There are a number of public records. Land titles and all encumbrances on land, as mortgages, etc., are recorded in the land register of the jurisdiction where the property is situated. Only persons holding a claim or interest to a particular parcel of land may inspect the register.
Norges Eiendomsmeglerforbund (Nordic Union of Real Estate Agents)
Address: Inkognitogt 12. 0258 Oslo. Norway.
Phone: 4722 447-953
Fax: 4722 553-106
Internet: http://nettvik.no
The Norges Eiendomsmeglerforbund was founded in 1932. There are approximately 480 members representing 95% of all practicing real estate salespeople in Norway.
NITO Takst
Postboks 9100
Grønland
Oslo
N-0133
Norway
Phone : +47 22 053500
Fax : +47 22 172480
e-mail : ingar.dragen@nito.no
Web : www.nito.no
NITO Takst, an independent body within the Norwegian Association of Engineers, is an association of 350 qualified construction engineers. It runs educational courses and offers a code of ethics to its members who offer valuation services for all types of real estate including residential, industrial and agricultural properties and machinery.
Real property includes land and improvements to the land. A right or interest in land is not created until the title issued for the purpose of creating such right has been entered into the Land Register of the jurisdiction where the property is situated.
Foreigners are typically required to obtain Government authorization to purchase real or to rent for more than ten years. The Norwegian government typically grants such authorizations within 3 months after application is made with the Ministry of Industry. Also Norwegian companies and citizens must often obtain permission from the government to buy real property. As Norway enters into European Community agreements, laws and regulations on real property will be revised accordingly.
Dower and curtsey do not exist in Norway however, there may be a community property or separate property under a marriage settlement. Real property may not be alienated or mortgaged if it serves as the common residence of married persons or is attached to the industry of one of them.
Corporations may hold title to real property, however corporations in Norway are generally required to have a legal reserve fund equal to at least 20% of their share capital.
Partnerships may acquire, hold, and convey real property. In general partnerships, all partners are jointly and severally liable for partnership liabilities. Small businesses have traditionally adopted this form to avoid the share capital requirements and more extensive legal regulations associated with corporations. General partnerships are especially useful for real estate investments. General partnerships are also referred to as unlimited partnerships or "ansvarlig selskap" in Norway.
Limited partnerships where one or more general partners are jointly and severally liable and limited partners are liable only up to the specified amount of their investment and are also used for investing in Norwegian real estate. Limited partnerships must be registered.
Besides ordinary property rights, Norwegian law also allows co-ownership, leasing and different forms of rental and usage rights. Owner-occupied Unit Act regulates situation where individual co-owners get exclusive right to use their own share of property. After World War II, so called housing cooperatives were established in Norway, where property is owned by housing cooperative, while individual member has exclusive right to use his unit.
Title & Contracts in Norway
Transfer of real property must be entered in the land register to be effective against third partners or creditors. A deed must bear a certificate from either a notary public, a lawyer, or two witnesses. Close relatives and employees of the purchaser cannot confirm a vendor’s signature on a deed.
Land titles and all encumbrances on land, including mortgages, must be registered in the jurisdiction where the real property is located. Because a registration system is used, there is not a need for title insurance in Norway.
Contracts are binding upon all parties unless performance would be contrary to public order. There is no specific contract form required and even verbal agreements are, in principle, valid. Contracts must contain the basic elements of mutual consent and contractual capability of the parties. Contracts deemed unreasonable to either party will be considered void. Real estate agents may prepare contracts for the sale of property in Norway. Norway has no statute of frauds. Oral contracts for the sale of real estate may be binding.
There are number of standard contracts for real estate, and consultant and architect services. Included are standards for competitive bidding, construction contracts, design and construction contracts and turnkey contracts. Standards for professionals are recognized by strictly formalized routines for giving notice and ordering. Consequences for not adhering to these routines are loss of right to protest or time-bar.
Property Taxes:
Transfer stamp duty is levied on registration of documents transferring the ownership of real estate. The rate is 2.5% of the transfer price.
Capital tax gains from the disposition of real estate is generally included in ordinary income. However, gain from the sale of a personal residence is not subject to tax if the owner has lived in the residence for at least 12 months during the 24 months before disposal.
It is the duty of the estate agent to draw up the deed, as well as prepare all other documents relevant to the transaction. It is the duty of the agent to carry out the financial settlement between the parties, including the redemption of the seller's debts and the registration of the buyers new bonds. Upon completion of the settlement, the estate agent shall send a settlement to the seller showing how the sales price has been used with regards to expenses, the redemption of loans and payments.
Land Use & Control:
There are strict controls on the development and use of private property in Norway.
Real property in Norway can be mortgaged. Mortgage liens do not have to be registered to be valid however priority of mortgages is subject to time of their registration, mortgage first registered has precedence of all others. If a mortgage is in default, the property mortgaged may be sold at public auction. Mortgage deeds require no stamp.
Typical loan to value ratios vary depending upon the type of project. Office buildings can typically obtain between 60% and 80%. Industrial and retail properties can obtain a more modest 50%-70% LTVR. Special financing operations are available through sale leaseback agreements. These special agreements can increase loan to values upwards of 90%.
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