Converting a cooperative ownership right to a flat into separate ownership

Many of the questions we receive from clients concern cooperative flats. Are you wondering how the conversion of a cooperative ownership right to a flat (spółdzielcze własnościowe prawo do lokalu) into separate ownership should properly proceed? Find out what this procedure should look like and whether it is worth making changes in this case.

What is a cooperative ownership right to a flat?

It is a limited property right (ograniczone prawo rzeczowe) that makes it possible to use and dispose of a cooperative flat. However, the holder does not legally become the owner of the property. The housing cooperative remains the owner. The cooperative ownership right to a flat obliges you to agree most decisions concerning the flat with the cooperative. This right is fully transferable, heritable and also subject to enforcement.

READ ALSO – SELLING A FLAT OCCUPIED BY A TENANT!

Converting a cooperative ownership right to a flat into separate ownership – information

Of course, you can decide to convert the cooperative ownership right to a flat into separate ownership. This involves completing certain formalities. An appropriate application must be submitted to the cooperative, containing a request to convert the flat into separate ownership. The cooperative's authorities have a set time to conclude the agreement transferring ownership – as much as six months. If we hold separate ownership, we are obliged to open a land and mortgage register (księga wieczysta) for the flat. In the case of a cooperative right this is optional.

If we decide to convert the cooperative ownership right into separate ownership, we will have to repay part of the cooperative's liabilities connected with construction, including the housing cooperative's loan debt, as well as service charges.

LEARN THE RULES OF INHERITING A COOPERATIVE TENANT'S RIGHT TO A FLAT

Is it worth obtaining separate ownership of a flat?

Ownership gives you full control over the property. We become the true owner of the flat. We are also entitled to dispose of the land and the building in which the flat in question is located. Separate ownership of a property makes it easier for us to obtain a mortgage. We can dispose of the property as we see fit without obtaining the cooperative's consent.