KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER DUTCH LAW Introduction The purchase of an immovable property is a mutual agreement.

property has the characteristics necessary for a normal use and on the presence of which he did not need to doubt, and also that it has the characteristics necessary for a particular use which was foreseen in the agreement. The parties can derogate from this statutory main rule at the time of the purchase agreement. This is often done by giving substance to the duty of disclosure and examination and laying down the outcome in the agreement. Elements purchase agreement The following items require attention during the negotiations and in the purchase agreement: • object description • purchase price • transfer of ownership by means of a notarial deed of delivery • costs and taxes • current agreements with regard to the immovable property • transfer and transmission of claims

Neither the seller nor the buyer has the obligation to make use of the services of a real estate agent. In practice actually one often sees that the seller instructs a real estate agent to act as an intermediary. A purchase agreement cannot be effected by the real estate agent himself: he is merely the intermediary. Should the seller engage a real estate agent, the seller must also pay the charges arising from the use of his services. A real estate purchase agreement is often preceded by a pre-contractual stage. If the parties have agreed upon essential conditions, a purchase agreement has been achieved. Generally, no formal requirements need to be observed, which means that a written purchase agreement is not necessary. This requirement only applies in the event of consumer sale i.e., that a residence is purchased by a natural person. In case of a consumer sale a so-called reflection period applies. During three days after signing the purchase agreement the consumer buyer has the right to dissolve the agreement without having to give reasons and without consequences. Conformity – examination The Dutch Civil Code (article 7:17) stipulates that a seller is obligated to supply to the buyer an immovable property that must be in conformity with the agreement. The immovable property is not in conformity with the agreement if it does not have the characteristics that the buyer, given its nature and the statements of the seller about it, could have expected on the basis of the agreement. The buyer may expect that the immovable

• guarantees seller • oversize/undersize •

environmental regulations risk transfer of damage

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notice of default/omission/dissolution/penalty • energy performance certificate • registration in the public records • Municipalities Preferential Rights Act • suspensive or dissolving conditions

ILN Real Estate Group – Buying and Selling Real Estate Series

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