wanted to keep the income as “common”, so the shop is defined as a common area in the house.
Anyone who buys a flat in the house is then assured of automatically becoming a shareholder. The management is then handled by a committee of the owners’ association (SVJ), so there is no unnecessary administration for the owner.
When transferring a condominium, it is always necessary to look not only at the purchase price for the share, but also at the outstanding annuity on the share. This can make the apartment quite expensive. Suddenly, it costs eight million instead of three million. Yes, we’ve seen this case too!
However, in the case of a transfer within a closed cooperative, often nothing is paid for the apartment at all and the settlement share is added to the purchase price. The buyer has already paid for the apartment earlier, through an annuity. This is the most advantageous mechanism for the buyer. In addition, no tax is paid in this case.
We provide comprehensive legal services related to the purchase or sale of real estate, including reservation agreements and escrow services. We can also assist with land registry and tax matters. We can handle everything within 48 hours, even when purchasing from a developer.
The contract for the transfer of a flat into private ownership cannot be considered a mere formality. Here too, proper attention to detail is required. This will help you avoid any later surcharges or delays in the land registry procedure.
For example, the cooperative often relies on incorrect addresses of its members that do not match the land registry database. Any wrong detail can cause the proceedings to be stopped. Then there is no choice but to take a clean sheet of paper and do it all again.
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We provide comprehensive legal services related to the purchase or sale of real estate, including reservation agreements and escrow services. We can also assist with land registry and tax matters. We can handle everything within 48 hours, even when purchasing from a developer.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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