You are only in negotiation once the vendor has responded to your offer by making a counteroffer. You are not in negotiation when the vendor’s broker says that he/she will discuss your offer with the vendor

No. The ‘purchasing costs payable by the purchaser’ includes the costs the government associates with the transfer of a property. This is a transfer tax (6%), the notarial charges for drawing up the deed of transfer of title and the cost of the inclusion thereof in the registers. In addition, the buyer should take the (notarial) costs for the drawing up and registration of the mortgage deed into account. If the vendor used a real estate broker to sell the house the costs are at his/her expense. After all, the vendor’s broker represents the interests of the vendor and not yours as the buyer.

This is why you should hire a NVM real estate broker. The real estate broker’s commission for the buyer’s broker is at the buyer’s expense.

Yes, this is permitted. Negotiations will not necessarily lead to a sale. For example it is possible that negotiations are underway with several prospective buyers. A NVM broker is obliged to make this clear to you.

The vendor’s NVM broker will often tell interested parties that a property is ‘under offer’. As an interested party you are entitled to make an offer but the broker can only enter negotiations with you once negotiations with the first interested party have been concluded. The NVM broker is not permitted to make any statement about the offers. This could lead to outbidding.

No. The Supreme Court of the Netherlands has ruled that the asking price should be seen as an invitation to make an offer. Even if you offer the asking price the vendor can decide to accept your offer or have his broker make a counteroffer.

Yes, the vendor can decide to increase or decrease the asking price. In addition as a prospective buyer you may also decide during the negotiations to decrease your offer. As soon as the vendor makes a counteroffer your previous offer lapses.

Once the vendor and the buyer have reached agreement on the most important points (the price, the date of transfer and the resolutive condition), the vendor’s broker will set out the agreements made in a contract of sale. Resolutive conditions are an important aspect. As the buyer, you will not automatically get a resolutive condition. If you for example require a resolutive condition for the finance, you must state this when making your offer. It is important that the parties agree on any additional agreements and resolutive conditions before the contract of sale is drawn up.

As soon as both parties have signed the contract of sale, and the buyer has received a copy of this contract, you have a three-day reflection period. During these three days you are entitled to cancel the purchase. If you decide to buy the property the transfer will take place with the civil-law notary on the agreed date of transfer.

Yes, this is permitted. If there is more than one interested party willing to pay the asking price (or more) the vendor’s broker – in consultation with the vendor – may decide to discontinue the current negotiations and change the offers procedure. For example to a registration procedure. This gives all bidders an equal opportunity to make the highest offer. Before changing the system, the broker must of course fulfill any agreements already entered into.

The asking price is determined after consultation between the vendor and his or her broker. An interested buyer is entitled to negotiate, but the vendor decides.

In a legal sense, an option gives a party the choice to conclude a contract of sale with the other party through a unilateral declaration. The parties have agreed on the conditions of the sale, but the buyer, for example, is given an extra week to consider. Such an option is common when purchasing newly built properties. This is not the case with existing properties, however. The term ‘option’ is often used incorrectly. In this case, it refers to certain concessions a vendor’s NVM broker may be prepared to make to an interested prospective buyer during the negotiation process.

In the meantime the NVM broker will try not to enter into negotiations with another party. The interested buyer can use this time to obtain better insight into his/her finance or the potential uses of the property. You cannot demand an option; the vendor and the vendor’s NVM broker will decide themselves whether particular concessions are made as part of the negotiation process.

No. The vendor’s broker will determine the sale procedure with the vendor. He/she is obliged to inform you of the procedure. However, if you are seriously interested make this clear to the broker. This can prevent disappointment.

A guarantee for the amount mentioned of a Dutch bank that the buyer comply with his obligations mentioned in the purchase agreement

After conclusion of the contract the buyer has a statutory cooling-off period of three days. The period begins after the buyer and seller have signed the purchase agreement and the buyerhas received (a copy of) the agreement.

NVM brokers have an liability insurance for financial loss to third parties arising directly from errors committed in the exercise of their profession.

A development plan for a particular area, adopted by the city council. This includes how certain land and the structures should be used. The development plan includes a zoning map, building requirements, and explanations. On the map a buyer can see which destination a plot has. The building regulations are building possibilities and in that area destinations are shown and described, for example gutter heights, contents of buildings, building lines, building intensity, etc..

The amount bid on a property by a party. This may be linked to: conditions precedent, a completion date and possible takeover movables.

Anyone can call themselves a real estate agent, but only if certain skill requirements are met, a broker/estate agent may officially have themselves certified by KEMA. Only VastgoedCert certified brokers can join the NVM.

The fee for the services that a NVM broker provides you. The amount of the fee you agree upon with your estate agent in a signed contract.

The right to use the land of someone else (eg the municipality) against payment of a canon (a fixed amount per month or year).

The amount that you should count on top of your income as the owner of a property in your tax return (a fixed percentage of the property value).

This document lists all the agreements of the mortgage between the buyer and the financing institution. It will eventually be offered by the notary to the Land Registry and entered in a register specifically for that purpose.

A body that manages public records. The Land Registry Office includes information about: the ground surface, if there is known pollution, if a building is registered as a monument, who is the owner and what it cadastral number is.

This document sets out the details that the seller and buyer have made for the sale.

Following are the meant costs:

• Notary fees for the deed of transfer
• Cost of the Land Registry
• Transfer tax

Agency fees and mortgage costs are not included.

Delivery is split into two parts. In the legal part of the deliverance the property is put onto the name of the buyer (by signing the deed of transfer by the notary office). The actual delivery takes place by the handing over of the keys.

A guarantee that ensures payment if the borrower fails repayment of his mortgage loan. You can close a mortgage loan with National Mortgage Guarantee, but financing with NHG is has a established purchase amount limit. Above this purchase amount you cannot obtain financing with NHG. NHG saves you on the interest rate.

After their professional competence has been established, NVM brokers must take an oath before the NVM to join the NVM. In taking this oath they pledge their profession honesty, reliability and independency.

Code of conduct that has been drawn up by the NVM for its members. The NVM Code of Ethics is the starting point in everyday practice. NVM members are tested for compliance with the Code of Honour NVM.

A computer system in which all the properties sold by the NVM brokers are registered.

Insurance against any hidden defaults that the NVM broker can offer. The insurance is based on a structural survey. A potential buyer may purchase insurance.

Conditions that may be included in the purchase agreement. If a condition is fulfilled, the contract may to be dissolved (usually free of charge). Dissolving conditions may include obtaining the financing, obtaining a residence permit, obtain the National Mortgage Guarantee or the outcome of a structural survey.

The term option is often used in the sense of certain commitments made by the selling broker to an interested (buyer). For example, when you as a buyer ask to "reserve" the house for you. The seller is not obliged to respond to this request.

A tax that is levied by the buyer of a property (eg a house). Currently it stands at 2% of the value of property sold if it’s concerns a home. Otherwise the transfer tax is 6% of the value of the property

These are things that are not fixed to the property, which the buyer may purchase from the seller, either for a fee or not.

The making of a value judgment about, for example a building by an authorized person, such as your estate agent. Eg when selling or renovating a home, to apply for a mortgage or under the Valuation of Immovable Property Act.

The legal transfer of ownership at the notary.

The union of all co-owners of an apartment building. Of this you are by law automatically a member if you are the owner of an apartment in the building. The Owners Association promotes the common interests in and around the apartment. In the deed of division it is indicated what part you as the owner have in the entire building.

This means that there are no additional charges for the buyer to obtain the property. Any mortgage costs and the costs of a broker remain for the account of the buyer.

An amount paid by the buyer (usually to the notary office) as a guarantee that he will fulfill his (payment) obligations mentioned in the purchase agreement.

An instruction to assist in finding and buying a home. Also called named purchase order. To do this, the broker may charge a fee. What services are included in this instruction depends on what the broker and the client agree upon with each other.