Property Purchasing Process in Norway

Norwegian Mortgages

Over recent years, the price of property in Norway has increased at a steady rate, producing a national average of 7.5 percent. Of course, with a country that has so many different regions, it is not surprising that some areas perform better than others and that some of the faster growing regions have seen more boom growth

Property Purchasing Process in Norway

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Introduction to Property Purchasing in Norway
Norway is a very organised and structured country with a formal and reliably secure purchasing process in place. Rather usefully, this offers a high degree of certainty in terms of financing and timing, but correspondingly, it does require an in-depth understanding of the purchasing procedures.

Finding a Property
Norwegian estate agents are more heavily regulated than their counterparts in the UK. In fact, in order to operate as an estate agent in Norway, it is necessary to pass several exams and to prove that you have the necessary experience. This ensures that a set standard of service can be expected, across the entire industry.

As part of the regulations that relate to real estate agency, the estate agent is under a positive duty to provide certain information to the buyer such as any encumbrances that exist, the exact floor space and land area, whether the property is able to obtain any concessions as well as warranties on the actual ownership of the land, etc.

For those intending to purchase a flat or part of a larger building, it is worth noting that it is the estate agent”¦s responsibility to detail the accounts and the legal position in relation to the shared ownership aspects.

If the property you are purchasing is not being offered through an estate agent, you will need to employ an authorised valuer in order to obtain an accurate and fair estimate of the true value of your chosen property. Legal assistance should always be sought to ensure that the terms of the contract adequately protect your situation.

The actual process of transferring property in Norway is simple and quick. A sales contract is drawn up between the buyer and the seller, normally with the assistance of legal advisors. However, it is possible to rely entirely on the estate agent with simple transactions.

The point at which both parties are ready to complete the sale is known as settlement; this is when a notary is appointed to witness the transaction and to ensure that all documents are in order and that fees have been paid.

Documents such as the mortgage deed and the deed of transfer are created and the necessary duty (currently 2.5 percent of purchase cost) becomes payable. The notary retains these documents until they are ready to be registered with the relevant land registry.

It is also worth noting that it is common practice in Norway to have an inspection with both the buyer and the seller coming together on the day after settlement to look over the property and to ensure that everything is in order.

Summary
Bullet Point Estate agents in Norway take on a much more formal and neutral role than is common practice in the UK;
Bullet Point whilst it is still advisable to enlist local legal advice, theoretically, it is possible to deal exclusively with the estate agent;
Bullet Point ”„settlement”¦ is the point at which funds pass and ownership is transferred; a notary is required for this process;
Bullet Point once all fees and duties have been paid, the transfer can be registered in the name of the new owner.

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Typical Interest Payments

First Time Buyers

2.89%

Purchased Fixed

2.89%

Discounted Rate

2.99%

Buy To Let

2.99%

Commercial

3%

 

 

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