Real estate—Finland—Q&A guide
Real estate—Finland—Q&A guide

The following Property practice note provides comprehensive and up to date legal information covering:

  • Real estate—Finland—Q&A guide
  • 1. How would you explain your jurisdiction’s legal system to an investor?
  • 2. Does your jurisdiction have a system for registration or recording of ownership, leasehold and security interests in real estate? Must interests be registered or recorded?
  • 3. What are the legal requirements for registration or recording conveyances, leases and real estate security interests?
  • 4. What are the requirements for non-resident entities and individuals to own or lease real estate in your jurisdiction? What other factors should a foreign investor take into account in considering an investment in your jurisdiction?
  • 5. If a non-resident invests in a property in your jurisdiction, are there exchange control issues?
  • 6. What types of liability does an owner or tenant of, or a lender on, real estate face? Is there a standard of strict liability and can there be liability to subsequent owners and tenants including foreclosing lenders? What about tort liability?
  • 7. How can owners protect themselves from liability and what types of insurance can they obtain?
  • 8. How is the governing law of a transaction involving properties in two jurisdictions chosen? What are the conflict of laws rules in your jurisdiction? Are contractual choice of law provisions enforceable?
  • 9. Which courts or other tribunals have subject-matter jurisdiction over real estate disputes? Which parties must be joined to a claim before it can proceed? What is required for out-of-jurisdiction service? Must a party be qualified to do business in your jurisdiction to enforce remedies in your jurisdiction?
  • More...

This Practice Note contains a jurisdiction-specific Q&A guide to real estate in Finland published as part of the Lexology Getting the Deal Through series by Law Business Research (published: September 2020).

Authors: Waselius & Wist—Christoffer Waselius; Henri Kaskimo

1. How would you explain your jurisdiction’s legal system to an investor?

The Finnish legal system is essentially a civil law system. Injunctions may be obtained to prevent an action. Courts may rule in equity, but the threshold for a court to amend an agreement between two companies for reasons of equity is quite high. Parol evidence is generally admissible to show the intent of the parties if the intent is not evident from the agreement language. This is the case even if the parties have agreed that the final agreement supersedes all the previous written or oral agreements or other understandings between the parties. However, in such cases the evidentiary value of parol evidence is limited. Oral agreements are generally binding, with a few exceptions, one being transfer of real estate, which must be in in written form. The laws applicable to real estate are national in scope, but the local municipalities and cities have power on local planning and decision-making.

2. Does your jurisdiction have a system for registration or recording of ownership, leasehold and security interests in real estate? Must interests be registered or recorded?

Title to real

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