Buying a property in Norway - Complete Guide
Purchase a property in Norway
Updated on Wednesday 15th June 2022 Rate this article
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No restrictions apply to foreigners or locals who are interested in buying 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.
If you decide to move here, our immigration lawyer in Norway can help you.
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.
The Norwegian real estate market is at the moment in a growth phase with high demand and adequate response from the real estate developers. The buyer may employ a due diligence service which will identify for him the eventual hidden risks behind the sell advertisement of a property. Our Norwegian lawyers can perform as well an analysis of the ownership documents of the property and a check in the Norwegian legislation regarding inheritance in order to make sure that your investment is a safe one. How do our Norwegian lawyers carry out the real estate due diligence procedure?
Why perform a real estate due diligence in Norway?
Before buying a property in Norway, it is advisable to perform a due diligence procedure. Through the procedure of real estate due diligence our lawyers in Norway offer a detailed evaluation of properties which interest investors for buying or renting. If you intend to purchase real estate in Norway, or to ensure office space to your Norwegian business, then it is recommendable to employ a local attorney for a throughout analysis of the present condition and legal history of the property.
The Norwegian real estate market is at the moment in a growth phase with high demand and adequate response from the real estate developers. The buyer may employ a due diligence service which will identify for him the eventual hidden risks behind the sell advertisement of a property. Our Norwegian lawyers can perform as well an analysis of the ownership documents of the property and a check in the Norwegian legislation regarding inheritance in order to make sure that your investment is a safe one.
Depending on the options of the client a due diligence service in Norway can in certain conditions present as well an overview of the surroundings of a property. A green environment and a safe city area may be important factors in the calculation of the worth of a property. Moreover, additional spaces such as garages or gardens need sometimes a professional analysis in terms of value and legal status. Our lawyers can provide due diligence services for residential as well as commercial properties to clients interested in buying a property in Norway.. They can also perform a company due diligence procedure for clients interested in buying a Norwegian company or merging with one.
How do our Norwegian lawyers carry out the real estate due diligence procedure?
The real estate due diligence procedures in Norway imply a series of steps in which our Norwegian lawyers can investigate in detail the properties’ documents and its legal status. One of the main aspects in the focus of our consultants is whether the seller is involved in cases of bankruptcy or if the documents have authorised certification. Our attorneys can as well verify whether the seller has any criminal record or has been involved in litigation procedures with the Norwegian courts.
Especially if you intend to carry out an important real estate transaction, our law firm in Norway can provide a complete real estate due diligence service in order to determine the value and the flaws of the property of your choice.
You can contact our law firm in Norway in order to determine whether the property acquisition is a good investment for the future and for legal assistance during the process of buying a property in Norway.
