Property law

Many people are offered homebuyer insurance by real estate agents - but what does this insurance actually cover, and is it worth the money?

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Briefly summarized

Homebuyer's insurance is an insurance that entitles you to legal assistance in connection with the purchase of a home. You are also entitled to expert assistance, such as appraisal reports and other investigations necessary to uncover the extent of the defect. It does not cover the repair of the actual defects and deficiencies in the home, but the legal fees you incur if you have to complain or take legal action against the seller.

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This is completely different from home seller insurance, which the seller can and should have. There, the insurance protects against financial loss and covers costs related to hidden defects or deficiencies that are discovered after the sale. In other words, home seller insurance is a liability insurance, which also covers legal assistance if you are sued after the home sale.

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This is what homebuyer insurance covers:

• Legal assistance: The insurance covers legal assistance if you discover errors or defects in the home after taking possession and wish to complain to the seller.
• Legal costs and reports: If the case has to go to court, or technical documentation from an expert is required, the insurance usually covers these expenses.

There are usually no ongoing costs beyond the insurance deductible.

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This is not covered:

• Repair of defects: If you have damp in the bathroom, rot in the ceiling or electrical faults, you will not be covered for the repair. The insurance only covers costs associated with pursuing the claim.
• Loss if the seller cannot pay: Even if you win the claim and are successful, the insurance will not cover the loss if the seller is unable to pay. Therefore, it is an advantage for you if the seller has home seller insurance - it gives you security for a possible claim.

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When do you need homebuyer insurance?

Homebuyer's insurance may be particularly relevant if you are buying a home with uncertain or high risk of hidden defects. This often applies to older homes, homes with inadequate documentation, or if you feel that the condition report does not provide sufficient reassurance.

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The insurance gives you extra security if something goes wrong, and reduces the risk of high legal fees in the event of a dispute. As the insurance also covers reports and awarded legal costs, we recommend that everyone purchase homebuyer insurance - even if you have legal expertise yourself.

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Check if you are already covered

Many homeowners insurance policies include legal aid coverage , which provides legal assistance in disputes after purchasing a home. This coverage often has lower limits and higher deductibles than homebuyer insurance, but may be sufficient in some cases.

Before you purchase homebuyer insurance, you should therefore:

• Review your existing insurance policies
• Compare terms, deductibles and maximum coverage
• Assess whether the insurance coverage you already have is good enough

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The seller has home seller insurance - what does this mean for you?

Home seller insurance is an insurance policy that a seller can take out to cover their liability for hidden defects and deficiencies in the home. If a defect is discovered that was present before the takeover, but that no one knew about, you as the buyer can file a claim, and then the insurance company steps in instead of the seller.

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For you as a buyer, this means a greater likelihood that you will actually receive compensation and that the case will be handled more quickly and professionally. Therefore, you should always check in the sales document whether the seller has taken out home seller insurance. This gives you as a buyer a stronger starting point in the event of hidden defects.

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Have you found yourself in a dispute after purchasing a home? Our property lawyers can help you assess the case and protect your rights.

Contact us here for a free, no-obligation conversation.

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When you buy a home, you as the buyer have a duty to investigate. This means that you are responsible for familiarizing yourself with the condition of the home – both before you enter into an agreement and after you have taken possession of the property. If you fail to follow up on this responsibility, you could, in the worst case, lose the opportunity to complain about errors and defects later.

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In this article, we explain what the duty to investigate entails, what laws apply, and how you as a home buyer can best protect yourself against unpleasant surprises.

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Duty to investigate before purchase

As a home buyer, you are legally required to familiarize yourself with the information available before placing a bid. This is regulated in the Norwegian Sale of Property Act, Section 3-10, and means that you cannot later complain about matters that you should have discovered in advance.

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Once your bid is accepted, the contract is considered concluded. From this point on, you basically cannot make a claim for an error that you should have known about.

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What does this mean for you in practice?

• Read all documents thoroughly : Condition report, self-declaration and sales document often give clear signals about possible weaknesses in the home. You are considered familiar with all content - even what is not explained in detail. Even if there are many pages in the sales document, you are considered as if you have read all of them - there is no excuse for not having enough time before the bidding round.
• Investigate if asked : Has the broker or seller encouraged you to check something more closely? Then you must do so. If not, you may lose the right to appeal. This does not apply without exception, and in some cases you may still have a claim.
• Understand the content : If the seller has had a home sales report prepared, it should be written in language that is understandable to the average home buyer. However, you must make sure you understand what is in the sales documents, otherwise you are potentially taking a risk by bidding on the property.

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Duty to investigate after purchase

The duty to inspect does not stop at the time of taking over. According to the Norwegian Disposal Act, Section 4-9 , you as the buyer must inspect the property as soon as you have taken over it. This is important to find any defects and deficiencies that may give rise to a complaint.

The complaint period starts from the time you discover, or should have discovered, the defect. If you wait too long to investigate, you risk losing your right to complain, if you should have discovered the defect during such an investigation.

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What should you do:

• Go through the home thoroughly : Check the bathroom, kitchen, basement and other areas where damage can often occur.
• Document what you see : Take photos and notes if you notice anything that seems abnormal.
• Report quickly : The longer you wait to report, the greater the chance that you will lose the opportunity to make a claim against the seller.

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Summary: How to avoid costly mistakes

Understanding and following the inspection requirement is crucial for you as a home buyer. Failure to thoroughly inspect the home before and after purchase can have serious consequences.

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Have you found yourself in a dispute after purchasing a home? Our property lawyers can help you assess the case and protect your rights. Contact us here for a free, no-obligation consultation.

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Neighbor disputes are unfortunately not uncommon. Whether it's about noise, trees that shade the sun, or disagreements about property boundaries, a seemingly minor annoyance can develop into a stalemate and stressful situation. Fortunately, there are clear legal frameworks and practical solutions that can help resolve the conflict, without ending up in court.

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Start the dialogue early

The most important thing you can do at the start of a conflict is to talk to your neighbor. Many misunderstandings and irritations are due to a lack of communication. A calm and open meeting, where you explain how you experience the situation, can often be enough to resolve the problem. Remember that most people want to have a good relationship with their neighbors.

Tips for a good dialogue:

• Choose a suitable time
• Be specific, not aggressive.
• Avoid accusations – use “I experience” statements
• Listen to your neighbor's point of view

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When dialogue does not lead to progress – what does the law say?

If the conversation does not lead to a solution, there are rules in the Neighborhood Act (Grannelova) that regulate the relationship between neighbors. The main rule in Section 2 is that one must not “do or implement anything that is unreasonable or unreasonable to the detriment or inconvenience” of the neighboring property.

Typical conditions that may be illegal:

• Prolonged and loud noise, especially at night
• Persistent smoke or odor seeping into neighboring property
• Large trees that block sun, views or that could damage the property
• Construction that violates distance requirements or boundaries

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Document everything

If the conflict persists, you should start documenting what is happening. This can be useful both in the dialogue with the neighbor and if the matter needs to be taken further.

For example, you can:

• Writing down dates and descriptions of events
• Take pictures or video showing the problem
• Keep a log of persistent noise
• Save written communications, such as SMS or email

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Use the conflict council

If you and your neighbor cannot agree, you can contact the Conflict Council . This is a free, voluntary service where a neutral mediator tries to get the parties to find a solution together. Many neighbor conflicts are resolved this way, without having to involve a lawyer or the court.

Read more at: www.konfliktraadet.no

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When should you contact a lawyer?

If the problem cannot be resolved through dialogue or mediation, and you believe that your neighbor is breaking the law, it may be appropriate to contact a lawyer. A lawyer can:

• Consider whether you have a legal claim that should be pursued
• Represent yourself in contact with your neighbor
• Be an advisor in negotiations
• Represent you in court, if necessary

Note that in many cases, your property or contents insurance may cover part of the legal expenses through legal aid coverage.

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Avoid revenge – think long-term

It can be tempting to “get even” if you feel you’ve been treated badly, but revenge rarely leads to a good solution – and can also hurt your case legally. Remember, your neighbor will most likely be living there for many years to come, just like you. Finding a solution that you both can live with will give the best results in the long run.

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Have you been in a dispute with your neighbor and would like an assessment of your case? Contact our property law lawyers for a free consultation.

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