Forkjøpsrett (right of first refusal)
Forkjøpsrett (a right of first refusal) gives the holder the right to step into a sales agreement on the same terms that another buyer has already negotiated. In practice, this can mean that the person who made the highest bid in a bidding round does not get to buy the property after all, because someone with a right of first refusal uses it. The right applies to voluntary sales, not to inheritance, gifts or other transfers without consideration. For developers considering an acquisition (akkvisjon) and for buyers in a bidding round alike, known rights of first refusal are a risk factor that must be handled early.
The general rules follow from løysingsrettslova of 1994, which sets an upper limit of 25 years for contractual redemption rights to real property and requires the right to be invoked within six months after the holder learned of the triggering sale (løysingsrettslova section 12). A right of first refusal can be contractual (between neighbours or in a sameie (co-ownership)), statutory (typically for borettslag and agricultural properties), or tied to a specific event such as a sale or change of ownership.
In a borettslag, the coop and other share owners have a statutory right of first refusal under borettslagslova chapter 4. The deadline for invoking the right is normally 20 days from the date the coop received written notice of the change of ownership, under borettslagslova section 4-15. As a main rule, the housing coop's right of first refusal ranks ahead of that of individual share owners, unless the articles of association say otherwise. Many housing coops ask the winning bidder to wait with the final agreement until the matter has been clarified. The same applies when buying a co-op flat (andelsleilighet): the right must always be clarified before title is transferred.
For agricultural properties, the state may have a right of first refusal under konsesjonsloven, and family members may hold odelsrett under odelslova. Odelsrett (allodial rights) is a special form of redemption right that allows the family to take over a property within one year after the change of ownership, and is invoked by waiver of odelsrett under odelslova section 25 or by a redemption action under chapter XIV of the act.
A right of first refusal attached to real property should be registered as an encumbrance in Grunnboken (the Norwegian land register) at Kartverket in order to gain legal protection against a third party acting in good faith. Without registration, the right may lapse if the property is sold to someone who did not know about the agreement, the classic extinctive effect under tinglysingsloven section 20.
For a buyer, an unresolved right of first refusal is a risk: you spend time and energy on a bidding round and due diligence without any guarantee of the outcome. For the broker and the seller, it is important to give clear information about known rights of first refusal before the bidding round starts, not least to avoid complaints and damages claims under avhendingsloven.
In Placepoint, registered rights of first refusal are shown as encumbrances in the property panel together with other Grunnboken information.
How it looks in Placepoint
In Placepoint, you find this in Property panel:
From Placepoint's glossary: Forkjøpsrett
More information: Lovdata: Løysingsrettslova, Lovdata: Borettslagslova, Lovdata: Odelslova, Store norske leksikon: forkjøpsrett
English: Right of first refusal (pre-emption right).
Frequently asked questions
What is forkjøpsrett?
A right of first refusal gives the holder the right to step into a sales agreement on the same terms as another buyer. The right must be invoked within a set deadline after the sale has been notified.
Where do rights of first refusal appear in the property market?
Rights of first refusal appear in housing coops (where other share owners hold the right), as neighbours' rights of first refusal on agricultural properties, and as contractual rights of first refusal between private parties.
Who has priority when several parties hold a right of first refusal?
The housing coop's right of first refusal ranks ahead of the individual share owners' right, unless the articles of association say otherwise. The deadline for invoking the right is normally 20 days.
What is the difference between a right of first refusal and a redemption right?
A right of first refusal on sale gives the right to take over in a voluntary sale. A redemption right can give the right to buy at a fixed price under given conditions. The rules vary and must be read carefully in each case.
How do I know whether a property carries a right of first refusal?
A right of first refusal appears in Grunnboken if it has been registered, in the housing coop's articles of association, or in a separate agreement. The broker and the seller are obliged to give information about known rights of first refusal.