§ 12-2. A valuation panel can set the rent and compensation
If you disagree on what the market rent (markedsleie) or the prevailing rent (gjengs leie) is, or on the compensation for improvements you have made, either of you can demand that the district court (tingretten) appoints a valuation panel (takstnemnd) of three people to set it. The decision is binding unless it is brought before the court within one month.
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
The text of the law (unofficial translation)
If the parties do not agree on what the market rent is under § 3-1 or the prevailing rent is under § 4-3, either party may demand that the dispute be decided by a valuation panel. The same applies if the parties do not agree on compensation for improvements under § 10-5.
The valuation panel shall consist of three members and is appointed by the district court in the judicial district where the property is located. The provisions of the Courts of Justice Act (domstolsloven) §§ 106 and 108 apply to the valuation panel as far as they are appropriate. Either party may demand a new valuation panel within fourteen days after the valuation panel's written and reasoned decision has been received. The district court shall grant the demand if: a. the decision is based on improper case handling or an incorrect understanding of the facts, and this must be assumed to have affected the valuation to a significant degree, or b. the valuation is obviously incorrect.
Either party may bring the case before the district court by writ of summons. The writ of summons must have reached the court within one month after the valuation panel's written and reasoned decision has been received. In the same way, the case may be brought before the district court if the valuation panel's decision has not been given two months after the appointment. A decision that has not been brought before the court within the deadline mentioned in the second sentence has effect as a final and binding judgment (rettskraftig dom). The court may grant relief for failure to meet the deadline mentioned in the second sentence.
The court shall set the fees for the members of the valuation panel. The court may decide that the person who demanded the valuation shall pay in an amount as security for the fees. The landlord (utleier) shall bear the costs if the valuation panel sets a lower amount than the landlord has demanded in rent, or a higher compensation than the landlord has been willing to pay for the improvements. Otherwise the tenant (leier) shall pay the costs. The court's decision is made by ruling and shall state reasons. The parties may appeal the ruling within one month.
If the case is brought before the court under the third paragraph, the court may decide the question of liability for the costs of the valuation panel under the Dispute Act (tvisteloven) chapter 20.
What does this mean?
Some disputes are not about who is to blame, but about what something is worth — what is the right market rent for this home (bolig), what is the prevailing rent in this area, how much has the home increased in value from the improvements you have made?
Questions like these are suited to experts, not judges. The valuation panel scheme gives you a quick and relatively inexpensive way to get an answer.
How it works:
One of you demands a valuation panel. The district court in the judicial district where the property is located appoints three members with relevant expertise.
The panel assesses the case, inspects the property and sets an amount. The decision is written and reasoned.
Do you want to challenge it? You can demand a new valuation panel within 14 days if the decision is clearly wrong or based on improper case handling. You can also bring the case before the district court by writ of summons within one month. If you do nothing within one month, the decision has effect as a final and binding judgment.
Who pays? The landlord covers the costs if the panel sets a lower rent than the landlord demanded, or a higher compensation for improvements than the landlord was willing to give. Otherwise the tenant covers the costs.
Example
Eva and her landlord disagree on the prevailing rent after 2.5 years. The landlord thinks it is NOK 14,000, Eva thinks NOK 11,500. Eva demands a valuation panel. The panel inspects the home and compares it with similar tenancies. They set it at NOK 12,200. Eva is satisfied. The landlord covers the costs, since the panel set a lower rent than he demanded.
Common mistakes
- Thinking that a valuation panel is the same as arbitration (voldgift). It is not — a valuation panel only deals with setting a value, not with questions of blame.
- Waiting too long to challenge the valuation panel's decision. The deadline is 14 days for a new panel, one month for the courts.
What should you do?
If you disagree on the amount of the rent or the compensation for improvements: try negotiating first — it is the cheapest option. If you cannot agree, a valuation panel is the natural next step. Contact the district court in the judicial district where the property is located to demand a panel.
- § 4-3Adjustment to the prevailing rent
- § 3-1Market rent
- § 10-5Compensation for improvements
- § 12-5The Rent Disputes Tribunal (Husleietvistutvalget)