Buyer's duty of investigation when purchasing a home: Rights and obligations under the Norwegian Alienation Act

When purchasing a property, you essentially take on the risk for any hidden defects and deficiencies. The Norwegian Disposal Act provides you with certain protection through the seller's duty to inform, but also imposes a duty on you to inspect the property. This article explains the content and scope of the duty to inspect.

Duty to inspect before the purchase

The most important duty to inspect follows from section 3-10 of the Norwegian Disposal Act. According to this provision, the buyer cannot claim as a deficiency anything he knew or ought to have known when the agreement was made.

The buyer also cannot claim as a deficiency anything that he should have discovered when inspecting the property before purchase.

The extent of the duty to inspect depends on the specific circumstances:

• There are stricter requirements for a professional buyer than for a consumer

• The duty is intensified if the seller invites investigation into specific matters

• Visible signs of defects or deficiencies trigger a duty for further investigation

• The property's age and condition may especially warrant more thorough investigations

As a general rule, a normal, visual inspection is sufficient. The buyer is not obliged to conduct destructive investigations or seek expert assistance unless there are special indications of hidden defects.

If the buyer uses an expert to inspect the property, the buyer will be identified with the expert. This means that deficiencies that the expert should have discovered could preclude the buyer's claim for deficiencies.

Duty to inspect after takeover

According to section 4-9 of the Norwegian Disposal Act, the buyer must inspect the property "as soon as reasonably possible" after takeover. This inspection is significant for the complaint period in section 4-19, which starts running when the buyer discovered or should have discovered the deficiency.

Relation to the seller's duty to inform

The seller's duty to inform according to sections 3-7 and 3-8 takes precedence over the buyer's duty to inspect. This follows from section 3-10 third paragraph. Therefore, the buyer can claim as a deficiency conditions that the seller knew or ought to have known, even if the buyer should have discovered the condition upon inspection.

For conditions the seller did not know or ought not to have known, however, the buyer's duty to inspect may be crucial to whether deficiency claims can be made.

"As is" reservation

From January 1, 2022, "as is" reservations or similar general reservations are no longer allowed during consumer purchase of real estate. In other property purchases, such reservations can still be made, but they will not hold if the seller's duty to inform is breached.

Consequences of failing to inspect

If the buyer does not fulfill their duty to inspect, the consequence can be that deficiency claims are lost. This is particularly the case if:

• The buyer without reasonable cause fails to follow up on a seller’s invitation to investigate specific conditions

• The buyer fails to follow up on findings that gave cause for concern or further investigations

• An expert inspecting on behalf of the buyer should have discovered the deficiency

Conclusion

The duty to inspect means that the buyer has a certain responsibility to uncover deficiencies both before and after the purchase. At the same time, the duty to inspect must be weighed against the seller’s duty to inform. The assessment must take into account the property's characteristics, the parties' preconditions, and the overall circumstances.