Power of attorney for the purchase of a tenant-owned apartment – what is the proxy authorized to do?

Short answer: A buyer can give another person power of attorney to represent them in the purchase of a tenant-owned apartment (bostadsrätt). The power of attorney should describe exactly which steps the representative is authorized to handle, such as bidding, signing the purchase agreement, the membership application, and the handover.

Why is clear authorization necessary?

A tenant-owned apartment purchase involves several separate stages. A power of attorney that only grants the right to sign the purchase agreement does not necessarily mean that the representative is also authorized to change the price, accept terms, handle banking matters, or collect keys.

Formal requirements of the Tenant Ownership Act

The purchase of a tenant-owned apartment must be documented in writing and signed by both the seller and the buyer. Therefore, when a buyer is represented by an agent, it must be clear that the agent has the right to sign on behalf of the buyer.

What can the power of attorney cover?

• bidding up to a certain amount
• signing the purchase agreement
• approving the handover date
• membership application to the housing association
• contact with the real estate agent
• handover and receipt of keys
• other explicitly specified tasks

The bank may require a separate power of attorney

A power of attorney for the apartment purchase itself does not automatically grant the right to represent the buyer in all banking and loan matters. The bank may require its own power of attorney and personal identification.

Limitations reduce risk

For a major financial commitment, the power of attorney can be limited by, for example, a maximum purchase price, a specific property, an expiry date, and requirements for approval regarding certain changes.

Common mistakes

• the power of attorney only says "buy a home" without further authorization
• the property is not identified
• no price limit is set, even though it is important to the grantor
• bank power of attorney and purchase power of attorney are confused

See the Mallbutiken template for power of attorney for buyers of tenant-owned apartments.

FAQ

Can the representative sign the purchase agreement?

Yes, if the power of attorney clearly provides authorization for this.

Does the representative become a member of the association?

No. The representative acts on behalf of the buyer; it is the buyer who will become the tenant-owner and normally the member.

Can the real estate agent require the original?

Real estate agents and other parties may have their own verification procedures. Therefore, check the required format and identification requirements in good time.

This article provides general information and does not replace legal advice.