Iceland

Registering Property in

Iceland

Listed below is a detailed summary of the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standard Property Transfer

  • Property Value: ISK 198,646,278.91
  • City: Reykjavik

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No. Procedure Time to Complete Associated Costs
1 The buyer obtains a non-encumbrance certificate from the Land Registry

The buyer would usually demand to receive a certificate of mortgages and other possible rights and obligations in relation to the property. Anyone can request a certificate in writing. It costs ISK 1.500 and it takes one visit to the Icelandic Property Registry. Real-estate agencies have on-line access to this information at a cost of ISK 550 per certificate.

Agency: Magistrate's Office 		1 day ISK 1,500 each certificate if completed at the Registry's office
2 Authorized real estate agent prepares and executes the sale-purchase agreement

It is not mandatory to use an authorized real estate agent, but almost everyone does. The agent's fees will be around 1.5% and 2.5% of the property value. The sale-purchase agreement is usually registered at the Property Registry if the property is not paid in full at the time of the agreement.
The deed is first signed when the property is paid in full. Registration of the sale-purchase agreement protects the rights of the purchaser. The total extra cost of registering the sale-purchase agreement is ISK 2.000. The process takes about 2 days. In this case there is no need to register the sale-purchase agreement and it is not a formal requirement. The conditions for registry of the sale purchase agreement are that it contains the following information:
- the name of the property as officially registered by the municipal authorities,
- unique property reference number of the land and the property,
- the legal description set forth by the planning and building authorities and
- the land and the building’s number which has direct reference to its coordinates. This information can be obtained from the Land Registry office in the property’s district or from Icelandic Property Register (Cadaster authority).

If an authorized real estate agent handles the sale this information is available to him via an electronic data and information system. It is common that the buyer notifies the insurance company. Insurance companies have electronic access to the database at Icelandic Property Register and there is a daily processing of the title of transfers. The title of the fire-insurance changes the same day as the transfer of title is registered.

Agency: Real Estate Agent 		1 day 1.5-2.5% of property value (real estate agent fees)
3 Transfer of title is prepared and registered at the Magistrates office

When the buyer has fulfilled his obligations in relation to the sale purchase agreement and the conditions for registrations, the transfer of title is prepared and registered at the Magistrates office. The deed shall be delivered in two signed copies (including one copy on a special accredited paper.

The documentation should include the deed signed by the seller and the purchaser and certified by a notary public, or an attorney, a certified real-estate agent or two witnesses. In practice a notary public is hardly ever used.

Agency: Magistrate's Office 		1-2 days ISK 2000 + 0.4% of the official real estate valuation (usually lower than purchase price) for Stamp Duty
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