Proceedings / Effects of Registration

Can judicial decisions opening insolvency proceedings be registered in the Land registry in accordance with your legislation?

If affirmative, what effects do these registrations produce?

Judicial decisions that opens insolvency proceedings can be registered in the Swedish land registry today.

Current regulation

According to the 19 chapter 29 § 10 the Swedish land code, certain registrations may or shall be made in the land registry if there is a regulation that stipulates this.

According to the Swedish regulation about bankruptcy (Konkursförordningen 1987:916) courts are obliged to send a copy of a decision about bankruptcy to the land registration authority if there is immovable property in the bankrupt’s estate (12 § 8). The information is registered in the land registry in accordance with the notification (14 §).

Swedish law (2005:1046) with additional conditions to the insolvency regulation (UE) 1346/2000, states in the 3 § that when insolvency proceedings (for example bankruptcy) have been decided in another member state, this is to be reported to the Swedish companies Agency (Bolagsverket). What is stated about registration of bankruptcy in Swedish registers according to Swedish regulation, applies when insolvency proceedings have been decided in another member state.

When the the Swedish companies Agency has received the foreign decision, it informs the other agencies responsible for the different registers in sweden, for example Lantmäteriet who is responsible for the land registry.

In the Swedish regulation about registration of some insolvency proceedings (2005:1056) it is stated in the 4 § 5, that application for registration shall be made when the debtor has real property that is inserted in the land registry. The swedish companies Agency is obligated to inform the land registration authority if the debtor owns immovable property.

The fee for registration is 800 SEK and is to be paid to the Swedish companies Agency (6 § the above mentioned regulation).

Future regulation

There is currently a proposal for a new law to replace the one from 2005, with reference to the new insolvency regulation 2015/848. The law is proposed to take effect on the 26 of june 2017. The repealed law is valid for insolvency matters initiated before the 26 of june 2017.

Minor revisions are proposed for the regulation 2005:1056, particularly with reference to the new insolvency regulation 2015/848. The revisions are proposed to take effect on the 26 of june 2017.

What effects does the registration produce

Bankruptcy prohibits the debtor to dispose of the immovable property (3 chapter 1 § the Swedish bankruptcy law (Konkurslagen 1987:672).

This means that the property may not be sold, given , mortgaged or disposed of in any other way. This is specified in the 20 chapter 6 § and 22 chapter 3 § in the Swedish land code. An application of registration of title, mortgage etc. will be denied if insolvency is registered for that specific property in the land register.

As for today the companies Agency informs the land registration authority of bankruptcy via paper notifications. However, during 2017 a regulation will take effect which allows this information to be made in digital form.