Withdrawing from a Dutch property purchase: when is it still possible?

As a private buyer of a home in the Netherlands, you can withdraw from the purchase without giving a reason within three days after receiving the purchase agreement signed by both parties (Article 7:2 of the Dutch Civil Code, BW). After that, you can only withdraw on a ground in the contract, such as a financing condition, or because the seller fails to perform; otherwise you usually owe a penalty of 10% of the price.

This page explains when the agreement becomes binding, how the cooling-off period (bedenktijd) works, which resolutive conditions (ontbindende voorwaarden) let you out, and what withdrawing without a valid ground costs.

When is a Dutch property purchase binding?

A purchase of a home by a private buyer becomes binding only once it is laid down in writing, under Article 7:2(1) BW. An oral agreement on price through the estate agent (makelaar) does not yet bind a private buyer to buy.

In practice, the seller’s agent drafts a written purchase agreement (koopovereenkomst), usually based on a standard model. Ownership passes only later, when the deed of transfer is signed before a civil-law notary and registered in the public registers of the Land Registry (Kadaster).

How does the three-day cooling-off period work?

Under Article 7:2(2) BW, a buyer who is a natural person not acting in the course of a profession or business may dissolve the purchase of a home within three days. The period starts on the day after the signed agreement, or a copy of it, has been handed over to the buyer.

The three days are calendar days. Under the General Time Limits Act (Algemene termijnenwet), a period does not end on a Saturday, Sunday or public holiday and must include at least two days that are not. If you receive the signed agreement on a Thursday, the period therefore runs until the end of Monday.

You do not have to give a reason, and dissolution costs you nothing. Send your notice in writing, by email and registered post, so that you can prove the seller received it in time. The seller cannot exclude the cooling-off period to your detriment.

There is one limit. If you dissolve and then buy the same home from the same seller again within six months, you do not get a new cooling-off period. Buyers acting for a business, such as a company buying an investment property, have no cooling-off period at all.

Which resolutive conditions can you rely on?

After the cooling-off period, you can only withdraw at no cost if the contract contains a resolutive condition that has been fulfilled. You must invoke it in writing before the deadline in the contract, usually with proof.

Financing condition

The financing condition (financieringsvoorbehoud) lets you dissolve if you cannot obtain a mortgage for the stated amount and on the stated terms before the stated date. The standard models require you to substantiate your appeal, in practice with one or more written rejections from lenders.

You must make a genuine effort. If you apply too late, for a lower amount or on worse terms than agreed, or deliberately frustrate the application, a court may hold that you cannot rely on the condition. Article 6:23 BW treats a condition as fulfilled if the party who benefits prevents its fulfilment against good faith.

Structural survey and other conditions

A survey condition (voorbehoud bouwkundige keuring) lets you dissolve if a survey shows defects above an agreed amount. Other conditions may concern the sale of your current home, a permit for a planned use, or the National Mortgage Guarantee (NHG).

A condition only protects you if it is clearly worded, with an amount and a date. Read the deadlines carefully: once a deadline has passed without a written notice, the condition can no longer be invoked.

Can you withdraw if the seller does not perform?

Yes. If the seller fails to perform, for example by refusing to transfer or not vacating the home on the agreed date, you may dissolve the agreement under Article 6:265 BW. Usually you must first give the seller notice of default (ingebrekestelling) with a reasonable period to perform.

The standard purchase agreement prescribes a written notice of default and a period of eight days. If the seller still does not perform, you can dissolve and claim the contractual penalty, or require performance and claim a penalty per day of delay.

A defect discovered before the transfer can also be a failure to perform, because under Article 7:17 BW the home must have the properties you could expect for normal use. Whether a defect justifies dissolution depends on its seriousness. Read more on seller liability for hidden defects.

What does withdrawing without a valid ground cost?

If you withdraw after the cooling-off period without a contractual or legal ground, you are in breach of contract. Under the standard purchase agreement the seller may then, after a notice of default with eight days to perform, dissolve the agreement and claim a penalty of 10% of the purchase price.

That penalty is usually secured by the deposit or bank guarantee of 10% that you provide to the notary. A bank guarantee cannot be withdrawn after signing; the bank pays the seller if you default. If buyer and seller disagree on who is entitled to the deposit, the notary holds it until they agree or a court decides.

A court may reduce a contractual penalty only if fairness clearly requires it, under Article 6:94 BW, and uses that power with restraint. If the seller’s actual loss is higher, for instance because the home is later sold for considerably less, the contract may allow the seller to claim the excess as damages.

You may also owe the notary for work already done, and the costs of a survey, valuation and mortgage advice are lost. Transfer tax is only due when the transfer actually takes place.

Can you still withdraw just before or after the transfer?

Just before the notary appointment, the same rules apply: without a valid ground, withdrawing is a breach of contract with a 10% penalty. After the deed of transfer has been signed and registered with the Kadaster, you are the owner and there is nothing left to withdraw from.

A completed purchase can only be undone in exceptional cases, for example through annulment for fraud or error (dwaling) under Article 6:228 BW, or through dissolution for a serious non-conformity. These are court proceedings with a heavy burden of proof, so a claim for damages or a price reduction is the more common route.

What should you check as a buyer?

As the buyer, your protection lies in the written agreement and its deadlines. Check these points before and directly after signing.

• On which date did you receive the agreement signed by both parties, and when does the three-day period end?
• Does the agreement contain a financing condition with a realistic amount, interest rate and deadline?
• Is there a survey condition, and can the survey take place before its deadline?
• When is the deposit or bank guarantee due, and how much is it?
• Have you put any notice invoking a condition in writing, with proof of receipt, before the deadline?

What should you check as a seller?

As the seller, you depend on the buyer meeting the deadlines and the conditions. Check these points.

• Was the signed agreement handed to the buyer, and on which date did the cooling-off period end?
• Did the buyer invoke a condition in time and with the proof the contract requires, such as written mortgage rejections?
• Has the deposit or bank guarantee been provided to the notary on time?
• If the buyer withdraws without a ground, have you sent a written notice of default with the eight-day period?
• Have you disclosed all defects you know of, so that the buyer cannot rely on error?

What can we do for you with withdrawing from a property purchase?

Our real estate lawyers assist buyers and sellers of Dutch property, including expats who sign a Dutch-language contract.

• We review the purchase agreement and its resolutive conditions before you sign.
• We calculate the cooling-off and condition deadlines for your specific dates.
• We draft a notice of dissolution or invoke a financing or survey condition on your behalf.
• We send or respond to a notice of default and assess a penalty claim of 10%.
• We negotiate on the release of the deposit or bank guarantee and, if needed, start proceedings.

Summary

• A home purchase by a private buyer must be in writing and is binding once signed.
• The private buyer can dissolve within three days after receiving the signed agreement, without a reason or cost (Article 7:2 BW).
• After that, only a contractual condition, such as financing or a survey, or the seller’s failure to perform gives a ground to withdraw.
• Withdrawing without a ground usually costs a penalty of 10% of the price, secured by the deposit or bank guarantee.
• After registration of the deed, the purchase can only be undone in court in exceptional cases.

Frequently asked questions