 General Information for Sellers
Selling
an Apartment
Selling
a House
Further Information
Primary source of information for this page: Finnish
Consumer Agency - Kuluttajavirasto
This is a brief guide only, and does
not constitute legal advice
General Information
for Sellers
Selling a house or apartment on
your own is possible if you are familiar with the steps
and responsibilities involved. If you are unsure, it
is probably best to engage the services of a real estate
agent.
Finnish law sets a broad disclosure obligation on
the seller. Of primary importance is the seller's
liability for provision of information that may affect
the buyer's decision to purchase. The
information provided becomes extremely important
if a dispute arises after completion of the transaction.
For example, in the case that a buyer notifies a
seller of a defect and seeks compensation, the information
provided during the sale can determine financial
responsibility.
The seller's liability for providing information
to the buyer is not affected by hiring a real estate
agent or commissioning a formal condition inspection.
The real estate agent and the condition inspector
are only liable for performing their work in a professional manner.
Selling an Apartment
Shares in Housing Companies
In Finland when you sell an apartment, it is usually
part of a housing company (asunto-osakeyhtiö),
so you are not only selling the apartment but your shares
in the housing company. Therefore, in preparation
for provision to prospective buyers, you must acquire
up-to-date information regarding the financial position
of the housing company.
Documentation from Housing Company
Acquire copies of:
- House
manager's certificate with details
of current repair needs. Ensure the information
is up to date and accurate; the seller
is liable for incorrect information on the
house manager's certificate!
- Articles
of Association of the housing company
- Minutes
of the most recent general meeting of shareholders
and any financial documents reviewed in the meeting
such as financial statements, the balance sheet
and the financial plan
The seller must be familiar with the matters discussed
at shareholders meetings, even if they did not
attend the meetings.
Disputes are
often over whether the buyer was informed, or informed
clearly enough, about upcoming work
such as plumbing or roofing renovations.
Additional Information
Sellers should protect themselves by remembering to disclose information
which may affect the buyer's decision:
- Defects or deficiencies regarding the apartment
- Information
pertaining to the apartment, services in the
residential area and its surrounding environment
- Zoning status of the residential area
If a matter has not been discussed in housing
company meetings, or has only been
brought up on a general level, the buyer does not
need to be informed. It is assumed that a buyer would
understand, for example, that plumbing renovation
work may be required in a building several decades
old.
The Importance of Information
A used apartment can be considered as having a defect,
possibly rendering the seller liable for compensation,
if:
- It
does not correspond to what was agreed
- It
does not correspond with information provided
by the seller, where
such information can be considered to have influenced
the transaction
- The
seller neglected to provide information which
is likely to have influenced the transaction
or sale price
- It
is significantly inferior in terms of amenities,
condition or other properties to what the buyer
had reasonable grounds to expect
- Information
on the surroundings of the apartment or services
in the area was
incorrect, misleading, or
not provided
In assessing defects in used apartments, key considerations
are the contents of the agreement, the information
provided by the seller and the buyer's liability
to inspect the property. The seller of a used apartment
usually remains liable for defects for a period of
two years, but this may be extended in certain cases.
Further Information
on Sale of Apartments
The Finnish Consumer Agency (Kuluttajavirasto) provides
information in English, Swedish, Sami and Finnish on:
Selling a House
It is important to provide accurate information
about the type and condition of the house, age and
defects of the building, and
what types of repairs and maintenance have been done. Further,
Finnish law sets
a broad disclosure obligation on the seller regarding
the plot of land and the area in which
the property is located.
Information and Documentation
If
you are selling your single-family house on your
own, find out the following information and acquire
the relevant documents:
- The type of house in question, ex. single-family house or a
holiday home
- Are you selling real estate, a share or parcel of real estate or a building
on rented land
- Zoning status of the area, building prohibitions and the contact information
for zoning authorities
- If the house is fairly new, its building permits, blueprints and building
inspection documents
- Municipality and district or village in which the property is located,
its property identifier and street address
- Area of the plot of land
- Building rights
- Buildings and other structures such as playhouses or gazebos belonging
to the property
- Restrictions on the use or assignment of the plot of land
- In case of rented land, the lessor, the lease agreement, the remaining
time on the lease, the amount of rent and any restrictions on assignment
of the right of lease
- Lien, fees payable by the buyer and other encumbrances and easements
- Year the building was commissioned for use
- Construction material(s), roofing type, surfacing material used for the
roof and the heating system
- Number of rooms and area, classified into living space and other space
- Average heating costs
- Map of the boundaries of the plot of land
- Floor plan of the building
Further Information: Seller's Responsibilities
& Requirements for Sale
The Finnish Consumer Agency (Kuluttajavirasto) provides
information in English, Swedish, Sami and Finnish on:
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