This content is from: Local Insights

Sweden

On April 3 2003 the Swedish Parliament issued new rules regarding the Good Faith Acquisition of Personal Property Act. The new rules create an exception to the general rule on good faith acquisitions of personal property.

According to the old rules, where a person has acquired personal property by means of a transfer from any person, and the transferor was in possession of the property but was neither the owner of the property nor authorized to dispose of it in the manner that has occured, then title to the property shall vest in the acquirer, where such property has come into his possession and he has acted in good faith. The new rules state that, even if such conditions are satisfied, title to the property remains with the owner if the owner has been deprived of the property through a criminal act, such as through the unlawful taking of the property, or through extortion with violence, or a threat implying or appearing to the threatened person to imply an imminent danger. Under these exceptions the owner is entitled to retrieve the property from the acquirer without compensation even though the acquirer acted in good faith.

The new rules also encompass provisions on prescription (hävd). The new rules state that if a person has been in possession of personal property with a claim to its title for 10 years since acquiring the property by means of a transfer from any other person who was in possession of the property but was neither the owner of the property nor authorized to dispose of it in the manner that has occured, then title to the property shall vest in the possessor due to prescription. This does not apply if the possessor at the time of the acquisition or the possession should have suspected that the transferor did not have the right to dispose of the property.

The new rules came into force on July 1 2003. The old rules apply to acquisitions made before that date.

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