Is it okay to have multiple condos and what should you keep in mind when buying a condo through an executive sale?

Hi, We are planning to buy right to live in another brf, but want to keep the exisitng appartment. Are there any laws prohibiting that? Also the new appartment we want to auction from kronofogden, are there any special cases which we should keep in mind.

Lawline svarar

Hi, and thank you for contacting Lawline! 

My interpretation of the phrase “right to live in another brf” in this situation is that you refer to a “bostadsrätt”. With this, I believe that you mean a tenant owned apartment within a brf. Brf is short for “bostadsrättsförening”, and in English, the word “bostadsrättsförening” would translate into tenant owner’s association. However, I will be using your vocabulary in my answer and so when I refer to such an association in this text, I will be using the word “brf”. Moreover, I will in the following use the word condo to refer to a tenant owned apartment within a brf.

I understand your question as you wondering if it is okay to buy another condo in a different brf and at the same time keep the condo you already have. Additionally, I understand it as you wondering if there is anything specific you need to keep in mind when buying a condo at an auction from Kronofogden.

I am going to try my best to try and answer your questions and in order to do so I will be using some legal rules from bostadsrättslagen (BRL), utsökningsbalken (UB) and förvaltningslagen (FL).

There is no law prohibiting you from having multiple condos
The short answer to your first question is that there is no law prohibiting you from buying another condo in a different brf when you already have a condo elsewhere. The law sets no limit as to the number of condos you can have and so you can have two at the same time.

However, there are some things that are worth mentioning in connection to this. In order for you to be granted the condo, you have to be a member of the brf (1 kap. 3 § BRL). The brf itself is responsible for setting up the criteria for becoming a member (2 kap. 1 § BRL). Therefore, it is important to check with the brf first, so that you are able to become a member according to their criteria. Otherwise, it will be hard for you to access the condo.

When buying property from Kronofogden, it happens through an executive sale
You mention that you want to auction the new condo from Kronofogden. When buying something from Kronofogden it occurs through a kind of auction, which is generally called an executive sale. The reason why property is sold through this kind of executive sale/auction is to pay off someone’s debts (see 8 kap. 1 § UB and Kronofogden’s homepage). 

There is very good information on Kronofogden’s homepage describing how an executive auction for a condo is conducted, including all the steps of the process and good things to keep in mind. I recommend that you read it, but I believe that it is only available in Swedish. If you want to translate it into English, I recommend that you use some other translation software. You can find the information here.

You have to look for deficiencies
Nevertheless, I will now try to summarize and pinpoint the most important things that can be found in the mentioned information given by Kronofogden on their homepage.

To begin with it is important to know that the condo is sold as is at the time of the auction. Therefore, as a buyer you have a vast obligation to investigate the condo in order to find any deficiencies. The condo is only being shown to potential buyers once prior to the auction so it is important to look closely for deficiencies during this time.

The auction takes place in person, and you must pay a share of the price immediately
Moreover, the auction takes place physically at a Kronofogden office. The main principle is that you need to participate in person. Although, there is the possibility to send someone else to represent you or to be present at a different Kronofogden office and participate by phone from there.

If your bid is accepted at the auction, it is important to note that you need to pay in general 10 % of the purchase price immediately. The rest is to be paid later.

Anyone affected by the sale can appeal
Kronofogden is a central authority, which means that all their decisions can be appealed by anyone who has been more directly affected by it, given the decision has been to this person’s disadvantage (see regarding this 41 § FL and 42 § FL). A sale of a condo at an executive auction can therefore be appealed. Should someone appeal Kronofogden’s decision to sell the condo, the purchase could be annulled by the court and so you could lose your right to the apartment. In that case, you are still entitled to your money back.

After the auction, you need to apply for membership with the brf
Relating to what I wrote above concerning the fact that you need to be a member of the brf, I would like to stress that you need to apply for membership immediately after the auction. It is your responsibility to make sure that you are a member, so that you can get access to the condo.

When having bought a condo through an executive sale, you can find a specific form on Kronofogden’s homepage, which can be used to apply for membership with the brf. This form can therefore be helpful for you. However, it does not mean that you are automatically accepted as a member just because you use the form. You still have to meet the criteria given by the brf.

Should you be denied membership by the brf, they have an obligation to buy out the condo and give you reasonable compensation for it.

I hope you feel like I have been able to give you satisfactory answers to your questions. Should you have any other questions, you are more than welcome to contact us at Lawline again!

Best regards,

Hugo Wejsfelt BorellRådgivare
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