Placepoint

Blankoskjøte

A deed (skjøte) is the document that transfers real property to a new owner. When the deed is registered in Grunnboken (the Norwegian land register), the new owner obtains registered title (grunnbokshjemmel) and full legal protection, in return for paying a registration fee and document duty (the current rate is 2.5% of the market value, set by the Storting).

A blankoskjøte (also written blancoskjøte, "blanco skjøte" or "in blanco") is a deed that is signed by the seller, but where the field for the buyer is left open to be filled in later. This allows the property to be transferred on without a new registration, so document duty is avoided on the intermediate step. The practice is used in particular by property developers who expect to resell shortly after taking possession, and in project sales where the final company structure is not yet in place.

The arrangement is not explicitly regulated in Norwegian law, but rests on the fact that tinglysingsloven (the Land Registration Act) does not prohibit leaving the buyer field open. The saving in duty follows from the fact that document duty under dokumentavgiftsloven (the Document Duty Act) is only triggered when the deed is actually registered: when the blankoskjøte is set aside and only submitted once the final buyer is known, each intermediate party avoids document duty.

The legal drawback is that the actual acquirer lacks registered legal protection until the deed is submitted to Kartverket. If the seller becomes insolvent, or the creditors of the registered owner levy execution on the property before registration, the buyer's right can be lost. Using a blankoskjøte therefore requires strict control over the safekeeping of the document, and normally additional security in the form of a restriction on disposal (urådighet) or a security mortgage (sikringsobligasjon). Skatteetaten (the Norwegian Tax Administration) and the financial authorities have tightened their practice on intermediate unregistered transfers in recent years; check the current rules and consult a lawyer before a blankoskjøte is made part of the structure.

From Placepoint's dictionary: Blankoskjøte

More information: Lovdata: Tinglysingsloven, Lovdata: Dokumentavgiftsloven, Kartverket: Tinglysing av eiendom, Store norske leksikon: blankoskjøte

English: Blank conveyance deed (signed by the seller but with the grantee field left empty).

Common questions we come across

What is a blankoskjøte?

A blankoskjøte is a deed signed by the seller, but where the field for the buyer is left open. This allows ownership to be transferred on without a new registration, so document duty is avoided.

When is a blankoskjøte used?

A blankoskjøte is normally used where ownership is expected to be short-lived, for example when buying a development property that will soon be resold, or when you want to save document duty.

What is the document duty in Norway?

Document duty is paid on registration of a deed; the current rate is 2.5% of the property's market value, set by the Storting. When a blankoskjøte is used, this duty is avoided on intermediate transfers.

What is the risk of using a blankoskjøte?

The risk is that an owner without registered title lacks legal protection. If the seller becomes insolvent or has several creditors, the property can be encumbered by debt even though the buyer believes they own it.

What is a skjøte?

A skjøte is the document used to transfer real property to a new owner. It must be signed by the seller and sent for registration with Kartverket for the buyer to obtain registered title.