What should you look out for when buying and selling real estate?
The purchase of a home must be recorded in writing (Article 7:2 of the Dutch Civil Code). You only become the owner once the notarial deed of transfer has been entered in the public registers of the Land Registry (Kadaster) (Article 3:89 of the Dutch Civil Code). Most disputes arise in the weeks between signing the purchase agreement and the transfer.
A private buyer of a home has a three-day cooling-off period (bedenktijd) after signing. After that, the purchase is binding, unless a condition subsequent (ontbindende voorwaarde) applies, such as the financing condition. Such a condition only works if you invoke it in time and in the correct way. So pay close attention to the dates in the purchase agreement.
If a party fails to perform its obligations, the other party can give it notice of default (ingebrekestelling) and then claim performance, termination or damages. Many standard purchase agreements contain a penalty of 10 per cent of the purchase price. The court can reduce that penalty if applying it in full would be clearly unacceptable (Article 6:94 of the Dutch Civil Code). A real estate lawyer can check the purchase agreement on these points before signing. Read more about terminating a purchase agreement.
What can you do about hidden defects?
A home must have the properties you were entitled to expect under the purchase agreement (Article 7:17 of the Dutch Civil Code). If it does not, there is non-conformity (non-conformiteit) and you can hold the seller liable.
Whether you have a strong case depends on the seller's duty to disclose (mededelingsplicht) and the buyer's duty to investigate (onderzoeksplicht). A seller must disclose defects he knows about. A buyer must investigate what he could reasonably discover, for example with a structural survey. An age clause or asbestos clause may limit your position. A real estate lawyer assesses, with a building specialist if necessary, whether the defect was discoverable for you.
You must inform the seller within a reasonable time after discovery (Article 7:23 of the Dutch Civil Code). If you buy as a consumer from a professional seller, notification within two months is in any event timely. A claim is in principle time-barred two years after that notification. See also our page on hidden defects in a home.
What applies if you buy land from the government?
A municipality or other public authority that sells land must in principle offer equal opportunities to all interested parties. This follows from the Didam judgment of the Supreme Court (Hoge Raad) of 26 November 2021 (ECLI:NL:HR:2021:1778).
The authority must announce its intention to sell in good time and apply objective selection criteria. Only if it is established in advance, or may reasonably be assumed, that there is only one serious candidate may it sell on a one-to-one basis. This case law has major consequences for project developers and investors. Also read our article on land development agreements.
Which rules apply to renting and letting real estate?
Tenancy law in Book 7 of the Dutch Civil Code draws a sharp distinction between residential space and business premises. A tenant of residential space has strong security of tenure (huurbescherming): the tenancy only ends if the tenant agrees or the subdistrict court (kantonrechter) decides so (Articles 7:272 and 7:274 of the Dutch Civil Code).
Since 1 July 2024, the Fixed-Term Tenancy Abolition Act (Wet vaste huurcontracten) has applied: tenancy agreements for residential space are in principle for an indefinite period. As a result of the Affordable Rent Act (Wet betaalbare huur), the points system has also applied to a large part of the mid-rent segment since the same date. Since 1 July 2023, the Good Landlordship Act (Wet goed verhuurderschap) has set rules for every landlord, such as a maximum deposit of two months' basic rent.
Business premises are split into two categories. Shops, restaurants and cafés and craft businesses fall under Article 7:290 of the Dutch Civil Code, with a tenancy term of in principle five plus five years. Offices fall under Article 7:230a of the Dutch Civil Code, with protection against eviction only. Since 1 January 2023, an office building must in principle also have at least energy label C; otherwise it may no longer be used as an office.
Our tenancy law lawyers handle disputes about tenancy agreements, rent, defects and eviction. Read more on our page about the tenancy law lawyer.
What are your rights in construction, additional work and completion?
Under a construction contract (aanneming van werk), the contractor undertakes to build a work and deliver it (Article 7:750 of the Dutch Civil Code). Since 1 January 2024, the Building Quality Assurance Act (Wet kwaliteitsborging voor het bouwen) has applied. Since then, the contractor is also liable after completion for defects that were not discovered at that time, unless they cannot be attributed to him.
For a private client, the contractor must provide a completion file (opleverdossier) (Article 7:757a of the Dutch Civil Code). A private client may deposit no more than 5 per cent of the contract price with a notary, as security for the repair of completion defects (Article 7:768 of the Dutch Civil Code). A claim for a construction defect is time-barred no later than twenty years after completion (Article 7:761 of the Dutch Civil Code).
Additional work is work outside the original assignment. In principle, the contractor can only charge a price increase if he warned you of the need for it in good time, unless you should have understood that need yourself (Article 7:755 of the Dutch Civil Code). So always record changes in writing, including the price. At completion, also record all visible defects in a completion report.
Business projects are often governed by the UAV 2012 or the UAV-GC 2005 (standard Dutch construction terms), with their own rules on additional work, completion and the liability of contractors and architects. For construction disputes, you can turn to our construction law lawyer. In project development, where construction and purchase come together, our construction law lawyers and the real estate lawyer work together.
What does an owners' association regulate and which rights limit your ownership?
Anyone who buys an apartment becomes the owner of an apartment right (appartementsrecht) and automatically a member of the owners' association (Vereniging van Eigenaren, VvE). The deed of division (splitsingsakte) and the regulations of division determine which parts are private and how the costs are shared.
An owners' association must reserve funds every year for major maintenance: on the basis of a multi-year maintenance plan or at least 0.5 per cent of the reinstatement value (Article 5:126 of the Dutch Civil Code). If you disagree with a decision of the meeting, you can ask the subdistrict court to annul it. You must file that request within one month (Article 5:130 of the Dutch Civil Code). A real estate lawyer can review the deed of division and the decision for you. See also our page on the owners' association lawyer.
Ownership can also be limited by the rights of others. These are recorded in the public registers and pass to the new owner on sale. The rules are in Book 5 of the Dutch Civil Code.
- A ground lease gives the right to use someone else's land, usually in return for an annual ground rent (canon) (Article 5:85 of the Dutch Civil Code). When buying, pay attention to the term and the review dates.
- A right of superficies gives the right to have buildings or works in, on or above someone else's land (Article 5:101 of the Dutch Civil Code), for example solar panels on another party's roof.
- An easement (erfdienstbaarheid) is a burden on one plot for the benefit of another plot, such as a right of way (Article 5:70 of the Dutch Civil Code).
Neighbour law is also in Book 5. You may not cause your neighbours unlawful nuisance, for example through noise or smell (Article 5:37 of the Dutch Civil Code). Trees must in principle be at least two metres from the boundary, shrubs and hedges half a metre (Article 5:42 of the Dutch Civil Code). Read more on our page lawyer for neighbour disputes.
