Real estate lawyers in Iceland

Real estate and property law covers buying and selling homes and land, defects discovered after a purchase, renting, the rights and duties of owners in apartment buildings, mortgages and other rights registered against a property.

The legal framework

• Act on the Purchase of Real Estate No. 40/2002 (lög um fasteignakaup): the purchase agreement, the buyer's duty to inspect and the seller's liability for defects.
• Rent Act No. 36/1994 (húsaleigulög): residential and commercial leases, deposits, maintenance and notice.
• Multi-Unit Housing Act No. 26/1994 (lög um fjöleignarhús): shared costs, house associations (húsfélag) and decisions in apartment buildings.
• Act on Real Estate Agents No. 70/2015: duties of licensed estate agents.

Buying property

A purchase normally goes through a licensed estate agent. The purchase agreement (kaupsamningur) and later the deed (afsal) are registered (þinglýst) with the District Commissioner, and you can check registered mortgages and encumbrances before signing.

When buying a used property, a defect only gives a right to compensation if it is significant in relation to the price, unless the seller hid it or gave wrong information. Hidden moisture and mould damage are a common source of disputes. More in buying property in Iceland.

Renting and apartment buildings

Disputes between tenants and landlords can be taken free of charge to the Housing Complaints Committee (Kærunefnd húsamála), which also handles disputes between owners in multi-unit buildings. Read renting in Iceland for the basics.

When to contact a property lawyer

A lawyer is worth involving before you sign a purchase agreement on a high-value property, when a defect appears after the purchase, when you disagree with your house association, or in a dispute with a landlord or tenant that you cannot settle. Act quickly after discovering a defect: you must notify the seller within a reasonable time or you can lose your claim.