Company share apartments are a unique form of ownership arrangement where the owner doesn’t technically own an estate in land, but owns shares in a company that directly owns the land and building.
Once shares in the company have been purchased, the owner is entitled to occupy the apartment under an agreement called either an “Occupation Right Agreement” or an “Occupation Licence”.
The company that owns the building will usually share a name with the apartment building. It won’t trade anything, be listed or float on the stock exchange. The directors of the company will be made up of some of the “owners” of apartments in the building. In this context, “owners” refer to those occupying the apartments pursuant to an occupation agreement. All owners are shareholders.
Why do they exist?
Company share apartments are popular for owners who wish to occupy the apartment and have a say in how the building is run.
Potential purchasers will usually have to be approved by the company in order to purchase shares. This gives residents more of a say in who they live with, contributing to more of a community feel than most apartment buildings.
Company share apartments are usually cheaper to purchase and their price may not be as influenced by fluctuations in the property market as more traditional types of property ownership.
What else do I need to know?
If you are considering purchasing a company share apartment it will be important to consider a number of things that won’t often apply to other types of property purchases:
Do your due diligence
If your new dream home is a company share apartment there are a few more things that you need to consider – but like any big decision in your life, you just need to know all the facts first.
Having an experienced and helpful legal property specialist to help you along the way will put you in the best possible position to make the right choice for you.
If you’re looking to purchase home or property of any kind, give us a call today. We can help your transaction run as simply and smoothly as possible. You can find us on 04 970 3600 or at email@example.com