Käsiraha

Käsiraha is a Finnish term that translates to "earnest money" or "hand money." It is a sum of money paid by a buyer to a seller as a sign of serious intent to purchase a property. This practice is common in real estate transactions in Finland. The amount of Käsiraha is typically a small percentage of the total purchase price, often ranging from 1% to 5%.

The purpose of Käsiraha is to protect both the buyer and the seller. For the seller, it provides some compensation if the buyer unexpectedly backs out of the deal without a valid reason, as the Käsiraha is usually forfeited in such cases. For the buyer, it serves as a commitment, ensuring they do not make frivolous offers.

Käsiraha is usually paid after a preliminary sales agreement has been signed. The payment itself is a tangible demonstration of the buyer's commitment to fulfilling the terms of the agreement. If the sale proceeds as planned, the Käsiraha is typically deducted from the final purchase price or paid back to the buyer.

There are specific conditions under which the Käsiraha may or may not be returned. If the seller defaults on the agreement, the Käsiraha is usually returned to the buyer. Similarly, if the buyer has a legitimate reason to withdraw from the purchase, as outlined in the preliminary agreement (e.g., a failed financing arrangement or a negative building inspection), they may be entitled to the return of their Käsiraha. The terms and conditions regarding the Käsiraha are crucial elements of the preliminary sales agreement.