Buying a property

No purchase without signatures

A purchase of real property is made by a purchase deed signed by the seller and the buyer. It must state the price and contain the seller's declaration that the property passes to the buyer. A purchase that lacks any of this is void (chapter 4, section 1).

That is why neither a verbal yes, an e-mail nor a bid binds anyone – only the signatures do. If the parties have agreed a different price on the side, the price in the deed applies and the side agreement is void (chapter 4, section 1, second paragraph).

Conditions – for example that the purchase stands only if the buyer gets a loan – must be in the deed to be valid (section 3), and may not run for more than two years from the deed (section 4).

When the property is defective

If the property does not match the agreement, or differs from what the buyer could reasonably expect, the buyer may claim a price reduction or – if the defect is material – rescind the purchase. The buyer is also entitled to damages if the defect is due to the seller's negligence or if the seller promised something that was not true (section 19 with section 12).

A decision by an authority that denies the buyer the use of the property she had reason to expect is treated the same way (section 18).

From the law

«Som fel får inte åberopas en avvikelse som köparen borde ha upptäckt vid en sådan undersökning av fastigheten som varit påkallad med hänsyn till fastighetens skick, den normala beskaffenheten hos jämförliga fastigheter samt omständigheterna vid köpet.»

The duty to inspect

The buyer cannot rely on a defect she ought to have discovered in an inspection that was called for by the property's condition, what comparable properties are normally like and the circumstances of the purchase (section 19, second paragraph). This is the Swedish buyer's duty to inspect (undersökningsplikt).

In practice: go through the house carefully, ideally with a surveyor, read the documents and follow up every warning sign. The estate agent must tell the buyer in writing about the duty to inspect and encourage an inspection before the purchase (Estate Agents Act, chapter 3, section 12).

Hidden defects and time limits

A defect that could not be found in such an inspection is usually called a hidden defect (dolt fel). The seller answers for it under the rules above unless something else was agreed – the parties may limit the seller's liability in the deed.

The buyer must notify the seller within a reasonable time after she noticed or ought to have noticed the defect (section 19 a). The claim is time-barred ten years after the buyer took possession, unless the limitation is interrupted (section 19 b).

Contract, deposit and bill of sale

Usually a purchase contract (köpekontrakt) is signed first, when the buyer pays a deposit, and on the completion day a bill of sale (köpebrev) when the full price has been paid. The bill of sale is the receipt needed to apply for registration of title.