Property managers seek power to seize shares over unpaid charges

Finland’s Property Management Association is calling for housing companies to be allowed to take ownership of shares when an owner persistently fails to pay maintenance charges, Yle reports. The measure would be a last resort, intended to protect other residents from having to cover the unpaid bills.

The association says it is increasingly hearing from housing companies trapped by owners who do not pay. Existing options, including pursuing the debt through the courts or taking control of the property, do not always recover the money. An owner may be unable to pay because of bankruptcy or an unsettled estate.

The association also says some owners transfer shares with little or no value to nominee buyers who have no intention of meeting the payment obligations. The arrangement may be suspected when a new owner does not register the transfer and immediately stops paying charges. If the transfer is not recorded, the housing company may not know who to pursue for payment.

These cases are particularly likely in areas losing population, where commercial premises can be difficult to sell or rent. Yle has reported cases in Helsinki, Lappajärvi and Varkaus in which buyers disappeared after acquiring commercial units and left charges unpaid. In Varkaus, unpaid charges from a commercial unit contributed to an apartment housing company’s bankruptcy.

Under current law, a housing company can take control of a unit for up to three years, while the owner retains the shares. But if the unit cannot be rented, the measure does not cover the unpaid charges. Court collection may also fail if the shares have little value and the owner has no other assets.

Property Management Association legal specialist Sara Rintamo says repeated control decisions may still leave the company without the money owed. She says forced acquisition could allow the company to sell the unit to a new owner who pays charges. If no buyer can be found, the company could reduce costs by not having to maintain the unit.

The association says the proposed power would not be aimed at owners facing temporary payment difficulties, but at cases where non-payment is persistent and other measures have failed. A man mentioned in a Yle report about purchases of premises and properties told the broadcaster he had handled matters properly. He said he had sold the companies involved and that their current owners were responsible for their payments.