A private housing cooperative is an economic association in which all the assets (building, land etc.) are owned by the cooperative – i.e. by all the members together. A housing cooperative is an independent legal entity, which means that the individuals are not personally responsible for the cooperative’s debts and other obligations, beyond the initial investment paid for the home in question. Each member has the right to use their home for an indefinite time – and may transfer it (i.e. sell it), provided all obligations to the cooperative have been met.
How is a new cooperative formed?
Buying a brand-new tenant-owner property is different to buying an old one. However, even if your new home is not yet finished, there is already a board of directors in place for the cooperative. When you buy a tenant-owner property in one of our developments, this initial board usually comprises a representative from OBOS and two external representatives. The board’s task is to take care of the private housing cooperative during construction. For instance, they sign the contracts required for the development to take place, they draw up lease agreements, and they also procure financial and technical management services. This initial board of directors is just temporary. When the project is finished and everyone has moved in, the members elect a new board, which generally comprises members of the housing cooperative.
Buying a tenant-owner property in a new cooperative
Buying a brand-new tenant-owner property usually means that you don’t need to negotiate a price. New builds are also covered by solid consumer protection, which ensures that you, the buyer, does not lose any money should the development fail to go ahead for any reason, or if the project ends up being a lot more expensive than estimated. When you buy a brand-new tenant-owner property from OBOS, the purchase is divided into three stages. You sign a booking agreement, a preliminary agreement and a lease agreement, and gradually pay towards your investment stake.
Equal rights – equal obligations
All members have joint responsibility, and therefore also have the same rights and obligations in the cooperative. You pay your fee to your housing cooperative, and the money then goes to the cooperative’s running costs, such as interest rates, loan repayments, maintenance, administration and so on.