Expiry of the cooperative ownership right to a residential unit (spółdzielcze własnościowe prawo do lokalu)
Text from 2019. Laws, rates and prices may have changed since then. Ask an agent
Many of us live in buildings belonging to homeowners' associations. We must remember, however, that not every unit in them has the same legal status. Given these complexities, it is worth looking at the issue and finding out when a cooperative ownership right (spółdzielcze własnościowe prawo do lokalu) can expire and what exactly this right is.
• Cooperative ownership right to a unit – can it expire?• When does a cooperative ownership right to a unit expire?
• The person entitled to the flat dies. Does the right to the unit expire?
• The right to the unit expires. What can we demand from the cooperative?
Cooperative ownership right to a unit – can it expire?
First of all, it is worth noting that the cooperative ownership right to a unit is a right in rem. This means that it is attached to the given flat, not to the person who uses it. Even someone who is not a member of the housing cooperative can benefit from it. What is more, it continues to apply even when the person to whom it was originally assigned dies.
When does a cooperative ownership right to a unit expire?
A person who is not a member of the cooperative can freely dispose of the flat as if it were their own property. What happens when the person entitled to the unit dies? Since the right in question is a property right, it passes to the deceased's heirs. This does not mean, however, that it is inherited in every situation. A cooperative ownership right to a unit may expire in a few specific circumstances, which are worth bearing in mind. We may be deprived of the use of it, for example, if we are in arrears with payments for a long time, but that is not all. It will cease to apply if we grossly violate the house rules in force. This means that we expose ourselves to problems if we fail to observe night-time quiet hours for a long time or disturb the peace of our neighbours. Improper behaviour results in the cooperative ownership right to a unit being taken away. Disturbing the domestic peace is not the only reason for losing the right to use a unit. The right will also be taken away if the cooperative adopts an appropriate resolution on the matter.
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The person entitled to the flat dies. Does the right to the unit expire?
We stated at the very beginning that the right to a cooperative ownership flat is attached to the property, not to the person. This means that the death of a cooperative member does not result in the expiry of the rights to the flat. They pass to the heir or heirs. Where several people have claims to the unit, a representative must be appointed from among them. It is their duty to deal with the formal matters. They must submit a membership declaration and join the cooperative. From that moment they are obliged to perform all the necessary actions on its behalf. They also have the right to conclude an agreement with the residents' association on transferring ownership of the unit to other heirs. Decisions as to the persons concerned must be made no later than one year after the death of the original member of the cooperative. If this does not happen, the matter is taken up by the court, which will appoint the person responsible for seeing to these actions. The situation is similar for a married couple who decide to divorce.
READ ALSO – CONVERTING A COOPERATIVE OWNERSHIP RIGHT TO A RESIDENTIAL UNIT INTO SEPARATE OWNERSHIP
The right to the unit expires. What can we demand from the cooperative?
When there are no heirs and, as a result of improper behaviour towards the community, a decision is taken that the cooperative ownership right to the unit expires, as a former member of the cooperative we can seek what we are entitled to under the regulations. We should receive the equivalent value of the lost right. The money granted to a former member of the cooperative may also be reduced. This will happen if they did not pay a sufficiently high sum towards the construction contribution. It will also be the case if the cooperative took out a loan for this purpose. The funds will be paid out once the former cooperative member vacates the flat.
It is worth remembering that a cooperative ownership right to a unit does not expire on the death of a cooperative member. It is good to note that it is inherited and can be used by the persons entitled to it. It must be admitted, however, that the legal complexities of these regulations are quite problematic for someone inexperienced in the field. It is therefore worth using professional help. Services in this area are provided by REMAX Gold. It employs specialists who will help you deal with the formalities.
