Problems with your newly built co-op apartment

Important to know 

• When you buy a newly built co-op apartment, you and the co-op association sign a Contractual Tenancy Agreement granting you the right to occupy an apartment. To find out what is included in your Contractual Tenancy Agreement, such as the number of rooms, balcony and so on, you need to check the tenancy agreement. 

• The co-op association is your contractual partner and counterparty in the event of a dispute. This means that it is not the construction company that you should address any claims to, as one might reasonably expect. 

• If you cannot reach mutually agreed solution with the co-op association, you can turn to a regional Rent and Tenancies Tribunal.

The Housing Cooperatives Act is applicable 

When you purchase a brand new co-op apartment, you and the co-op association sign a Contractual Tenancy Agreement to occupy the apartment. This is governed by the Housing Cooperatives Act. The statute governs i.a. your legal rights and obligations as a co-owner in the co-op and your occupancy rights to your apartment. 

Defects and deficiencies must be remedied 

When you purchase a newly built co-op apartment, the Housing Cooperatives Act and the Contractual Tenancy Agreement you have signed apply. Check the Contractual Tenancy Agreement to find out what is included in your co-op apartment, for example, the number of rooms, surface area, storage space, balcony and more. In addition to what is stated in the contract, you may demand the following: 

• The apartment must be in such a condition that it is generally understood to be in a fully usable condition at the time transferring the ownership, unless other agreement has been made regarding the condition of the apartment. 

• If the apartment does not comply with the first paragraph, you may ask the Co-op Board to rectify the problems. If this is not done as soon as possible, you may remedy the problems on your own and at the co-op association’s expense. If the defect is of material significance and the Co-op Board cannot arrange to rectify it without delay or refuses to do so, if you so wish you may give notice that you intend to surrender the apartment and vacate the premises. However, if the defect has been remedied, you may not cancel the Contractual Tenancy Agreement. 

• You may also be entitled to a reduced annual homeowners fee if you are unable to use the apartment as intended. If the defect is due to negligence on the part of the co-op association, you may also be entitled to compensation for damages. 

Denied access to the apartment 

If you are not given access to the apartment by the date agreed on and it is not due to something on your part, you are entitled to a reasonable reduction in the annual homeowners fee for the time you are unable to use the apartment or part of it. 

If the impediment is substantial, you may have the right to terminate the presale agreement for the co-op apartment and withdraw from it. However you may not cancel the agreement after the date you gained access to the apartment. 

Complaints should be directed to the co-op association  

The co-op association is your contractual partner and therefore also your counterparty in the event of a dispute arising. If, for example, the municipal Building Authority decides on a change during the construction process that you think differs from what you were promised in the presale agreement, the party you should speak with if you want to raise the issue is the co-op association. That is because you have no direct contractual relationship with either the construction company nor the housing developer/property company.

When you complain to the co-op association, it is advisable to have written contact, for example by e-mail. Then you can prove that you complained, what you complained about and when you complained. 

If you and the co-op association are unable to reach a mutually agreed solution 

If you cannot reach mutually agreed solution with the co-op association, you can turn to a regional Rent and Tenancies Tribunal. They can mediate between you and the co-op association, provided the co-op association agrees. 

If the problem is not resolved, you may want to consider getting a lawyer to help you work out what is going on in your case and how you can proceed. Before engaging a lawyer, you should check the legal assistance cover you might have in your homeowners or other insurance. 

If the dispute persists and is not able to otherwise be resolved you have the option of filing a lawsuit at the local district court. 

Further information about settling the dispute in court

You can also contact the Mediation Board for Co-op Housing to have your dispute heard. This is an entirely written process. The decisions of the Mediation Board for Co-op Housing are not binding on the parties. 

Further information is available on the Bostadsrättsnämnden/Mediation Board for Co-op Housing website (In Swedish)