innlausnarréttur

Innlausnarréttur is an Icelandic legal term that translates to "right of redemption" or "right of repurchase." It refers to the legal right of a former owner to reclaim property that has been sold, typically due to foreclosure or debt. This right allows the original owner a specified period after the sale to buy back the property by paying the outstanding debt, interest, and any other associated costs.

The concept of innlausnarréttur aims to provide a safety net for individuals facing the loss of their property. It offers a final opportunity to retain ownership, preventing permanent dispossession in certain circumstances. The specific conditions, duration, and procedures for exercising innlausnarréttur are defined by Icelandic law, often varying depending on the type of property and the nature of the sale.

This legal provision is particularly relevant in cases of mortgage defaults and foreclosures. If a property is sold at auction to satisfy a debt, the former owner may still have the right to redeem it within a statutory timeframe. Successfully exercising this right requires the former owner to come up with the necessary funds, which can be a significant challenge. The existence of innlausnarréttur can influence the behavior of both debtors, who may strive to avoid foreclosure, and creditors or new buyers, who must consider the potential for the property to be redeemed.