From January 1, 2022, you must have documentation related to the renovations that you have made in the house / apartment you are selling. The goal is to create a safer real estate trade. It is uncertain what the law will look like in practice. One thing can already be determined: now it is more important than ever to obtain documentation from professionals
Selling a used house without documentation related to renovation will be like used car sale without service history: The price will be much lower.
- Until now, everyone could sell the house "as it is". This did not encourage the seller to document the technical condition of the house, says Erling Olaussen, CEO of Boligmappa. - new the rules turn it upside down. Now the home salesman must be able to document who did what.
Works on new the liquidation act was initiated by the former Justice Minister, Tor Mikkel Wara. His successor, Jøran Kallemyr, could see it implemented today as the majority government made sure that the proposal was adopted.
It is a good law also for artisans
- The increased demand for housing documentation is good novelty for all artisans who document. They pay taxes and run healthy businesses, Olaussen continues. - New the law can help in limiting undeclared work.
Here are the most important changes:
- Stop selling the house "as is". A used house has a defect if it does not match "what the buyer expected".
- The rule of one square meter. It is considered an area variation if it exceeds two percent and at least one square meter.
- Limit of 10 crowns. The defect for which the buyer can claim damages is considered to exceed CZK 000.
- Requirements for appraisers and condition report. Requirements for the competence of the appraiser are specified, as well as the design of the condition report.
- The obligation to conduct an investigation is strengthened. The buyer may not claim damages for the conditions described in the condition report or other documentation. Regardless of whether he is acquainted with him or not.
New housing law. Conflict over the consequences
Over the last year, pages in the industry real estate in Norway and consumer organizations commented on the proposal. Consumer Council, Homeowners Association and Insurance, who were very positive, saying the changes were long overdue and would fulfill the intention of making the home trade safer.
On the other hand, companies such as Eiendom Norge, Finanstilsynet and BI professor Harald Benestad Anderssen are highly critical of this. They believe that the changes will increase the level of conflict in the housing trade.
Read our next article: What to look for when buying a used car
