Wednesday, April 22, 2009

Swedish Law – Purchasing Real Estate in Sweden - Sale of Co-Owned Property

I have received a question about the sale of a property by a 50 % owner.

Question:

Is it possible for a 50% share owner of a property to order the sale of the entire property without the consent of the remaining partners?

As my answer may be hard to find among the old posts on Purchases of real estate in Sweden I publish it here.

Answer:

Yes and no. I am a lawyer you know ;)

The rules of the Swedish Act on Co-Ownership (Lag (1904:48 s.1) om sam├Ągander├Ątt) apply.

According to this act, if a house or other real property is owned by more than one person, each co-owner, irrespective of the share he owns, has the right to go to court and ask the court to appoint a custodian, who will then arrange for the sale of the property through a public sale.

5 comments:

Rudy said...

So, a 1% owner can force the sale of the entire co-owned property? Is there any provision for the other owners' ability to make a fair market offer before placing the property on the open market? Does the co-owner asking for the sale have any obligation to accept a fair market offer from the other owners? How can a minority owner force the other owners to sell??? This seems very strange.

SwedishLawyer said...

Let me take these questions one by one.

Q: So, a 1% owner can force the sale of the entire co-owned property?

A: Yes

Q: Is there any provision for the other owners' ability to make a fair market offer before placing the property on the open market?

A: No.

Q: Does the co-owner asking for the sale have any obligation to accept a fair market offer from the other owners?

A: No.

Q: How can a minority owner force the other owners to sell???

A: Because the law says so. The sale is made by the court appointed custodian by way of a public sale. However, any co-owner may of course make an offer to purchase the share of a minority owner to prevent a forced sale, but both parties should be aware of the fact that a failure to reach such an agreement will result in a forced sale.

lucas law center said...

It was so hard if there was so many owners of a one house, so you just buy yourself for free from disturbance.

LLC

Laura said...

Hey,

I have a question for you: is it possible for a foreign lawyer to draft a purchase agreement for swedish? I am planning to buy a property in Sweden and I would like to know if my lawyer could draft the contract for me or it is necessary to contact a swedish lawyer or agent.

Thanks!

SwedishLawyer said...

Please find my answer to Laura's question as a new blog post today!