Is the cooperative right to a dwelling subject to execution?

A cooperative right to a flat is an enforceable right. We can distinguish two types of this law:

Cooperative ownership right to a dwelling - is very similar to the ownership right known to us, and thus, the owner can dispose of it as the owner, in particular: rent a flat, sell it, mortgage it without obtaining the consent of the housing cooperative. Under the Civil Code, it constitutes a limited property law.

Co-operative tenants' right to a flat - in this case, the owner has a limited ability to dispose of his right, although he may use the flat, he cannot sell it or encumber it. It is also not an inherited right.

Cooperative right to a flat - execution

Enforcement of cooperative ownership rights is carried out in accordance with the provisions on enforcement against real estate. It is worth looking at the regulations contained in the Code of Civil Procedure contained in Art. 982 of the Code of Civil Procedure Pursuant to this provision, if no person has entered the auction for a cooperative ownership right to a flat, a cooperative right to a business premises or the right to a single-family house in a housing cooperative, the mortgagee is entitled to take over this right for a price not lower than 3 / 4 sum of the estimate. The mortgagee should submit such an application within one week of the auction. It is important that the mortgagee is entitled to this right also after the second unsuccessful auction. The above-mentioned Art. 982 of the Code of Civil Procedure enabling the acquisition of the cooperative ownership right to the premises after the first unsuccessful auction should be treated as an exception, the purpose of which is the possibility of a more effective enforcement sale of the cooperative ownership right to the premises, bearing in mind that such an application may also be submitted after an unsuccessful second auction.

The cooperative right to a flat and the tenant's cooperative law

The situation of the holder of the cooperative tenant law is different. Pursuant to the Act on Housing Associations, this right is not subject to enforcement, so the creditor in this situation cannot satisfy his claim from the right to the premises established for the debtor. However, this does not necessarily prevent the creditor from claiming his rights. The Cooperative Law Act allows for the possibility of directing enforcement to the housing contribution made by the holder. As a reminder - in order to be able to establish a housing cooperative right to the premises at all, it is necessary to make a housing contribution. The condition for the seizure of the aforementioned housing contribution is the exhaustion of the possibility of enforcement against other components and property rights of the creditor. In other words, it is a last resort. Unfortunately, despite the existence of such a possibility, in practice it is not a frequently used solution, because the creditor may satisfy his claim using the housing contribution only after the expiry of the right to the premises (as a result of death, termination, deletion or exclusion of a cooperative member).