Share in a housing cooperative

The Supreme Court ruled in its judgement No. 27 Cdo 51678/2017 of March 2018 in a case concerning the determination of the settlement share of a housing cooperative.

The resigning member of the housing cooperative is entitled to the payment of a settlement share.

The Supreme Court stated in his judgment that, considering the main purpose of a housing cooperatives and their participation in them, it is assumed that the settlement share resulting from the termination of the membership in a housing cooperative corresponds to honesty. When assessing the value of the share of a housing cooperative, the current market value of the share of the former member should be considered, with which the right to rent a housing cooperative unit is connected, in particular regarding to the prices of housing units in that location are traded and their properties correspond to the rented housing cooperative unit. A share which is priced to a fraction of the current market value, irrespective of how the statute of the housing cooperative is determined, would be unacceptable.