Sectioning and re-sectioning
Sectioning (seksjonering) is the legal process of dividing a property into owner sections that can be owned, sold and mortgaged separately. Re-sectioning is the equivalent process for changing an existing section layout, for example when a section is split, merged with another, or when the co-ownership agreements have to be updated after a conversion. Both processes are governed by eierseksjonsloven, the Norwegian Owner Sections Act, and they are the precondition for most housing types in Norwegian cities: flats in blocks, terraced houses in co-ownerships, and commercial sections in mixed-use buildings.
The sectioning process requires a formal application to the municipality under eierseksjonsloven § 11, with floor plans and section drawings that show which areas are exclusive (units of use) and which are common areas, articles of association for the co-ownership, and a self-declaration that the conditions for sectioning are met. The municipality confirms that the physical design of the building meets the requirements in eierseksjonsloven for independent units of use: its own entrance, its own access to technical installations, and a boundary that is unambiguous on the drawing. Once the decision has been made and the sections have been registered in Grunnboken, the co-ownership arises automatically as a legal entity, and the associated articles of association must be confirmed within three months.
Re-sectioning is used when the existing layout no longer fits. Common scenarios are a large commercial section that is to be split into several smaller ones, two neighbouring sections in a residential co-ownership that are merged on purchase, or common areas that are reallocated to the exclusive use of one section (glazing in a terrace, a roof flat on a shared roof). Re-sectioning also requires processing by the municipality and consent from the co-owners' meeting by a qualified majority. When the re-sectioning is complete, all affected mortgage deeds and registered rights must be adjusted so that they still carry the correct matrikkel reference.
For developers and lawyers, the sectioning process is critical to project economics. A building that cannot be sectioned as planned (for example because a unit of use does not get approval for its own entrance or ventilation) can cause delays and more expensive conversion work. Re-sectioning is also used as a tool in transformation: a closed commercial section can be turned into a residential section (this requires a change of use), or several small flats can be merged into a larger one. The registration fee for re-sectioning is usually low, because ownership does not change, but consent from the co-owners' meeting can be hard to obtain if several section owners are affected.
In Placepoint, units of use, matrikkel information, title and owner sections are shown in the property panel when you analyse an existing section layout or prepare a re-sectioning case.
How this looks in Placepoint
In Placepoint you find this in the property panel:
From Placepoint's glossary: Sectioning and re-sectioning
More information: Lovdata: Eierseksjonsloven, Kartverket: Registration.
English: Sectioning (and re-sectioning). The legal process of dividing a property into individually owned condominium-style sections (eierseksjoner), governed by the Norwegian Eierseksjonsloven of 2017.
Frequently asked questions
What is the difference between sectioning and subdivision?
Sectioning divides one building or property into owner sections that can each be sold separately, but where the site is held in co-ownership. Subdivision divides one matrikkelenhet into two independent properties with their own pages in Grunnboken and a physical boundary.
Which requirements apply to sectioning?
Each section must be a defined unit with its own entrance and must meet the requirements in eierseksjonsloven for room layout, sound and fire. Residential sections require a residential purpose in the zoning plan.
What is re-sectioning?
A change to an existing sectioning: merging sections, splitting a section or changing common areas. It requires a decision by the co-owners' meeting and new registration with Kartverket.
When is sectioning a strategic decision?
In new development, the sectioning strategy determines the sales model. When a former commercial building is transformed into housing, sectioning must be carried out before sale. Sectioning is also used to separate the commercial part from the residential part in mixed-use buildings.