“I raised the issue at the shareholders’ meeting, and that’s how we slowly got started”, says Isto Kallio.
The housing company’s Board of Directors made a decision on the transfer before the list of shares was transferred. According to Kallio, no other steps were needed. The housing company’s list of shares and its information in the Trade Register were already up to date.
Not many changes have been necessary in the list of shares, as all shareholders have enjoyed their stay – Kallio himself has lived 25 years in the housing company.
Maintenance of data transferred to the authorities
Kallio has a long list of all the reasons why the housing company decided to transfer the list of shares. As one of the most important reasons, he mentions the maintenance of the list of shares and the registration of titles.
“The housing company benefits from the transfer of the maintenance of data to a reliable party, that is, the authorities. The list of shares is an official document, and the housing company is responsible for ensuring that everything is in order. The transfer of the list of shares also produces savings for larger housing companies, as the building management company no longer needs to maintain the list”, says Kallio.
Kallio also points out all the benefits that can be obtained when shareholders register their holdings in electronic systems. For example, apartments can more easily be used as collateral for loans, and no-one needs to worry that paper share certificates go missing.
The transfer provides housing companies with added security
The list of shares is transferred in the online transfer service of the National Land Survey of Finland (NLS). According to Kallio, the service was easy to use, and the website had exhaustive instructions.
“As housing companies transfer their data independently, every user will be in the transfer service for the first time. It was good that the data needed to be accepted step-by-step, and it was not possible to move on if the previous step had not been completed,” says Kallio.
According to Kallio, smaller housing companies should transfer their list of shares as soon as possible, because the transfer is free of charge and provides housing companies with added security. Kallio will register the ownership of his apartment through his own bank. According to Kallio, the registration fee is a small price to pay for security.
“Home is everyone’s most significant asset. It should be protected in every available way. I wonder why no similar system has been available before in Finland. After all, properties have been registered with the NLS for ages”, says Kallio.
The author is responsible for communication related to the Residential and Commercial Property Information System project.
The Residential and Commercial Property Information System in brief
- The national Residential and Commercial Property Information System is home to information on ownership, pledges and restrictions of housing company shares.
- The electronic register of housing company shares is maintained by the National Land Survey of Finland.
- The electronic register promotes access to data and the transfer of housing transactions to digital systems in Finland. This facilitates the activities of housing companies, building managers, real estate agents, banks and public organisations.
Schedule for transferring the list of shares
- By the end of 2023: Existing housing companies transfer their list of shares to the National Land Survey of Finland. After this, every shareholder must apply for the registration of their ownership and the cancellation of their paper share certificate from the National Land Survey of Finland.
- Existing housing companies include housing companies established before 2019.
- New housing companies will be registered directly in the Residential and Commercial Property Information System. New apartments have an electronic registration of ownership starting from their establishment, and no paper share certificates will be printed.
- New housing companies include housing companies established in and after 2019.