Real Estate Crash Course – Step 7: Contract
Sign the purchase contract
Before You Sign
- Read the contract carefully –
- All terms should match what you agreed.
- Confirm what's included –
- Appliances, lamps, fixtures. Ask clearly and get it in writing.
- Check conditions –
- Are there conditions ("villkor") in the contract? Understand what they mean.
- Confirm with your bank –
- Make sure your bank is ready to finalize the loan.
- Arrange home insurance –
- Some banks require home insurance ("hemförsäkring") before handover.
What Happens at Signing
- Purchase contract is signed –
- Now it's legally binding for both parties. The contract is called "köpekontrakt".
- Both parties sign –
- Usually at the agent's ("mäklare") office.
- Deposit is paid –
- Usually 10% of purchase price. Paid into the agent's escrow account. Called "handpenning".
- Handover date is set –
- Date when you get the keys and pay the rest. Called "tillträdesdag".
- Special conditions documented –
- Anything beyond standard terms is written into the contract.
Special Conditions
- Inspection clause –
- Sale conditional on satisfactory inspection ("besiktningsklausul"). Rare in hot markets, more common for houses.
- Conditional purchase –
- Sale conditional on selling your current home first ("villkorat köp"). Seller may not accept.
- Handover inspection –
- Inspection after purchase to document condition ("överlåtelsebesiktning"). Useful for future disputes.
Backing Out
- Consequences after signing –
- Backing out after signing has real consequences.
- Buyer –
- Risk losing the deposit ("handpenning") and paying damages.
- Seller –
- Must return the deposit ("handpenning") and may owe compensation.
- Mutual agreement –
- Both parties can agree to cancel, but it's rare and usually costs someone.
Step 7 of 8