ILN: BUYING AND SELLING REAL ESTATE - AN INTERNATIONAL GUIDE

[BUYING AND SELLING REAL ESTATE IN NORWAY]

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KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER NORWEGIAN LAW

I.

STANDARD FORMS OF AGREEMENT A. Offer to Purchase sets forth Buyer’s offer of price and date for closing. Seller may accept or reject.

analysis of the property for potential problems, below here an inspection of the property. IV. FORMS OF OWNERSHIP A. Residential property is typically held in an individual’s name. The property might also be held by a company, a trust, or the municipality. 1. Freehold housing – typically houses, row houses, freehold flats, and holiday houses. 2. Cooperative housing - an

B. The purchase contract sets forth the terms of purchase and sale, including among other things, price, allocation of costs of the transaction, date for closing, encumbrance, insurance, and default provisions. II. BROKERS A. Buyers and sellers are not required to use a real estate broker or agent, but normally the settlement is carried out by a real estate broker or a lawyer. The broker or the lawyer shall be independent. Both the real estate broker and the lawyer must be licensed. B. The seller pays the broker’s commission. III. BUYERS INSPECTION A. Residential: Inspection is not mandatory, but the buyer will normally examine the property before purchasing. Defects the buyer should have discovered before buying the property cannot be claimed. After taking possession of the property, the buyer is obligated to examine the property. Time of allowed claims starts running from the point of time the buyer detect defect or should have detected defects, so it’s important that the buyer examine the property after taking

arrangement in which an association or corporation owns a group of housing units and the common areas for the use of all the residents. The individual participants own a share in the cooperative which entitles them to occupy an apartment. 3. Ground lease – a leased property is a plot that is rented out to the person using the plot. The person using the plot only owns the residence. 4. Commercial property is normally held in a company’s name but might also be held in an individual’s or trust’s name.

V. DEED A. At the same time as the buyer pays for the property, the seller is obligated to issue the deed. By issuing the deed, the buyer gets the title to the land. To get legal protection from competitive acquisition the buyer must register the deed in the Register of deeds.

possession of it. B. Commercial:

Before buying the property the buyer will normally conduct due diligence on the property, including investigation and

ILN Real Estate Group – Buying and Selling Real Estate Series

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