Can a co-owner selling their flat get their share of the working capital back?
#Accounting management
#Working capital
Yes, a co-owner who sells their flat can recover their share of the working capital. At the time of the sale, the notary receives a series of documents from the building manager, including a document detailing the seller’s share of the working capital.
There are two ways for the seller to recover their share of the working capital:
- The building manager reimburses the seller for their share of the working capital. Then the buyer pays the same amount into the co-ownership account to cover their share of the working capital.
- The amount of the working capital due to the seller is added to the sale price of the flat. In this way, the seller recovers the amount he/she is owed and the buyer pays his/her share of the working capital, all in the purchase transaction.