Property related FAQs
We've collected some questions that we thought you might have. However, if you still have questions unanswered, don't hesitate to reach out to us at [email protected]
How much potential upside will be lost in transaction fees, government fees, and other third-party costs?
The initial purchase brings the highest transaction cost. There are government fees (document fees, registration fees etc.) and other third-party costs. These are baked into the price offered by Bustad to the homeowner. Simply put, the cost is unlikely to be less than 5% of the transaction value. Bustad pays these fees, but in reality, the cost is covered by the homeowner, who parts with a slightly larger percentage of their property.
Bustad offers homeowners a slightly reduced price as Bustad only buys a fraction of the property, does not charge rent, the transaction is not on the open market, and the homeowner can repurchase the fraction at any time. Technically, this is done with Bustad asking for a slightly larger share of ownership. For example, if you use Bustad to reduce NOK 500k from your debt, Bustad might ask for NOK 550k ownership in your home based on estimated open-market value. This is your starting point for repurchasing the share as it will cover public fees, other costs, as well as a buffer for Bustad Coin. This is factored into the house price, i.e. You pay nothing in cash. All costs are clearly stated in the offer.
Yes, you can sell your home at any time. You have three options:
- 1.You can first repurchase the fraction from Bustad, then sell 100% of the property yourself.
- 2.You can sell your share in the open market, and the new owner must enter into the agreement with Bustad. Bustad will charge a percentage fee of the transaction value.
- 3.You can sell 100 % in the open market together with Bustad, but Bustad will, as a minimum, be guaranteed the original open-market price adjusted for any price increase in the region.