The Financial Supervisory Authority of Norway has published a document-based supervisory report on Schala & Partners avd Nord AS’s intermediation of residential plots to a property developer, concluding that the firm grossly and repeatedly breached central duties under the Real Estate Brokerage Act. The firm has ceased real estate brokerage and no longer holds authorisation to provide brokerage services. The review covered eight transactions and focused on the firm’s brokerage execution, excluding compliance with anti-money laundering obligations. Key findings included conducting intermediary work before entering into engagement agreements, serious deficiencies in journaling, and off market sales practices that effectively gave one recurring buyer exclusive access without evidence of timely, adequate advice to sellers. The authority also found failures to prepare sales prospectuses, assess the plots’ value, check the buyer’s financing, and provide risk-focused advice on unusually unbalanced contract terms, including transfer of title without simultaneous payment and seller credit secured only by subordinated collateral. In parallel, the firm’s semi-annual reporting for 2022 to 2024 omitted settlement cases referenced in media coverage, which the authority treated as a serious breach of reporting expectations. A preliminary assessment was sent to the firm on 29 November 2024 and the board responded on 17 December 2024 with limited objections. The firm’s board decided on 16 December 2024 to discontinue brokerage, notified the Financial Supervisory Authority of Norway on 17 December 2024, and the authority adopted a decision on cessation of the business on 19 December 2024 after the firm documented that the conditions were met.

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