Avhendingsloven
Avhendingsloven, full name lov om avhending av fast eigedom (the Norwegian act on the conveyance of real property, lov 1992-07-03-93), governs the purchase and sale of real property between a seller and a buyer. The act covers detached houses, flats, holiday homes, commercial property, plots and leasehold rights to a plot, and sets the framework for what counts as a defect, which claims a buyer can bring, and within which time limits.
The act also applies when the seller is a consumer and the buyer is a business, and when both are businesses. When the buyer is a consumer (typically a private individual buying a home), stricter consumer rules in chapters 1 to 3 apply, and from 01/01/2022 significant changes were introduced for consumer purchases of housing: the seller can no longer disclaim liability through an "as is" clause (also called "sold as it is"), see section 3-9, second paragraph, and a deductible of 10,000 kroner was introduced that the buyer must bear themselves in defect claims in consumer purchases of housing, see section 3-1. The change followed Prop. 44 L (2018-2019) and was motivated by a need to reduce the number of defect cases in the second-hand housing market.
Defect is the core of the act and is defined in chapter 3. Avhendingsloven section 3-1 states that the property must match what was agreed. Section 3-2 covers defects in general information about the property, and section 3-7 covers missing information, that is, matters the seller knew or must have known about but did not disclose. Section 3-8 covers incorrect information and is the most cited: the buyer can claim a price reduction if the property does not match information given by the seller, the estate agent or another person acting on the seller's behalf. Common defect categories are mismeasurement of UFA, incorrect information about the year of construction, a missing completion certificate, unlawfully built works, hidden faults in the ground or the building stock, and deviations from the zoning plan or the building line.
The complaint deadlines are set out in section 4-19. The buyer must complain within a reasonable time after the defect was discovered or should have been discovered (the relative deadline). The absolute deadline is 5 years from handover. If the buyer does not complain within these deadlines, they lose the right to invoke the defect. The available remedies are rectification (rare in housing transactions), a price reduction, rescission (which requires a material breach of contract), damages and withholding of the purchase price under section 4-15.
The seller's duty to disclose has been strengthened through the new rules on the condition report under the regulations on safer housing transactions, which entered into force at the same time as the 2022 change in the act. A condition report prepared by an approved building surveyor under NS 3600 gives the seller a stronger evidentiary position and the buyer a more complete basis, but it does not remove the seller's liability for matters that are not described or that are described incorrectly. For commercial property and purchases between businesses, the rules can more easily be varied by contract, and standard contracts (Norsk Eiendom's standard agreements) are normally used instead.
Avhendingsloven does not prevent the parties from agreeing better terms for the buyer. The act sets a minimum floor in consumer relationships that cannot be departed from to the buyer's detriment. Document duty, registration and transfer of title follow other rules (dokumentavgiftsloven, tinglysingsloven).
From Placepoint's dictionary: Avhendingsloven
More information: Lovdata: Avhendingslova, Lovdata: Avhendingslova section 3-8, Forbrukerrådet: Bolighandel, Lovdata: Regulations on safer housing transactions
English: The Conveyance of Real Property Act (Norwegian-specific).
Frequently asked questions
What does avhendingsloven govern?
The purchase and sale of real property between a seller and a buyer, including detached houses, flats, holiday homes, commercial property and plots. The act defines defects, claims and deadlines.
Can the seller disclaim liability through an "as is" clause?
Not in consumer purchases of housing after 01/01/2022. Business buyers, on the other hand, can still accept "as is" clauses within certain limits.
What are the complaint deadlines?
Within a reasonable time after the defect was discovered or should have been discovered (the relative deadline), and no later than 5 years from handover (the absolute deadline), see avhendingsloven section 4-19.
What counts as a defect under the act?
A deviation from what was agreed or from normal quality. Common examples are mismeasurement of UFA, a missing completion certificate, unlawful works, hidden faults in the ground or the building, and incorrect information from the seller or the estate agent.
What is the deductible of 10,000 kroner?
After the 2022 change, the buyer in a consumer purchase of housing must bear the first 10,000 kroner of a defect claim themselves, as a deductible under section 3-1. The rule is intended to reduce the number of small defect cases.