Bostadsrätt

Bostadsrätt is a form of housing tenure common in Sweden. In a bostadsrätt, the resident does not own the apartment outright. Instead, they buy a share in a housing cooperative (bostadsrättsförening, BRF) that owns the building and the common areas. The share gives the holder the right to live in a specific apartment and participate in the cooperative's governance.

Purchase and fees: To acquire a bostadsrätt, a buyer purchases a share from a previous member for a köpeskilling (purchase price). The buyer then pays a monthly avgift to the BRF, which covers operating costs, maintenance, interest on any loans, and often property management. The monthly fee can change over time depending on the cooperative's finances and required maintenance.

Rights and obligations: The holder has the right to inhabit the apartment and to participate in BRF decision-making through meetings and the board. Subletting or renting out the apartment usually requires board approval; renovations may be subject to restrictions in the bylaws. Members must pay fees on time and maintain the unit in a good condition.

Transfer and membership: When selling, the owner transfers the share to a buyer who must typically be approved by the board. The BRF may place conditions on new members to ensure financial and personal suitability.

Legal framework and distinctions: Bostadsrätt is regulated by Swedish law related to housing cooperatives and corporate governance. It is distinct from a rental (hyresrätt), where a tenant rents from a landlord, and from ownership of a freehold apartment with full property rights.

Risks and benefits: The arrangement can offer lower upfront costs and potential value appreciation, but carries ongoing fee risks and possible restrictions on subletting or major renovations.