Buying a share in a housing company: a house manager’s certificate
The house manager’s certificate is one of the most important documents when you buy a share in a housing company. It contains all the key information about both the apartment you are buying and the housing company. The buyer should read the house manager’s certificate carefully before buying the apartment. When you use a real estate agent, the agent will make sure that you get the certificate, along with the other required documents.
What does the house manager’s certificate contain?
A house manager’s certificate is a document that contains all the essential information about the housing company and the apartment. The certificate contains identifying information about the property, such as the name of the housing company, business ID, the address of the property and the number and numbering of the apartments.
The certificate includes information on the company’s financial situation, renovations and repairs that have been carried out and are planned, and other future plans. The certificate also contains information on the maintenance or management of the property.
The house manager’s certificate also contains information on the charges and other fees for the apartment. The certificate must also include information on any outstanding charges. Furthermore, the certificate contains information on the use of the apartment and the floor area of the apartment.
In addition, the house manager’s certificate provides information on, among other things, the ownership of the listing, the premises to be sold and the ownership of the plot.
How do I obtain a house manager’s certificate?
The law requires the house manager to provide the house manager’s certificate on request to any person who is entitled to receive it. The owner(s) of the shares of the housing company, the person holding shares under a pledge and the real estate agency firm that has been instructed to sell or lease the shares are entitled to a landlord’s certificate by law. If the housing company does not have a house manager, the chairman of the board of the housing company is obliged to issue a house manager’s certificate.
In other words, not just anyone can get a house manager’s certificate. The easiest way for a buyer to obtain a certificate is to have a real estate agent do it. The estate agent checks the contents of the certificate before the sale, and if there are any discrepancies or ambiguities, the agent asks the house manager about them.
The information in the house manager’s certificate is constantly updated. This is why it is important that the purchaser of a dwelling has access to an up-to-date certificate. The house manager’s certificate is valid for three months.
Key information for the buyer in the house manager’s certificate
The buyer should read the house manager’s certificate carefully before finalising the transaction. As a buyer, start by checking the ownership details of the share first. This will ensure that you know who owns the share and that the seller has the right to sell the share. Also check the premises being sold. Does the transaction include any other facilities in addition to the apartment, such as a parking space?
Carefully check the repair history of the housing company and the apartment. You can see what renovations have already been done and also find out what renovations are planned or may be needed in the future.
The financial situation of the housing company should be examined. Check whether the company has any loans and how much. Does the apartment you are buying have a loan portion and how much?
You should also check the amount of the charges and other payments. How much is the maintenance charge or capital charge? Does the housing company charge any other fees, such as a separate water charge or a fee for a parking space? Also check any unpaid charges, because as a new owner you could be liable for these for up to six months in arrears.
Find out the ownership of the plot. Is the housing company on its own plot or on a leased plot? If the housing company is on a leased plot, find out when the lease expires. Any increase in the rent may be reflected in your future housing costs.
The house manager’s certificate also shows whether the building has an energy certificate. Ask to see the energy certificate as well.
Find out about the redemption clause!
One of the most important things for a buyer is to check the house manager’s certificate to see if there is a redemption clause in the articles of association of the housing company. A redemption clause means that the current shareholders of the housing company have the right to redeem the housing company unit, which somebody is buying, for themselves within a certain period of time after the sale.
If a redemption clause is specified, the current residents of the housing company can therefore cancel the housing transaction and redeem the housing unit for themselves. The fair market value will then be paid for the unit. The redemption period is specified in the redemption clause and is usually between two and four weeks.
It is worth remembering, however, that even if there is a redemption clause, it is not always used. So you can still buy your dream home even if there is a redemption clause. However, it is a good idea to wait for a while after the sale before moving in and renovating. This is so because the redeemer is not obliged to reimburse the previous buyer for the cost of the renovation.
There are also exceptions to the use of the redemption clause. In general, the right of redemption does not apply, for example, in cases where the recipient of the share is a close relative or spouse of the previous owner, or if the share was acquired through a will. However, the exceptions depend on the exact content of each redemption clause.