Regulatory Alerts2007-06-27
Scope of the Real Estate Brokerage Act and Securities Trading Act in the Sale of Real Estate Companies
The Norwegian Financial Supervisory Authority clarifies that the sale of shares in real estate companies is subject to the Real Estate Brokerage Act only if the transaction's primary purpose is the transfer of real estate, excluding purely financial transactions. Entities facilitating such real estate-focused sales must hold a real estate brokerage license, while those handling purely financial transactions or syndication of limited partnership interests may operate under the Securities Trading Act. This guidance updates previous regulations to distinguish between real estate brokerage and investment services based on the substantive nature of the transaction.
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