Defects in real estate – the Land Code
For freehold real estate, liability for defects is governed by Chapter 4 of the Land Code. A property is defective if it does not conform to what has been agreed or to what the buyer could reasonably expect. Sellers are liable for so-called hidden defects – defects the buyer could not reasonably have discovered on an inspection.
The buyer has an extensive duty to examine the property (undersökningsplikt), and defects that a careful buyer would have discovered, or should have been prompted to investigate, generally do not give rise to liability. The seller's duty to disclose known defects is more limited, although incorrect statements or concealment of known defects may give rise to liability.
The buyer must notify the seller within a reasonable time after discovering, or when they ought to have discovered, the defect. This notification bar does not apply where the seller acted with gross negligence or contrary to good faith and fair dealing. A claim arising from a defect is normally time-barred ten years after the buyer takes possession of the property, unless limitation is interrupted before then. Contractual terms and the remedy sought require separate assessment; the ten-year rule is not a universal deadline for every property remedy.
Defects in bostadsrätt transactions – the Sale of Goods Act
Because a bostadsrätt is movable property, defects in a resale are generally assessed under the Sale of Goods Act (köplagen) rather than the Land Code. An initial grant by an association requires separate assessment. The buyer's examination obligations depend on the contract and the circumstances.
The buyer must notify the seller within a reasonable time after discovering, or when they ought to have discovered, the defect, and normally no later than two years after taking delivery. Different terms may follow from the contract, a guarantee or a similar undertaking. The statutory notification bars do not apply where the seller acted with gross negligence or contrary to good faith and fair dealing. The two-year period is a notification deadline, not the limitation period for bringing a monetary claim; separate limitation rules also apply.
Contractual disputes
Disputes may also concern conditions in the purchase contract, delayed access, cancellation or the content of disclaimers (for example 'as is' clauses). Their effect depends on how they were drafted and communicated.
Price reduction and damages
A buyer may be entitled to a price reduction corresponding to the defect, and in certain cases damages or rescission of the purchase. The remedies and conditions differ between the Land Code and the Sale of Goods Act.
Disputes between co-owners
Co-owners may disagree about management, use, costs or sale of a property. Under the Co-ownership Act a co-owner may, as a main rule, ask the court to order a public sale. Spouses, cohabitants and heirs who co-own property may be subject to additional rules.
Frequently asked questions
I discovered damp damage after moving in. What should I do?
Document the damage, notify the seller in writing without delay and seek advice before any repairs remove evidence.
Does an inspection report protect the buyer?
An inspection is part of the buyer's examination duty, but it does not necessarily cover all defects. Liability depends on the circumstances.
This page provides general information about Swedish law and is not legal advice. The outcome of any matter depends on its specific facts.