REALWorld Law

Commercial leases

Types of lease

What types of arrangement does the law recognize which allow occupation and use of real property for a limited period of time?

Sweden

Sweden

Occupation and use of real property for a limited period of time is governed by the Land Code (jordabalken). The legal framework in the Code differs depending on whether the use is categorised as a i) leases of buildings, ii) leases of land or iii) site-leaseholds.

  • Leases of buildings

The Swedish Rental Act (hyreslagen) of 1970 is incorporated as chapter 12 of the Swedish Land Code (jordabalken) and regulates both commercial and non-commercial leases. There are some differences between the rules governing these two different categories of leases. What both categories have in common is that where statutory provisions are in force, restrictions limit the parties' ability to contract out of them.

The same provisions apply to all types of commercial premises, inter alia offices, warehousing, industrial and retail premises.

  • Leases of land

Different rules apply to leases of land rather than of buildings or parts of buildings. Leases of land are governed by chapter 8-11 of the Swedish Land Code and divided into three categories:

1. Agricultural Leases of Land (jordbruksarrende)

2. Residential Leases of Land (bostadsarrende)

3. Commercial Leases of Land (anläggningsarrende)

  • Site-leaseholds (tomträtt)

The third type of arrangement is a site-leasehold and is governed by chapter 13 of the Swedish Land Code. Site-leaseholds are granted for an indefinite period of time and may only be terminated in very specific situations.