Norsk Eiendom Standard Lease Agreement for Commercial Buildings

The state offers no special imposed "state template" for Norwegian corporate buildings just as private dwellings sometimes are directed around in Consumer regimes. The reality in B2B in Norway is fully and wholly the dominating industry standard "Meglerstandarden" (or Standard Lease Agreement for Commercial Premises developed in tandem by Norsk Eiendom and the Bar Association).

Why is the Law Always Waived?

In the Broker Standard, the first paragraph almost looks like a warning where Norway's law is rejected fully across the scale: "The following paragraphs in the Tenancy Act do not apply: (... Lists thereafter down 15 - 20 different protection paragraphs)". That companies renounce tenants' rights happens because business life is driven over capital risk for return: Rental relations between AS and AS must be 100% mathematically agreed upon.

Criticizing Conditions that Secure Yield for Landlord:

1. "Bare-house" principle & Maintenance.

The standard rolls over most internal wear surfaces with 100% replacement responsibility on the rented factory / factory the 5 subsequent years! For the owner, Norway's standard-template shields them from everything except that the roofing felt and the outer walls of brick in the building's common structure stand.

2. Irrevocability the first years (Unbreakable Time Binding)

Indefinite agreements are almost never used. B2B companies are gladly put on long rails (for example binding the Lease time "5 plus 5 years option").

• Lack of interruption: In the contract, basically all escape routes for AS companies mid-periods are removed. If the company sells coffee too poorly; they must continue to shell out the rent for all 60 months. Confirmed hyphenation is unbreakable (with the exception of bankruptcy)!

3. Ban On Direct Subletting & Change of Control

That a hairdresser takes over a cafe belongs to an enormous horror-scenario for the building's VAT obligation (§ VAT change and the deduction trap). Therefore, the Standard sets tough limits:

• Companies can never transfer the contract or put another operator over the desk (subletting) without the landlord's full written acceptance and veto right!
• "Change of control" clause ensures that if the Shareholders of the Pizza restaurant sell their whole AS (Ltd) to a Competitor in a Tax haven – Then the Landlord can have the opportunity to refuse and evict the restaurant since a "change in control for the owners of AS = equated transfer".

It Shouldn't Be Difficult To Order Norsk Eiendom's Legal Signing

Administrating Word-templates loaded full packed with "fill in here" brackets results sooner or later in fatal invalidities caused by human blind spots in the rules; such as e.g an omitted Bank guarantee-column on top of the VAT section! Lift the agreements into our Digitalization platform. The system's "Contract Creation Engine" guides the manager over the fields for the authorized "Broker Standard", and blocks for export before interface matrix or illegal Tenancy Act combination is inserted. The lease contract is generated legally closed via the cloud in PDF - and is caught out with the safe signatures of the chairman of the board to the tenant's Company via the integration of Norwegian BankID as a service right inside the Landager Dashboard before the key bunch is picked over the desk.

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