Advice on Buying Norway Property

With over 5000km of coastline Norway can offer aspecific form and will list the agent's terms and
wide range of properties from apartments in theconditions and also specify your rights and obligations.
cities to chalet style houses in the smaller villages.Having found that ideal property, you enter into a
From the southernmost point of Norway, to thewritten contract of purchase. This means that both
mountain areas of eastern Norway with its extensiveyou (the purchaser) agree to purchase the property,
skiing facilities, to the far north, Norway will have theand the seller agrees to sell. At this point a deposit of
answer for you. Although property in Norway is more10 of the property purchase price.
expensive by European standards. If you enjoyIf you are using your property as a holiday home
nature, the outdoor life, and sea fishing in particularyou will be liable to a yearly tax of 2.5.When a holiday
Norway has the answer for you.property is sold the profit is tax free, if you have
In Norway the majority of property sales areowned the property for more than 5 years. If you
conducted through Estate agents who are registeredhave not owned it for 5 years, or have used it as a
by the Norwegian government and they are entitledbusiness, a 28% tax on the profit will apply.
to conclude the transaction without the assistance ofDue to Norway's weather, defects in property can
a lawyer, they will also take charge of the finalbe quite expensive, if the property differs materially
financial settlement, registering the deed to thefrom the prospectus given by the seller/estate
property in the central state registeragent, the purchaser will normally be able to claim a
Estate Agents, lawyers and banks have direct accessreduction of the properties selling price, or
to the central state register. This register is updatedcompensation within 5 years of taking possession of
every day, listing changes of property ownership,the property. To comply with this you must make
restrictions on use, charges and encumbrances etc. Athe seller aware of the defect, and file a claims form
transaction submitted one day is registered the nextwithin 12 months if the defect is discovered 2 years
day.or later after taking possession.
To be an Estate Agent in Norway you must beThese guidelines are meant for guidance only and
insured for at least NOK 10 million to cover anydescribe a straightforward purchase scenario.
liabilities either party may incur in the course of theHowever this information is not meant to replace
transaction of the property sale.proper legal advice, which we always insist you take.
Your agent will ask you to enter into an agreementJohn Everitt is a consultant to Globespan European
on an "estate agent assignment" this will be on aproperty portal.