Accounting and management for housing co-operatives and jointly owned property – what applies?

A housing co-operative has to prepare annual accounts whatever its size and has to have an auditor. For jointly owned property the line runs at 21 units: those above it follow the Accounting Act and need an auditor, while smaller ones still have to keep «proper and sufficient accounts» and present last year's accounts at the annual meeting. The board's responsibility does not disappear when the accounts are outsourced.

Co-operatives and jointly owned property have different requirements

A housing co-operative (borettslag) is a co-operative where the company owns the property and the member owns a share giving the right to use a particular home. Co-operatives are subject to the Accounting Act, and so to bookkeeping obligations, and they have to have an auditor. For jointly owned property (eierseksjonssameie) an important line runs at 21 units. Section 64 of the Ownership Units Act says the board has to ensure «proper and sufficient accounts» and present the previous calendar year's accounts at the ordinary annual meeting – and that properties with 21 or more units also have to keep accounts under the Accounting Act. Section 65 requires an auditor for those same properties. A small jointly owned property therefore is not subject to the Accounting Act merely because it is a jointly owned property – but it still has an accounting obligation under the Ownership Units Act. The two are often confused. A small property can also become subject to bookkeeping obligations for other reasons, such as carrying on activity requiring a tax return or a VAT return.

One thing to settle about the directors' report

The Accounting Act was amended in 2024, so that as a general rule only medium-sized and large entities have to prepare a directors' report – see The year-end close step by step But section 64 of the Ownership Units Act mentions a directors' report expressly for properties with 21 or more units, while also referring to the Accounting Act. The relationship between that specific provision and the Accounting Act's new size rule should therefore be settled for the particular property, not assumed. It is a cheap thing to check in advance, and an expensive one to get wrong.

What does an accountant or managing agent do?

Financial management covers more than day-to-day bookkeeping: collecting the shared costs, chasing arrears, handling supplier invoices, bank reconciliation, payroll and directors' fees, budgeting, liquidity monitoring, public reporting and the annual accounts. A managing agent can in addition handle larger parts of the administration. In a jointly owned property the board can also delegate parts of its decision-making authority to a managing agent, within the limits of the law and the delegation. That is wider scope than many boards realise – and it should be limited in writing.

The board's responsibility does not disappear

In a co-operative the board has to run the business in accordance with the law, the articles and the general meeting's decisions. In a jointly owned property the board has to see to the maintenance and operation of the property and manage its affairs. An external accountant can carry out the tasks, but the board has to follow up that they are actually done. That applies to filing the annual accounts too: the Brønnøysund Register Centre emphasises that the board is responsible even where an accountant or auditor handles the practical filing. The same applies to third-party information – Skatteetaten says expressly that the duty sits with the board, even where a managing agent reports on the property's behalf. See The board's financial responsibility

Shared costs and the statutory charge

The shared costs fund the day-to-day running and can cover insurance, municipal charges, maintenance, interest, loan repayments and shared services. Non-payment should be followed up early. Under section 5-20 of the Housing Co-operatives Act the co-operative has a charge over the share ranking ahead of all other encumbrances for claims for shared costs and other claims arising from membership. The charge cannot exceed twice the National Insurance basic amount, and the Act specifies that it is the basic amount at the time enforcement is ordered that applies. With G at NOK 136,549 in 2026, 2 G is NOK 273,098. There are deadlines for asserting the charge, so arrears should not be left. Jointly owned properties have equivalent rules on a statutory charge. See Budgets and shared costs

Accounting and tax are not the same

For co-operatives meeting the conditions in section 7-3 of the Taxation Act, a share of the income, costs, wealth and debt is assessed on the members rather than the co-operative being taxed as a company. Ordinary jointly owned residential property is normally not a separate taxable person for its shared income and wealth – the amounts are allocated to the unit owners. There is a separate reporting threshold here that must not be confused with the accounting obligation: residential properties with 9 or more units have to provide third-party information to Skatteetaten about the owners' shares of the shared income, costs, wealth and debt. Note that 9 and 21 are two different thresholds for two different duties. A property with 12 units has a reporting duty to Skatteetaten but is not subject to the Accounting Act.

Good internal control reduces the risk

Housing companies often manage substantial sums, and there should be clear routines for who can order goods and services, approve invoices, authorise payments and operate the bank accounts. Two-stage approval of payments, regular bank reconciliations and a clear division of work between the board and whoever keeps the accounts are examples of good controls. The board should be able to see the bank balance, outstanding shared costs, actual costs against budget and any major variances on a continuing basis – and receive periodic reports, not just annual accounts in May.

Changing accountant

A change should be planned so that the accounts and the reporting continue without a break. The new accountant should receive a complete, reconciled opening balance, the general ledger and subledgers, the necessary historical documentation, the relevant agreements and access to the systems and public services the engagement covers. At the same time old bank authorisations, system access and digital authorisations should be reviewed and removed. What matters most is settling who handles the tasks falling around the changeover date. A missing a-melding, VAT return, payment or filing otherwise falls easily between the old provider and the new – see Switching accountant Greenleaf helps housing co-operatives and jointly owned properties with the accounts, continuing financial monitoring, reporting and the year-end close, and can take over from an existing accountant in an orderly way.

This is general guidance, not advice on your specific case. Deadlines, rates and amounts change – always check the current rules, or get in touch with us.

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