Buying an apartment in Denmark – 9 typical points to focus on

1. Remember to read the sales presentation closely. It contains important information on things such as existing debts, the property’s conditions of insurance, security for the owners’ association, outstanding loans that can be taken over or form the basis for refunding registration fees etc. Information in the sales presentation is required to be accurate, meaning the seller may be held liable for any false/incorrect information stated in the listing.
2. Familiarize yourself with the finances and operations of the owners’ association. Is it a healthy owners’ association? Are there any future property maintenance projects? Has a condition report and/or maintenance plan been compiled for the property?
3. Do the articles of owners’ association contain provisions that may limit your right of disposal regarding the apartment e.g., provisions that prohibit the keeping of pets, restrictions relating to subletting and/or letting of the apartment, provisions on the number of people who may occupy the apartment etc. In addition, you should investigate liability for the owners’ association’s loans, security for the owners’ association and who within the owners’ association must maintain and replace pipes, windows etc.
4. Do you wish to inspect the apartment together with a contractor or construction expert? The buyer should note any visible defects discovered during a showing or inspection prior to purchase and can otherwise have difficulties in complaining of faults that could have readily been seen prior to purchase. Buyers generally have difficulties in complaining of faults and defects that are below approx. DKK 6,000 per damage. Be aware that for apartments, a condition report and electrical installation report is typically not prepared as it would be when purchasing a house. Remember therefore to inspect doors, windows, bathrooms, floors, electrical installations etc. thoroughly.
5. Do you know the content of the registered easements on the property? An easement is a restriction/limitation for the homeowner with respect to the right of disposal over a piece of real estate. This may, for example, be a leasehold, repayment of subsidies in connection with urban renewal works, an obligation to pay additional purchase sums in connection with the subway system etc.
6. Are there recessed ceilings in the apartment? If this is the case, you should consider having an electrician or construction expert inspect the electrical installations above the ceilings to see if these are legal. Recessed ceilings can cover illegal installations which can be expensive to repair and difficult to raise a compliant on.
7. Make sure any verbal agreements are written into the purchase agreement. As a buyer, it is you who bears the burden of proof.
8. Talk to an independent buyer’s agent who can guide you through the purchase process from start to finish. Remember, the real estate agent is the seller’s representative, while the buyer’s agent is the buyer’s representative.
9. The purchase agreement should always be conditioned on the approval of your bank and buyer’s agent. (bank- og rådgiverforbehold). This way you can always free of charge withdraw from the transaction, if your bank and buyer’s agent cannot approve your financials or the agreement