Conversion from rental housing to housing cooperative
Forum Fastighetsekonomi has participated in a large number of conversions all over the country. Our long experience of conversions gives tenants/members great security in the process.
Forum undertakes total responsibility for the conversion – from initial negotiations with the property owner to closing of the transaction.
Conversion from rental housing to a housing cooperative takes place either via the tenants’ right of first refusal, or by direct purchase from the property owner.
The tasks included in our assignment can vary, but are usually included under the following headings.
1 Pre-conversion process
- Answer telephone queries from the co-op board and the tenants.
- Solicit information from the property owner.
- Assess the value of the property.
- Negotiate the price and terms of the purchase.
- Prepare preliminary housing cost calculations for the cooperative units.
- Convene and hold an information meeting for the tenants.
- Solicit preliminary expressions of interest from the tenants.
- Pay for inspection of the property, done via a sub-consultant.
- Propose capital stakes and participatory shares.
- Draft a financial plan for the cooperative association.
- Carry out and pay the cost of certification of the plan.
- Solicit financing offers for the cooperative association and the individual members.
- Assist in procuring financing for the association and the members.
- Convene an extraordinary meeting of the association to vote on the purchase of the property.
- Serve as chairman of the purchase meeting and keep minutes.
- Register the financial plan with the Companies Registration Office.
- Pay the cost of registration of the financial plan.
- Draft or check and negotiate the purchase contract.
- Prepare deeds of grant for the co-op owners.
- Prepare a list of members and apartments.
- Solicit offers for insuring the property.
- Solicit offers for financial management.
- Solicit offer for technical management.
4 Grant of tenure and possession
- Draft a deed of purchase and a settlement bill.
- Preside over possession of the property and apply for registration of title.
- Grant tenure of the apartments as cooperative units.
- Assist the management company engaged by the cooperative association to start managing the property.
Download our Conversion brochure (in Swedish).