Purchase a property in Norway
Purchase a property in NorwayUpdated on Thursday 04th May 2017
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No restrictions apply to foreigners or locals who are interested in purchasing a property in Norway. If you intend to stay in Norway for a while, buying a property is considered a good business. The real estate agent represents both seller and buyer, and as a general rule, his/her fee is paid by the buyer. There are certain legal provisions to be taken into consideration when purchasing a property in Norway. If you want to own a property in Norway and to avoid the risks implied by this transaction we recommend employing a real estate due diligence service. Through this service our Norwegian lawyers may verify for you if there are any problems with the legal status of the property or if the data provided by the seller were declared in good faith.
How to purchase a property in Norway?
Once you decided to buy a property in Norway you should search for a real estate agent to represent you. The first step in the acquisition process of a property is the sales contract. It regulates the whole buying procedure, protects both parties in case of a contract violation and specifies the remunerations implied by the purchase. This contract is drawn by the real estate agent; after being signed by the parties, it is the agent`s responsibility to keep the contract. Our Norwegian lawyers can help you with the elaboration of the sale-purchase document, or they can verify for you the template proposed by the real estate agency of your choice. Our attorneys can identify and prevent you from signing a sale-purchase contract that contains clauses which might be in your disadvantage.
According to the Norwegian legislation, the seller has to issue a deed to the buyer when the contract is signed. This deed has to be registered by the Norwegian authorities, who release a certified copy of the property register. This document contains the name of the title owner and burdens attached to the property, if any. The registration procedure of a property in Norway usually takes around three days to complete. Our attorneys in Norway can provide specialized assistance during the process of purchasing and registering a property.
What are the costs of purchasing a property in Norway?
Property prices in Norway remain accessible to foreign investors. The price modifications may show up, caused by a number of factors such as low interest rates, population increase and strong economic development. When buying a property in Norway, the transaction costs include all buying and re-selling expenses:
- • Notaries` fees;
- • Lawyers' fees;
- • Registration fees;
- • Taxes and real estate agent`s fees.
The agent`s commission ranges between 1% and 2.5% of the purchase price of the property. This fee is paid for properties up to NOK 50 million; an extra 25% VAT tax has to be paid to local authorities. Feel free to contact our Norwegian lawyers for legal assistance during the process of buying a property in Norway.