Expropriation

Expropriation means that the public authorities take over all or part of a property, or a right in it, against the land owner's will. The land owner loses control, but has a claim to full compensation. The measure must have a basis in statute and must be necessary in the interest of the public, typically for a road, a watercourse, an energy installation, a railway, a defence installation or the implementation of an adopted zoning plan. Although expropriation is a relatively rare event, the threat of it is a real basis for negotiation when the public authorities or a licence holder need to secure land for large infrastructure projects.

Grunnloven § 105 (the Constitution) states that anyone who has to give up property for public use has a claim to full compensation from the treasury. It is this principle of compensation that separates expropriation from confiscation. There is no single expropriation act in Norway: the power to expropriate sits in special statutes, while the amount of compensation follows from ekspropriasjonserstatningsloven (the Expropriation Compensation Act) of 1984.

The most important statutory bases:

• Oreigningslova (the general Expropriation Act) is the central general basis. It is used when a measure is not covered by a more specific statute.
• Plan- og bygningsloven kapittel 16 (chapter 16 of the Planning and Building Act) gives the municipality the right to take over land in order to implement adopted zoning plans. The decision must be made within 10 years after the plan becomes final.
• Vegloven (the Roads Act) chapter VI for road purposes, where Statens vegvesen is the expropriation authority.
• Energiloven (the Energy Act) for energy installations; the licence holder receives an expropriation decision from NVE together with the licence for power lines and power plants.
• Jernbaneloven (the Railway Act) for railway and metro installations.

Compensation is set by the appraisal court (skjønnsretten) on the basis of sales value, use value or replacement value (the highest of the three), based on the foreseeable use on the date of expropriation. Increases in value caused by the project itself are left out (the tiltaksprinsippet under ekspropriasjonserstatningsloven § 5). In addition, compensation covers disadvantages to the remaining property, necessary moving and adjustment costs, and legal fees under oreigningslova § 15. A party can ask for a review of the appraisal (overskjønn), and the parties can also agree an amicable settlement at any point before implementation.

An amicable agreement is often preferred by both parties. The public authorities avoid a long appraisal process, and the land owner gets predictability and can avoid legal costs beyond those the authorities cover in any case. Even when an amicable agreement is in place, the municipality can make a formal expropriation decision to secure a basis for registration and legal protection. The agreement is registered in Grunnboken as a transfer or an encumbrance, depending on whether it covers a full change of ownership or only a right of use.

Expropriation interferes with the right of property and must be assessed against Grunnloven § 97 (the ban on retroactive effect) and article 1 of protocol 1 to the European Convention on Human Rights on the protection of property. Case law from the European Court of Human Rights (ECtHR) has influenced Norwegian law in this area; the Lindheim case (2012) on ground lease is the best known example.

In Placepoint you can use Saksinnsyn to follow decisions and consultations that may trigger expropriation, and set up monitoring for properties along planned routes for roads, power or railways.

How this looks in Placepoint

In Placepoint you find this in Saksinnsyn:

From Placepoint's dictionary: Expropriation

More information: Lovdata: Oreigningslova, Lovdata: Ekspropriasjonserstatningsloven, Lovdata: Plan- og bygningsloven kapittel 16, Store norske leksikon: ekspropriasjon

English: Expropriation.

Frequently asked questions

What is expropriation?

Expropriation is when the public authorities take over a property, or rights in it, against the land owner's will. The land owner loses control, but has a claim to full compensation under ekspropriasjonserstatningsloven.

Who can expropriate?

The state, county authorities, municipalities and private parties with a licence (such as energy companies) can expropriate when there is a basis in statute, typically oreigningslova or plan- og bygningsloven.

Which conditions must be met for expropriation?

Expropriation requires a statutory basis, the public interest must be present, and the interference must be necessary and proportionate. The land owner has the right to bring the case before the courts.

What is the compensation in an expropriation?

The land owner has a claim to full compensation equal to the property's market value plus the loss caused by the expropriation, including disadvantages and adjustment costs. The compensation is set by the appraisal court.

What is the difference between expropriation and an amicable agreement?

An amicable agreement is when the public authorities and the land owner agree on the transfer and the compensation without a court process. It is faster and often preferred by both parties over formal expropriation.