Completion Time Frame: 1 day
Completion Costs: ISK 1,000 each certificate if completed at the Magistrate’s office
Points to Note:
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 1.000 and it takes one visit to the District Magistrate (Land Registry). Real-estate agencies have on-line access to this information (Landskra Fasteigna) at a cost of ISK 550 per certificate. Landskra Fasteigna is a data and information system operated by real estate valuation authorities.

Step 2: Authorized real estate agent prepares and executes the sale-purchase agreement

Completion Time Frame: 1 day
Completion Costs: 1.5-2.5% of property value (real estate agent fees)
Points to Note:
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 District Magistrate 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 1.350. 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 magistrate office in the property’s district or from Landskra fasteigna (cadastre). 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 data base at the Real Estate Valuation Authorities 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.

Step 3: Transfer of title is prepared and registered at the Magistrates office

Completion Time Frame: 1-2 days
Completion Costs: ISK 1,350 + 0.4% of the official real estate valuation (usually lower than purchase price) for Stamp Duty
Points to Note:
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.