Words and terms that are useful to know when buying or selling a home, or if you are a member of a housing cooperative.
annual fee, a fee paid by members to cover shared costs in a housing cooperative, such as maintenance, repairs, heating, waste management, and interest expenses
annual report, a report presenting the housing cooperative’s financial results and position
annual general meeting, the yearly meeting for members of a housing cooperative
apartment, a rental or cooperative apartment within a housing cooperative
as-is clause, a contractual term allowing the seller to limit liability for defects discovered after the sale
assessed value for taxation, a value used to calculate property tax; typically set at around 75 percent of the property’s market value
atrium (internal courtyard), an enclosed courtyard within a building
balance sheet, a statement of a housing cooperative’s assets and liabilities at a specific point in time
bidding process, occurs when multiple buyers compete for the same property; typically the highest bidder wins
board member, a person elected by members to serve on the housing cooperative’s board
bridging loan, a temporary loan used when moving into a new home before receiving funds from the sale of the previous one
bylaws, the rules that members of an housing cooperative must follow
cash flow statement, a report showing the housing cooperative’s incoming and outgoing payments
capital contribution, an additional contribution paid by members if the housing cooperative has financial difficulties or for other reasons, such as reducing long-term debt or buying out a land lease
cooperative apartment, a form of housing where members of a housing cooperative have the right to occupy a specific unit
cooperative apartment insurance, insurance that covers interior surfaces and fixed fittings in the apartment
cohabitation agreement, an agreement that overrides default cohabitation law, for example by specifying how assets should or should not be divided
cohabitation law, laws governing the rights and obligations of cohabiting partners, including what happens if they separate
cohabiting partner (live-in partner), two people living together in a relationship and sharing a household
cohabitation property (shared household property), a home acquired for joint use and household items such as furniture and appliances intended for shared living
combined toilet and shower (stockholmsdush in Swedish), a shower installed in the same space as the toilet, typically directly above it
completion date (possession date), the date when you receive the keys and formally take ownership of a property
courtyard-facing entrance, an apartment with its entrance located in the inner courtyard
credit report, a summary of your personal finances, including loans, payment remarks, credits, and income history
creditworthiness, the ability to repay debts
debt-to-income ratio (DTI), total household gross income in relation to mortgage debt
deposit, paid in advance as security for the seller, typically 10 percent of the purchase price
disposable income calculation, a calculation used by banks to assess how much a household can afford to borrow when buying a home
down payment, the portion of the purchase price that cannot be financed with a mortgage; typically at least 10 percent
duty to disclose, the obligation to inform about any defects or shortcomings in the property; the seller does not have an automatic duty to disclose
duty of disclosure, the real estate agent is required to disclose any information they are aware of that may be relevant to the buyer, even if it could affect the property price
duty to inspect, the buyer’s responsibility to examine the condition of the property before purchase
easement, the legal right for one property to use another property, for example access to a road, well, or jetty
effective interest rate (APR), the total cost of a loan, used when comparing interest costs between different lenders
energy performance certificate (EPC), information about a property’s energy consumption
equity ratio, a measure of the housing cooperative’s financial strength
floor plan, a description of how the living space in a property is laid out
financial institution, e.g. banks, credit market companies, investment firms, and insurance companies
fixed-rate period, the period during which your loan has a fixed interest rate; typically from 3 months to 10 years
fixed interest rate, an interest rate that remains unchanged regardless of market fluctuations
gross income, income before tax
ground floor, the lowest level in a building, but not a basement
ground lease, means that someone else, often the municipality, owns the land and leases it to the property owner for a long period; the property owner pays a ground rent for the right to use the land
guide price, the lowest price the seller is willing to accept
housing association (pre-cooperative form), an older form of housing association that existed before the introduction of cooperative housing law in 1930
housing cooperative, the legal entity that owns the property; residents are members rather than direct owners of their apartments
hidden defect, a defect that existed in the property at the time of purchase but could not be discovered even with a thorough inspection
income statement, a statement of income and expenses
interest rate, the price you pay to a bank to borrow money
investment fund, a way to save and invest money; it pools different types of securities, and investors hold shares in the fund. The value can go up or down, and past performance is not a guarantee of future returns
land lease, a rental agreement for land and/or a building
legal entity, a company or organisation that owns a property; if many units in a housing cooperative are owned by legal entities, it is sometimes referred to as a non-genuine housing cooperative
liability undertaking, an obligation to take responsibility for a specific commitment, for example when an association acts as a guarantor
liquidity, the association’s ability to meet short-term financial obligations
loan application, a request submitted to a bank to obtain a loan
long-term liabilities, debts that extend over a long period, such as a mortgage
load-bearing walls, structural walls that form part of the building’s framework and must not be removed
loan repayment, the amount you pay off on your loan
loan-to-value ratio (LTV), the size of your mortgage in relation to your property’s market value
maintenance fund, funds set aside by the housing cooperative for future repairs, as regulated in its bylaws
maintenance plan, a long-term plan for the upkeep of a property
management report, an overview of the housing cooperative’s operations, financial position, and results over a given period
member capital contributions, the initial capital contributions paid by the first members of the housing cooperative
mortgage, a loan secured against a property
mortgage deed, a legal instrument used as collateral for a mortgage on a house; it follows the property when sold at no cost to the new owner. If you need to borrow more than existing mortgage deeds cover, new ones must be issued, typically subject to a fee of 2 percent of the new amount plus an administrative charge
mortgage interest tax deduction, a tax deduction for mortgage interest payments, reducing the amount of tax you pay
mortgage pre-approval, a statement that a household has the financial capacity to purchase a property up to a certain price
motion, a proposal submitted to the general meeting
open house, a property viewing without prior registration
open-plan layout, a home with few or no internal dividing walls
operating costs, total ongoing costs, such as electricity, water, and heating
ownership share, each unit in a housing cooperative has a share that forms the basis for distributing the association’s annual fees
pledged assets, for example mortgage deeds used as security for a debt
power of attorney, allows someone else to sign a contract on your behalf
price base amount, an index used to adjust certain payments in line with economic conditions; also referred to as the base amount
private viewing, a viewing held before the official open house, often giving early access to purchase
promissory note, a written agreement stating that a person or company owes money
property inspection, an examination of the home to identify any defects
purchase agreement, a contract outlining all details of the transaction, such as price, completion date, deposit, and other terms
purchase price, the final price the buyer pays for the property
real estate agent, hired by the seller to handle the sale; has a duty to consider the interests of both the seller and the buyer
real estate loan, a loan secured by a property as collateral
recourse agreement, an agreement regulating repayment responsibility between two or more borrowers
registration of ownership, legal proof of ownership when buying a house; the application is submitted to the land registry authority. A stamp duty is payable, typically 1.5 percent of the purchase price or the assessed value—whichever is higher—plus an administrative fee
rental apartment, a form of housing where you rent a property and pay monthly rent
return, what you earn from an investment or transaction
right of use, the legal right to use something owned by someone else
security deposit, money paid as security during the rental period; it is returned to the tenant at the end if the property is in acceptable condition
share, a way to invest money and an ownership stake in a company; its value can go up or down, and past performance is not a guarantee of future returns
sleeping loft, a bed placed above floor level to allow space underneath
stress interest rate, an interest rate used by banks to assess whether you can afford a mortgage
subletting, renting out your apartment without living in it yourself
stucco, decorative ceiling and wall details made of plaster
Tenant-Ownership Act, the law governing housing cooperatives and tenant-ownership rights, including rules on membership, transfer, and financial plans
three-month variable interest rate, often referred to as a variable rate; reset every three months
transfer fee, a fee charged in connection with the transfer of ownership of a cooperative apartment, covering the association’s administrative costs