value tax, housing sales report, state report, housing purchase, purchase of housing
A home purchase is the most important purchase you make and should be based on a good knowledge of, among other things, technical condition. However, most of us have limited prerequisites for making an in-depth technical assessment of the property. We are therefore dependent on the information provided by the seller and taxpayer, as well as the information we receive from the real estate agent.
In many cases this is not sufficient and many buyers find that the home has major hidden shortcomings that they must complain about.
– We recently made a very comprehensive survey among home buyers in the years 2009 to 2014. In that it emerged that more than every fifth home buyer complained or had considered complaining, says Senior Vice President for Housing at the Consumer Council, Thomas Bartholdsen.
– This is a cloudy dissatisfaction, and of course very serious when it comes to ordinary people and millions of values. Our view is therefore that the value and loan rates are not suitable for housing transactions. It just says something about the value of the house, but little about the technical condition.
A value tax does not seem like a state report, a couple in a hunting lodge has a bitter experience. They went to bed after a cottage purchase on Lake Sjusjøen, but lost in the district court. According to Dagens Næringsliv, they had bought the cabin with plans to build on it. However, the plans were quickly transformed into deep despair when the builder who was to do the job had examined the cabin.
– He said, “This is not going to happen. It’s just putting everything in a container, “explains the cottage owner to the newspaper (payment gate).
The District Court considered that the deficiencies found could not be sold, even though the value tag did not give any indication of the problems. The reason was that the shortcomings first appeared when roofs and walls were opened at the time of installation and thus not known to the seller.
The taker who carried out the tariff confirmed to the newspaper that a value tag is not worth valuation.
– It’s not very much worth it. You can not use a value and borrowing rate to make sure things are in good condition or possibly in a bad condition, says taxpayer Øyvind Myrvold to the newspaper.
Rows buyer to complete a construction engineering assessment
– Generally, we encourage home buyers to have a technical assessment, such as consulting a building engineer, says Christian Vammervold Dreyer. He is the Managing Director of Eiendom Norge (formerly the Real Estate Agency Association)
However, he acknowledges that such surveys can be a time-consuming challenge in cases where there is a short time between the display and the deadline.
Our advice is that, as a buyer, you should get prepared and do preliminary investigations before you go to view so that you have the opportunity to review all important issues before the deadline falls. And if you are still unsure of the state of the residence, you should either refrain from bid or bid in order to make improvements, Vammervold Dreyer adds to..
Valuation Rate or Condition Report
According to CEO of Norges taksningsforbund, Are Andenæs Huser, it is important to be aware of what a value tag is intended for.
– The rate should say something about the value of the property, but it does not tell anything about the state of the residence beyond what the taxpayer might have commented on, he says.
– A state report or home sales report will be far more comprehensive.
Huser believes that the use of value-added tax on housing and cottage trade should be reduced accordingly, because the valuation rate sets high requirements for the information that may be provided and obtained as well.
– When a taxpayer is asked to make a valuation, he can do nothing but comment on state-of-the-art conditions he may see. He has no opportunity to go into depth.
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Checklist for housing purchases
How is the land and the landscaping taken care of?
Does the terrain have proper fall from the ground wall and beyond.
How is the roof water removed.
Consider carefully about the costs and maintenance given. Is there any correspondence between the information and the home standard?
Check the outside panel carefully and evaluate it according to the age of the house. When was it last painted / stained?
Check the roof. For older homes; is the roofing original?
Check foundation layout on exterior stairs and terraces, and check window fittings, door fittings, ceiling fittings, slides and drains.
Basement: Look for moisture rashes, swabs, salt rashes or if the pillow flakes.
Inside: Look for signs of moisture, and specifically investigate the wet rooms. Are there any membranes? Is the bathroom refurbished and who has done it? How is the airing on any ceiling, and is there any evidence of moisture from the ceiling?
Go through the electrical system. Are there any screw or circuit breakers?
If there is a pipe, check this. Is there any evidence of damage to it (also overcrowded)? Required with access to sweepstakes.
A more detailed list can be found on the pages of Norway’s Taxation Federation.
Source: Norway’s Taxation Federation
Here is the difference between a state report and home sales report
Both the consumer authorities, the tax industry and the real estate industry want increased use of state reports, which provide a more in-depth assessment of the technical condition of the housing than a value-added tax.
The tax industry has, in turn, developed the Housing Sales Report, which according to Huser is a state-of-the-art report specifically designed for housing turnover and is based on NS 3600 from Norsk Standard.
– It makes it more systematic than the state report.
However, work on state-of-the-art reporting is mandatory, but the goal of the housing industry is that such reports should be required.
– Real Estate Agent shall make assessments for each mission if it is recommended that the status report be read, and it is often recommended to use this, “explains Vammervold Dreyer..
If a home buyer wants such a report if it is not available, according to Vammervold Dreyer, the buyer must pay such an investigation himself.
A housing sales report costs from NOK 10,000 and upwards, depending on the size of the property.
According to Vammervold Dreyer, there are several different state reports in the market, depending on the connection the taxpayer has.
This word usage must be checked in the sales ads
Thomas Bartholdsen believes that many housing ads are suitable to put the home buyer in a dream mode, and this despite the fact that the home still has weaknesses and injuries.
– We see that housing ads often contain formulations that push the responsibility for the standard of the house over to the buyer. Therefore, one should be critical of word usage, such as “Must be investigated” or “Not investigated”. If you do not follow such hints as a home buyer, it may be used against you in a possible trial.
Bartholdsen adds that all hints that may indicate that everything is not as it should be must be followed up by a home buyer.
– For example, if it is a paint blur, it may be an indication of moisture. And if it says that the roof has only been inspected from the ground or something is “from construction year”, you can expect the counterparty and insurers to say that you should have suspected and checked closer. And then you can be stiff in it if you let yourself tear up in the bidding round and bid more than you should.
– Remember, you do not have to bid, or you can explicitly make a reservation.
– We should introduce mandatory condition assessment
Bartholdsen believes that Norwegian housing trading is far more unsafe than it is in our neighboring countries, among other things because the home buyer is poorly informed, the advertisement is too positive and the buyer has little real opportunity to withdraw after the bid is given.
– For example, in Denmark, consumers have three right of withdrawal at second-hand purchase. In Norway, however, we have bidding rounds that put a home buyer in a competitive situation. This means that in the most attractive areas you get very little time to investigate, nor understand hints and hints about mistakes and injuries that cause you to have trouble winning a complaint afterwards. And zero cancellation rights. It’s paradoxical, he says.
Therefore, it is the Consumer Council’s view that we should introduce mandatory state assessment in the marketing of used homes, of course, with several reasonable exceptions, and that the taxpayers, as in Denmark, must be completely independent of the real estate agents. Our surveys also show that consumers want longer time between viewing and deadline, so that they have the opportunity to evaluate, ask and consult with professionals.