Limited proprietary rightsPrint

Limited proprietary rights are the rights to use and obtain benefits from the property of another party. The transfer or change of a limited proprietary right requires the conclusion of an agreement between the holder of the right and the owner of the encumbered property, and if the right was entered in the land and mortgage register – also the change of the relevant entries. Limited proprietary rights include:

  • use,
  • easement,
  • cooperative ownership right to premises,
  • mortgage.

Cooperative housing tenancy right to residential premises

A tenant has a cooperative housing tenancy right to residential premises if the co-operative commits itself to make the premises available for use in return for making a housing contribution and regular payment of fees specified in the statute of the co-operative. The initial contribution is lower than in the case of the co-operative ownership right. However, the premises remain the property of the co-operative, not of the tenant.

Note: A co-operative housing tenancy right to residential premises is untransferable, cannot be inherited and is not subject to enforcement.

A cooperative housing tenancy right to residential premises expires:

  • upon the expiry of co-operative membership,
  • if the tenant fails to make the payments for 6 months,
  • if the tenant uses the flat in a manner incompatible with its purpose, neglects his duties, allows for the occurrence of damage, destroys shared facilities or impairs the use of other premises, in spite of a written warning.

Co-operative ownership right to residential premises

A holder of a co-operative ownership right to residential premises does not have to be a member of the housing co-operative, although membership is often connected with lower monthly fees. In order to become a member of the co-operative, it is required to make an initial contribution to the co-operative. However, this initial contribution is higher than in the case of the co-operative housing tenancy right to residential premises.

Important: A co-operative ownership right to premises does not entitle the holder to a share in land.

Note: This right is transferable and may be inherited. It may also be encumbered with mortgage. The transfer of rights does not require the consent of the co-operative.

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