Condominiums have a right to redeem leased land in residential area in Oslo

A relatively large area that was regulated for residential construction was let in 1947. The lessee was allocated six land numbers from the area. These were in turn sub-let to six housing limited companies. The companies, which were later changed to condominiums, built houses on the properties. In a case regarding redemption of the plots, see section 42 see section 32 of the Ground Lease Act, the Supreme Court found that section 42 only applied to contracts which did not give the original lessee the right to build a house on the property, and that the latter had waived such a right in the agreements with the housing limited companies. It was therefore the condominiums and not the original lessee who had the right to redeem the plots. The Supreme Court also found that the redemption right applied to the respective land numbers in their entirety. The house owners’ interests related to the living environment were considered central. Neither the original lessee nor the condominiums had the right to redeem the areas that had not been let, as these were not intended to be built on. Thus, it was not a matter of "leased plot for a residential building or a leisure home", see section 32 of the Ground Lease Act. 

Read the whole judgment (Norwegian only) 

Area of law: Land lease. Section 42, see section 32, of the Land Lease Act. 

Key paragraphs: 62-63, 72-73

Justices: Falkanger, Normann, Bull, Bergh, Steinsvik