Compulsory residency, or the obligation to reside, is a legal requirement in Norway that mandates someone to live on a property. This obligation can apply to both agricultural and residential properties and is designed to ensure habitation across the country, supporting the political goal of maintaining settlement in all areas. Here is an overview of the rules that apply to the residence requirement in Norway.
Types of compulsory residency
There are two main categories of compulsory residency: personal and impersonal.
Personal compulsory residency: This requires the owner to live on the property themselves. The obligation is fulfilled when the owner is registered as residing on the property in the National Registry. For large agricultural properties, this personal obligation can require the new owner to move in within one year and reside there for at least five years.
Impersonal compulsory residency: This allows someone other than the owner to live on the property. The obligation is met when anyone is registered as residing on the property in the National Registry.
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Compulsory residency: Legal framework
Compulsory residency is governed by several legal instruments:
Concession Act: This law directly imposes compulsory residency on certain properties, especially those acquired through concessional rights or familial connections, provided they meet specific criteria such as having more than 35 acres of cultivated land or 500 acres of productive forest. In these cases, the property must have a house used or intended for year-round residence.
Regulations on reduced concession limits: In municipalities with these regulations, compulsory residency can apply to properties otherwise exempt from it. The aim is to prevent properties suitable for year-round living from being used as holiday homes. These regulations can override the usual concession-free status, requiring new owners to reside on the property or apply for a concession.
Concession decisions: When applying for a concession, the municipality may impose compulsory residency as a condition. This decision considers factors like settlement patterns, resource management, and cultural landscape.
Consequences of non-compliance with compulsory residency
Failure to comply with compulsory residency can lead to serious consequences, including the forced sale of the property. The municipality is responsible for monitoring and enforcing compulsory residency compliance. If compulsory residency is not fulfilled, the owner may be required to apply for a concession. If the concession is not granted, the municipality can set a deadline for the sale of the property or transfer it to someone who can meet the requirements.
Exemptions and special cases from compulsory residency
Certain properties are exempt from compulsory residency under specific conditions. For instance, properties larger than 100 acres or with more than 35 acres of cultivated land are not subject to the Reduced Concession Limits. Additionally, close relatives can often acquire property without a concession, provided certain conditions are met, such as the previous owner having held the property for at least five years.
Residence requirement – A tool to ensure settlement in Norway
In summary, compulsory residency is a significant aspect of property law in Norway, aimed at ensuring properties are used for their intended purpose and supporting broader settlement goals. Understanding the nuances of compulsory residency is crucial for property owners and potential buyers in Norway.
Also read: Understanding property concession in Norway: What you need to know
Magnus Legal possesses extensive expertise in advising on matters related to residence obligations, including the application processes for exemptions. We would be pleased to assist you should you be considering the purchase of property subject to such requirements.
PURCHASING A PROPERTY IN NORWAY?
Our experienced real estate lawyers are here to assist. Contact us today!