Decision on stamp duty after development at Fornebu set aside

In connection with the development of a large residential area, a built-up outdoor area between and around the blocks of flats was partitioned off as a separate plot of land. According to applicable regulations, this property cannot be developed further, and it must be accessible both to the residents and to the general public. When the property was transferred to a homeowner's association that was to look after the residents' interests, the Norwegian Mapping Authority found that the stamp duty should be based on what the association would be willing to pay for similar areas. The Mapping Authority therefore refused to register the deed to the association, see section 7 subsection 4 of the Land Registration Act and section 7 subsection 3 of the Stamp Duty Act. The Supreme Court, having conducted an oral hearing, concluded that the stamp duty should be based on the value added it would have for a buyer to own the land and exercise all ownership powers, in addition to the use that was already secured through applicable regulations. The decision to refuse registration was ruled invalid.

Read the order (Norwegian only)

Areas of law: Stamp duty, registration

Key paragraphs: 49-51

Justices: Noer, Falch, Bergh, Høgetveit Berg, Thyness