Property law

What does daily fine mean?

A daily penalty is a statutory compensation that you as a buyer are entitled to if the takeover of the home is delayed. It functions as a daily “fine bill” for the contractor - an amount that is calculated per calendar day of delay.

The scheme means that you receive predictable financial compensation without having to document a specific loss. You do not need to show receipts, rental expenses or other financial loss to be entitled to a daily penalty; it is sufficient that the home is not ready within the agreed deadline.

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When can you claim a daily fine?

The main rule is simple: If the home is not completed by the agreed date, you can claim a daily penalty starting the following day.

The most common is that the agreement contains a specific deadline for taking over. If the home is still not ready when this date passes, there is a delay.

In some contracts, the takeover is not set with an exact date, but described more generally – for example “by the end of the 3rd quarter”. In such cases, the timing of the delay must be assessed based on what is reasonable, but it is always an advantage for you as a consumer to have a date in the contract.

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How much daily fine can you claim?

The Housing Registration Act sets clear frameworks for the calculation of daily fines ( Housing Registration Act Section 18 ):

• 0.1% of the purchase price per day when the agreement concerns a home without a plot of land.
• 0.075% per day if the agreement also includes land.

The law also sets a minimum amount – the daily penalty cannot be lower than 0.5% of the basic amount (G) in the National Insurance, regardless of the price of the home.

A daily penalty can be claimed for up to 100 days. If the delay lasts longer than that, you must consider other rights, such as a price reduction, compensation or possible termination of the agreement.

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When can the contractor get an extension of the deadline?

In some cases, the contractor may be entitled to an additional deadline. This means that the delay does not give rise to a daily penalty as long as the cause is beyond the contractor's control, or is due to circumstances on your side as the buyer ( Bustadopfføringsloven § 11 )

Common examples are:

• You have ordered changes or additions along the way that are delaying the project.
• You have not cooperated as agreed, for example by delaying necessary choices or decisions.
• Circumstances have arisen that the contractor could not foresee or prevent, such as extreme weather, strikes or delivery problems (force majeure).

The contractor must notify you in writing as soon as he becomes aware of the delay. If you do not receive such notification within a reasonable time, the contractor will normally lose the right to request an extension of time. In that case, the daily penalty will run as usual from the original date.

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Can compensation be claimed in addition to the daily fine?

Yes – in certain cases you may be entitled to compensation in addition to a daily fine.

This is applicable if the delay causes you a financial loss that the daily penalty does not cover. Examples may include:

• Expenses for temporary housing or rent.
• Moving and storage costs.
• Lost rental income if the home had been rented out.

To claim compensation, you must be able to document your loss. In addition, the delay must be due to circumstances for which the contractor can be blamed, such as poor planning or inadequate follow-up.

The daily penalty thus covers the general loss caused by the delay, while compensation may be applicable when you have incurred additional expenses beyond this.

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Get help from lawyers

Delays in housing projects happen more often than many people think, and it can be difficult to know how to proceed. We have extensive experience in property law matters, and can assist you in calculating daily penalties, filing claims against the contractor, and ensuring that you are paid the correct compensation.

Contact us here for a no-obligation assessment of your case.

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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Living in a housing association or condominium means sharing responsibilities, rights and obligations with other residents. To ensure efficient and fair management, both housing associations and condominiums have a board of directors. But how much power does the board actually have, and what can it decide without involving the residents?

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What is the role of the board?

The board is elected by the general meeting (in housing cooperatives) or the annual meeting (in condominiums), and is responsible for the daily operation of the property. This includes everything from maintenance and finances to following up on any rule violations. The board is supposed to act in the community's interest, but how far does their mandate actually extend?

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The board can make decisions about daily operations

The board has the authority to make decisions regarding the ongoing operation of the property. This includes, for example:

• Snow removal and maintenance of common areas
• Purchasing services (caretaker, cleaning, etc.)
• Small repairs and upgrades
• Follow-up of house rules

Such decisions do not normally require approval from the general meeting or annual meeting, as long as the measures remain within what is considered "normal management".

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When must the board obtain consent?

When it comes to major interventions, financial commitments, or changes that affect residents' rights, the board must have approval from the community. Examples of such matters may include:

• Major maintenance projects (such as replacing windows or roofs)
• Changes in use of common areas
• Borrowing that imposes increased communal costs on residents
• Introduction of new rules restricting the use of one's own home

Such matters must be dealt with at the general meeting or annual meeting, and a majority decision is usually required, in some cases a qualified majority or unanimity.

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House rules

The board can enforce house rules, but it is important that such rules are reasonable, legal, and rooted in the community. It is common to have rules for:

• Noise and quiet during certain periods
• Use of common areas
• No grilling or smoking on the balcony
• Animal husbandry

House rules should not go beyond what is necessary to ensure a good living environment. If the board wishes to tighten the regulations, it should be discussed at the annual meeting and adopted there.

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Disagreement with the board – what can you do?

If you feel that the board has exceeded its authority, or made a decision that you believe is invalid, you have several options:

1. Request written justification for the decision
2. Request that the matter be discussed at the next meeting (annual meeting or general meeting)
3. Require an extraordinary meeting , if you have the support of a sufficient number of residents
4. Seek legal advice if the decision has major consequences.

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At Insa lawyers, we assist both board members and residents in matters of housing rights and neighbor conflicts.

Please contact us for a free assessment of your case.

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