The Danish Condominium Act is now a few years old. It was passed in 1966 and has since been amended several times, which has made the law complicated and sometimes incomprehensible.
In 2016, the government appointed a committee of experts and interest groups in the field of condominiums and real estate to assess the possibilities and consequences of modernizing the Condominium Act.
In March 2018, the committee presented a report in which one of the more interesting changes to the Condominium Act is the lifting of the ban on dividing older private rental properties with 2 residential apartments and commercial use into condominiums, as well as properties with private cooperative housing associations, in buildings built after 1966.
A significant change in the law is the committee's bill to repeal the ban on the division of properties with cooperative apartments in buildings built after 1966. The committee has concluded that there may be a financial incentive for cooperative housing associations to convert to owner-occupied apartments, so that individual cooperative members will be able to take over their cooperative housing as an owner-occupied apartment with subsequent financial gain. However, the committee has not taken a position on the tax treatment of these gains upon conversion, and the government will therefore look into this aspect of the matter.
The committee has also assessed that the price development of owner-occupied homes will probably decrease due to greater supply if the division ban is lifted.
The bill has not yet been adopted, but will be taken up by the government and negotiated into place during 2019.
Here at Paragraf Advokaterne, we keep an eye on developments in the area in order to be able to provide advice and guidance in the area. It may be relevant to talk to us about the options if you live in a cooperative housing or if you are considering buying an apartment.
For further information, please contact attorney (H) Søren Vasegaard Andreasen at phone 82 82 82 42 or sva@paragrafadvokaterne.dk.
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