This Act regulates the acquisition of the right to own or use real property in Iceland. It provides for the control of State organs of the purchase of titles in real property by foreigners. No one may acquire the right to own or use real property in Iceland, including fishing and hunting rights, water rights or other real property rights, whether by free assignation or enforcement measures, marriage, inheritance or deed of transfer, unless it is an individual who is domiciled in Iceland or is an Icelandic citizen. In the case of company in some cases all or in at least a majority shall be Icelandic citizens (art. 1). The Minister may grant exemption from the conditions. Agreements, deeds of transfer or other documents conferring title in connection with the right to own or use real property that require in specified cases a permission shall be submitted to the Minister, and shall not be valid until permission has been obtained. Registration of rights shall be denied until permission is submitted. If the Minister becomes aware that a person who does not meet the requirements of this Act has acquired the property rights covered by article 1, he or she shall grant a period in which to correct the situation conformity with the law by obtaining the required permit or by having the purchase agreement cancelled. If the seller adheres to the agreement, The Minister may relinquish the rights to another person who may lawfully acquire them. The property may sell the property by compulsory sale. If a permit is obtained without the requirement of domicile, the holder of the permit shall appoint an agent. Section 12 provides that this Act shall not apply to nationals of other states in areas in which it might infringe international agreements to which Iceland is a party.
Authors and Publishers
Moauro, Barbara (LEG)