Deposit and standard compensation (käsiraha ja vakiokorvaus)

If you make a purchase offer and it is accepted but you then back out of the deal, you can lose the deposit (käsiraha) or have to pay the standard compensation (vakiokorvaus). The law caps this loss at 4 percent of the purchase price. The same 4 percent ceiling also applies to the seller: if the seller backs out of an accepted offer, they pay you compensation within the same upper limit.

In practice the difference is this: the deposit is a sum of money you pay when making the offer. If the deal goes through, the deposit counts as part of the purchase price, so you do not pay it on top. The standard compensation is more like a contractual penalty: you agree on it, but no money is paid up front, and it falls due only if someone backs out.

Check before you sign: how large the deposit or standard compensation is (as a percentage of the purchase price), under what conditions you get it back, and whether the offer is tied to, for example, financing being arranged or a condition inspection (kuntotarkastus). A well-drafted condition protects you if a loan promise falls through or the home turns out to have surprises.