The Swedish Land Registration System Bengt Kjellson LL

The Swedish Land Registration System Bengt Kjellson, LL. M Head of Division bengt. kjellson@lm. se

Land registration in Sweden Lantmäteriet is the national Land Registration Authority

Organisation Board Director General Swedesurvey Support Functions Internal Audit Divisions Cadastral Services Land Geographic Information Land Registration

Inskrivning (Land Registration) • Reviewing and deciding in matters of • registration of ownership • mortgages • other rights connected to real property • notifications from other public bodies • Register the decisions/information into the Real Property Register • Decide about stamp duty and fees, and collect them

Swedish legislation on land (real property) • Land Code • In effect from 1972 • Covers whole land tenure area • Ordinance on Land Registration • Law and Ordinance on Mortgate Certificate register • Law and Ordinance on Real Property Register • Real Property Formation Act and Ordinance on Real Property Formation

Property-based title system • All land divided into properties (by cadastral organisation) • All properties are registered, incl. State owned • Every property has unique identity • Concept of registration days for priority • Mandatory to register transfers • Mortgages only by title holder

Property-based title system • • • Appeals go to local courts Very few appeals We can review decisions on tax and fee The Property Register has legal validity Register backed by state guarantee Legal system remains the same despite organisational changes

The Mortgage Certificate Register • Registration of mortgage = priority in specific property, specified sum of money • Connected to property, not mortgagor or mortgagee • Registration produces Mortgage Certificate • Mortgage contract a private matter • Computerised handling of majority of Mortgage Certificates • Handled by banks, without involvement of us • Tremendous advantage for property owners • World’s most efficient mortgage system?

The Property Register • This is what it’s like!

Before 2001 89 small offices that were part of the Swedish Courts

2001 -2008 • Reduced to 7 larger offices that were part of local courts

Now 1 June 2008 – Lantmäteriet becomes the Land Registration Authority. 7 registration offices in the same cities, same geographical areas and same staff, with the addition of a Head office and a unit for taxes and fees in Gävle

Our work • Focus on handling times – 5 days average • Uniform work process • Uniform application of law • One organisation with seven offices • Support each other

160 registration officers 18 legal officers 16 advisers 8 office managers 5 tax and fee collection 6 division management 8 group managers

The Operation 950 000 matters of registration/year 60 % Mortgages, 35 % Ownership 0 -5 days from application to registration.

Customers • • Banks Private persons Real Estate Agents Property investors Public authorities Municipalities Law firms Undertakers

Conveyancing • No notaries in Sweden • You have to have a written contract signed by the parties and two witnesses • The amount of money paid for the property • A sentence that says that the owner transfers and sells the property • Ownership by contract, not by registration

Conveyancing • Conveyancing often starts at the real estate agent’s but that is not compulsory • The agent produces a property description and advertise • Represents the seller and the buyer

Application • All applications to the Land Register Authority have to be in writing and signed

A real property financing transaction • The owner of the property goes to a bank to get a loan • The Bank decides the value of the property • The Bank checks the debtors economy • The parties agree on the loan terms • The parties signs the agreement

… continued. . . • The Bank (on behalf of the owner) applies for a mortgage • The Bank receives the mortgage certificate • The Bank hands over the money • The owner pays back according to agreed terms • The Bank returns the certificate

Our Work Process 2010 3 900 registration matters/year/employee 15 min average process time One matter – a minute up to a day

Starting up the handling Cancellation of old mortgage and registration of a new one

All relevant reg’n numbers appear

Warning messages displayed

Registration form

Registration form filled in

Example warnings – marital status

Some figures • 130 000 -140 000 properties are transferred annually • Granting of 800 million SEK in mortgages every day • 9 billion SEK total Stamp Duty/year • 300 million SEK total in Fees/year • 2 500 envelopes/day • 700 phone calls/day

Financing the business • Fees go to government, operations financed through grants • Generates profit for government • More transparent • Operations depend on level of market activity • We want to keep the fees, and lower them

Financial info land registration (million SEK) 2009 2010 3 495 508 3 701 367 Increase during year 186 389 205 859 Mortgage amounts registered/reg’n day 743 817 Assessed value 5 671 104 6 048 023 Total price paid 189 383 222 129 3 154 630 3 108 002 Total mortgage amount 31 dec GDP

Future Vad kommer • Digital matters of registration and automatical decisions and registrations • E-contracts of real property sale • One Land registration region – Sweden - not seven • No mortgage certificates in paper form • Digital archives • No information about properties via phone calls.