Be aware of new regulations for home buying in Norway from 1.1.2022

From 1.1.22 a new regulation is being introduced in Norway.  The seller, and the realtor, will be obliged to give more detailed information about the technical standard of the home in the sales material.

The seller may be responsible for incorrect and missing information to the buyers.  He or she has this responsibility also today, but so far court decisions have only made the seller liable for damages if the damage or misinformation amounted to at least 5 percent of the value of the home.  This is a lot of money, and therefore the seller has been imposed to give compensation to the buyer only in a few cases.

In the new law the limit for compensation is decreased down to NOK 10.000.

For this reason, the seller must be much more careful to give ALL the information about the property. He must , through the realtor, order a condition report from a technical expert or surveyor.  The government has made a regulation of how this inspection must be implemented and the contents of the condition report.

The purpose is better protection of the buyer.  This is a good thing in my opinion.

Be aware of the new rule about buyers’ duty to inspect !

As a home buyer  you must be aware that the new law has a rule on the buyers’ duty to inspect before giving a bid.  If you miss some information in the sales material or the technical report, or miss other information given on the viewing,  you cannot complain after the bid has been accepted by the seller.

So, the duties goes both ways in the new law!

My concern as a home buying concultant is to protect the buyer.  I am therefore prepared to help my customers to examine the new technical reports carefully and warn them about risk elements.

If you do not master Norwegian, I will warn you to buy a property without help to translate and interpret all the written material.  This is and will still be,very complicated, even for Norwegians.

Because as I have told you before the bid is binding in Norway.

2 Comments

Anne-Britt

Is it necessary to purchase sellers insurance? I am selling a condo of a deceased relative and I never lived in it. The only work in the apartment the last five years has been to upgrade the fireplace, which is documented and under warranty. I feel I am being pressured into purchasing this insurance and several sources in Norway have told me it is a scam. Could you shed some light on this topic?

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trudet

It depends on the state of the apartment and if you have a “tilstandsrapport”. You must give the correct information about the property. If that is easy and there probably are no hidden faults and things that the buyer can complain about later you do not need it. Why don’t you talk with your realtor about it. I am more into the buyers incurance. Trude Larsen

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