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The Norwegian Concession Act

rød låve

– transferring ownership of Agricultural Real Estate in Norway.

Transferring Agricultural Real Estate in Norway is regulated by the Concession Act. The Act regulates all transfers, whether by sale, inheritance, gift etc. The system itself is fairly straightforward. All transfers of property require a Concession Permit from the government, unless there is an exemption regulated in the Concession Act. Without a Concession or a Legal Exemption, you cannot remain the owner of the property.

  • The main exemptions

    There are many exemptions stated in the law. These cover the most common transfers of property:

    • Inheritance or sale to certain relatives
    • Transfer to someone with allodial rights (“odel”)
    • Small undeveloped plots for building a house, a holiday home or a boathouse up to a size of 2 000 m2
    • Smaller developed properties (see which ones below )
  • The basic rules

    Developed properties
    You must apply for concession if the area of cultivated land is larger than 35 000 m2 or the total area covers more than 100 000 m2.

    Undeveloped properties
    Undeveloped properties of a size up to 2 000 m2 are exempt from concession if you are planning to build a house, a holiday home or a boathouse on the property. There are two exceptions for these small plots:

    • one for those zoned as building area in the Municipalityplan of the area
    • one for those zoned as LNFR (Agricultural/Natural/Recreational/Reindeer area) when permission has been given to separate the plot from a larger property.                        

    For other undeveloped properties, you will need to apply for concession if the property is in an area zoned as LNFR in the Municipal Areal Plan. If you are not sure of the zoning for the property, please contact the municipality.

    You are related to the former owner or you have allodial rights (“odel”) to the property
    You do not need to apply for concession if you are related to the former owner or have allodial rights to the property.

    Allodial right (“odel”) is a Norwegian right of inheritance – please read more about it here. If you are unsure of whether you have allodial rights, please consult a lawyer or a Legal Advisor.

    It is important to find out if you need to apply for concession when buying Real Estate in Norway. The estate agent or the municipality can help you.

     

  • What to do when you do not need to apply for concession­

    To register the new property in your name, you have to authenticate the fact that you do not need a concession by filling out the form “LDIR-360 ”. By filling out this form you prove that your acquirement of the property is exempt from concession by the authorities. If you need help filling out the form, then again the municipality will be able to help you.

    After filling out the form please send it, along with the Title Deed, for registration to the Norwegian Mapping Authority (Kartverket).

  • What to do when you need to apply for concession

    You must fill in the form “LDIR-359” and send it to the municipality along with documents authenticating the transfer of ownership. It is important that you describe your plans for the property, if you intend to live there, and – for agricultural properties – how you plan to manage the farm.

    The municipality will treat your application. If it is denied, you can appeal to the County Governor. If your application/and or appeal is denied then you will have to sell the property. A deadline for sale will be set, but contact the municipality if you require more time to arrange the sale.

    If your application is accepted by the municipality, you must send the Title Deeds for registration as described, enclosing the municipality’s decision.

  • Conditional concession

    In some cases an application for concession will be accepted, but under certain conditions. The most common condition is that one has to move and live on the property for 5 years. Another example of a condition is to sell part of the property to a neighbour (mostly agricultural properties). If you do not agree with the conditions, you can appeal the municipalitys’ decision of conditional concession to the County Governor.

    You are responsible for fulfilling the conditions yourself. If you find that you can not fulfill a condition (i.e. the neighbour is not willing to buy), then you must inform the municipality and apply for the condition to be waived. If you do not fulfill the conditions, the municipality can revoke your concession.

  • What happens if I do not want to sell?

    What happens if I do not have a concession/my concession is revoked and I do not want to sell the property?

    Without a valid concession you must sell the property. If you do not sell the property within the deadline, the municipality can ask the County Governor to step in and petition an enforced sale of the property.