Placepoint

Godtroregelen

Godtroregelen (the bona fide acquisition rule, also called ekstinktivt erverv or godtroerverv) is the land registration principle that gives a buyer full rettsvern (legal protection against third parties) even if the seller was not the actual owner, as long as the buyer acted in good faith about the ownership and the right was registered in Grunnboken. The legal basis is section 27 of the Land Registration Act, which states that a right registered in good faith takes priority over an older, unregistered right. The rule is the reason why the Norwegian property market can rely on Grunnboken as an authoritative register, and it is what makes the hjemmelshaver (registered title holder) role so important in practice.

To benefit from godtroregelen, the buyer must meet three cumulative conditions: the right must be registered, the buyer must have acted in careful good faith at the time of registration (unaware of the conflicting right and with no reason for suspicion), and the agreement must have been made for consideration. Acquisition by gift and by inheritance fall outside good-faith protection as a general rule, because there has been no counter-performance to justify extinguishing an earlier right. The courts have repeatedly applied a strict standard of care: a professional buyer, such as a property developer, a bank or an agent, must investigate every visible sign that something is wrong, while a private home buyer is held to a somewhat more lenient standard.

Practical example: if a landowner sells the same property twice to two different buyers, and buyer B registers their deed first while buyer A only has an unwritten agreement, then B wins even though A's agreement was made first, as long as B was unaware of A's claim. Buyer A is left with a damages claim against the seller, but no longer has any right to the property itself. This risk is the reason for the practice of registering charges, deeds and other rights as quickly as possible.

Godtroregelen does not apply without limits. Easements that have been relevant to use over time can in some cases stand on their own without registration (hevd, acquisitive prescription), Grunnboken can contain errors that are put right through correction (section 18 of the Land Registration Act), and section 27, second paragraph excludes cases where the basis for the title transfer was forged, issued under duress or invalid for other similar reasons, so that good-faith protection does not apply there. For larger deals, registration should always be combined with a thorough legal review of the property's historical rights.

In Placepoint you can verify the hjemmelshaver, mortgage deeds and registered encumbrances for each individual property before you take a purchase or mortgage process further. That is the first due diligence check that godtroregelen assumes you will carry out.

From Placepoint's dictionary: Godtroregelen

More information: Lovdata: Land Registration Act section 27, Lovdata: Land Registration Act, Kartverket: Land registration, SNL: Godtroerverv

English: Bona fide acquisition rule / good-faith doctrine (Norwegian land-registry-specific application of bona fide purchaser principles).

Common questions we come across

What is godtroregelen?

It is the principle in section 27 of the Land Registration Act that a right registered in good faith in Grunnboken takes priority over an older, unregistered right. It gives a buyer rettsvern even if the seller was not the real owner, as long as the buyer did not know, and should not have known, about the problem.

When does godtroregelen not apply?

For inheritance, gifts and other acquisitions without consideration, the protection is limited or absent. It also does not apply when the buyer was negligent (knew or should have known about the problem), and there are special rules for fraud and false title transfers. Easements maintained through acquisitive prescription can in some cases survive even without registration.

Why does godtroregelen matter in property transactions?

It makes Grunnboken an authoritative and reliable register. Without godtroregelen, every buyer would have to prove the ownership history back in time, which would make property transactions slow and expensive. In practice, banks, agents and buyers all rely on the registered position being the position that counts.

What do I need to check to be in good faith?

For private home purchases, it is usually enough to read the Grunnboken extract and the condition report, and to use an authorised estate agent. Professional parties are expected to carry out a more thorough legal review of title, charges, easements and any ongoing disputes. The standard of care rises with the buyer's expertise and the size of the deal.