It should be emphasized that individual dwellings are not in the personal property of a cooperative member, but in the lease that arises from the ownership of a member share in a cooperative. The membership of a cooperative or its predecessor is a condition of participation in the cooperative and of the lease. However, the co-operative may demand an administrative fee for the transfer of a member's membership to a new member.
The advantage of acquiring a cooperative apartment is the fact that its transfer is not subject to tax on the acquisition of immovable property. "If you do not have the full amount to buy an apartment, you may have a problem getting a mortgage. Some banks, on the other hand, offer financing of cooperative flats. For some cooperative flats, however, it is possible to pay their price in installments directly to the cooperative. Since the co-owner is the owner of a co-operative apartment, it may also be an advantage for some people interested in a cooperative apartment not to be registered in the real estate register, " said Lukáš Zelený, head of the Legal Department of the consumer organization dTest.
Co-op dwellings advertisements also include data on the outstanding annuity, which is a repayment of the long-term loan granted to the cooperative. "Add the annuity to the purchase price. In addition, it should be remembered that when the cooperative share is transferred, they move to a new member of the cooperative together with their share and debts. Before you acquire a cooperative apartment, ask the co-operative for a confirmation of the amount of the obligations that are connected to the apartment, "says Lukáš Zelený.
Members of the cooperative using the flat pay only the expen- ditly spent costs of the co-operative, ie the cost of repairs, modernization and reconstruction of the house and contributions to the creation of financial reserves for repairs and investments. The rent may also be paid an annuity. In addition to the law, the rights and obligations of members of the housing association govern their statutes. According to them, the consent of the cooperative with the lease of the flat is often required. Sub-lease is charged, but often rather symbolic.
A change in the Articles of Association requires the consent of all members of the housing association. Under the Commercial Companies Act, the consent of all members is also required for the transfer of ownership of cooperative dwellings, buildings or land on which dwellings are located to persons other than members. This does not apply to the transfer of dwellings into the property of the members of the housing cooperative. " However, the statutes of a cooperative may lay down specific conditions for the transfer of personal property. Some housing co-operatives block the transfer of apartments to personal ownership. So, when making a cooperative apartment, do not believe in an unfounded claim that the apartment will soon be transferred to personal ownership, " warns Lukas Zeleny.
The cooperative share passes on to heirs as a legacy. If the cooperative share was jointly owned by the spouses, one of them passed to the surviving spouse after the death of one of them. Another situation occurs when one of the spouses is an exclusive member of a housing cooperative. In such a case, their joint tenancy ceases to exist if the spouse of the spouse who is the sole member of the housing association ceases to exist. According to the law, the transfer of the share can not be limited or totally excluded if the potential member adheres to and fulfills the conditions stipulated by the law and by the statutes of the cooperative.
Source: tz, dTest.cz