Personal property purchase agreements

What is personal property?

Under Swedish law, personal property refers to property that is not real estate. This service is intended for purchases and sales of physical personal property, such as:

• furniture and furnishings
• electronics and technical equipment
• machinery and tools
• artwork, collectibles, and other valuable items
• inventory, stock, and business equipment.

The applicable rules depend on the parties to the transaction. The Swedish Sale of Goods Act generally applies to transactions between private individuals, between businesses, and when a private individual sells property to a business. Mandatory consumer rules apply when a business sells property to a consumer.

Why use a written purchase agreement?

An oral agreement may be legally binding, but its terms can be difficult to prove. A written personal property purchase agreement gives both parties a clear record of the property being sold and their respective rights and obligations.

A written agreement is particularly valuable when the property is expensive, delivery will take place later, or the transaction includes specific conditions. It provides evidence if a dispute arises concerning payment, condition, delivery, or defects.

What should the purchase agreement include?

The terms should be adapted to the property and the transaction. A personal property purchase agreement should generally state:

• the buyer’s and seller’s names and contact information
• a detailed description of the property
• the condition of the property and any known defects
• the purchase price and payment terms
• when and where delivery will take place
• when the risk of loss or damage passes to the buyer
• any accessories or documents included in the sale
• warranties and limitations of liability
• the consequences of late payment or delivery
• the date and the parties’ signatures.

Transactions involving valuable or specialized property may also require provisions concerning inspection, testing, transportation, insurance, and failure to complete the purchase.

Condition of the property and liability for defects

The seller should clearly describe the condition of the property and disclose all known defects. The buyer should inspect the property before completing the purchase and document anything that is particularly important to the transaction.

Stating that the property is sold “as is” does not eliminate all liability. The property may still be considered defective if the seller provided incorrect information, failed to disclose a material fact, or delivered property in substantially worse condition than the buyer could reasonably expect.

When a business sells personal property to a consumer, the agreement cannot provide the consumer with less protection than mandatory consumer law allows.

Payment, delivery, and transfer of risk

The agreement should state when payment is due and whether the purchase price will be paid in full or in installments. If the buyer pays a deposit, the agreement should specify its amount and what happens to it if the transaction is not completed.

The parties should also agree on the time and place of delivery, responsibility for transportation, and when the risk of loss or damage passes to the buyer. Clear terms are especially important when payment and delivery occur at different times.

When to involve a lawyer

Legal assistance is recommended when the property has a high value, is sold with extensive warranties, will be delivered at a later date, or requires specific provisions concerning inspection, liability, or termination.

A lawyer helps identify unclear terms, explain how responsibility and risk are allocated, and ensure that the agreement reflects what the parties have negotiated.