What must be included in a söluyfirlit?

Short answer: A söluyfirlit (the statutory property disclosure sheet) is a thorough overview of every matter that may be relevant to the sale of a property, and the fasteignasali (the licensed real estate agent) is required to draw it up under lög um sölu fasteigna og skipa nr. 70/2015 (the Icelandic Act on the Sale of Real Property and Ships). Among other things it must state the asking price, the size and the official registry data, the condition of the property and any known defects, registered mortgages and encumbrances, the buyer’s costs of the purchase, and the húsgjöld (monthly building charges) and building works in a multi-unit building. The buyer must be given the söluyfirlit before making an offer, and confirms receipt by signing and dating it.

What is a söluyfirlit and when is it prepared?

As soon as a fasteignasali takes on a property for sale, they are required to draw up a thorough overview of the matters that may be relevant to the sale of that property. The same applies if they are instructed to draw up a kauptilboð (a written purchase offer) or a kaupsamningur (the binding purchase agreement) for a property that is not already being marketed by another fasteignasali. This is set out in Article 10 of lög nr. 70/2015 um sölu fasteigna og skipa.

The söluyfirlit is not the same thing as the listing. The listing is there to generate interest; the söluyfirlit is a statutory document that gives the buyer the information they need in order to decide whether to buy and at what price.

Delivery, signatures and validity

Three points about how a söluyfirlit is handled matter to both seller and buyer:

• Delivery before the offer. Before an offer is made, the söluyfirlit must be handed to the person making it, and they confirm receipt with their signature and the date.
• The seller’s signature. The fasteignasali must obtain the seller’s signature on a declaration that the content of the söluyfirlit is correct to the best of their knowledge. As the seller, you are therefore formally confirming that what it says is accurate.
• The three-month rule. If a söluyfirlit is more than three months old, the fasteignasali must update it, unless nothing has changed that affects its content. If the property has been on the market for a long time, this is a point to keep an eye on.

What has to appear in the söluyfirlit?

Under Article 11 of the Act, the fasteignasali must take care to ensure that the söluyfirlit sets out all the fundamental points about the characteristics and condition of the property that may form the basis of the buyer’s decision. In addition to a general description of the property, the following items are listed – set out here in plain language:

a. The asking price. The sale price the owner wishes to obtain for the property, where this has been decided.

b. Location, size and official information. The address and property number, the size according to the official registers, the fasteignamat (the official assessed property value), the brunabótamat (the fire insurance valuation), the type of construction, the building materials and the year of construction – both of the property as a whole and of its individual parts where relevant. A drawing showing the internal layout should as a rule be available, as should a plot drawing if one exists.

c. The condition of the property and its defects. Information on the condition of the property and of its individual parts, including any defects known to the seller and/or the fasteignasali. This is the item that most often gives rise to disputes afterwards.

d. Fixed charges, mortgages and encumbrances. Fixed charges on the property, registered mortgages, encumbrances and other restrictions on ownership according to the veðbókarvottorð (the official certificate of registered charges). The outstanding balance and the loan terms must be stated, including interest and index-linking, and specifically whether a debt is in arrears. For mortgages that are to remain on the property on sale, the number of unpaid instalments must be stated, and whether the loan may be taken over on unchanged terms – and if not, what changes can be expected and whether the takeover carries any other costs.

e. The buyer’s costs of the purchase. The cost of þinglýsing (registration of the documents in the public property register), stamp duty, the buyer’s handling costs and borrowing costs, as far as these can be determined.

f. Income from the property. This applies to property intended for commercial use.

g. The state of completion of an unfinished property. If the property is sold unfinished, the state in which it will be handed over must be specified, and that specification must accord with the standards issued by the public institutions responsible for building research or building inspection.

h. Húsgjöld and building works in a multi-unit building. The húsgjöld and any ongoing or forthcoming works that have been decided at a meeting of the húsfélag (the owners’ association), together with the owner’s standing in relation to the hússjóður (the building’s running-cost fund) and the framkvæmdasjóður (the works fund). Works that have been decided on but not yet paid for can matter a great deal to a buyer.

i. The eignaskiptayfirlýsing or agreement. This applies where the property is part of a multi-unit building. (The eignaskiptayfirlýsing is the registered declaration setting out each unit’s share of the building.)

j. Any other known matters. For example, condition surveys that have been carried out on the property.

A comparable overview must, as far as applicable, be prepared for the sale of a ship.

Who obtains the information and who is liable?

Under Article 12 of the Act, it is the fasteignasali who obtains the information that is to appear in the söluyfirlit. They must draw on public registers and reports where that is possible, but the condition of the property, its construction and the equipment that is to be included in the sale must be examined at first hand – that is, they must inspect the property themselves rather than rely solely on the seller’s description.

Liability follows the duty: the fasteignasali is liable if the information in the söluyfirlit turns out to be incorrect or inadequate, provided this is attributable to negligence on their part or on the part of those working on their behalf.

That does not, however, release the seller from their own duties. The seller’s duty of disclosure under lög um fasteignakaup nr. 40/2002 (the Icelandic Real Estate Purchase Act) is independent of the fasteignasali’s duties under Act no. 70/2015. In other words: you cannot avoid disclosing a defect by pointing out that the fasteignasali never asked.

What does the fasteignasali obtain and what do you have to do?

In practice this is simpler for the seller than many expect. Baldur fasteignasali obtains all the documents needed for the söluyfirlit – the veðbókarvottorð, the information from the public registers, the fasteignamat and brunabótamat, the drawings, the eignaskiptayfirlýsing and anything else that applies. You do not have to chase any of it yourself.

There are only two things the seller has to do personally:

1. Confirm that the information about the condition of the property is correct. You go through what the document says about the condition of the property and its individual parts and confirm that it is accurate to the best of your knowledge. This is the item that only you hold the information about.
2. Obtain a statement from the húsfélag. The chair or the treasurer of the húsfélag has to complete a yfirlýsing húsfélags – a statement covering the húsgjöld, the owner’s standing in relation to the hússjóður and the framkvæmdasjóður, and the works that have been decided on. It is the one document the fasteignasali cannot obtain themselves, because it comes from the húsfélag.

What does this mean for you as a seller?

Contact the chair or the treasurer of the húsfélag early – the yfirlýsing húsfélags is often what holds things up if it is left to the last minute. Tell them what you know about the condition of the property; that is far cheaper than a dispute after handover. And if the property has been on the market for a long time, keep an eye on the three-month rule.

In short

• The söluyfirlit is a statutory overview that the fasteignasali prepares under lög um sölu fasteigna og skipa nr. 70/2015.
• The buyer receives it before making an offer and confirms receipt by signing and dating it.
• The seller signs a declaration that its content is correct to the best of their knowledge.
• It must set out, among other things, the price, the size and official registry data, the condition and any defects, the mortgages, the buyer’s costs, the húsgjöld and the building works.
• The fasteignasali is liable if the information turns out to be incorrect and this is attributable to their negligence; a söluyfirlit more than three months old has to be updated.
• The fasteignasali obtains the documents; the seller only has to confirm the information about the property’s condition and have the yfirlýsing húsfélags completed.

Frequently asked questions

Is a söluyfirlit the same as the listing? No. The listing is marketing material intended to generate interest in the property. The söluyfirlit is a statutory document containing the information the buyer needs in order to make a decision about buying and about price, and it is handed over before an offer is made.

What happens if something in the söluyfirlit is wrong? The fasteignasali is liable if the information turns out to be incorrect or inadequate and this is attributable to negligence on their part or on the part of their staff. The seller’s duty of disclosure under lög um fasteignakaup nevertheless stands independently alongside that.

Get in touch

If you are preparing to sell, you don’t have to gather the documents yourself – that is part of the service. Contact Baldur Jezorski, licensed real estate agent (löggiltur fasteignasali), on 450-0000 or send a message via 450.is for more information about the söluyfirlit and about preparing a property for sale. Free and with no obligation.

Related articles

• How do I write a good property listing?
• How do I price my property correctly?
• How do I get a higher price for my property?

Thinking of selling? Get a free valuation from Baldur Jezorski, licensed real estate agent in Hafnarfjörður, reply within 24 hours.

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