borettslagsloven

Borettslagsloven, or the Housing Cooperative Act, is the Norwegian legal framework that regulates the creation, organization, and operation of borettslag (housing cooperatives) in Norway. The act applies to cooperatives that own residential buildings and allocate exclusive use of dwellings to their members, who hold shares in the cooperative.

A borettslag is a corporate entity that owns the building and the land, while the residents acquire shares that confer the right to occupy specific dwellings. The cooperative’s governance is based on by-laws and statutory provisions, with the annual general meeting as the highest decision-making body. The board is elected by the members and is responsible for day-to-day management, while an auditor or supervisory body reviews the accounts and activities to ensure transparency and accountability.

Key rights and obligations concern membership and transfers. Members hold shares that give the right to live in a particular dwelling and to participate in decision-making. Shares are generally transferable, though the board may have guidelines or approval processes for new members. Members are responsible for paying felleskostnader (common costs) and, if applicable, fellesgjeld (shared debt) incurred by the cooperative for its operations and financing.

Financial management is governed by annual budgets, accounting, and reporting requirements. Cooperatives must maintain adequate financial reserves, manage maintenance and capital repairs, and plan for long-term sustainability. The act also covers the handling of major renovations, changes in ownership structure, dissolution, and distribution of assets upon dissolution.

Borettslagsloven interacts with other Norwegian housing and property laws, including regulations on ownership forms, planning and building, and consumer protections, to provide a cohesive framework for housing cooperatives.