Deadline for the transfer of agricultural property in an estate - what you need to know
18.02.2025
Expertise: Real Estate, Inheritance and Probate Author: Associates Amalie Amundsen and Maria Lippert
If an agricultural property is owned by an estate, the property must be transferred to a new owner within three years of the previous owner's death. The estate is responsible for the deceased's assets and debts and must ensure that the property is transferred on time. This does not affect how other assets and values are distributed among the heirs.
What is considered agricultural property?
A property is considered an agricultural property when it has at least five acres of agricultural land or at least 25 acres of productive forest.
The three-year deadline for transfer
The estate must transfer the agricultural property to the new owner within three years of the previous owner's death. If the person died before the law came into force on 1 January 2022, the deadline begins to run from this date. For older estates, this means that the deadline expired on 1 January 2025. The deceased's estate is responsible for the transfer of the property and that the transfer is registered. The municipality must notify the estate of the deadline within one year of the death, but the deadline will not be extended if the municipality does not notify in time. The municipality's notification must explain what must be done to meet the deadline, and what the consequences may be if the deadline is not met.
Can the deadline be extended?
The three-year deadline can be extended if there are special reasons for doing so, referred to in the law as "special reasons". It is up to the municipality to decide whether there are grounds for extending the deadline. Examples of special reasons may be that the heirs have started the process of transferring the property, but have experienced delays beyond their control. However, disagreements between the heirs or the fact that the heirs have not realised that there is a deadline are not considered valid reasons for extending the deadline.
Why do we have this rule?
The purpose of the rule is to avoid agricultural properties being left without an active owner for a long time. Agricultural properties need an active owner if they are to be run optimally and utilised in the best possible way. The rules are intended to help ensure that agricultural and forestry land is used efficiently and that properties are actively managed by people who can contribute to the development of the local community. In addition, there is a stated desire to facilitate new owners being able to buy properties and engage in agriculture.
What happens if the deadline is missed?
If the deadline is missed, the municipality can decide to sell the property by forced sale. This does not happen automatically, and the decision can be appealed. Once any appeals have been dealt with, the municipality can pass the case on to the bailiff, who will take the case to court. It is the court that ultimately decides whether the property should be sold by forced sale.
18.02.2025
Expertise: Real Estate, Inheritance and Probate Author: Associates Amalie Amundsen and Maria Lippert