Notice of a property affected by an insolvency proceeding

1. Does your national system admit such restriction?

This land register system envisages this kind of notice or includes the possibility of registering a notice as such.

2. In your system, once registered this restriction, does it block or freeze subsequent registrations (mostly the ones promoted by the owner of the property) until being removed?

Once registered this restriction, it implies a warning to third parties and does block or freeze subsequent registrations.

3. In your system, in principle, will the registration of this restriction be temporary (under a deadline) or indefinitely (it will be in force until being removed)?

In this system the duration of the registration of this restriction will be indefinite (until removed or deleted).

4. Indicate the national legal sources about this judicial restriction

Registration about bankruptcy is made in the land register as a notice in accordance with paragraph 12 and 14 in the Swedish regulation on bankruptcy and chapter 19 paragraph 29 in the Swedish land code, if there is immovable property or a site leasehold among the assets.

5. Please, give us an idea about the characteristics of the registration of this restriction in your system

• When a decision about bankruptcy has been issued, the property may not be disposed of by the owner.
• The property may not be sold and an application about ownership (chapter 20 paragraph 6 of the land code) or mortgage (chapter 22 paragraph 3 p. 5 of the land code) shall be rejected by the land registry.
• During the bankruptcy proceedings, the property can be sold on executive auction in the same manner as applies for attachments/foreclosure. The property can also be sold by the manager of the bankruptcy (assignee in bankruptcy). The manager is appointed by the court. Regarding companies, the appointment of a bankruptcy manager is registered by the Swedish Companies agency.
• When the property is sold and registration of ownership has been granted, the registered notice about bankruptcy is removed.

Foreign insolvency proceedings and bankruptcy

• The land registry can receive a notification from a bankruptcy manager, that a bankruptcy or insolvency proceeding has been initiated in another Nordic country. In that case it will be handled in the same way as a Swedish bankruptcy proceeding.
• If an insolvency proceeding has been initiated in an EU member state and the European regulation is applicable, the member state shall notify the Swedish Companies agency about this. The Companies agency will in their turn notify the land registry about the decision, which will then be registered as a notice in the land register in the same way as if a bankruptcy proceeding had been initiated against a Swedish debtor, and with the same legal consequences.