Olas builds small detached homes in prime locations across the Helsinki metropolitan area in accordance with the RS system. The RS system is designed to protect those who purchase a home while it is still under construction. For many buyers, the RS system and its related terms may be unfamiliar, so here we explain the most important points.

1. What does RS stand for?

RS stands for recommended by the Negotiating Delegation of Financial Institutions.

2. What is a housing company?

All RS homes belong to housing companies. The company owns the buildings and apartments. When you buy a home from Olas, you buy specific shares in the housing company, which entitle you to occupy your apartment. The highest decision-making power in a housing company lies with the annual general meeting of shareholders, which appoints the board. The board is responsible for administration, property and building maintenance, accounting, and financial oversight.

3. How is maintenance responsibility divided between the company and the shareholder?

According to the Finnish Real Estate Management Federation, the housing company is responsible for maintaining building structures, insulation, and essential systems such as heating, electricity, water, sewage, ventilation, and similar infrastructure (excluding fixtures like sinks inside apartments). The company is also responsible for the building’s exterior surfaces. The shareholder is responsible for the apartment’s interior—fixtures, equipment, finishes, cupboards, and furniture. Read more here: https://www.isannointiliitto.fi/mita-on-isannointi/asuminen-taloyhtiossa/taloyhtion-kunnossapitovastuu/

4. What does the RS system mean?

The RS system was developed to protect those who buy a home before it is completed. Legal safeguards required by Finnish housing law are set in place for the benefit of the buyers and the housing company. In practice, the founding shareholder—in this case Olas Group—arranges sufficient guarantees against bankruptcy and construction defects. This ensures the project is built as planned.

5. How large are the RS guarantees?

By law,when the purchase price is less than 70% of the debt-free price (as is typically the case with Olas homes), the guarantees are calculated from 70% of the debt-free sales price of the apartments sold. In practice, this works as follows: :

Construction phase guarantee is 7% of the debt-free price of sold shares. Valid for at least three months after the approved final inspection. Released after completion when the housing company’s board and buyers provide written consent.
Post-construction guarantee is 1.4% of the debt-free price. Valid for at least 15 months after the approved final inspection. Typically released after defects noted in the one-year warranty inspection have been corrected.

In addition to these, a performance bond taken out by Olas Group the developer-contractor is 25% of the contract price and is valid for 10 years. The insurance is in place in case hidden defects in the apartments appear only years later, but the responsible party, Olas Group, is insolvent.

6. How is the purchase price paid during construction?

Olas Group opens a designated account for purchase price payments. Buyers pay in installments according to a pre-agreed payment schedule as construction progresses. The final 1.4% of the debt-free price is deposited in an escrow account under the seller’s name and released about one month after handover, unless the buyer objects.

7. What is a housing company loan?

The purchase price is typically 30–40% of the debt-free price, while the remainder is covered by a housing company loan taken from the RS bank. The shareholder can either repay their debt portion monthly as part of the maintenance charge or pay it off in full, for example upon completion of the apartment. The purchase price, debt portion, and total debt-free price are always shown in the project’s price list.

8. What is an optional leasehold plot

Some Olas homes are sold on owned plots, where the housing company owns the land. Many, however, are sold on an “optional leasehold plot.” In this case, the housing company pays rent to the landowner, and shareholders pay their share as a land rent fee. The shareholder has the option to redeem their share of the land at a later stage, at which point the land rent payments end. This offers flexibility depending on how much a buyer wants to invest upfront.

9. Can the apartment price change during construction?

The buyer receives the planned apartment with a single contract and a fixed price. Buyers may choose to customize materials and fittings from Olas’s wide selection—some options may incur additional costs.

For owned plots, the land price does not change.For optional leasehold plots, if the buyer chooses to redeem the land share, the final redemption price is based on the cost-of-living index at the time of redemption. Ask your real estate agent or Olas for details.

The RS system provides strong security for buyers who purchase during the construction phase, ensuring that you receive your new home on a reliable budget. We are happy to answer any questions you may have!

Discover our apartments currently in pre-marketing and for sale here.

The RS System provides security for homebuyers