Handpenning
Handpenning is the deposit the buyer pays when the köpekontrakt is signed. The amount is security for the seller if the buyer does not complete the sale, and it is deducted from the final purchase price at settlement.
The handpenning is usually around 10% of the purchase price, but the size is not set in law. The percentage is an industry norm reflected in Fastighetsmäklarinspektionen's own supervisory practice and in the mäklare's routines at contract signing, not a requirement in jordabalken.
The amount is normally paid into the mäklare's klientmedelskonto, an account kept separate from the agency's own funds. Under fastighetsmäklarlagen (2021:516) 3 kap. 4 §, the mäklare must hand the handpenning over to the seller as soon as possible, unless the buyer, the seller and the mäklare have instead entered into a depositionsavtal, a written agreement signed by all three parties stating that the amount stays in the account until the terms of the köpekontrakt are met. If the köpekontrakt has a svävarvillkor, for example a financing condition, a depositionsavtal is in practice almost always necessary, because the sale is not yet final.
If the buyer does not complete the sale without valid grounds, the seller may cancel the purchase and keep the handpenning as compensation for the loss. The handpenning does not automatically cover the seller's full loss: if the loss is larger than the handpenning, the seller must substantiate the excess amount separately towards the buyer. If, on the other hand, the breach is due to a svävarvillkor not being met, for example the buyer not obtaining a loan offer within the deadline, this does not count as default. The sale is reversed, and the buyer gets the whole handpenning back.
The commitment works both ways. If the seller has second thoughts after the köpekontrakt is signed, the buyer can demand that the sale is completed, or claim skadestånd for the resulting loss, alongside getting the handpenning back. The handpenning therefore only protects the seller against the buyer's default; it does not govern the seller's duties if the breach goes the other way.
If the handpenning sits in the klientmedelskonto pending settlement or a depositionsavtal, the account must be interest bearing. Interest above SEK 100 follows the principal amount to whichever of the buyer or seller is ultimately entitled to the money, settled as soon as it is clear who that is.
The Norwegian counterpart is håndpenger, and in practice the similarity stops at the percentage. Håndpenger of around 10% of the purchase price was common in Norway too, but after a change to eiendomsmeglingsloven § 6-9 third paragraph, which came into force on 01/07/2014, håndpenger are in practice no longer used in Norwegian property transactions, even though the arrangement is not directly prohibited. Norwegian agents instead handle the whole purchase price together at handover, through the client account and in step with the skjøte being registered. Sweden has therefore kept a practice that Norway has largely set aside.
From Placepoint's glossary: Handpenning
More information: FMI: Klientmedel, fastighetsmäklarlagen (2021:516), Lovdata: eiendomsmeglingsloven § 6-9
English: Earnest money deposit paid when a Swedish purchase contract is signed.
Frequently asked questions
What is handpenning?
Handpenning is the deposit the buyer pays when the köpekontrakt is signed. It is security for the seller and is deducted from the purchase price at settlement.
How much is the handpenning usually?
Around 10% of the purchase price. The size is not set in law, but it is an industry norm in Swedish property transactions.
Must the handpenning be deposited with the mäklare?
No. Under fastighetsmäklarlagen (2021:516) 3 kap. 4 §, the mäklare must normally hand the amount over to the seller straight away. The amount only stays with the mäklare if the buyer, the seller and the mäklare have signed a separate depositionsavtal.
What happens if the buyer does not complete the sale?
The seller can cancel the purchase and keep the handpenning as compensation for the loss. If the seller's actual loss is larger than the handpenning, the excess amount must be substantiated separately.
What happens to the handpenning if a svävarvillkor is not met?
Then the failure does not count as default. The sale is reversed, and the buyer gets the whole handpenning back, because the condition for completing the purchase was never met.
Is handpenning the same as Norwegian håndpenger?
The percentage is similar, but practice has gone in different directions. After a legislative change in 2014, håndpenger are in practice no longer used in Norway, while handpenning is still standard in Swedish property purchases.