The Swedish Land Registration System

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

2. Land registration in Sweden Lantmäteriet is the national Land Registration Authority

3. B o a r d Director General Swedesurvey Internal Audit Support Functions Divisions Cadastral Services Land Registration Land and Geographic Information Organisation

4. 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

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

6. 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

7. 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

8. 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?

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

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

15. 2001-2008 • Reduced to 7 larger offices that were part of local courts

16. Gävle 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

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

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

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

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

21. 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

22. 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

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

24. 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

25. … 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

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

27. Starting up the handlingCancellation of old mortgage and registration of a new one

28. All relevant reg’n numbers appear

29. Warning messages displayed

30. Registration form

31. Registration form filled in

32. Example warnings – marital status

33. 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

34. 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

36. Vad kommer Future • 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.