Registration of documents

In short

A registration entails the public registration of rights to assets in order to have them enjoy legal protection against a third party.

Process of registrations

Documents to be registered shall be submitted to the District Commissioner in the relevant district in duplicate, original and a copy on certified paper retained by the District Commissioners. The original is returned and the responsibility of the party requesting registration is to apply to the District Commissioner. Documents are also sent by registered mail at the request and under the responsibility of the submitter. The submitter for registration shall pay a postage fee upon receipt of the letter at the post office.

The District Commissioner must be kept in mind when submitting a document to the court records. This is determined by the type of property a document concerns. In the case of real estate in Reykjavík, for example, a document shall be submitted to the District Commissioner in the capital area. In the case of a vehicle whose owner is domiciled in the Westman Islands, the document shall be registered with the District Commissioner in the Westman Islands.

What can be registered on

• Real property and real estate rights (in the district where the property is located).

• Ship (in the district where a vessel is registered).

• Aircraft (only in the district of the Capital area).

• Vehicles (in the district where the owner has his domicile).

• Liquid assets which are registered in the personal identification number of the beneficiary (in the district where the owner is domiciled).

Information requirements

• The parties' ID numbers on a document.

• Date of signature.

• The delivery date of the property.

• Real estate number of property, vehicle registration number, vessel register number

• Two witnesses must certify the correct date, signature and financial competence of the parties. Witnesses must write their name and ID number on the document.

• If a mortgage bond or a purchase/deed of real estate is to be registered, the document shall contain a statement as to whether the person originating the document is married and whether the property is the residence of his family (including a summer residence) or used in the business operations of the married couple or is intended for that purpose.

There is no complete census. The content of the documents shall be further defined by their type.

Attachment data

The following supporting documents may be required:

• If companies are parties to a document, a certificate from the Register of Companies must be delivered stating who can sign for the company / company. The District Commissioner may provide such a certificate on payment of costs.

• A parliamentary mandate if the owner does not sign the documents himself.

• Statement of first purchase by an individual of residential property.

• The second, according to the District Commissioner's instructions, depends on the contents of the document.

Cost

The fees to be paid on registration are called the registration fee and, as applicable, the stamp fee.

Registration fee

The registration fee per document is 2,700 ISK.

Exemptions for charging:

• No charge shall be paid for the registration of rulings on deprivation of personal competence, financial competence or rulings on removal of deprivation of legal competence.

• If an administrator has been entrusted with the administration of property, aircraft, a ship or vehicle subject to registration, his appointment shall be registered on the property in question. No fee is charged for this registration.

• If a property is sold involuntarily, the district commissioner shall take measures to ensure that it is mentioned in the record book of records. The same obligation applies to the trustee in bankruptcy, the official liquidation of the estate and the commencement of the composition agreement. Such registration is not paid for.

• If a written declaration on temporary mitigation of payments of mortgage claims on residential property is made, it shall be registered without cost.

• No registration fee shall be paid in a marriage settlement when registered in the same district. If a case concerns a purchase of property in another district, a registration fee shall be paid.

Stamp fee

Stamp fee is paid on documents relating to the transfer of property in Iceland, for example deeds, purchase contracts and gift instruments.

Stamp fee is calculated from the valuation value of the property as recorded in the property register upon issuing a document. Stamp fee shall be based on the construction stage of the asset at the time of delivery.

Stamp fee shall be paid on documents subject to taxation:

• 0.8% of real estate appraisal if the buyer is an individual

• 1.6% of property valuation if the buyer is a legal entity

There are a few exceptions:

• In the case of a person's first purchase of residential property, half the stamp fee is paid - this must be included.

• If a property is sold to a mortgagee at the time of forced sale, the mortgagee will pay half of the stamp fee on the value of the property whether it is an individual (0.4%) or a legal entity (0.8%)

• No stamp fee is paid on declarations of ownership resulting from mergers of companies. A merger plan must be accompanied by a document to be registered together with a certificate from the Register of Companies confirming that a merger has taken place.

Stamp-related documents shall be registered within two months of signing. If this period has passed, a stamp fine is collected, which will be up to a maximum of 10% of the original stamp duty in addition to the original stamp duty.

Rental contracts cancellation

A registered rental agreement must be cancelled at the end of the lease term and a new agreement will not be registered on the property until it has been done.

Different rules apply to the cancellation of leases, depending on whether they are temporary or permanent.

Temporary contracts

When the lease term ends, the tenant shall have the contract cancelled. At the end of the lease period, seven days shall elapse, the contract shall be cancelled at the request of the landlord.

When the lease term ends, or when people move out of the property before the lease term ends, the lease must be cancelled. An original contract must be endorsed for cancellation and both parties to the contract must sign the contract if the lease term is of indefinite duration or if the term of the contract has not expired. No charge is made for cancellation in this manner.

If an original contract is lost, both parties must sign a declaration and have it declared to the courts. A registration fee must be paid on such a declaration.

Authorisations for complaint

Stamp fee

In the event of a dispute over stamp fee under this Act, the taxpayer may appeal to the State Internal Revenue Board against the decision of the district commissioner. The deadline for appeals is three months from the date of the District Commissioner's decision on the levying of stamp fee.

The appeal must be made in writing and the points of the decision being appealed and reasoned must be stated. The complaint must be accompanied by documents in support of the complaint, together with the appealed decision of the sheriff; these supporting documents must be in the original or in a duplicate.

Decisions of the Director of Public Procurement

According to Article 3 of the Act on the Registration of Registrars, No. 39 of 1978, all decisions of the Director of Public Procurements in the jurisdiction of the Director of Public Procurements can be invoked. This shall be done before four weeks have elapsed from the knowledge of the court records requester of the decision.

Dismissal from registration

If a document is maintained in any deficiencies that are related to the fact that it cannot be registered, the document is dismissed from the registration. The document is then returned to the petitioner, together with a statement of reasons explaining the reasons for the dismissal.

Laws and regulations