Buying property in the Netherlands: avoid the pitfalls

When you buy a home in the Netherlands, the purchase agreement must be in writing, and as a private buyer you have a cooling-off period of three days in which you can withdraw without giving a reason. You do not become the owner when you sign, however: ownership only passes when a civil-law notary executes the deed of transfer and it is registered in the public registers.

Most problems in Dutch property transactions arise at a few predictable points: what you check before you sign, what the contract says, and how the duties of buyer and seller are divided when a defect appears. This article explains those points and how to deal with them.

How does Dutch property law work?

Dutch property law is based on the Dutch Civil Code (Burgerlijk Wetboek, BW). It distinguishes between full ownership and more limited rights in land, and it requires those rights to be recorded in public registers.

Limited rights include leasehold (erfpacht), the right of superficies (opstalrecht), which allows someone to own a building on another person’s land, and easements (erfdienstbaarheden), such as a right of way. These rights can seriously affect how you can use a property, so you need to know about them before you buy.

Under Article 3:89 BW, ownership of real estate passes by a notarial deed of transfer registered in the public registers kept by the Land Registry (Kadaster). Until then, you only have a contractual claim against the seller, not ownership. Anyone can consult the registers, which makes the system transparent for buyers and sellers.

What should you check before you buy?

Check the legal position of the property as well as its physical condition. Many problems come from restrictions that were visible in the registers but that nobody looked at.

Start with an extract from the Kadaster. It shows the owner, any mortgages and the limited rights registered on the property. The previous deed of transfer may contain further obligations, such as a chain clause (kettingbeding) that binds each new owner. Check whether the building is a listed monument, as that limits what you can change.

Also check what the municipality allows on the site. Since 1 January 2024, the Environment and Planning Act (Omgevingswet) applies, and the permitted use of land is laid down in the municipal environmental plan (omgevingsplan). If you want to convert or extend the building, check the rules before you commit.

For an apartment, ask for the documents of the owners’ association (Vereniging van Eigenaars, VvE): the deed of division, the regulations, recent minutes, the long-term maintenance plan and the size of the reserve fund. Under Article 5:126 BW, the association must keep a reserve fund for future maintenance. A low fund combined with major planned works may mean extra contributions later.

Who bears the risk of defects?

As a buyer you have a duty to investigate, and the seller has a duty to disclose what it knows. Where those duties meet, the seller’s duty to disclose generally prevails over the buyer’s duty to investigate.

Under Article 7:17 BW, the property must be fit for normal use as a home. A seller who knows about a serious defect, such as a leaking roof or foundation problems, must tell you, even if you could have discovered it yourself. You, on the other hand, cannot rely on a defect that was obvious, or that a normal inspection would have shown. A structural survey by a building inspector before you sign reduces that risk considerably.

What does the purchase agreement contain?

The purchase agreement sets out the price, the transfer date, what is included in the sale and the conditions under which you can withdraw. Once signed, it binds both parties, subject to the cooling-off period for private buyers.

Under Article 7:2 BW, the purchase of a home by a private buyer must be in writing. The three-day cooling-off period starts on the day after the signed agreement, or a copy of it, has been handed to you. You can read the provision on wetten.overheid.nl. The cooling-off period does not apply to business buyers or to commercial property.

Most agreements contain resolutive conditions (ontbindende voorwaarden). The best-known are the financing condition, which lets you withdraw if you cannot obtain a mortgage, and a condition for a satisfactory building inspection. Check that the deadlines in those conditions are realistic, because once they have passed you are bound. The agreement usually also requires a deposit or a bank guarantee and sets a penalty if one party fails to perform.

For homes, the notary can register the purchase agreement in the public registers (Article 7:3 BW). This protects you for six months against, for example, a second sale or an attachment by the seller’s creditors before the transfer.

What does the civil-law notary do?

The civil-law notary (notaris) prepares and executes the deed of transfer and registers it. The notary is impartial and has a duty of care towards both parties.

Before the transfer, the notary checks the registers, verifies that the seller is entitled to sell and that the property is free of undisclosed mortgages and attachments. The purchase price is paid into the notary’s third-party account (derdengeldenrekening) and is only released to the seller after the transfer has been registered. Because the notary does not act for one side, it is wise to have your own lawyer review the agreement in a complex or high-value transaction, particularly if you are buying commercial property.

What costs should you expect on top of the price?

As a buyer you usually pay transfer tax (overdrachtsbelasting), the notary’s fees and the Land Registry fees. The rate of transfer tax depends on the type of property and on whether you will live in it yourself.

For a newly built property, VAT is usually charged instead of transfer tax. Young first-time buyers may qualify for an exemption under conditions. Current rates and conditions are on the government’s business.gov.nl page. For international buyers, questions about tax residence and inheritance can also play a role; we refer those to a tax adviser.

What are your obligations after the purchase?

As an owner, you must keep the property in such a condition that it does not endanger neighbours or passers-by. In an apartment building, the owners’ association is responsible for maintaining the common parts, funded by the monthly contributions.

If you let the property, you have additional obligations towards your tenant, including the duty to carry out repairs. When you sell or rent out a home, you must in principle provide an energy label. Under Article 5:37 BW, you may not cause unreasonable nuisance to your neighbours, for example through noise or smells.

How are property disputes resolved?

Most disputes can be resolved by talking first, possibly with a mediator. If that fails, the court decides, and for some disputes strict deadlines apply.

If you discover a defect after the transfer, notify the seller in writing within a reasonable time after you discovered it, as required by Article 7:23 BW. If you wait too long, you can lose your rights, even if the seller was at fault. Many municipalities offer neighbour mediation (buurtbemiddeling) for disputes between neighbours. Decisions of an owners’ association can be challenged before the subdistrict court (kantonrechter), but only within a short statutory period. Disputes with the municipality about permits follow the administrative route of objection and appeal.

A typical example: a buyer who discovers damp in the basement a few months after the transfer. If the seller knew about the problem and did not mention it, the buyer can claim compensation or, in serious cases, dissolve the purchase. The outcome depends on what the seller knew, what was visible and what the agreement says about hidden defects.

In summary

• The purchase of a home by a private buyer must be in writing, with a three-day cooling-off period (Article 7:2 BW).
• Ownership only passes on registration of the notarial deed of transfer (Article 3:89 BW).
• Check the Kadaster, limited rights, the environmental plan and, for apartments, the owners’ association before you sign.
• The seller’s duty to disclose generally prevails over your duty to investigate.
• Report a defect in writing within a reasonable time after you discover it.

At Law & More we advise buyers and sellers on purchase agreements, defects and property disputes, in English and Dutch. Unsure where you stand? Tell us about your situation. We will let you know your options within one working day.