Rejected by a Swedish housing association? You have 1 month to appeal
A refusal voids the sale and you get your deposit back. Within 1 month you can go to the rent tribunal. A bylaw demanding a set income has no effect.
You have won the bidding and signed a contract for a two-room flat at SEK 2,800,000. The flat is still not yours. The housing association ("bostadsrättsförening") must first accept you as a member. If the board says no, the Swedish Housing Cooperatives Act ("bostadsrättslagen") makes the sale void.
The membership check is one of the steps between the purchase contract and moving in.
The board decides, the bylaws set the rules
The association's board decides on new members. It must follow the association's bylaws ("stadgar") and the act. The main rule favours the buyer. The association may not refuse you if you meet the conditions in the bylaws and it should reasonably accept you as the holder of the flat.
The act also limits what bylaws may demand. A condition that requires a certain income, wealth or citizenship has no effect. The association may also not let an outsider pick or approve the buyer.
What associations usually check
The check is mostly about money. The association wants to know that you can pay the monthly fee. Many associations run a credit check and ask about your income or job.
The association may not demand a set income, but it may weigh whether you can pay the fee. If your income is low, a mortgage pre-approval ("lånelöfte") and an employment certificate can show that you can afford the fee.
Some associations have extra conditions in their bylaws. One example is a rule that members must live in the flat. Another is a minimum age in senior housing.
The Swedish Discrimination Act ("diskrimineringslagen") bans discrimination by anyone who provides housing to the public. So the association cannot turn you down because of your ethnicity or religion, for example.
When the association has more room to say no
Two situations give the board more freedom:
- You buy through a company. A legal entity can be refused membership even if it meets the bylaws. A municipality or a region cannot be refused.
- You buy only a share. Say you and a friend buy half each. A buyer of a share can be refused unless the bylaws say otherwise. This does not apply to spouses or cohabiting partners who own the flat together.
An example with a shared purchase
Anna and her friend Sara buy a three-room flat for SEK 3,600,000. They own half each and do not live together as a couple. The association's bylaws say nothing about buying shares. The board may then refuse them, even if both have sound finances.
Had Anna and Sara been cohabiting partners under the Swedish Cohabitees Act ("sambolagen"), the main rule would have applied instead. The association would then have had to accept them, if they met the bylaws and should reasonably be accepted.
If the answer is no
If you are refused, the transfer is void. The sale is then unwound. You should get your deposit back and the seller keeps the flat. That holds even if you have already given notice on your current home.
You can appeal. Within one month of the day you received the decision, you can take the dispute to the regional rent tribunal ("hyresnämnden"). The tribunal decides whether the association had the right to refuse you. If you miss the deadline, the decision stands.
How to lower the risk
- Read the bylaws before you bid. The estate agent can give you a copy. Look for conditions about living in the flat, age or buying a share.
- Send your membership application early. The sooner the board has it, the more time there is before you move in.
- Have your papers ready. A pre-approval, an employment certificate and your latest payslip answer most questions.
- Ask before an unusual purchase. Are you buying with someone you are not married to or living with, or buying for a child? Ask the association how it views that before you bid.
Sources
This content is general information, not financial or legal advice. Bolån Radar collects data from banks and authorities and cannot guarantee that it is complete or free of errors. Talk to your bank or an adviser before you decide.