Total transaction costs are very low in Norway
November 02, 2017
How high are realtors’ and lawyers’ fees in Norway? What about other property purchase costs?
|Transfer Stamp Duty||2.5%||buyer|
|Real Estate Agent’s Fee||1% - 2.5% (+ 25% VAT)||buyer|
|Costs paid by buyer||3.75% - 5.625%|
|Costs paid by seller||nil|
|ROUNDTRIP TRANSACTION COSTS||3.75% - 5.625%|
| See Footnotes
Source: Global Property Guide
How difficult is the property purchase process in Norway?
Individuals and entities of all types are legally entitled to own, occupy, and invest in real estate.
In Norway, the real estate agent represents both the seller and the buyer. His fee is typically shouldered by the buyer.
The sales contract, the first step, is very important in the acquisition process. It guides the whole procedure and also protects both parties in case of breach of contract (remunerations in such cases are specified in the contract). This document is drawn up and later kept by the agent.
During the signing of the contract the seller issues the deed to the buyer. The deed will be kept by the agent until its registration (the final step).
Upon registration, a certified copy of the land register is issued by the registration authorities. It shows the name of the title owner, and any encumbrances attached to the property.
It takes around three days to complete the single procedure needed to register property in Norway.
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Real Estate Agent´s Fee:
The real estate agent’s fee varies and depends on the assignment’s complexity, marketability and size. For property up to NOK50 million (€7,142,857), the agent’s commission will normally be around 1% to 2.5% of the purchase price of the property, plus 25% VAT.