1. Introduction
The transfer of cables and pipelines in the Netherlands is legally more complex than many parties assume. In practice, it is not uncommon for the parties involved to believe that a privately signed agreement is sufficient to transfer ownership of cables or a pipeline. This is a persistent misconception.
Since the introduction of Article 5:20(2) of the Dutch Civil Code (BW), cables and pipelines laid in, on or above another party’s land are classified as immovable property. This has far-reaching consequences for the manner in which they can be transferred, encumbered and registered.
In this blog, we discuss the full legal framework for the transfer of cables and pipelines, the tax aspects, the role of the civil-law notary, and the disclosure and information obligations. We illustrate the main points of attention using practical examples from case law.
2. Legal framework
2.1 The cable judgments and their legislative consequences
In the so-called cable judgments (kabelarresten) of 2003, the Dutch Supreme Court (Hoge Raad) ruled that cables and pipelines are immovable. In response, a new paragraph was added to Article 5:20 of the Dutch Civil Code. Article 5:20(2) BW determines who owns a network consisting of cables or pipelines intended for the transport of solid, liquid or gaseous substances, energy or information.
2.2 The authorised constructor
Under Article 5:20(2) BW, ownership of a network vests in the authorised constructor (bevoegd aanlegger) or their legal successor. Simply constructing a network does not automatically confer ownership: what is required is that the constructor was authorised to do so.
The construction itself can be evidenced by contracts with contractors, invoices and correspondence relating to the installation. The authority to construct may follow from an established right of superficies, a statutory duty to tolerate, or a permit. Written consent from the landowner may also demonstrate authority.
2.3 Registration: not constitutive, but essential
Registration of the network in the public registers is not a constitutive requirement for acquiring ownership of an authorised network. The authorised constructor is the owner, even without such registration. Nevertheless, registration is strongly recommended.
Registration makes it possible for third parties to verify who owns the network and protects the owner against third-party rights. Article 3:24(1) BW provides that a fact not registered (such as the construction of a network) cannot be invoked against third parties.
| Key point: registration is a prerequisite for transfer In certain cases, registration is in fact necessary. Since the network is immovable, any transfer or encumbrance (e.g. by mortgage) must take place by means of a notarial deed and registration thereof in the designated public registers. Only after the construction of a network has been registered can the network be transferred or encumbered. |
Because pipelines and networks qualify as registered property, a valid transfer requires a notarial deed followed by registration in the public registers of the Land Registry (Kadaster) (Article 3:89 BW). An obligatory agreement (such as a purchase agreement) serves as the title — the legal basis for the transfer — but the actual transfer of ownership requires formal delivery through the notary. An obligatory agreement alone is therefore insufficient.
Under Article 155a of the Transitional Act for the new Dutch Civil Code (Overgangswet nieuw Burgerlijk Wetboek), anyone who acted as owner of a network on 1 February 2007 may have that network registered. Registration takes place by means of a notarial declaration, entry in the public registers, and publication in the Government Gazette (Staatscourant) and a national newspaper.
The registered network receives its own network designation (e.g. “Networks section W number 70”) and is recorded in the Land Registry with corresponding network drawings. When the network or part of it is transferred, this registration must be updated.
Case law (ECLI:NL:HR:2003:AD3578) indicates that a network does not always need its own cadastral designation; in some cases, the designation of the parcel in which the network is located suffices. However, the transfer must be clearly and fully documented.
When part of a registered network is disconnected and transferred to another party, the network must be formally split. This requires:
This follows from Articles 59 and 60 of the Land Registry Regulations 1994 and is confirmed in the opinion of the Advocate General in ECLI:NL:PHR:2013:CA0727.
When transferring a network, existing rights in rem must be taken into account. Rights of superficies and easements are in principle transferable (Article 3:83 BW), but the deed of establishment may provide that transfer or splitting is only possible with the owner’s consent (Article 5:91 BW in conjunction with Article 5:104 BW).
A dependent right of superficies is not independently transferable and lapses with the principal right (ECLI:NL:PHR:2012:BV0647). It is therefore essential to review the deed of establishment for any restrictions before proceeding with a transfer.
The civil-law notary (notaris) performs a central safeguarding function in the transfer of pipelines and networks. The notary is not merely a “passer” of deeds, but has an active duty of investigation and duty of care.
Under Article 21 of the Notaries Act (Wet op het notarisambt), the notary has a duty to investigate and must refuse to provide services if there are indications of conflict with the law or public order. The Supreme Court confirmed in ECLI:NL:HR:2015:831 that the notary must not only safeguard formal requirements but also consider the interests of third parties.
Under Article 7:15 BW, the seller is obliged to deliver the network part free of special encumbrances and restrictions, unless the buyer has expressly accepted these. Article 7:17 BW provides that the delivered goods must conform to the contract, taking into account the seller’s representations.
Case law is clear: the seller’s duty of disclosure outweighs the buyer’s duty of investigation (ECLI:NL:GHAMS:2024:2622; ECLI:NL:RBZWB:2025:6287). The seller must actively inform the buyer of known defects, restrictions, third-party rights and other relevant facts.
In practice, the seller must at minimum provide the following information:
If the seller provides incorrect or incomplete information, they may be liable for non-conformity (Article 7:17 BW) or tort (Article 6:162 BW). The buyer may then choose from several remedies:
The Supreme Court has confirmed that the duty of disclosure takes precedence: if the seller withholds relevant information, they cannot rely on the buyer’s failure to conduct further investigation (ECLI:NL:HR:2016:2885; ECLI:NL:HR:1998:ZC2629).
Where the buyer disputes that they were fully informed, the burden of proof lies with the seller to demonstrate compliance with the duty of disclosure (Article 150 DCCP; ECLI:NL:HR:2007:BB3733). It is therefore advisable to document all communications in writing and to compile a comprehensive information dossier.
The transfer of pipelines and networks is generally exempt from transfer tax (overdrachtsbelasting) under the network exemption in Article 15(1)(y) of the Legal Transactions Tax Act (Wet op belastingen van rechtsverkeer, WBR). This exemption applies to the acquisition of a network consisting of cables or pipelines intended for the transport of substances, energy or information.2.4 Transfer: title and delivery
2.5 Registration with the Land Registry (Art. 155a ONBW)
2.6 Splitting a network
2.7 Rights in rem: superficies and easements
3. The role of the civil-law notary
3.1 Duties of the notary
3.2 Duty of investigation and duty to refuse
4. Notification and information obligations
4.1 Seller’s duty of disclosure
4.2 Minimum information to be provided
4.3 Liability for breach of information obligations
4.4 Burden of proof on the seller
5. Tax aspects
5.1 Network exemption from transfer tax
| Note: restriction of network exemption from 1 January 2026 The broad interpretation of the network exemption is being restricted from 1 January 2026 onwards. From that date, the acquisition of a right of superficies on land in which a network is laid will no longer fall within the scope of the network exemption (Decision of the State Secretary for Finance, 22 May 2024). This may have significant tax consequences for network transfers. |
For VAT purposes, the supply of networks is in principle taxable unless an exemption or intra-Community supply applies (Articles 16 and 17e of the Turnover Tax Act, Wet OB). The exact tax treatment depends on the factual situation and the qualification of the network as registered property.
Transfer tax is levied on the fair market value (waarde in het economische verkeer), not on the agreed purchase price. A transfer at € 0.00 therefore does not automatically mean that no transfer tax is owed. The tax authorities may determine the actual value and issue a supplementary assessment (rate: 10.4% for non-residential property). It is advisable to substantiate the valuation, for example by demonstrating that demolition costs exceed the residual value.
The following judgments illustrate the main legal points of attention in network transfers:5.2 VAT aspects
5.3 Valuation in € 0 transactions
6. Practical examples from case law
| Judgment | Subject | Key consideration |
| ECLI:NL:HR:2021:1813 | Network exemption – TES | The Supreme Court confirmed that the network exemption applies to thermal energy storage (TES) installations consisting of pipelines and networks. |
| ECLI:NL:HR:2020:170 | Transmission towers | Transmission towers do not fall within the network exemption, as they do not qualify as a network within the meaning of the law. |
| ECLI:NL:HR:2003:AD3578 | Cadastral designation | A network does not always need its own cadastral designation; in some cases, the designation of the parcel suffices. |
| ECLI:NL:HR:2016:2885 | Duty of disclosure | The seller’s duty of disclosure outweighs the buyer’s duty of investigation in cases of non-conformity. |
| ECLI:NL:HR:2015:831 | Notarial duty of care | The notary has an extensive safeguarding function and must conduct further investigation or refuse participation if in doubt. |
| ECLI:NL:RBZWB:2025:66/67 | Share transfer | When transferring shares in companies operating networks, the network exemption does not always apply. |
| ECLI:NL:PHR:2012:BV0647 | Dependent superficies | A dependent right of superficies is not independently transferable and lapses with the principal right. |
The following checklist can serve as a guide when transferring (part of) a network.
The transfer of pipelines and networks is a legally complex process that extends well beyond signing an agreement. Their classification as immovable property entails formal requirements — a notarial deed and Land Registry registration — that must not be bypassed.
The seller bears an extensive duty of disclosure and must actively inform the buyer of all relevant legal, technical and factual aspects. Breach of this duty may result in liability, rescission or damages.
From a tax perspective, the network exemption deserves particular attention, especially given the restriction coming into effect on 1 January 2026. In the case of € 0 transactions, the fair market value must be substantiated to avoid supplementary assessments.
Thorough preparation — with due diligence, notarial guidance and comprehensive documentation — is the key to a legally valid and problem-free transfer.
Below is an overview of the key statutory provisions and case law referenced in this blog.
No. Since the introduction of Article 5:20(2) BW, pipelines and networks are classified as immovable property. Transfer requires a notarial deed and registration in the public registers of the Land Registry (Article 3:89 BW). The purchase agreement serves as the title (legal basis), but the actual transfer of ownership requires formal delivery through the notary. Without a notarial deed, the transfer is not legally valid.
Dutch law operates a causal system of transfer of ownership with three requirements: a valid title (the obligatory agreement, e.g. sale), delivery (for immovable property: notarial deed and Land Registry registration), and authority to dispose on the part of the transferor. Only when all three requirements are met does ownership pass.
Purchase receipts or construction records can serve as evidence of who the authorised constructor is, but they are not sufficient for the legal transfer of ownership. Case law confirms that without a notarial deed and registration, no transfer of ownership takes place, regardless of possession of receipts (ECLI:NL:PHR:2024:43; ECLI:NL:RBNNE:2014:4581).
Not necessarily. The network exemption (Article 15(1)(y) WBR) exempts the acquisition of a network consisting of cables or pipelines from transfer tax. Note: this exemption is being restricted from 1 January 2026. If the exemption does not apply, the rate is 10.4% of the fair market value. In the case of a € 0 transaction, the tax authorities may determine the actual value.
For a partial transfer, the network must be formally split. This requires new network drawings, a new network designation for the separated part, deposit with the Land Registry, and a notarial deed of delivery. Both parties — the original owner and the buyer — must be involved in the notarial splitting deed.
The civil-law notary performs a central safeguarding function. They prepare the deed of delivery, verify all statutory requirements, ensure the consent of all parties involved, and handle registration with the Land Registry. The notary also has a duty of investigation (Article 21 Notaries Act) and must refuse participation if there are indications of conflict with the law.
The seller must actively inform the buyer about: the precise location and technical condition, existing contracts and obligations, known defects and malfunctions, third-party rights, public-law restrictions, and relevant technical documentation. The seller’s duty of disclosure outweighs the buyer’s duty of investigation (ECLI:NL:HR:2016:2885).
You can annul the agreement on grounds of error (Article 6:228 BW), claim rescission or price reduction (Articles 7:21 and 7:22 BW), or seek damages (Articles 6:74 and 7:24 BW). The Supreme Court has confirmed that the seller’s duty of disclosure takes precedence over the buyer’s duty of investigation.
Yes. The deed of establishment of a right of superficies may provide that transfer or splitting is only possible with the owner’s consent (Article 5:91 in conjunction with Article 5:104 BW). A dependent right of superficies is moreover not independently transferable. Always review the deed of establishment before proceeding with a transfer.
The seller bears the burden of proof (Article 150 DCCP; ECLI:NL:HR:2007:BB3733). It is advisable to record all information provision in writing: correspondence, transfer dossiers, due diligence reports, and acknowledgements of receipt signed by the buyer. Oral communications are difficult to prove.
7. Practical checklist
7.1 Preparation and due diligence
7.2 Information obligations and documentation
7.3 Legal and formal aspects
7.4 Tax aspects
7.5 Operational transfer
8. Conclusion
9. Sources and references
Legislation
Case law
10. Frequently Asked Questions (FAQ)
Can I transfer a pipeline or network with just a purchase agreement?
What is the difference between the obligatory agreement and delivery?
What if I have receipts proving that I constructed the pipeline?
Do I have to pay transfer tax when transferring a network?
What needs to happen if I want to transfer part of a registered network?
What role does the notary play in the transfer?
What information must the seller provide to the buyer?
What can I do if the seller has withheld essential information?
Can existing rights in rem restrict the transfer?
How can the seller prove compliance with the duty of disclosure?
