Apartment mortgage

In the majority of homeowner associations, the articles of association contain a clause regarding members' surety for payments to the homeowners association. Read more under 'Articles of association and house rules'.

Surety can be established in many ways, but in most cases it is done in the form of issuing a mortgage deed for the amount owed by individual members, or the owner association’s articles of association are registered for the deed of surety.

In a few cases, surety can be made in the form of a letter of indemnity, or the deed can be registered for the deed of surety.

Change of ownership

On change of ownership the mortgage shall pass to the new owner, and the land registry-related processes are generally undertaken by the settlement lawyer.

The surety is normally an amount equal to at least one year of contributions to the homeowners association.

If you are selling your unit, it is important that you inform the real estate agent of this issue.