Step-by-step Procedure of Real Estate Transactions in Sweden

Citizens of any country have the right to purchase real estate in Sweden for an individual or legal entity. There are restrictions only on the purchase of agricultural land and plots in protected areas. Otherwise, the choice is wide - from residential real estate to commercial space, including land for development.

At the same time, keep in mind that there are two main forms of ownership of real estate in Sweden:

• Private property. As a rule, detached houses with land plots and townhouses are registered as private property. In this case, you own the building and the area under it with the whole responsibility. In 2009, a law was passed that allows you to register properties in apartment buildings as private, but there are still only few examples on the market.
• Cooperative property. Most apartments in Sweden are co-operative. By buying a share in a condominium, you buy the right to use the property, while all public areas remain in the common ownership of the members of the residents, who decide at the meeting how to operate the property. The charter of the cooperative may contain restrictions, for example, on renting. Therefore, before the transaction, it is recommended to check the rules of living in the cooperative, as well as with the financial documents of the partnership.

Foreigners in Sweden, regardless of their citizenship and tax residence, together with the rights to real estate, receive obligations for the maintenance of property and payment of annual taxes. Also, if you rent out Swedish housing, then you pay income tax to the Swedish treasury.

Ownership of real estate in Sweden does not qualify for a residence permit or citizenship. If your goal is immigration, then buying an apartment, regardless of its cost, will not solve the problem. But there is a popular option, such as opening a business in Sweden.

Örebro, Sweden

Decide on the location, study the offers and calculate in advance how much you are ready to allocate for the purchase of real estate, taking into account additional costs.

Stage 1. Participation in the auction

After you have chosen the property and agency, it is time to take part in the auction.

In Sweden, demand significantly exceeds supply, so apartments are put up for auction (budgivning). They are closed when buyers make offers and wait for results, and open when they can see other people's offers and raise bids. During the auction, the initial price can be increased by 20-30%.

Trades are conducted by phone through a broker. Sellers begin to communicate with the buyer only during the transaction when signing the contract. Remember that the seller can refuse, if they are not satisfied with the proposed price.

Stage 2. Conclusion of the contract

Immediately after the auction, two contracts are concluded.

• A contract with the seller, where the price and all the terms of the transaction are fixed.
• A contract with a realtor for the provision of services. This requires the presence of two witnesses.

At the same stage, a deposit of 10% of the agreed price is made. The reasons for refusing the transaction must also be specified.

Usually, the contract of sale is concluded in a very short period of time within a few days after. From a bureaucratic point of view, everything is simple for a foreign buyer: only a passport and money are required.

After making a deposit, it is recommended to conduct an expert examination of the property. It is better to know in advance whether there are any malfunctions in the supply systems and whether repairs are required. The examination will help you get compensation for troubleshooting or terminate the contract without losing money.

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Stage 3. Property registration and final settlement

After all inspections, the buyer pays the remaining amount and fixes the rights after themselves. The remaining amount is sent by transfer to the seller's bank account, the agent's guarantee account or transferred in cash. The latter is rarely practiced.

To register the rights to the purchased property, you must submit all documents to the National Land Cadastre. Before that, you have to pay an administrative fee and a tax on the purchase of real estate.

Registration is carried out within three months, since the process involves the Committee on Taxation, the Committee on Land Management and the registration organization at the Court of General Jurisdiction. As a result, you get a certificate of transfer of ownership (lagfart).

Quoting conditions of Prian.info materials