Buying a new-build in Norway: guarantee, day fines and document duty under bustadoppføringslova
Buying new in Norway, the Housing Construction Act gives you a guarantee of at least 5 per cent of the price for five years, a day fine for late delivery, and document duty only on the plot value. Here is how a new-build buyer is protected.
Updated: 2026-07-17
When you buy a new home that is to be built or is under construction, the Housing Construction Act (bustadoppføringslova) applies, and it gives you strong rights. The contractor’s guarantee must be at least 5 per cent of the price (3 per cent for claims before takeover) and last five years when a plot is included. If the home is delivered late, you can claim a day fine of 1 per mille of the price per day for up to 100 days. And you can withhold the whole price until the guarantee is documented.
One more advantage: the document duty on a new-build is calculated only on the plot value, not on the construction cost. Here is what each of these means for you.
The section 12 guarantee: at least 5 per cent for five years
When you buy a new freehold home with a plot, the contractor must provide a guarantee. It must be at least 5 per cent of the price you pay, and 3 per cent for claims made before takeover. The guarantee lasts five years.
The guarantee protects you if the contractor fails to meet the contract, goes bankrupt, or defects appear during the guarantee period. You can withhold the whole price until the contractor has documented that the guarantee is in place. This is a strong tool: your money need not leave your account until you know the security exists.
| Situation | Guarantee |
|---|---|
| Claims after takeover (home with plot) | At least 5% of the price |
| Claims before takeover | At least 3% of the price |
| Duration | Five years |
Day fine: 1 per mille per day for late delivery
New-builds are often delayed, and the Housing Construction Act gives you fixed compensation. If the home is delivered late, you can claim a day fine of 1 per mille of the total price per day, for up to 100 days.
On a 5,000,000 kr purchase, 1 per mille is 5,000 kr a day. Over the 100-day cap that comes to 500,000 kr. The day fine is standardised compensation, so you do not need to prove a specific financial loss to claim it. If the delay runs very long, other remedies can come on top.
Document duty only on the plot value
On the first transfer of a newly built freehold home that has not been used, document duty is calculated only on the plot value, not on the construction cost. That makes the duty far lower than on an existing home.
On an existing freehold home you pay 2.5 per cent of the whole purchase price. On a new-build you pay 2.5 per cent only on the plot value, while the value of the building itself is left out. On a home where the plot is a small share of the total price, the document duty is correspondingly small. See how the duty is calculated in our guide on document duty and purchase costs.
How to use your rights as a new-build buyer
| Right | What it gives you |
|---|---|
| Section 12 guarantee | At least 5% of the price for five years (3% before takeover) |
| Withholding | Hold back the whole price until the guarantee is documented |
| Day fine | 1 per mille per day for late delivery, up to 100 days |
| Document duty | Calculated only on the plot value on a new-build |
A new-build gives you a different set of protections than an existing home, where the condition report is the main safeguard. Make sure the guarantee is documented before you pay, and check the stated plot value when you work out your purchase costs.
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Terms to know
Common questions
What is bustadoppføringslova?
The Housing Construction Act (bustadoppføringslova) applies when you buy a new home that is to be built or is under construction, from a developer or contractor. It gives consumers strong rights: a guarantee from the contractor, the right to a day fine for late delivery, and the right to withhold payment until the guarantee is documented.
What does the guarantee on a new-build cover?
When you buy a new home with a plot, the contractor's guarantee must be at least 5 per cent of the price, and 3 per cent for claims made before takeover. The guarantee lasts five years and protects you if the contractor fails to meet the contract or defects appear. You can withhold the whole payment until the guarantee is documented.
What is the day fine for a late new-build?
If a new home is delivered late, you can claim a day fine (dagmulkt) of 1 per mille of the total price per day, for up to 100 days. On a 5,000,000 kr purchase that is 5,000 kr a day. The day fine is fixed compensation you are entitled to without having to prove a specific loss.
Do I pay document duty on a new-build?
On the first transfer of a newly built freehold home that has not been used, document duty is calculated only on the plot value, not on the construction cost. That makes the document duty on a new-build far lower than 2.5 per cent of the total price would suggest.
Can I withhold payment when buying a new-build?
Yes. You can withhold the whole price until the contractor has documented that the guarantee under section 12 is in place. This is a strong tool that ensures the guarantee really exists before your money leaves your account.
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