Yes. Lots of it.
Second-hand dwelling
An apartment in an old company is a fairly straightforward matter for the buyer. It is important to understand the overall condition of the condominium, its renovation history, finances, governance and future prospects. The emphasis on different aspects depends on the size of the company, the age of the buildings it owns and, to some extent, its location.
What they all have in common, however, is the importance of clarifying the financial situation of condominium. Who would want to invest their money in a company whose finances are in doubt? Equally, condominium’s governance needs to be assessed. It is the responsibility of the management, i.e. the property managerand the board of directors, to look after the condominiumand its buildings. In other words, to plan and oversee that the maintenance and upkeep of the company ensures that its value is maintained and that the company has adequate resources to do so. Good governance is recognised by the fact that the company has not accumulated repair debts, has been able to budget its income and expenditure with sufficient accuracy, and that it properly maintains a long-term plan covering at least five years.
The Finnish Competition and Consumer Authority has also commented on the issue, but although the list seems rather short, it is not. Under each heading there are quite broad categories.
If you are looking to buy an old home, seriously consider at least getting a Financial and Management Report.
Buying a new home
Housing in a new development is often quite abstract: there is usually nothing but a big pile of paper and pretty pictures, so “kicking the tires” is not really possible. In the case of a new property, there is no management, no renovation history and no financial statements. Of course there is a future outlook, but with a rather different emphasis than for older sites. At least for the first ten years.
Pre-marketing
The term ” pre-marketing ” is often used for new properties. This is the term used to describe a pre-marketing exercise, as the name implies, and it is only on the basis of the results of this exercise that a decision is usually taken to start construction. Typically, about half of the planned homes are booked. Often there is a cost (up to 4% of the planned purchase price), but this payment is not binding on either the buyer or the seller and either party can cancel the transaction without giving a reason. If the reservation is cancelled, the reservation amount is returned to the person who paid it without delay.
RS site
If the pre-marketing is successful and it is decided to proceed, the site can be linked to the RS system. RS stands for Recommended by the Advisory Council of MFIs. This scheme is designed to protect buyers of housing sold at the construction stage, as provided for in Chapter 2 of the Housing Act. Such a housing company covered by the protection scheme is referred to as a RS property in the sales advertisement.
For RS properties, the seller, i.e. the founding shareholder, must provide the buyer with the so-called security documents before the binding transaction. These include the articles of association, security certificates, house plan, documents relating to the property, building permit and permit drawings, construction and special works reports, and the building contract. In addition to these, the buyer should also check the background of the seller, at least in the business information system, which shows the company’s registry entries (pre-collection, VAT register, etc.) and how long the company has been registered.
If and when everything has been in order and you proceed to the conclusion of the transaction, it must be done in writing, with a comprehensive and comprehensive deed of sale, in accordance with the Housing Act and approved by the Consumer Ombudsman. Typically, about half of the purchase price of the shares to be bought is paid when the deed is signed. The remaining instalments are contractually due as construction progresses, so that the full purchase price is paid when the building is completed. If the reservation fee has been used, it will be taken into account as a partial payment of the purchase price. Ownership of the shares will be transferred to the buyer when the purchase price is paid in full. It is normally possible to pay the share of the company loan, if any, but only after the transaction has been completed, not at the construction stage.
Management of the housing company
During the construction phase, the company’s management is represented by a board of directors during the construction phase, usually consisting of representatives of the builder and/or developer, but possibly also of a representative(s) of the home buyers. Once the building is completed and the buyers have moved in, a transfer of management meeting, i.e. a general meeting, is held within a few months, at which the buyers take over the management of housing company. This meeting will also elect the company’s board of directors and auditors, among other matters to be discussed.
If a new home is what you’re looking for, here’s a good guide to the steps involved! So there are several steps in the whole process. So (again), find out in advance and if you don’t know how to do it yourself, get help from OUN by ordering at least a Document Verification Service well in advance.
