Konsesjon
Konsesjon means permission from the public authorities to acquire or use something that is subject to public control. In a property context, konsesjon usually means permission to take over real property, in particular agricultural property. The general rule in Norway is that you can buy property freely, but the Concession Act makes exceptions for certain property types where society has an interest in who owns the property and how it is used.
The cases that matter most in practice concern agriculture. A developed property is exempt from konsesjon when the total area is no more than 100 dekar (1 dekar is 1,000 square metres) and it has at most 35 dekar of fully cultivated or surface cultivated land, see section 4 of the Concession Act. If the property exceeds one of these limits, konsesjon becomes mandatory, and the buyer must apply to the municipality for permission. Many acquisitions are still exempt, for example purchases within the close family or of small properties below the area limits. Even when an acquisition is exempt, the buyer often has to submit a self-declaration of exemption from konsesjon, which is registered together with the transfer of title. Without it, Kartverket refuses to register the deed.
For agricultural property, konsesjon is closely linked to the duty to live on and farm the land. Purchases within the close family are as a general rule exempt under section 5 of the Concession Act, but if a close relative takes over a property with more than 35 dekar of fully cultivated or surface cultivated land, or more than 500 dekar of productive forest, a residence duty still applies. Konsesjon can be granted on condition that the new owner settles on the property and farms the land, and the price can be tested against a price control level so that agricultural property is not traded at pure market prices. The purpose is to make sure that cultivated land stays in production and that properties are owned by active users, not held as passive investments. For other property types, konsesjon or separate permits may also be relevant, for example in some watercourse, power and aquaculture contexts, but then under their own acts.
For a buyer, it is essential to settle the question of konsesjon before a property transaction is completed. A deal can depend on konsesjon being granted, so agreements are often made subject to konsesjon. If the buyer is refused, or conditions are set that the buyer cannot meet, the property may have to be sold on within a deadline. The konsesjon position therefore affects the completion, the price and who can realistically be a buyer.
The konsesjon limits are adjusted from time to time, and it is the municipality that processes the application and decides whether konsesjon is granted, with a right of appeal to Statsforvalteren (the county governor). For residential properties in ordinary residential areas, konsesjon is rarely an issue, while for agricultural, forest and shoreline properties it can be decisive for both the price and who can buy. Under price control, an agreed purchase price above the level the authorities consider justifiable can lead to konsesjon being refused until the price is reduced.
In Placepoint you can see matrikkel information and land use purpose for a property. That gives an indication of whether the property is of a type where konsesjon or a duty to live on and farm the land may be relevant, before you take a property transaction further.
From Placepoint's dictionary: Konsesjon
More information: Konsesjonsloven, Landbruksdirektoratet, Store norske leksikon: konsesjon
English: Concession / acquisition licence (konsesjon; public permission to acquire certain real property, chiefly agricultural land).
Frequently asked questions
What is konsesjon when buying property?
Konsesjon is permission from the public authorities to take over real property that is subject to public control, in particular agricultural property. The general rule is free acquisition, but the Concession Act makes exceptions for certain property types.
When does a purchase require konsesjon?
Typically when buying developed agricultural property above certain area limits for cultivated land and forest. Many acquisitions are still exempt, for example within the close family or of small properties.
What is a self-declaration of exemption from konsesjon?
A form the buyer submits to show that the acquisition is exempt from konsesjon. It is registered together with the transfer of title, and without a clarification Kartverket will normally refuse to register the deed.
What is the duty to live on and farm the land?
Conditions that can come with konsesjon on agricultural property: that the owner settles on the property and farms the land. The purpose is to keep cultivated land in production and secure active ownership.
How does konsesjon affect a property deal?
A property transaction can be made conditional on konsesjon being granted. If the buyer is refused, or gets conditions that cannot be met, the property may have to be sold on within a deadline.