Placepoint

Felleskostnader

Felleskostnader (common charges) is the monthly amount each share owner or section owner pays to cover the shared costs in a borettslag (housing cooperative), eierseksjonssameie (jointly owned property divided into owner sections) or housing company. In a borettslag it is also called "husleie" (rent), even though the residents are co-owners and not tenants in the legal sense. The amount covers everything from maintenance and insurance to interest and principal payments on the fellesgjeld (shared debt).

The legal basis is burettslagslova section 5-19 for a borettslag and eierseksjonsloven section 29 for a sameie. In a sameie, the general rule is that common charges are shared according to the sameiebrøk (co-ownership fraction), unless the vedtekter (articles of association) say otherwise. In a borettslag, they are shared by share, as set out in the association's vedtekter. The business manager or the board calculates the monthly amount from the annual budget and changes it by resolution when costs change.

Typical items in the common charges:

  • Interest and principal payments on the fellesgjeld (often the single largest item in newer borettslag).
  • Building insurance (taken out by the association, not by the individual home owner).
  • Municipal fees for the common areas: water, waste water, refuse collection and any eiendomsskatt (property tax) where it is charged to the association.
  • Operations and maintenance: caretaker, snow clearing, shared electricity, lift servicing and heating costs if the association has shared heating.
  • Provisions for the maintenance fund and periodic maintenance of the roof, facade, pipes and bathrooms.
  • Fees to the business manager and the board.

A sameie rarely has fellesgjeld, because the section owner finances their own section. Common charges are therefore usually lower in a sameie than in a comparable borettslag, but the difference often disappears once you add the buyer's own loan to reach the totalpris (total price). This matters when you compare offers in the same building or area: low common charges are not necessarily a sign of good management if they only reflect that the association has low fellesgjeld.

Non-payment of common charges is the most common reason for tvangssalg (forced sale) of borettslag shares and eierseksjoner. Both a borettslag and an eierseksjonssameie have a legalpant (statutory lien) of up to 2 G on the defaulting unit (burettslagslova section 5-20, eierseksjonsloven section 31) without registration. This makes collection quick: the association can demand a tvangssalg after a relatively short period of default, without first obtaining a judgment.

When you buy a home, you must include common charges in your monthly housing costs together with interest and principal payments on your own loan. Two useful things to clarify in advance: how much of the common charges are pure operating costs (which remain regardless of repayment), and how much is interest and principal on the fellesgjeld (which can change on refinancing or when the interest-only period ends). Low common charges in a new borettslag are often temporary; check when the interest-only period on the fellesgjeld runs out.

In Placepoint you can see basic ownership details and registered pant (charges) on the association's property in the property panel, but the common charges amount itself comes from the prospekt (sales prospectus) or the business manager.

How it looks in Placepoint

In Placepoint you find this in Property panel:

Felleskostnader in Placepoint

From Placepoint's dictionary: Felleskostnader

More information: Lovdata: Burettslagslova section 5-19, Lovdata: Eierseksjonsloven section 29, Forbrukerrådet: Borettslag og sameie

English: Common charges (HOA-style monthly fees in a sameie or borettslag).

Common questions we come across

What do the common charges cover?

Operations, maintenance, building insurance, municipal fees for common areas, shared electricity, the caretaker and board fees. In a borettslag they also cover interest and principal payments on the fellesgjeld, which is often the single largest item.

Why are common charges higher in a borettslag than in a sameie?

A borettslag usually has fellesgjeld, where interest and principal payments form part of the common charges. A sameie rarely has fellesgjeld; the section owner finances their own section. The difference evens out once you include the buyer's own loan in the total calculation.

Can the board increase the common charges on its own?

Yes, the board can adjust the common charges within the framework of the annual budget and the association's vedtekter. Larger changes, for example for extensive maintenance or refinancing of the fellesgjeld, often require a decision at the general meeting or annual meeting.

What happens if I do not pay the common charges?

The borettslag or the sameie has a legalpant of up to 2 G in your share or section for unpaid common charges. Continued default can lead to a tvangssalg after a relatively short time, without the association first having to obtain a judgment.

Can I deduct common charges on my tax return?

No. Common charges are an operating cost and give no tax deduction for the home owner. Interest on your own loan (the share purchase loan) is deductible, but interest on the fellesgjeld goes through the association's accounts and is deducted there.