Prioritetsvikelse
Prioritetsvikelse (priority subordination) means that a mortgagee agrees to move behind another right in Grunnboken, so that a younger heftelse (encumbrance) gets better priority than an older pant (charge). The declaration is registered and changes the order in which claims are covered at a forced sale.
As a general rule, the time of registration determines priority, see the Land Registration Act section 20. Whoever registers first has the better right. Prioritetsvikelse is the exception: under the Land Registration Act section 32, a mortgagee may consent to a younger right taking precedence, and the declaration must be registered in the same way as the deletion of an encumbrance. The declaration must state clearly which pantedokument (mortgage deed) gives way, which right it gives way to, and whether the subordination is full or partial. If the prioritetsvikelse is not registered, it has no effect against creditors or later good faith acquirers; it must be entered in Grunnboken to gain legal protection.
The most common situation is refinancing. A homeowner has an older loan with bank A in first priority, and wants to take out a new and larger loan with bank B. Bank B requires first priority to grant the loan, and bank A then signs a prioritetsvikelse that lets bank B move ahead. Once bank A has been repaid and deleted, the need for the subordination falls away, but it often remains registered as history. An alternative is for bank A to give a pantefrafall (release of charge) and be deleted entirely, but that requires full repayment; prioritetsvikelse is used when the older charge is to remain.
Prioritetsvikelse differs from pantefrafall. A pantefrafall means that the mortgagee gives up its security in a property completely; prioritetsvikelse means that the mortgagee keeps the charge, but accepts a poorer place in the queue. The difference matters in practice at a forced sale: a party that has released its charge gets nothing at all from the property, while a party that has given way still receives payment if funds remain after the right ranked ahead of it has been settled. For a mortgagee, subordination is therefore less intrusive than release.
Prioritetsvikelse is also used for rights other than pant. A registered right of first refusal, servitutt (easement) or right of use can give way to a new pant; a registered lease can give way to financing; an older urådighet (restriction on disposal) can give way to a new charge with the consent of the right holder. In commercial property, it is common to agree in advance how priority is to be handled on future refinancing, including through intercreditor agreements between creditors that set the order of payment on insolvency.
Registering a prioritetsvikelse triggers a registration fee, but not document duty. The declaration can be sent electronically to Kartverket's eDokumentmottak and is normally processed the same day. In a grunnboksutskrift (land register extract) and panteattest (certificate of charges), you see the prioritetsvikelse as a separate registered entry with a reference to both the older and the younger right. Professionals use this historical trail to reconstruct the order between charges, especially when a property has been refinanced several times.
In Placepoint you see registered pant, encumbrances and their order in the property panel, so you quickly get an overview of who has the best priority on a property without having to interpret the grunnboksutskrift manually.
How it looks in Placepoint
In Placepoint you find this in Property panel:
From Placepoint's dictionary: Prioritetsvikelse
More information: Lovdata: Land Registration Act section 32, Kartverket: Register a charge, Lovdata: Mortgages Act
English: Priority subordination (mortgage ranking).
Frequently asked questions
What is prioritetsvikelse?
Prioritetsvikelse means that a mortgagee agrees to move behind a younger right in Grunnboken, so that the new encumbrance gets better priority at a forced sale. The declaration must be registered to have effect.
When is prioritetsvikelse used?
The most common use is refinancing, where a new bank requires first priority and the older mortgagee agrees to give way. It is also used to let new easements, leases or rights of first refusal move ahead of an older pant.
What is the difference between prioritetsvikelse and pantefrafall?
A pantefrafall removes the charge from the property entirely; the mortgagee loses its security. Prioritetsvikelse keeps the charge, but gives it a poorer place in the queue at a forced sale.
What is the legal basis for prioritetsvikelse?
Prioritetsvikelse is regulated by the Land Registration Act section 32, which provides that prioritetsvikelse follows the same rules as the deletion of a registered encumbrance. The general rule that the time of registration decides priority is in the Land Registration Act section 20.
Does prioritetsvikelse cost anything?
Registering the prioritetsvikelse triggers a fixed registration fee per document. It does not trigger document duty. Banks also often charge a processing fee to assess and sign the declaration.