The Norwegian Property Sales Act and the Condition Report: What You Need to Know
The Norwegian Property Sales Act (avhendingsloven) regulates the purchase and sale of residential property in Norway. Following the changes that came into force on 1 January 2022, stricter requirements apply to the information that must be provided before a sale. For sellers, this means a greater need to provide clear and accurate information about the property. For buyers, it means a better basis for assessing the property before placing a bid.
For you as a seller, this means that you must provide clear and accurate information about the property.
For you as a buyer, it means that you have a better basis for assessing the property before you submit a bid.
A condition report (tilstandsrapport) has therefore taken on a particularly important role in today’s housing market.
What is the Norwegian Property Sales Act?
The Norwegian Property Sales Act (avhendingsloven) is the law that regulates the rights and obligations of buyers and sellers when real property is sold.
Among other things, the Act sets out what counts as a defect, what the seller must disclose, and what the buyer may claim if the property is not as expected.
What changed in 2022?
The end of the general “as is” reservation
Previously, homes could be sold with a general reservation that they were sold “as is”. This no longer applies when the buyer is a consumer. The seller may therefore still be liable for matters the buyer was not clearly informed about before the purchase.
The condition report has become more important
A condition report is not expressly required by law, but in practice it is highly important.
A condition report that meets the regulatory requirements gives the buyer a better picture of the property’s condition, documents what was known at the time of sale, and gives the seller a better basis if questions arise afterwards.
As a general rule, matters that are clearly described in the condition report or other sales documents cannot later be claimed by the buyer as defects.
The buyer’s deductible
The buyer must bear losses and costs up to NOK 10,000 in claims that might otherwise have formed the basis for a price reduction or damages. This applies only where there is in fact a matter for which the seller is responsible.
What does this mean for you as a seller?
You should have good documentation
A condition report provides a professional assessment of the property’s condition at the time of sale. The better and clearer the description of the property, the lower the normal risk of misunderstandings and disputes afterwards.
The duty of disclosure still applies
The seller must disclose what they know and what they ought to know. The condition report covers the technical aspects, but you must also complete the seller’s self-declaration (egenerklæring) correctly and in full.
Private sale and sale through an estate agent
The Norwegian Property Sales Act applies regardless of how the property is sold. The important thing is that the information provided is correct, clear, and available before the purchase.
What does this mean for you as a buyer?
You receive better information
In a residential sale, you will normally have access to the condition report, the seller’s self-declaration (egenerklæring), and the sales particulars. These documents should be read together in order to form a correct picture of the property.
What has been disclosed is treated as known
If a matter is clearly described in the condition report or other sales documents, you as the buyer will normally not be able to complain about it later. This also applies if you did not read the documents, as long as the information was available before the purchase.
Deductible in claims
The buyer must cover the first NOK 10,000 of a claim. The purpose is to limit minor claims and trivial issues.
TG-grades (condition grades): what do they mean?
The condition report uses TG-grades (condition grades) to describe the property’s condition, based on the regulations on safer property sales and NS 3600.
- TG0: No significant deviations
- TG1: Minor or expected wear and tear
- TG2: Significant deviations, where remedial work should be expected
- TG3: Serious deviations, where action should be taken quickly
For TG2 and TG3, the report must explain what the deviation is, what is likely causing it, and what consequences it may have. This makes it easier for the buyer to understand the condition of the property, even without a technical background.
Practical recommendation
It is generally advisable to order the condition report early in the sales process. This gives you an overview of the property’s condition, the opportunity to remedy issues before sale, and better control over what needs to be disclosed.
Good and clear information makes the transaction safer for both buyer and seller.
CR Takst
CR Takst carries out condition reports in the Oslo region and surrounding areas in accordance with the regulations issued under the Norwegian Property Sales Act (avhendingsloven), using NS 3600 within the applicable rules.
We place emphasis on clear descriptions, professionally balanced assessments, and reports that are easy to understand.
Your experience can help other property owners make a more informed choice. We greatly appreciate your review.
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