Entrance/licensing requirements
A University course over a minimum of two years is required in order to become a licensed real estate agent in Sweden. The education provides a thorough knowledge about, economics, tax, real estate law, property evaluation and property arrangements. This knowledge is required to be capable of performing the tasks at acceptable real estate agent standard. Real Estate licenses are required in order to practice in Sweden and are subject to an annual fee. Other requirements to obtain a license include proof of age (18+), financial solvency and liability insurance. A practitioner can market properties anywhere in the country; there are no legal restrictions about where to market. Non residential estate agents may market properties in Sweden but they may not actively negotiate in a purchase agreement. The Board of national real estate agents (FASTIGHETSMÄKLARNÄMNDEN) regulates the industry in Sweden and they are appointed by the Swedish Government. The Board makes sure that real estate agents abide to the law and rules of business standard. If any seller or purchaser in a property transaction is not fully satisfied with the conduct of the estate agent they may issue a complaint towards the agent through the Board. The Board then looks at each individual complaint and acts accordingly towards the estate agent; they may issue warnings and in more severe cases expel estate agents from business.
Back to Top
Foreign ownership
Foreigners may purchase property and condos in Sweden for private use. If there is a permit needed it is always granted.
Back to Top
Land Registration System
The land register system in Sweden is since 1996 fully computerized and open to the public. For a small fee anybody may order information from the system. The responsibility for the registration system is divided in different geographical districts and stores data about all property transactions in Sweden however the transactions concerning condos is not included in the system. The controlling body is called Lantmäteriet, they are running the system and performing the maintenance of the system.
Back to Top
Other industry professionals
There are no other professions involved in a normal property transaction in Sweden. Lawyers do not sell properties. The Swedish enforcement service sells properties and condos when the owner has filed in bankruptcy.
Back to Top
Practitioner Services
The estate agent in Sweden is involved in a wide range of services to assist sellers and buyers. However the estate agent in Sweden is rarely involved in rentals. Agents are not contractual to perform a complete inspection of the property but it is fairly common for buyers to hire independent surveyors.
The following services are provided by real estate agents in Sweden:
- Develop a description of the property or condo
- Establish a marketing plan about the object
- Actively market and exhibit the property to potential buyers
- Establish individual housing cost estimations
- Negotiate purchase agreement
- Establish purchase agreement and deed of transfer
- Mediate in making the agreement according to law and binding
- Inform buyer and seller about definitions and consequences of the agreement
- Acquire documents for final payment, new mortgage deeds, letter of certificate, evidence of assessed value, information about interest and endowment status
- Documents of transfer from mortgage loan institutes
- Establish individual loan bonds
- Establish final documents; bill of sale, payment deduction and work out correct assignment of the property with complete documentation
- Registration of title and filing documents
Back to Top
Property Marketing Systems
Real estate agents market their properties in their windows and in newspapers. Some estate agents put up For sale signs on sight and a majority of the Swedish real estate agents use the web as a tool for marketing their property. The property market is however very varied in Sweden which of course affects marketing strategies in different directions. Apart from three bigger cities that form a triangle between Stockholm, Gothenburg and Malmoe, Sweden is in some areas very densely populated. The competition is strong in the cities and these agents have to market themselves harder than the ones in more sparsely populated areas. There are still instances in small towns and villages where the real estate agents market properties by word of mouth
Back to Top
Referral System
There exists a referral system in Sweden based on the cooperation between real estate agents, however these rules only become real when agents have not agreed on something else. The following rules are not frequently used.
Referring a seller and object to a colleague equals -25 percent of the gross commission. Referring a purchaser to colleague equals -25 percent of gross commission. In mediating a purchase agreement to colleague equals - 50 percent of gross commission. When an object is sold by two estate agents in cooperation it equals -50 percent of gross commission.
Most estate agents are locally based in Sweden and most of them are merely involved in property transactions. Apart from these proper real estate agencies there is also building companies that build properties and condos. These companies often employ estate agents and let them sell their new built objects.
Back to Top
Relationship of Buyer/Seller to Practitioner
The seller of a property/condo usually has the first contact with the estate agent at his/her home. During this first meeting the estate agent gives information about the marketing plan and the seller are expected to hand over copies of all documents concerning the property/condo. This includes interior and exterior plans, information about loans, mortgage, easements and a list of operative expenses. Before starting any marketing the agent must have the agreement to sell. The most common agreement is the exclusive right to sell agreement and shall always be in writing and clearly state existing conditions between agent and seller. The estate agent then sets up a description of the object at the basis of the information given. This also includes conditions about payment and length of arrangement. The seller is not legally committed by a promise to sell even if it is in writing, and may change his/her mind at any time before the written agreement of purchase has been signed. The estate agent may not give promises to any purchaser that wants to buy before clarifying that it is the decision of the seller. The estate agent may however give advice to the seller in choosing between different purchasers
Back to Top
Remuneration
The condition of payment to the agent is set up in a written agreement between estate agent and seller. The seller pays commission to the estate agent. The commission fee varies from agent to agent and is linked to the price. Most estate agents have a fee based on a set percentage of the price, but if the price is low they have a fixed sum. It also varies when payment is due, some estate agents work after the rule that payment should be due as soon as the contract has been written with the purchaser, some work after the rule that payment should be due as soon as the new owner has access and has got their letter of purchase. There are no statutory restrictions on remuneration in Sweden
Back to Top