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Requirements of the Norwegian Property Transfer Act for Condition Reports - What must a report contain?
Requirements of the Norwegian Property Transfer Act for Condition Reports - What must a report contain?
Requirements of the Norwegian Property Transfer Act for Condition Reports - What must a report contain?

From January 1, 2022, the Alienation Act introduced new requirements for condition reports in property sales. These requirements are established in regulation dated June 8, 2021, No. 1850 (regulation to the Alienation Act - safer property transactions).

Purpose of the Rules

The new requirements aim to:

  • Ensure better quality of condition reports

  • Provide buyers with better information about the property's condition

  • Reduce the number of disputes in property transactions

  • Strengthen consumer protection

Key Requirements for the Report

The condition report must meet the following requirements:

  • Be prepared by an authorized building expert

  • Classify building components with condition grades (CG) from 0-3

  • Describe deviations and indicate remediation costs for CG3

  • Include moisture measurements and visual observations

  • Specify area according to the applicable standard (BRA and P-ROM)

  • Document the year of construction and any remodelings

  • Particularly emphasize the investigation of bathrooms and wet rooms

Implications for Buyer and Seller

According to the Alienation Act § 3-10, the buyer is deemed to be aware of conditions that are clearly stated in an approved condition report. This provides the seller with protection against deficiency claims for disclosed conditions.

The report must meet the regulation's requirements for the seller to obtain this protection. Insignificant deviations from the requirements are accepted, but substantial defects in the report may result in the seller losing protection.

Exceptions

The requirements do not apply to:

  • Sales of new properties

  • Sales of commercial property

  • Holiday homes (modified requirements)

  • Common areas in sectional ownerships

For agreements entered into before January 1, 2022, the previous rules apply.

Sterk Law Firm

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Your reliable partner in all real estate legal matters

Your reliable partner in all real estate legal matters

Housing law disputes can have far-reaching consequences for the parties involved. It is therefore of significant importance to have an experienced advisor who can safeguard your interests in a responsible and competent manner. Our lawyers have the necessary experience and expertise to assist you when conflicts arise.

Housing law disputes can have far-reaching consequences for the parties involved. It is therefore of significant importance to have an experienced advisor who can safeguard your interests in a responsible and competent manner. Our lawyers have the necessary experience and expertise to assist you when conflicts arise.

Housing law disputes can have far-reaching consequences for the parties involved. It is therefore of significant importance to have an experienced advisor who can safeguard your interests in a responsible and competent manner. Our lawyers have the necessary experience and expertise to assist you when conflicts arise.

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Advokatfirmaet Sterk
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