''Borettslag'' is the
legal entity
In law, a legal person is any person or 'thing' (less ambiguously, any legal entity) that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for ...
for
housing cooperatives in
Norway
Norway, officially the Kingdom of Norway, is a Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of Jan Mayen and the ...
. The company is owned by those who live in the cooperative, the partholders. Each part gives the right to live in the cooperative, and thus in a particular apartment or house. A partholder is free to sell their part, but the cooperative
statute can give internal
first refusal
Right of first refusal (ROFR or RFR) is a contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transactio ...
. The ''borettslag'' owns the buildings and ground the buildings are on. The highest authority in the cooperative is the
Annual general meeting that elects the
board of directors, who are responsible for daily operations.
Usually a large share of the
construction costs of the property is financed through common
debt
Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. The ...
, that is issued to the cooperative, and not to the individuals. This debt, along with the costs to cover running the grounds, is charged to the owners as
rent
Rent may refer to:
Economics
*Renting, an agreement where a payment is made for the temporary use of a good, service or property
*Economic rent, any payment in excess of the cost of production
*Rent-seeking, attempting to increase one's share of e ...
. Some cooperatives are members of a
housing association
In Ireland and the United Kingdom, housing associations are private, Non-profit organization, non-profit making organisations that provide low-cost "Public housing in the United Kingdom, social housing" for people in need of a home. Any budge ...
, which again are members of the
Norwegian Federation of Co-operative Housing Associations. Previously only housing associations could create cooperatives, but now this right is also granted to commercial developers, who often create smaller cooperatives.
{{Norwegian type of company
Types of companies of Norway
Housing cooperatives in Norway
no:Borettslag
nn:Bustadsamvirket