Advice on buying Norway Property

With over 5000km of coastline Norway can offer a wide range of properties from apartments in the  cities to chalet style houses in the  smaller villages, >From the southernmost point of Norway, to the mountain areas of eastern Norway with its extensive skiing facilities, to the  far north, Norway will have the answer for you. Although property in Norway is more expensive by European standards. If you enjoy nature, the outdoor life, and sea fishing in particular Norway has the answer for you.
 
PURCHASE
In Norway the majority of property sales are conducted through Estate agents who are registered by the Norwegian government and they are entitled to conclude the transaction without the assistance of a lawyer, they will also take charge of the final financial settlement, registering the deed to the property in the central state register
 
Estate Agents, lawyers and banks have direct access to the central state register. This register is updated every day, listing changes of property ownership, restrictions on use, charges and encumbrances etc. A transaction submitted one day is registered the next day.
 
 
To be an Estate Agent in Norway you must be insured for at least NOK 10 million to cover any liabilities either party may incur in the course of the transaction of the property sale.
 
Your agent will ask you to enter into an agreement on an “estate agent assignment” this will be on a specific form and will list the agent’s terms and conditions and also specify your rights and obligations.
 
Having found that ideal property, you enter into a written contract of purchase. This means that both you (the purchaser) agree to purchase the property, and the seller agrees to sell. At this point a deposit of 10 is payable to secure the property. Any conditions and time scale relating to the property purchase are confirmed by both parties (this is a legally binding contract). Should the purchaser wish to withdraw at a later date, this is considered to be a breach of contract and financial penalties will follow.

 
You must have a Norwegian national ID number to purchase a property in Norway; this is a simple procedure which your agent will assist you with
 
COSTS
 
The fee for registering a property title deed is around NOK 2000 and for registering a mortgage bond secured on the property around NOK 2200. In addition the purchaser must pay a stamp duty of 2.5 of the property purchase price.
 
If you are using your property as a holiday home you will be liable to a yearly tax of 2.5 of the properties assessed value.
 
If the property is to be used exclusively for letting, it will be considered a business and the profit will be taxed at a rate of 28.When a holiday property is sold the profit is tax free, if you have owned the property for more than 5 years. If you have not owned it for 5 years, or have used it as a business, a 28 tax on the profit will apply.
 
Due to Norway’s weather, defects in property can be quite expensive, if the property differs materially from the prospectus given by the seller/estate agent, the purchaser will normally be able to claim a reduction of the properties selling price, or compensation within 5 years of taking possession of the property.To comply with this you must make the seller aware of the defect ,and file a claims form within 12 months if the defect is discovered 2 years or later after taking possession.