Placepoint

Andelsleilighet

An andelsleilighet is a home in a housing coop (borettslag). When you buy an andelsleilighet, you do not buy the flat itself, you buy a share in the housing coop that gives you an exclusive right to live in a specific home and joint ownership of the common areas. It is the housing coop, not you, that legally owns the property and the building.

This ownership form is governed by burettslagslova of 2003, the Housing Cooperatives Act, which replaced the older borettslagsloven from 1960. A housing coop is legally a cooperative enterprise, and the share is a transferable asset that can be mortgaged under the rules in panteloven § 4-3a, the Mortgages Act. The right to live in the home is part of the membership in the cooperative.

The housing coop can set conditions for sale and letting in its articles of association. Under burettslagslova § 5-5, a shareholder who has lived in the home for at least one of the last two years can let it out for up to three years. The pre-emption right on sale is governed by burettslagslova §§ 4-12 to 4-22; the deadline for exercising the right is normally 20 days after the sale is reported to the cooperative, see § 4-15. The common costs cover running costs and repayments on the Common Debt, and the interest on the common debt is tax deductible under skatteloven § 7-3, the Tax Act.

The difference from a freehold sectioned property (eierseksjonssameie) is that the share is a right in the cooperative, similar to a company share, not a co-ownership share in the property itself. That affects both creditor enforcement and how the home can be divided in a settlement. Freehold sections can be sold freely; andelsleiligheter carry the limits set by the articles of association and by law. Housing coops are registered in Foretaksregisteret at Brønnøysundregistrene and listed in Boligbyggelagsregisteret, the register of housing cooperative associations, when they are affiliated with a housing cooperative association.

From Placepoint's glossary: Andelsleilighet

More information: Lovdata: Burettslagslova, Store norske leksikon: borettslag

English: Co-op apartment (share in a Norwegian housing cooperative, Norwegian-specific).

Common questions we come across

What is an andelsleilighet?

An andelsleilighet is a home in a housing coop where you own a share in the housing coop, not the flat itself. The share gives you a right of use to a specific home and joint ownership of the cooperative's common areas.

What is the difference between an andelsleilighet and a freehold section?

With an andelsleilighet, you own a share in the housing coop with an attached right of use. With a freehold section, you own the flat itself directly. Freehold sections have fewer purchase restrictions and can be sold freely to anyone.

What is a pre-emption right in a housing coop?

The housing coop and its shareholders have a pre-emption right when an andelsleilighet is sold. The cooperative's pre-emption right takes priority, and the deadline for exercising the right is normally 20 days after the sale is notified.

What is common debt in a housing coop?

Common Debt is a loan taken out by the housing coop and allocated to the shareholders according to their share fraction. The Common Debt comes in addition to the purchase price and affects the monthly common costs. It is important to check the common debt before you buy.

Can I let out my andelsleilighet?

Short-term letting of andelsleiligheter is limited under the housing cooperatives act. As a general rule, you can let out the home for up to three years if you have lived in it yourself for at least one of the last two years. Longer letting requires approval from the housing coop.