The Act on the Registration and
Assessment of Real Property
no. 6/2001, 6 February
Chapter I
Objective, definitions and the collection of data
Article 1
Registers Iceland supervises the management of the registration of real property according to
this Act as well as the operation of a data and information system, named the Register of Real
Property, on a computerised basis.
All real property in the country shall be registered in the Real Property Register. The core of
the Real Property Register contains information on land and lots, the coordinates of their
borders, structures thereon and rights pertaining thereto. The Register of Real Property is the
basis for the Titleholder Register of Real Property, the assessment of real property and the
building register of Registers Iceland and shall be so organised as to be a database for land
information systems. The history of changes in the registration of a real property shall be kept
in the Real Property Register.
Article 2
Each real property shall be assessed as best as possible at each time as further provided for in
this Act.
Article 3
Real property according to this Act is defined as a specific part of land along with the organic
and inorganic parts thereof, the attached rights as well as the structures permanently attached
to the land.
Real property, parts thereof and individual structures shall be registered as separate units in
the Real Property Register as follows:
a.
land, i.e. each plot of land that, due to its particular asset right or right of use, right of
exploitation, characteristics or boundaries can be considered a separate entity.
b.
structure built in the land or on it or attached to it,
c.
separately owned parts in multiple dwellings according to the Act on Multiple
Dwellings,
d.
parts of structures if used for a particular purpose,
e.
cultivation,
f.
perquisites,
g.
other rights associated with real property.
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The Minister can by regulation issue further provisions on registration according to the above
and that more real property units shall be registered than are listed in paragraph 2.
Article 4
The registration according to Article 1 of real property according to Article 3 shall include the
latest information available at each time and pertain to the real property in addition to the
necessary identification characteristics of the real property. A regulation shall be issued with
provisions on the collection and registration of information as well as the main registers
published on the basis thereof.
Article 5
Information according to Article 4 shall be registered and its registration amended when the
size of land changes, its use changes, such as with the conclusion of a lot agreement or the
issue of a lot, or else during the building period of a structure, when a structure is brought into
use and finally when the use of a structure is amended or it is torn down.
Information shall also be registered when ownership changes or there is a change in the use of
a property, cf. Article 22. A regulation may be issued with further provisions on the
implementation of this Article, including how often a real property shall be inspected by
Registers Iceland.
Article 6
The registration party is authorised, after consultation with the authorities concerned, to limit
the collection and registration of information on individual properties or their classification, if
the properties are such that such a collection of information is difficult and/or serves no
official interest.
Registers Iceland is obligated to design and coordinate all systems of identity characteristics
that are used for real properties in their registration, including a numbered identification
system (matrikel) for the whole country. Owners of real property may be obligated to declare
the characteristics of real properties according to the identity characteristics system of
Registers Iceland.
Chapter II
Organisation and management
Article 7
The design and maintenance of the registration according to this Act is administered by a
special state agency, Registers Iceland. The agency operates under the responsibility of the
ministry and under its supervision.
The minister has the authority to entrust other public entities, including individual local
authorities or their cooperating institutions, with the registration of real properties according
to this Act, or individual parts thereof, should such a change be deemed efficient.
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In spite of the provisions of Article 29, the minister is authorised to entrust individual local
authorities or their cooperating institutions with special tasks for the preparation for the
assessment of real properties according to Chapter V of this Act. In such an instance, regard
shall be had to the provisions of Article 19 of this Act, as applicable.
Article 8
Registers Iceland operates under the management of a Director appointed by the minister for a
period of five years at a time. The Director hires staff and procures consulting expertise as
necessary and as fiscal budget appropriations allow in each instance.
Article 9
The minister appoints three persons to the Board of Registers Iceland. On shall be nominated
by the Association of Local Authorities in Iceland, one by the Icelandic Financial Services
Association and one without nomination. The Board shall be appointed for a period of four
years.
The Board of Registers Iceland shall organise the activity and internal structure of the agency
and oversee its operation. The Board draws up a proposal on the fee schedule of the agency
that shall be confirmed by the minister. In determining the fee schedule, regard shall be had to
the cost of individual segments of the operation, which shall be kept separate in the accounts.
The fee schedule shall be reviewed annually.
Chapter III
The Real Property Register
Article 10
The Real Property Register shall consist of a basic part, a structures part, an assessment part
and a title register part that contain the following:
1. The basic part shall register the name, characteristics and coordinates of the real property
that shall be pictorially published in the Real Property Register.
2. The structures part shall contain structural characteristics on real property and their use or
individual parts thereof, as applicable.
3. The assessment part shall contain assessment documents along with the real property and
fire insurance assessment.
4. The title register part shall document the title owners and their share in the property along
with title-registered hypothecations, easements and other facts kept in the title register.
The title register part of the Real Property Register, along with information contain therein,
shall be in accordance with the provisions of the Title Register Act.
The minister is authorised to issued by regulation further instructions on the design and
content of the Real Property Register.
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Article 11
The information that local authorities pre-record in the basic part of the Real Property
Register take effect when Registers Iceland has confirmed it or, as applicable, the Director of
the title register.
Registers Iceland is authorised to entrust local authorities with the task of fully recording
information in the Real Property Register.
Article 12
All real property shall have a fixed identity, a real property number assigned by Registers
Iceland. The number is a running ordinal number and contains no other information.
In addition to a real property number, each real property carries a name according to the
decision of the local authority council or according to the Act on Farm Names et al.
Article 13
...
Article 14
An application for the establishment of a real property in the Real Property Register shall be
presented to the relevant local authority. The establishment of a real property can be based on
the merger of real properties or the division of real properties, such as in multiple dwellings,
cf. Article 15. The application shall be signed by the owner or owners of the original real
property, and the following shall appear:
a. the real property numbers of the real properties that are creating a real property in case of a
merger.
b. the real property number of the real property that shall be divided, if that is the case.
c. the boundaries of a real property on a coordinated map that has been confirmed by zoning
authorities in cases where land is being divided or merged.
d. the characteristics of jointly owned land, if that is the case.
Should one wish to amend existing information on real property, the owner shall apply for an
amendment of the registered information on a real property in the Real Property Register to
the relevant local authority.
Article 15
When a real property is created in a multiple dwelling or a multiple property, the
characteristic of each real property shall be recorded on the basis of an application for the
establishment of a real property in the Real Property Register, cf. Article 14.
Real properties in a multiple property shall be defined with a percentage ratio. Real properties
in multiple dwellings shall be limited on the basic drawings and the register table for the
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building. The registration of real properties in multiple dwellings shall take place according to
the Act on Multiple Properties.
The minister is authorised to issue further rules on the registration of real properties.
Article 16
The local authority shall notify Registers Iceland on the change in the name of a real property.
...
The Real Property Register shall keep a record of changes in real properties where earlier
names and characteristics as well as their relation to existing names and characteristics are
preserved.
Article 17
Before the authority is granted to hypothecate or build a structure on a leased lot or land
owned by the local authority, the local authority shall see to it that the real property is
registered in the Real Property Register.
Before the authority is granted to build a structure on an owned lot, the local authority shall
see to it that the real property will be registered with the title recording of the deed of
establishment.
Article 18
In developing the registration of real properties and the Real Property Register, Registers
Iceland shall consult the registration authorities and the main interest parties.
Chapter IV
The implementation of real property registration
Article 19
The local authority concerned is responsible that Registers Iceland receives information on
land and lots and changes thereto, as well as on all structures built in each of its jurisdictions
as well as on their changes and elimination. In cases where the Iceland Construction Authority
issues a building licence, the Authority is responsible for notifying Registers Iceland
according to this Article.
The local authority council shall, as a rule, let the building inspector of the relevant local
authority provide information on the above matters. In cases where there are no building
inspectors, the local authority shall assign the information duty to another party, having
received the consent of Registers Iceland. The owners of real properties are obligated to
provide information on real properties as requested.
Registers Iceland shall decide the form, content and timing of providing such information.
Building inspectors or others, to whom the local authority has assigned the provision of
information according to paragraph 2, are responsible for the accuracy of the information.
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Registers Iceland can relieve local authorities from responsibility according to paragraph1
regarding the collection of information on individual types of real properties and assign it to
other parties, since public agencies that collect information each in their area of specialty are
obligated to provide Registers Iceland with such information.
Registers Iceland shall annually provide each local authority, according to a further decision
by regulation, with a register with sufficient information on real properties in order to
ascertain that parties according to paragraph 2 have fulfilled their duty to inform.
Registers Iceland shall monitor that local authorities observe their duty to inform. For this
purpose, the agency shall keep registers that show how many real properties are assessed in
each local authority each year.
Registers Iceland shall each year send a report on the assessment work in individual local
authorities to the ministry as well as to the ministry concerned with housing affairs.
Article 20
Registers Iceland shall take the initiative in the coordination of the collection of information
on matters pertaining to real properties and prevent tasks from being performed twice.
Article 21
Registers Iceland can, whenever it deems necessary, have existing information reviewed on
individual real properties, individual types of real properties or real properties in particular
areas.
Such a review shall normally take place if it is evident that the information in the Real
Property Register does not reflect the right description of the real property or real properties
concerned.
The owner of a real property, or another party that considers it having a material interest in
the description of a real property or assessment, can request a review according to paragraph
1. If the material interest, in the opinion of the agency, is so substantial as to justify a review,
the review shall take place as soon as possible.
A change in the Real Property Register, no matter how it was established, shall be notified to
the registered owner of the real property by letter as soon as such a change has been made.
Article 22
The registered owner of a real property is the party with title-registered ownership in each
instance. If a real property is not registered in the title-register part of the Real Property
Register, the former owner is responsible for notifying Registers Iceland on the change in
ownership of his/her registered property.
Registers Iceland decides on the form and content of such a notification, and owners are
obligated to provide all information requested.
Directors of title registration are obligated at the time of title transfers to ascertain that the
duty to notify has been fulfilled and see to it that the form of notification and its delivery takes
place as necessary. Real property agents are also obligated in their work to see to the
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completion of such a notification and its delivery. Registers Iceland is authorised to access tax
returns in order to ascertain information on real properties or to obtain them.
Registers Iceland is authorised to prepare and issue standardised types of title transfers,
purchase agreements and lease agreements on real property and real property rights where the
relevant duplicate is automatically sent as an adequate notification to the agency.
Article 23
Registers Iceland shall collect documents as possible and process summary information on its
basis on the market price of real properties at the time of purchase and sale and changes
thereof. The conclusions of such research shall be immediately published to the public.
Article 24
Registers Iceland is authorised to process and provide information from the Real Property
Register for a fee that accrues to the agency according to a fee schedule confirmed by the
minister, cf. paragraph 2, Article 9.
The fee schedule shall specify:
a. the fee of local authorities for the use of the Real Property Register and the system for
imposing real property taxes and charges; the fee shall amount to a certain proportion of the
total real property assessment in the local authority on 31 December of each year,
b. the fee for insurance companies for the use of the fire insurance assessment and the system
associated therewith; the fee shall be a certain proportion of the fire insurance value of all
buildings insured by the insurance company at the end of each month.
c. ...
d. the fee for the registration of new real properties in the Real Property Register.
A fee for electronic inquiries from the title register shall by 850 ISK and shall accrue
undivided to Registers Iceland.
Article 25
Public entities, state agencies, state enterprises, local authorities and all their agencies shall in
all their transactions and in any and all value references use the information of the Real
Property Register as a basis for their transactions as applicable.
Chapter V
The real property assessment and its implementation
Article 26
The following properties are exempt from real property assessment:
1. Roads, streets and squares owned by the state or local authorities intended for public traffic
free of charge along with associated land and structures for purposes of communication, such
as bridges, lamp poles, traffic lights, traffic signs, road signs, parking meters and bus stop
shelters.
2. Any areas owned by the state or local authorities intended for beautification for the public
and for traffic or stay, free of charge.
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3. Electric distribution grids, including lines for the transmission of electric power along with
poles and transformers. Buildings erected for power stations and transformer stations shall be
assessed with conventional rules as well as the lots on which they stand.
4. Water works, including wells, tanks and pumping equipment. Sewage works, including
sewage pipes and cleaning wells.
5. Landfills and the deepening for harbour improvements along with piers and quays if the
harbour is the property of the Harbour Fund according to the Harbour Act no. 23/1994 or the
state and local authorities. Land in the harbour area that is not directly associated with the
construction of the harbour is not exempt from assessment nor are slipways, dry docks and
similar structures, even if they are the property or the above entities.
6. Publicly-owned airport runways along with runway lights and other runway equipment,
such as approach- and landing instruments, and also land around runways that cannot be used
due to air traffic.
7. Land that, in accordance with existing rules, has been designated as human burial ground
along with structures directly related thereto,
8. Publicly-owned telecommunications structures, although buildings for such structures shall
be subject to assessment as well as lots and land on which such telecommunications structures
or buildings are located.
9. Lighthouses.
10. The minister can by regulation exempt certain real properties or types of real properties
from real property assessment.
Article 27
The registered assessed value of a real property shall be the market value converted to a cash
basis, based on the permissible and possible use at each time that the property presumably had
in purchases and sales in the month of February before the assessment, and it should enter into
effect in the period from 31 December to the end of February. If an assessment enters into
effect in the period from 1 March to 30 December, it shall be based on the month of February
next before the assessment, cf. Article 32 a.
If the market value of the real property is not known, the assessed value shall be determined
according to the best available knowledge of the market value of comparable properties with
regard to income thereof, the cost of structures, their age, location with regard to
communications, possibilities of use, perquisites, soil properties, vegetation, natural beauty
and such other factors that may influence the market value of the property.
Farms shall be assessed based on their use for agriculture as long as they are used as such.
The minister is authorised to issue further provisions on the assessment of real property by
regulation.
Article 28
In the determination of the assessed value according to Article 27, the statistical correlation to
market value shall be sought as possible by exploring various facts on sold properties, such as
size, properties, furnishings, location etc., and the presumptive market value determined with
calculation on the basis of such indicators.
A subjective, unsubstantiated assessment shall not be applied unless no other option is
available in the determination of the assessed value.
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Provisions shall be issued by regulation regarding the calculation of the cash-based value,
based on the various payment terms at the time of purchase and sale.
Article 29
Registers Iceland assesses real properties according to this Act.
Registers Iceland shall seek to ensure coordination in assessment activities as well as the
coordination of relevant information regarding the implementation of assessments. Registers
Iceland is authorised to obtain expertise for the assessment of assets as necessary.
Registers Iceland is authorised, having received the consent of the minister, to engage
representatives in individual constituencies who assess and/or inspect real properties. In such
a case, a regulation shall be issued with further provisions on the engagement and the scope of
work of such representatives.
Article 30
Registers Iceland shall see to it that all new or amended properties on which information is
received according to Article 19 shall receive an initial assessment within two months from
the time that information was received by Registers Iceland, unless impeded by special
circumstances.
Registers Iceland is authorised, having consulted the relevant authorities, to issue a
provisional assessment for properties the nature of which is such that a regular assessment is
difficult and/or serves no public purpose.
A new assessed value shall immediately be recorded in the Real Property Register and it shall
be in effect along with the general amendments to which it can be subjected or until it is
replaced with a new assessment.
Article 31
A person that can have a substantial interest in the assessed value of a property and is not in
agreement with the registered assessment, according to Articles 29 and 30, can request a new
decision by Registers Iceland on the assessment. The request for a revised assessment shall be
in writing, based on grounds and necessary documents.
Registers Iceland can at its own initiative reassess individual properties in order to ensure the
coordinated assessment of comparable properties.
The provisions of Articles 13, 14 and 18 of the Administrative Procedures Act do not apply to
the handling of cases according to this Article as well as Article 30 of this Act. An owner
shall be notified of a new or revised assessment. If the owner is not satisfied with the decision
on a real property assessment, he/she can present in writing a request for a substantiated
review of the case within one month from the notification of a decision.
A new assessed value shall immediately be recorded in the Real Property Register and take
effect with the general changes that can take place in it, cf. Article 32, until it is replaced with
a new assessment or an assessment following appeal.
The minister can by regulation decide that the party requesting a revised assessment shall bear
the cost of such an assessment if the request is obviously without foundation.
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Article 32
Registers Iceland is authorised, if so requested by the ministry or a local authority, to revise
the assessment of individual types of properties or properties in certain areas, local authorities
or regions, taking effect from the time when Registers Iceland so determines, if it considers
the assessed value not to be in concert with market value as expected according to this Act.
The handling of cases according to this Article and the revised assessment of individual
properties shall be in accordance with Article 31 of this Act.
Article 32 a
Registers Iceland shall revise the registered assessed value of all real properties on 31 May
each year. This assessed value shall be in effect as of and including 31 December of that same
year for a period of one year unless a special assessment takes place. The period for
comments by an owner shall be one month from the notification of a decision. Assessments
implemented in the period June to December shall both cover the registered assessed value
and the prospective assessed value.
Registers Iceland shall no later than in June each year, inform each local authority and each
owner of the outcome of a revised assessment according to paragraph 1 that takes effect in the
relevant local authority on 31 December thereafter.
Article 33
The appealed assessment of real properties shall be handled by the Appellate Real Property
Assessment Committee for the entire country.
The Committee shall consist of three members appointed by the minister and three alternate
members from a group of ten persons nominated by the Supreme Court. The period of
appointment of the Committee shall be from 15 May for three years.
The cost of appealed assessment shall be paid from the Treasury. However, the Appellate
Real Property Assessment Committee may charge the owner for the cost of an appeal to the
Committee, if without grounds.
Article 34
Parties with a vested interest can appeal the conclusion of a revised assessment to the
Appellate Real Property Assessment Committee. The appeal shall be in writing and be
substantiated and supported by the necessary documents. The handling of the case before the
Committee, the presentation of documents and the litigation shall take place as decided by the
Committee.
The Committee decides on such a case within three months from the date of the appeal unless
a special permission is granted by the ministry. The conclusion of the case shall be notified to
the appellant and a new assessed value immediately registered in the Real Property Register.
The decision of the Appellate Real Property Assessment Committee shall be final.
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Article 35
...
Article 36
The minister can issue a regulation with further provisions on the implementation of this Act.
Before such a regulation is issued he/she shall seek the comments of the Association of Local
Authorities in Iceland.
Article 37
Violations of this Act are subject to fines unless a heavier penalty applies according to other
acts of law.
Temporary provisions
I. In order to pay for the cost of the State Real Property Assessment Agency in maintaining
and developing the Real Property Register for the whole country, owners of buildings shall
pay a special handling charge in the years 2005 and 2006. This charge shall amount to 0.1‰
(per mil) of the fire insurance value of each building. An insurance company shall collect the
charge alongside the collection of fire insurance premiums and remit it to the State Real
Property Assessment Agency no later than 45 days after the due date.
II. In order to pay for the cost of the State Real Property Assessment Agency in maintaining
and developing the Real Property Register for the whole country, owners of buildings shall
pay a special handling charge in 2007. This charge shall amount to 0.1‰ (per mill) of the fire
insurance value of each building. An insurance company shall collect the charge alongside the
collection of fire insurance premiums and remit it to the State Real Property Assessment
Agency no later than 45 days after the due date.
III. The following entities shall in 2008 pay a charge to the State Real Property Assessment
Agency for the use of the assessments of the Agency:
a. Local authorities shall pay a real property assessment charge for the use of real property
assessments and systems to levy real property taxes and charges. This charge shall be 0.006%
of the total real property assessment value in the local authority on 31 December 2008.
b. The owners of buildings shall pay a fire insurance assessment charge for the use of a fire
insurance assessment for insurance purposes and other insurance for the benefit of the owners
of buildings. This charge shall amount to 0.0037% of the fire insurance assessment of each
building. An insurance company shall collect the charge alongside fire insurance premiums
and remit it to the State Real Property Assessment Agency no later than 45 days after the due
date.