I have signed a contract of sale for a house, what are the next steps?
Home Purchasing agency, Nivita Makelaars knows what to do
The contract of sale has been signed by seller and buyer! The first steps have been taken, Cheers. However, you are not there yet. Which steps still need to be taken? Nivita Makelaars tells more about it.
1. How do I prepare a mortgage application in the Netherlands
We will ensure that all terms and resolutive conditions are included in the purchase agreement. If the purchase agreement has been approved by Nivita Makelaars, we will review and discuss it. Then you can sign. After the purchase agreement has been signed, you can continue the mortgage application. Before signing the purchase agreement we will have ready the appraisel report. And if necessary the structural survey. The mortgage advisor or bank need the following documents: copy of your passport and residence permit, the signed purchase agreement, appraisal report, employer’s declaration, salary specification, statements of savings accounts or loans, investment portfolios and property owned outside of the Netherlands, confirmation of the tax department’s granting of the 30% ruling (if applicable).
2. What insurances are compulsory for my home?
Expats who have bought a house in the Netherlands are obliged to take out residential premises insurance for fire and water damage (opstalverzekering). This is a condition to get a mortgage. If you have bought an apartment, yourVereniging van Eigenaren – VvE (homeowners association) should provide the insurance. Otherwise, you have to arrange this insurance yourself. Often a life insurance is also obligated.
A popular insurance in the Netherlands is the household contents insurance (inboedelverzekering), which covers damage to your household goods caused by fire, burglary, explosion, storms, water, and various other factors. The sum insured will usually be subject to the average value of the contents in a house, so it is important that the sum insured is up-to-date.
The following insurances are not obligated but very useful to have:
- Liability/third party insurance (Aansprakelijkheidsverzekering): coverage of the damages that you, family members or pets cause by accident (i.e. damage to the apartment you are renting or to the neighbours)
- Legal aid insurance Category ‘’Living’’ (Rechtsbijstandverzekering categorie “Wonen’’): after the purchase you could have a (hidden) defect or a dispute arises with a contractor, this insurance reimburses the legal costs. The mortgage advisor can take care of these insurances.
Your bank or mortgage advisor can help you. For further information you can also contact the Dutch association of insurance companies (Het Verbond van Verzekeraars) on 070 333 8500 or via the online form available at www.verzekeraars.nl (website available in English).
3.The three-day cooling off period or reflection period
The cooling-off period starts just after midnight the day after you received the signed purchase agreement. If you do decide to pull out, you need to inform the Nivita Makelaars. We will inform the seller and the seller’s real estate agent as well before the cooling off period expires. Of these three days, two days must be working days. If the cooling-off period ends on a Saturday, Sunday or public holiday, the period will be extended up to and including the next day. Nivita Makelaars will always indicate at the moment of signing when this reflection period starts and expires.
4. What does a notary do in the Netherlands?
Now that the purchase agreement has been signed, we will ensure that all documents are delivered to the notary. In Amsterdam the purchase agreement is drawn by the notary. In other parts of the Netherlands by the real estate agency.
The notary will check the public records to verify all kind of data ( seller, buyer, the house, etc..), make sure there are no unexpected debts, make sure the ownership of the property may legally be transferred an some more stuff.
You will also receive e-mails from the notary to, for example, to send your copy of your ID (even if we have already provide these). You will also have to fill in an inquiry list yourself. If you want to deposit savings to lower your mortgage sum, you must also declare what is the origen of the money. This is governed by a law: Money Laundering and Terrorist Financing (Prevention) Act. The purpose of this law is to combat money laundering and terrorist financing. In order for the transfer to take place, you are obliged to fill in all the forms by the notary independently and on time. For more information about this Law: https://www.fiu-nederland.nl/nl/wetgeving/wetgeving-algemeen/wwft
5. Property transfer at the notary: what will happen?
Nivita Makelaars will reserve a time for the signing at the notary. As soon as this time is definite, you will be informed by the notary and by us. Then we also make the appointment for the final inspection with the sales agent. Approximately seven working days before the transfer, we will also receive the invoice of settlement, the deed of delivery and the mortgage deed. We will go through the invoice of settlement and the delivery contract and check them for accuracy. The mortgage broker should go through the mortgage deed and discuss it with you.
Remember to bring a valid form of identification to the notary. This can be a passport, identity card or driver’s license. At the notary, the bill of settlement, delivery deed and mortgage deed will be discussed and signed.
Are you unable to attend the notary appointment? Then you can issue a notarized power of attorney to the notary or another person. Can you email this to the notary well in advance? The notary will then arrange this further with you.
You will receive the house keys at the notary’s office after the deed of transfer has been signed.
6. Buying a house together without getting married
Yes you can! Legally, you are not legal heirs of each other in these cases. So when one of you dies, part of the house becomes the heirs of your deceased partner. Think about this carefully. Therefore, it is wise to enter into a cohabitation contract or a will before transferring ownership. Make an appointment with the notary in advance to get informed and arrange these matters properly.
7. Why are the deeds registered in the Land Registry (Kadaster)?
After the deed of delivery and mortgage deed have been signed at the notary, these documents are presented digitally to Kadaster. Notary first has to do a final check in the Kadaster. They will check whether the house was seized at the last minute. A seizure is registered in the Land Registry and is therefore verifiable. That is why the deed of delivery is also referred to as a minute deed, because the exact time of signature is written. If no seizure has been made on the house, the deeds are registered in the Kadaster. Only then will ownership really become legal. If an attachment has been made, the notary will immediately contact the buyer and the broker. The funds will be therefore kept safe in the bank account of the notary. Such a situation is rare. After the deeds have been processed in the Kadaster you will receive a proof of ownership. It may take weeks before you receive this document. In the meantime, you have become a legal owner. This is also visible in the online system of Kadaster.
8. Registering a sales contract with the Land Registry (Kadaster): is that really necessary in the Netherlands?
Nivita Makelaars advises if it is necessary to register the sales contract (purchase agreement) in the Kadaster. The purpose of registration is that the buyer is legally protected against risky events. These events can take place between the moment of signing the purchase agreement and the transfer of ownership at the notary. Registering a deed of sale is not an obligation in the Netherlands.
Registration of the purchase deed is handeled by the notary. By registering the purchase deed, you agree that all your details and the details of the purchase will be made public. After all, Kadaster is a public register.
The registration protects you from below events for a maximum of six months:
- A sale and delivery of the house to another buyer
- Seizures made after registration
- Rental of the house
- Qualitative terms that have been concluded after registration
- Bankruptcy, suspension of payment, debt restructuring or administration of the seller
- The establishment of a pre-emptive right by the government without consultation. The government does not go for the buyer.
Registering the purchase agreement with the Kadaster entails costs. The notary costs, land registry costs and VAT are approximately € 300. If the transfer of ownership does not take place, the registration of the purchase agreement must also be removed from the land registry. This also entails costs.
9. When do I have to pay the buyer costs (closing costs)?
On the invoice of settlementwhich you will receive from the notary you can see exactly what amount at the bottom of the line still needs to be deposited in the bank account of the notary. This amount consists of closing costs, settlement of the owner’s share and possibly your own contribution to the purchase price. You will receive this invoice approximately two weeks before the planned transfer of ownership. On the day of the scheduled property transfer all funds must be in the bank account of the notary . If this is not the case, the transfer of ownership cannot take place on this day. In that case you will be fined by the other party. So make sure you transfer these costs in time.
10. Deposit or bank guarantee: what is the difference?
Article 5 of the purchase agreement describes when the deposit or bank guarantee must be paid and the amount of it. You can pay the deposit from your own money or you can buy the bank guarantee from a lender. If you can miss 10% of the purchase price for a number of weeks, our advice is to deposit it yourself at the notary. In this case, the notary will email you an instruction. With a bank guarantee, a third party promises to advance the deposit if the purchase does not go through. For this you sign a separate agreement with the lender. Will the sale continue? Then the agreement ends again. Often the bank guarantee costs 1% of the deposit, but some lenders charge less or no costs at all. The notary settles these costs with the transfer. Do you want to deposit a bank guarantee? Report this to the mortgage advisor who will take care of it.
11. Inspection of the dwelling: why this is important?
It is important to first do the final inspection of your new house. Nivita Makelaars and you will do the final inspection on the day of key handover. During the final inspection, we will review the house, check all appliances, check whether the boiler is functioning, all radiators heat up, flush the toilets properly, floats work properly, are not leaks from taps and whether there are broken windows / frames. There is nothing we can do about things that were broken before the purchase and of which we were aware. Items that have broken between purchase and delivery must be repaired by the seller. It may appear during the final inspection that something is not working and that it is broken. Then an agreeement for the reparation or defect will be made on the spot and noted on the final inspection form. The sales agent must have this form with him. Nivita Makelaars has also these forms.
12. Where and when to report meter readings when moving?
During the final inspection, we note the meter readings for electricity, gas, water, and possibly district heating (Eneco). These are your starting positions and for the seller the final positions. You must report these meter readings online within 5 days to the electricity and gas supplier and water company. Provide the meter readings in time and prevent closure.
13. Help in choosing a utility, internet and TV supplier?
We work together with the company EASY NUTS. They arrange all living facilities for new homeowners, such as selecting an energy supplier, internet and TV connection. They compare all suppliers and give you the best advice. They can call you without obligation about this. If you would like more information, please let us know by email at email@example.com.
14. Take over movable property from seller
With the purchase there is also a list of things. You will find a number of columns on this list of things. The column “lags behind” you bought and paid in the purchase price. These items will therefore remain in the house and we will of course also check during the final inspection. Sometimes it happens that buyers also take over other items. Then under column “to take over” a number of movable items are checked. If you are interested in these movable property, you can always contact the seller after signing the purchase agreement. The details of the seller are on page 1 of the purchase agreement. Make an appointment, view the movable items and make a price agreement with the seller. On the day of the final inspection, we can check whether all these items are actually in the house and you can pay on the spot with the seller.
15. View the house again after signing the contract of sale
Do you want to view the house again after signing with a contractor or to measure measurements? Make an appointment with the seller for this. The details of the seller are on page 1 of the purchase agreement.
16. Is the interpreter obligated at the notary?
According to Dutch law, it is mandatory that a sworn interpreter is present during the drawing appointment at the notary. The notary ensures that this interpreter is called in. Take into account extra costs of between 300 and 400 euros. In Rotterdam we work with a notary who speaks fluently English and German. It is therefore not necessary to hire an English or German interpreter from this notary. This saves you money.
For more information, read: https://www.tolkennet.nl/tolken-bij-de-notaris/
For all other questions you can contact us!