Selling property in Finland, whether it’s an apartment or a house, requires careful attention to detail and a clear understanding of Finnish law. While it’s possible to sell your property independently, often referred to as “For Sale By Owner” (FSBO), a robust disclosure obligation is placed on the seller. This means you’re legally bound to provide buyers with comprehensive and accurate information that could influence their decision to purchase. This responsibility remains yours even if you engage a real estate agent or commission a professional condition inspection; their role is to perform their work diligently, not to assume your liability.
Selling an Apartment in Finland
When you sell an apartment in Finland, you’re typically not selling a direct piece of land or a physical building. Instead, you’re selling shares in a housing company (asunto-osakeyhtiö). These shares grant you the right to possess and use a specific apartment within a building that the housing company owns. This unique structure means that a significant part of your disclosure responsibility revolves around the financial and structural health of the housing company itself.
Essential Documentation from the Housing Company
To fulfill your obligations and ensure transparency for prospective buyers, you must gather up-to-date copies of several key documents from the housing company:
- House Manager’s Certificate (Isännöitsijäntodistus): This is a critical document detailing the housing company’s financial status, including its current repair needs, any major planned renovations (e.g., plumbing, roofing, facade), and how these projects might impact future maintenance charges (vastike). It’s crucial that this information is current and accurate, as the seller is liable for any incorrect information on this certificate that influences the buyer’s decision.
- Articles of Association (Yhtiöjärjestys): This document outlines the rules and regulations governing the housing company, including the division of responsibilities between individual shareholders and the company, rights and obligations related to the apartment, and the basis for calculating maintenance fees.
- Minutes of the Most Recent General Meeting of Shareholders: Reviewing these minutes provides vital insights into past decisions, ongoing discussions, and any approved projects that affect the housing company and its apartments.
- Recent Financial Documents: Obtain the housing company’s latest financial statements, balance sheet, and financial plan. These offer a comprehensive overview of the company’s financial health and future commitments.
As the seller, you must be thoroughly familiar with all matters discussed at these shareholder meetings, even if you didn’t attend them personally. Disputes often arise after a sale if a buyer claims they weren’t adequately or clearly informed about upcoming major work, such as plumbing or roofing renovations, which can significantly impact their future costs.
Additional Disclosure for Apartments
Beyond the housing company documents, you should proactively disclose any other information specific to the apartment that could affect a buyer’s decision. This includes:
- Any known defects or deficiencies within the apartment itself (e.g., persistent damp issues, non-functional appliances, evidence of previous water damage, or structural concerns).
- Important information about services in the residential area and its immediate surroundings (e.g., known noise disturbances, planned construction nearby, or the proximity and availability of essential amenities like public transport, schools, or shops).
- The zoning status of the residential area, which can influence future development or permitted uses of the property.
However, if a matter hasn’t been formally discussed in housing company meetings, or has only been raised on a very general or speculative level, you generally don’t need to specifically inform the buyer. For example, it’s generally assumed that a buyer would understand that plumbing renovation work might eventually be required in a building that’s several decades old.
The Importance of Information and Defining a “Defect”
The information you provide is paramount because a used apartment can be considered to have a defect, potentially making the seller liable for compensation, if:
- It doesn’t match what was agreed upon in the sales contract.
- It doesn’t correspond with information you provided, especially if that information was likely to have influenced the transaction.
- You neglected to provide information that would have likely influenced the buyer’s decision or the sale price.
- It is significantly inferior in terms of amenities, condition, or other properties than what the buyer had reasonable grounds to expect, considering the apartment’s age, price, and general condition.
- Information you provided about the surroundings or services in the area was incorrect, misleading, or entirely omitted.
When assessing defects in used apartments, key considerations are the precise terms of the agreement, all information you provided as the seller, and the buyer’s own responsibility to inspect the property (their due diligence). Typically, the seller of a used apartment remains liable for defects for a period of two years from the date of transfer of possession, though this period can be extended in certain specific cases.
For more detailed information on selling apartments, including advertising, showings, bids, deeds of sale, defects, and reporting, the Finnish Consumer Agency (Kuluttajavirasto) provides resources in English, Swedish, Sami, and Finnish.
Selling a House in Finland
Selling a detached house in Finland involves the direct transfer of real estate (kiinteistö), which includes both the building and the land it sits on. In some cases, it might be a share or parcel of real estate, or a building on rented land. Similar to selling an apartment, Finnish law places a broad disclosure obligation on the seller, requiring accurate information about the house’s type, condition, age, and any known defects or past repairs and maintenance. This obligation also extends to the plot of land and its immediate surroundings.
Essential Information and Documentation for House Sellers
If you’re selling your single-family house or holiday home independently, you’ll need to gather and verify the following crucial information and documents:
- Type of House: Clearly specify if it’s a permanent single-family home, a holiday home (mökkki), or another classification.
- Land Tenure: Confirm whether you’re selling freehold real estate, a defined share or parcel of it, or a building situated on rented land. If it’s on rented land, you’ll need to provide details about the lessor, the lease agreement, its remaining term, the rent amount, and any restrictions on transferring the lease.
- Zoning Status: Provide information on the zoning status (kaavoitustilanne) of the area, any existing building prohibitions (rakennuskiellot), and contact details for the relevant zoning authorities.
- Building Permits and Plans: For newer houses, ensure you have all building permits (rakennuslupa), architectural blueprints (pohjapiirrokset), and building inspection documents.
- Location Identifiers: State the municipality, district or village, its unique property identifier (kiinteistötunnus), and the street address.
- Plot Details: Accurately provide the area of the plot of land and confirm the permitted building rights (rakennusoikeus), which dictate how much new construction or expansion is allowed.
- Property Structures: List all buildings and other fixed structures on the property, such as outbuildings, playhouses, separate saunas, or gazebos.
- Restrictions and Encumbrances: Disclose any restrictions on the use or assignment of the plot of land, liens (kiinnitykset), fees payable by the buyer, and easements (rasitteet) like shared access roads, drainage rights, or utility lines.
- Building Specifications: State the year the building was commissioned for use, the main construction material(s), the roofing type and material, and the heating system used (e.g., direct electric, air-source heat pump, geothermal, district heating).
- Area and Costs: Provide the total number of rooms and the overall area, clearly differentiating between living space and other functional spaces (e.g., storage, garage). Also, provide average heating costs.
- Maps and Plans: Include a clear map of the boundaries of the plot of land and a detailed floor plan of the building.
General Seller Responsibilities and Requirements
For both apartments and houses, the seller’s overarching responsibility is to provide accurate and complete information. As mentioned, a seller remains liable for hidden defects, typically for a period of two years after the buyer takes possession. It is always safer to over-disclose any known issues or concerns rather than under-disclose, especially for older properties where hidden problems might be more common.
The Finnish Consumer Agency (Kuluttajavirasto) is an excellent resource for more detailed information on various aspects of property sales, including:
- Condition of the house/apartment: What constitutes a defect and your liabilities.
- Advertising and showings: Best practices for presenting your property.
- Bids and offers: Handling negotiations.
- Deeds of Sale: The legal requirements for drafting and executing the sales agreement.
- Defects, reporting, and consequences: How to handle claims after the sale.
This information is available in English, Swedish, Sami, and Finnish, making it accessible to a wide audience.
Remember, while selling independently can save you real estate agent fees, it comes with significant responsibilities. If you’re uncertain about any step or legal requirement, it’s always wise to consult with a local attorney or notary specializing in Finnish real estate law. They can ensure your transaction is legally sound and protect your interests throughout the process.
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