REALWorld Law

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

The Norwegian Alienation Act (Avhendingsloven) regulates the transfer of  properties between private individuals and/or between professional parties. This applies, however, with the following exceptions:  

• Professional parties may opt out of the regulations imposed under the Norwegian Alienation Act.
• In a combined agreement for the transfer of real estate together with the construction of a building, the Norwegian Alienation Act applies only to the real estate part. The construction part is regulated by the construction contract.
• A combined agreement between a contractor and a private individual for the transfer of real estate together with the construction of a new residential property, is in its entirety regulated by the Norwegian Housing Construction Act (Bustadoppføringslova).    

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

No. The Norwegian Alienation Act normally regulates the transfer of title to all types of real estate, with the exception of sale of residential properties under construction to private individuals which are regulated by the Norwegian Housing Construction Act.   

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

Once the sale and purchase agreement is concluded and the buyer has taken possession of the property in accordance with the agreement, the transfer of ownership between the parties has legally taken place.    

In order to establish legal protection for the buyer against the seller`s creditors and other third parties, a title deed needs to be registered in the Land Register (grunnboken). This is normally done except in special cases. Registration of a title deed is, however, not a legal requirement or a condition for the effective transfer of ownership between the seller and the buyer.    

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

Are transfers of title recorded in this country?

All property transactions, including sales and purchases, mortgages, easements and rights of use, as well as any rights and obligations pertaining to the property, can be registered. There is, however, no legal obligation to register a title deed upon a transfer of real estate in Norway.

Any interested party can access the Land Register, which is organized by title and land number for each municipality.

Does title insurance exist in this country?

Title insurance is in principle available but is not common except in events where there are specific risks related to the legal title, typically due to a preceding split and separate transfer of the formal and beneficial ownership to the property respectively.

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

A commercial real estate transaction normally involves a bidding and acceptance phase, a due diligence process, the negotiation and drafting of the sale and purchase agreement, the signing of the agreement and the final transfer of ownership (normally referred to as closing).

Agreements for the sale and purchase of commercial real estate are normally drawn up by one of the parties’ lawyers based on the bid from the buyer and the acceptance letter from the seller.

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

Yes. Buyers usually carry out technical, environmental and legal due diligence on title, building permits, leases and contracts related to the property. This is normally carried out before the sale and purchase agreement is entered into.

If agreed between the parties, the due diligence may also be carried out in a specified period after the agreement is signed. In such cases the sale and purchase agreement should specify how to deal with any findings.

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

A private individual cannot transfer the title, mortgage or lease of their common home without the approval of their spouse or registered partner.

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

A legally binding agreement can be entered into either in writing or verbally. Normally, a estate agent or a lawyer will draft the sale and purchase agreement. There are no specific formal requirements to the contents and structure of the agreement.  

The sale and purchase is binding immediately upon the signing of the agreement or verbal acceptance of the agreement, without any further measures being necessary (such as handover or registration in the Land Register).

What is a typical contract or SPA in this country like?

The Norwegian real estate market is characterized by an extensive use of standard form agreements drawn up by industry organizations. The templates are used as a basis and the specific contents of the agreement are negotiated on a case-by-case basis.  

The sale and purchase agreement normally comprise:

• Identification of the parties and the property (object of purchase)
• Purchase price and transfer costs, including (if relevant) the basis for calculation of the purchase price
• Closing and settlement
• Conditions precedent
• Specific undertakings before or after closing
• Remedies in the event of breach of contract
• Seller`s warranties and indemnities
• Limitations of the seller`s liability
• Collateral

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

The Norwegian Alienation Act does not provide any express seller`s warranties in the sale of real estate.  However, the Act stipulates that the property is generally deemed to have a defect in the legal sense if (subject to further conditions):

• The property does not correspond to what the buyer could expect based on, among other things, the type, age, and visible condition of the property.
• The property is not suitable for a specific purpose that the seller was or should have been aware of.
• The property has a smaller area than stated by the seller.
• The seller has provided incorrect or incomplete information about the property.
• The property is significantly poorer condition than the buyer had reason to expect.
• Third party has an ownership right, lien or other rights in the property.
• The property is encumbered by public law restrictions.
• The buyer cannot claim as a defect anything that the buyer was or should have been aware of when the sale and purchase agreement was entered into.

Between professional parties, the Norwegian Alienation Act may be deviated from in its entirety, including the provisions regarding defects to the property as referred to above. According to common market practice, the buyer waives any right to invoke any claim against the seller pursuant to the provisions of the Norwegian Alienation Act or other rules on liability for incorrect or incomplete information and any other statutory or non-statutory basis outside the sale and purchase agreement.

Instead, it is common for professional parties to negotiate specific seller`s warranties. Such warranties normally regard the seller`s title and ownership to the property, the property`s leases, governmental orders and that seller has provided correct and complete information about the property. Pursuant to standard market practice, the buyer may not invoke as a breach of the warranties anything of which the buyer was actually aware of, or anything that is reasonably clear or readily apparent from the written information received by the buyer from the seller before the entering into of the sale and purchase agreement.  

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

Pursuant to the Alienation Act, the buyer`s remedies are:

• Uphold the sale and purchase agreement and require the seller to fulfil its obligations.
• Require that the seller rectifies a defect.
• Claim price reduction equal to the rectification costs or value reduction due to a defect.
• Rescind the sale and purchase agreement in the event of the seller`s material breach of contract, as a result of a delay or a defect.
• Damages for loss due to a delay or a defect, provided that the delay or defect was within the seller`s control (in which case the buyer is entitled to damages for direct loss only) or due to the seller`s negligence (in which case the buyer is also entitled to damages for indirect loss).
• Retention of purchase price (or a part thereof) for claims against seller due to delay or defect.

In sale and purchase agreements between professional parties, the remedies pursuant to the Norwegian Alienation Act are normally deviated from and limited as follows:

• The buyer may not require the seller to rectify a defect.
• The buyer may not require a price reduction, but damages only.  

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

Buyers should consider the following issues:

• The development plan that each municipality draws up for the local area. This provides a description of the permitted use for property in different areas of the municipality. 
• Building permits and licences, since the right to develop a property depends on being granted a building licence by the local authority. Buyers should verify that any construction has been carried out with the local authority's prior approval and that the property has been built in accordance with the building permits granted (according to the description provided in the plans attached to the permits). 
• Certificate of completion or a temporary permit, since all property must be provided with a certificate attesting that certain technical, health and safety requirements have been met. 
• Fire prevention provisions, since it is the buyer's responsibility to ensure that the building complies with safety regulations after the purchase.

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

This situation is normally governed by the 'polluter pays' principle, though the seller can disclaim responsibility in the contract. However, if any pollution is discovered, the owner of the building may be held responsible by the authorities regardless of any contract which exists. If, according to the contract, responsibility for the pollution rests with the seller, the buyer may then subsequently claim restitution from the seller.

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

The development plan provides a description of the permitted use in different areas of a municipality. Local authorities may make further specifications in the plan. Any interested party can contact the local authority to get access to the development plan.

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

It is common for larger contractors to enter into a development agreement with the relevant public authorities to facilitate a development project. Under such an agreement a developer would normally undertake to carry out certain public works, such as building roads, providing public parking spaces and green areas, etc.

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

The authorities, or a private developer with the assistance of the authorities, can expropriate property for the purpose of building roads, schools, transport facilities, playing fields etc although this right is subject to restrictions. A property can only be subject to compulsory purchase after an overall evaluation of the advantages and disadvantages has been carried out by a court of appraisal. The buyer must pay the market value for the expropriated property, as agreed by the same court.

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

Where deeds of transfer are filed with the Land Register, registration is normally subject to stamp duty at the rate of 2.5% of the purchase price or the market price if this is higher. There are exemptions from this where property is transferred between married couples, where the transferred property is a unit in a housing cooperative (borettslag), or where companies are merged or demerged. The stamp duty is paid by the buyer.

The seller must pay income tax on any profit from the sale.

Agency fees are usually between 1% and 1.5% of the purchase price. These are normally paid by the seller unless otherwise agreed. In addition, there is a charge for the registration of the title deeds, as well as any mortgage deeds. These charges are paid by the buyer. In the case of other costs, such as legal fees etc, each party normally pays its own expenses.

Last modified 21 Jan 2026

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

When buying real estate in Norway via a share deal the agency fees are usually between 1% and 3% of the purchase price. These are normally paid by the seller unless otherwise agreed. In addition, there is a charge for registering any mortgage deeds which is paid by the buyer. In the case of other costs, such as legal fees, each party normally pays its own expenses.

No stamp duty applies to share deals.

Specific tax rules apply to the taxation of limited liability companies.

Last modified 21 Jan 2026