How do you get a CO-OPERATIVE FLAT? HOW?
Our previous articles focused specifically on the procurement of buildings and flats owned by specific persons or companies and registered in the cadastral register. The basis for these transactions is: عقارات
Property check in the Cadastral Register
Conclusion of a real estate purchase contract
Filing in the Cadastral Register the application to register the purchase contract
Successful completion by registering the buyer's property title to the real estate in the Cadastral Register
If you look at certain ads about real estate purchases you can also find offers for so-called "co-operative apartments." Do you really know what you are offering? You will find the answer if you continue to read this article.
Of course, in our previous articles you can find a 'standard flat' which is a part of a cooperative. In such cases the cooperative is registered as its owner in the cadastral register and a standard contract of purchase is entered into and submitted to the appropriate cadastral office. But such apartments are not called "co-operative apartments" and are not covered in this article.
In this article, the basic description of the "co-operative flat" includes the following:
"co-operative flat" belongs to a cooperative; the co-operative usually owns the entire building
It must not be registered in the Cadastral Register as a separate unit
The building office must always be approved for use as a flat
You conclude a contract to "acquire" a "co-operative flat" on membership transfer in a cooperative instead of a purchase contract.
The contract for membership transfer in a cooperative must not be entered in the cadastral register and there is no need for a petition.
You don't become the owner of the flat, the co-operative remains the owner and only a co-operative member
The lease of the "co-operative flat" is related to your co-operative membership, i.e. standard contract lease should be executed between you and the co-operative.
If you require a bank mortgage credit, you generally need another real estate to serve as a bailment for the bank
On the basis of the foregoing, you can see that compared with "standard apartments," the biggest difference is that you do not have the "co-operative flat," that you are the tenant, and that you become a legal person, a cooperative, who remains the owner of the flat and becomes your landlord. Various contracts have to be executed, and the dealings with the bank are also a little different if a mortgage loan is necessary.
Before deciding on a cooperative flat, you should also need information concerning the cooperative itself, taking into account the abovementioned. As we said, the cooperative is a kind and has its organizational structure, its statutory and administrative authority, its assets (including the apartments for which you are interested) and possibly even certain liabilities. You should make sure the cooperative's financial situation is good, that there is no risk that the cooperative will release its assets (including your flat) and that your own operation does not cost you an unreasonable amount. From this point of view, the situation is similar to the acquisition of a share in a company.
You should also check the wording of the current statutes and rights and the obligations arising therefrom for you with regard to the financial situation of the cooperative. Once you become a member of the cooperative, you must abide by its statutes that are binding on you. First of all, you should check if and under which conditions the statutes of the cooperative enable the transfer of shares of the cooperative.
Since the purchase price of the shares in a co-operative usually corresponds to the market price of the flat (although the co-operative can only have the registered capital from several ten per cent of Czech Crowns and the contribution of the member willing to transfer its share to you might be five thousand Czech Crowns)
Since the purchase of the cooperative flat requires a slightly different approach than the purchase of the "standard flat," and no item can contain complete and always directly applicable information, it is a pleasure for us to help you. We are ready to cover any possible risks and provide you with the necessary services relating to the purchase of a 'co-operative apartment.'